Organizational change can be challenging. This is especially true of technology changes and process changes. If you’re about to embark on an ERP implementation or digital transformation, you must understand the challenges that await.
Today, we’re outlining the top organizational change pain points that companies experience. Fortunately, each of these pain points will melt away if you anticipate them before they surface.
6 Organizational Change Pain Points to Nip in the Bud
1. Lack of Leadership Support
Without the support of your leadership team, implementing change in your organization can be nearly impossible.
The leadership team plays a crucial role in organizational change management (OCM) because their buy-in is infectious. When executives support a change initiative, it can reduce change resistance among employees.
In contrast, when employees see their leaders acting indifferent to the change, they will doubt its value and be slow to adopt new technology, such as a new ERP or SCM system.
To overcome this pain point, you must ensure that executives are equipped to communicate the goals of the digital transformation and the value of the change. Often, this means addressing the question, “What’s in it for me?”
One of our manufacturing clients had the leadership team attend end-user meetings to hear end-user inputs into the project. This demonstrates how leadership involvement is more than just emails and strong statements.
Change Management Case Study
The client recognized their need for more comprehensive change management, so they asked us to fill in the gaps. We developed a robust communication plan to supplement the vendor’s communication approach.
2. Inadequate Communication
Poor communication can take many forms, but one of the most common is a failure to tell employees how the organizational change will make their jobs easier.
Usually, employees take one look at the learning curve and think their job will become harder. If you dispel these fears, you can increase employee buy-in.
Clear communication is the key to dispelling fear. Be concise and transparent, while ensuring your messaging aligns with a comprehensive OCM strategy.
We recommend developing an OCM strategy that assesses stakeholder needs and root causes of resistance. Then, you can develop a communication plan that outlines key messages, communication channels, and specific audience segments. With a comprehensive plan in place, you can equip project team members to explain the rationale behind the change and the expected outcomes.
3. Resistance to Change
Resistance to change is one of the most common pain points of organizational change. Even with a strong OCM plan in place, you may find that employees are still resisting change. This could be for several reasons, including fear of the unknown, uncertainty about their roles, or a lack of trust in the organization.
To reduce change resistance among employees, you must understand the reasons behind the resistance. In other words, you need to identify the root causes by seeking employee input, so you can address their concerns. When employees feel heard and valued, they are more likely to embrace new processes and technology.
4. Inefficient Change Management Processes
Organizational change management should be structured and intentional. This means you need a formal OCM plan that includes communication, training, resistance management, and more. You should also specify timelines, roles and responsibilities, milestones, and metrics to measure success.
For example, you need to think about how you will give employees an idea of the “before and after” of the change. This might mean conducting surveys, constructing organizational matrices, or developing guides that allow management and end-users to see the impact of the change.
One of our distribution clients created new RACI (responsible, accountable, consulted, informed) charts to prepare employees for the transition from current to future state business processes. This showed employees exactly what was changing in their individual roles. While some future state processes would have additional steps, others would have fewer steps.
5. Lack of Employee Engagement
If your employees do not feel involved in the project, they may not embrace the organizational changes.
In contrast, when you involve employees in key project activities, like software selection and business process reengineering, you can give employees a say in some of the changes affecting their role. In turn, they will be more likely to embrace these changes as they were able to suggest improvements that would make their jobs easier.
6. Resistance from Middle Management
Middle managers can feel threatened by organizational change, particularly if it affects their responsibilities or status within the organization.
For example, managers may not be eager to ask their employees to dedicate less focus to their day-to-day jobs and instead commit to the project.
Middle managers can also be hesitant to fully embrace the role of communicating about the project with their teams. They don’t want to be “the bad guy.” Also, they might not feel informed enough to promote the change anyway.
We recommend providing training and support to middle managers early in the OCM process, so they feel equipped to assume the role of “change champion” or “change agent.”
One of our manufacturing clients fully engaged their middle management. The company worked directly with management to make configuration changes, and as a result, managers had more project buy-in. In this instance, allowing the supply chain director to create MRP configuration updates meant that this stakeholder gained an understanding of the direct impact of each configuration.
(Learn more about the role of managers in change management.)
Stop Pulling Out Your Hair – OCM Pain Points are Surmountable.
Organizational change pain points are often unavoidable, but thankfully, they are surmountable. The key is to approach change with a strategic plan that considers the unique challenges your organization may face.
It’s also important to remember that change is not a one-time event, but a continuous process. New obstacles may arise over time, so it’s critical to be adaptable and open to feedback as you navigate the change process.
By taking a proactive approach to change management, you can create a culture that is resilient, innovative, and forward-thinking. Contact our organizational change management consultants below to learn what proactive OCM looks like.
