What is change management and (why is it important)?
by Silver Cloud
With all HRIS implementation projects, managing change is just as important to get right as the technology itself. While change itself is inevitable, it has to be managed proactively to make sure you have a smooth transition from ‘old to new.’ Adoption of new technology isn’t guaranteed, and we’ve seen more than a few organisations come to us for help after an implementation because things have gone awry.
The longevity of your new system is also an important consideration with change. You want people to easily migrate from their old way of doing things to this shiny new system. You want more people using more of its functions. And you want this system to function well and serve its purpose for a long time. The idea is to avoid going through it all again as soon as your initial contract is over.
That’s why having a clearly defined change management programme is so important to the overall success of your new system.
So, what exactly is change management?
Change management is a collection of activities focused on preparing and supporting individuals, teams and organisations during any kind of major changes, like moving your entire HR function to a new platform. The goal is to increase acceptance of the change and get your people on board with the new ways of working.
The purpose of change management activity is to implement strategies for:
- Effecting change
- Controlling change
- Helping people to adapt to change
Without these strategies in place, you may find yourself struggling against resistance, spiraling plans and a lack of impact from the new system.
Types of business change
There are different types of organisational change. Some of which are simpler to contend with, but all of which need careful consideration and management. The three primary types of change are: developmental change, transitional change, and transformational change.
Developmental change
This is any organisational change that improves and optimises previously established processes, strategies and procedures. This is about growing (or developing) your current state and taking it to the next level.
Transitional change
Transitional change moves an organisation away from its current state to a new state to solve a problem. This could be things like mergers and acquisitions, or even automation.
Transformational change
Change that radically and fundamentally alters the culture, core values and operations is transformational change. These are the most gargantuan changes and need the most comprehensive change management plans.
HRIS implementation projects generally fall within the first category of developmental changes. They take your current ways of doing things up a notch and impact your existing processes and strategies. But they tend not to feel like a complete overhaul of the business.
Why is change management important?
Even though modern HR solutions are user-friendly, change management still plays a key role in successful implementation as these solutions require new HR processes, new ways of working and new (sometimes additional) responsibilities. And each of those smaller changes needs to be handled in a way that helps people understand and adopt them.
Well planned and well executed change management is critical because it:
- Provokes meaningful discussion about why the organisation is making the change, what the system will enable the organisation to do and the reality of implementing a new system
- Makes sure that all stakeholders are engaged in an appropriate, coordinated way and are supportive of the change
- Helps leaders guide their employees through the implementation and show their support for the project
- Gets the organisation ready, willing and able to effectively implement and sustain the new system in a positive way
- Increases acceptance of the change and the adoption of new ways of working by the organisation
Key principles of change management
We like to talk about three main principles of getting change management to work. These are the aspects that need to be considered in every part of the programme because it impacts the project significantly. Here are the top three principle you need to think about:
- Diagnosing the problem
- Starting from the top
- Clear communication
One of the first principles of change management is ‘diagnosing the problem’. It’s vital to understand where the problems are and why you want to change. Next, it’s important to establish whether the organisation is actually ready for the change – will key stakeholders and the rest of the workforce welcome the change or will they challenge it? In the next section, we lay out which documents you need in order to achieve clarity on these topics.
‘Starting at the top’ is also essential in a successful change management programme. These types of changes can easily get de-railed by leadership appearing not to support them. They need to be led from the top-down and involve every layer along with way. Starting with your highest-level executive stakeholders, all the way down to daily users, you need to consider how to engage each category.
Beyond that, establishing clear communication is your number one consideration. Straightforward instructions and transparent communications before, during and after the change cannot be skipped. Providing adequate training to the workforce to ensure the new system is fit for purpose is also a part of this. At every stage, the people involved need to have clarity about impacts, needs and next steps.
Change management components
When it comes to formulating your change management strategy, there are three key components that must be considered: your business case, your readiness assessment, and your change impact assessment.
Your business case should answer the question “why are we making this change?” This document, prepared well before any actual changes have been made, should be a priority. It makes your argument for change and is the first step of getting stakeholders on board. In the business case, describe the rationale for the change in terms of numbers, business drivers and objectives as well as cultural changes and the business benefits.
After you’ve made a clear argument for why this change is needed, it may be time for a readiness assessment. These documents are designed to figure out whether or not your organisation is ready for this change. You’ll look at your business’s ability to accept change overall and specifically change of the type you’re discussing. Also explore what roadblocks might interfere with successful adoption, plus whether new processes and skills are required or already in place.
Once you have done this, it's wise to follow it up with a change impact assessment. These assessments help you determine how the change will impact your organisation – both throughout the process and afterwards. This is a crucial part of change management because it will provide the structure for the project. A change impact assessment clarifies the true scope, allows the impact to be widely understood by all stakeholders and for you to identify any risks the organisation is facing and how to deal with them.
Need support setting up your change management programme? Book a free one-to-one consultation to understand your next steps and discover how Silver Cloud can help.
