5 Strategies of Change Management Resulted by Digitalization (2024)

A methodical approach called “Change management” helps companies choose and execute significant internal changes that will improve their bottom line. This can involve changes in the organization’s architecture, significant product pivots, or advancements in technology.

Managing the implementation of new technology, the unexpected emergence of fresh opportunities, and modifications in the ways in which customers engage with companies are all part of change management.

Workers could be hesitant to “Try new things.” Securing funding can be difficult because decision-makers might not think that updating procedures that appear to be working is necessary. Furthermore, it could be challenging to lock down important stakeholders for the amount of bandwidth that is actually required, even if you are able to win them over.

In the context of digital transformation, the capacity for change adaptation is quickly becoming a vital component of survival for many firms. Rather than merely managing change within your company, accelerate it to reap the rewards sooner. you find out how you get started with digital transformation projects, read Impact’s eBook, Fast-Tracking Your Digital Transformation.

What are Change Management Strategies?

When implementing significant changes to internal operations, objectives, or technologies, businesses can rely on a defined framework and set of procedures known as change management strategies to facilitate the implementation process for personnel at all levels and improve the likelihood of success.

Your company can set expectations for significant operational changes, prepare for phased implementation, and provide a range of checkpoints for measuring, evaluating, and making appropriate adjustments to the change by developing a thorough change management strategy.

Giving organizational leaders and their staff a formal structure that helps them navigate significant business pivots and advancements with a greater success rate is one of the key goals of a change management strategy.

Change management strategies are approaches or plans implemented by organizations to effectively navigate and adapt to changes within the organization. These changes could include anything from organizational restructuring, new technology implementations, process improvements, mergers and acquisitions, or shifts in company culture. Change management strategies aim to minimize resistance, maximize adoption, and ensure smooth transitions. Here are some common change management strategies:

1. Clear Communication: Effective communication is crucial throughout the change process. Leaders should clearly articulate the reasons for change, its benefits, and what is expected from employees.
2. Stakeholder Involvement: Involving stakeholders, including employees, managers, and even customers, in the change process can help build support and gather valuable input. This involvement can range from seeking feedback to including stakeholders in decision-making processes.
3. Change Champions: Identifying and empowering change champions within the organization can help drive the change forward. These individuals can act as advocates, providing support and encouragement to their peers.
4. Training and Development: Providing adequate training and development opportunities for employees is essential for helping them adapt to new processes, systems, or roles resulting from the change.
5. Change Management Teams: Establishing dedicated change management teams or appointing change managers can ensure that the change process is properly planned, executed, and monitored.
6. Gradual Implementation: Implementing changes gradually, rather than all at once, can help minimize disruptions and allow employees to adjust more effectively.
7. Feedback Mechanisms: Creating channels for feedback and listening to concerns from employees can help address issues as they arise and make adjustments to the change plan if necessary.
8. Celebrating Milestones: Recognizing and celebrating milestones achieved during the change process can help maintain momentum and keep employees motivated.
9. Managing Resistance: Anticipating and addressing resistance to change is important. This can involve addressing concerns, providing support, and helping employees understand the reasons behind the change.
10. Evaluation and Adjustment: Continuously evaluating the effectiveness of the change management strategies and making adjustments as needed is essential for ensuring the success of the change initiative.

By implementing these strategies, organizations can increase the likelihood of successful change implementation and minimize disruption to the business.

Suggested article to read: What is Organizational Change Management (OCM)? 2024 Guide

The Goals of Change Management 

In contrast to project management, which can be easily defined by deadlines, measurable goals, and predetermined results, change management takes a more flexible and reactive approach. Organization to organization may have different approaches to change management, but all approaches have three main objectives in common:

Boost the Bottom Line: It is important to implement all changes linked to digital transformation so that your staff is more productive and efficient. Any improvement made to your workplace should enable your staff to do their work more efficiently and effectively, whether it is in the form of improved departmental communication through technology or the provision of tools for skilled design work.

Make an Edge Over the Competition: Businesses change as a means of improving at what they do. Change management provides structure to the process of change and helps businesses identify ways to achieve a competitive edge through innovation, specialization, cost reduction, or improved service quality.

Motivate and Enable Staff Members: Studies indicate that over 70% of change projects fail, primarily because employees don’t support them. Employees are more likely to accept change initiatives when they feel appreciated and supported, which is achieved through change management.

Why is Change Management Important when Adopting New Technologies?

Many advantages can be gained by a business through a systematic approach to digital transformation:

1. Promoting Creativity

Through the methodical administration of the shift from outdated to modern methods of functioning, change management promotes the adoption of new concepts, procedures, and technology. It is ensured that new efforts are well-communicated and understood by all stakeholders by offering a methodical approach to change implementation.

2. Minimizing Interference

New technology always carries the danger of upsetting established workflows. The least degree of disruption to business operations is achieved through the planning and execution of the change with the help of change management.

3. Cutting Expenses

By handling digital transition well, the business reduces the risk of expensive errors or downtime. An good change management strategy can identify potential issues before they arise, enabling the use of affordable alternatives to post-implementation adjustments.

4. Cutting Down on Time

When implemented correctly, change management reduces the likelihood of delays brought on by misunderstandings and poor communication. Organizations can accomplish their objectives more quickly thanks to its process streamlining.

Suggested article to read: 7 Essential Change Management Principles in 2024

10 Ways to Enact Effective Change Management in Digital Transformation

This is a road map for accomplishing digital transformation and the key steps you should think about when managing change;

Highlight the Advantages: Assisting individuals in seeing the benefits of change is one of the main obstacles in change management. It’s always important to consider how changes will affect people as well as the business. Since people are inherently resistant to change, they must see how it will benefit them directly in order to completely support it.

Understand Resistance: Resistance is a natural response to change, but it can be overcome. Leaders must identify the causes of resistance and devise strategies to resolve them if they want to reduce opposition to digital transformation initiatives.

Communicate Clearly: Your change management plan’s success depends on effective communication. Effective leaders must interact with stakeholders at all organizational levels on a regular, transparent, and unambiguous basis.

Encourage a Collaborative Culture: The success of change management depends on teamwork. Leaders need to promote cooperation, candid communication, and an open exchange of ideas.

Employee Empowerment: Giving staff members the freedom to lead change might be a great way to inspire them. Leaders should provide their staff with the resources and tools necessary for success.

Offer Sufficient Training: Support and training that is sufficient can aid staff members in adjusting to their new surroundings. To guarantee that staff members are secure and at ease utilizing new technologies, managers ought to offer continuous instruction and assistance. (ASUG’s SAP training is a fantastic resource for raising employee proficiency levels!)

Address Concerns: Leaders need to be accessible to respond to inquiries and address issues. They ought to pay attention to criticism and be prepared to modify the plan if necessary.

Make a Roadmap: A well-defined roadmap will assist all parties involved in the transition in knowing what to anticipate and when. A roadmap outlining the procedures and timetable for the change should be developed by leaders in collaboration with stakeholders.

Celebrate your Victories: Giving yourself credit for small victories along the road helps inspire staff members and maintain the momentum. Milestones should be recognized and celebrated by leaders at every stage of the change management process.

Monitor Progress: Leaders can monitor the success of the change management program by keeping track of the initiative’s progress. Metrics should be established, and progress should be periodically assessed in relation to them.

Suggested article to read: 11 Steps of Change Management Process; 2024 Review

5 Effective Change Management Strategies

Whether a business is undergoing a major digital revolution or a targeted, focused shift inside a department, change management practices are essential to the success of any change endeavor. Establishing and adhering to a change management strategy can make it much easier to gain support from stakeholders, train staff to use new technology or workflows, and successfully transform your company across the board. To help you get started, consider the following five technology change management best practices:

1. Start from the Top 

The culture of the organization will be impacted by changes that impact the core operations of the business. Thus, the C-suite must be the first to implement such changes.

In management studies, the importance of leadership during times of transition is extensively documented. For instance, studies on leadership during mergers have shown that a more favorable work atmosphere was created during the merger process itself when leaders actively participated in change management.

The leader showed their staff that they were aware of and supportive of what was going on by showing there, offering advice, and offering support. It helps employees feel more secure about the future by easing their concerns and lowering their anxiety.

Change that comes from the top shows that the company’s leadership is unified, committed, and focused on the company’s future. It’s the only way you can inspire and cultivate the culture required to get the rest of the organization to welcome change.

2. Make Sure the Change is Necessary and Desirable 

Incorporating excessive amounts of information too soon can cause major issues later on if a company lacks a sound plan. It’s no secret that a large number of digital transformation initiatives fail, frequently to a worrying extent, or fall short of expectations. Decision-makers’ ignorance about the best way to tackle a digital transformation and how it will affect their company is one of the main causes of this.

If a thorough audit isn’t conducted, solutions that aren’t needed for an organization’s needs may be implemented, which could result in more expenses, more training, and frequently unattainable objectives. Consider whether the suggested solutions will actually be beneficial to the organization before committing to a change program.

3. Minimize Disruption 

It might be difficult to alter current organizational procedures, as many leaders are already aware. Because of this, it’s crucial to minimize how changes may affect staff members.

The introduction of new tactics or technologies intended to improve management and corporate operations is frequently the cause of employee apprehension around change.

When automation is introduced into essential business tasks, for example, personnel who were previously assigned with these roles may feel threatened by obsolescence or a lack of direction, while leadership may view this as a means to save time and money.

Furthermore, individuals who are transferred to a different role due to organizational restructuring may experience anger, confusion, or question what went wrong with the old setup.

Lower morale, a decline in average worker performance, and the possibility of a talent drain should your top performers depart are the outcomes in both situations. Therefore, it’s critical to reduce workplace disruption by:

• Notifying people in advance and preparing for some interruption.
• giving staff members the tools and training they need to adjust to change.
• cultivating an environment that welcomes transition or change.
• giving advocates the authority to explain and contextualize changes, such as project managers or team leaders.
• ensuring that your IT department is informed about and equipped to handle changes in infrastructure or technology.

Suggested article to read: 17 Change Management Examples; 2024 Review

4. Promote Communication 

Since it appears to be one of the fundamental elements influencing whether a transition or transformation is successful or unsuccessful, we have made reference to the necessity of effective communication throughout organizational change. Good communication guarantees that those who will bear the brunt of these changes are safe and keeps everyone in agreement.

One of the most effective things you can do to support your organization in embracing change is to have frank and open conversations about it. “Effective communication may lower resistance, mobilize a network of individuals in support of change, and provide people the information they need to change successfully. A well-crafted communication serves many purposes than just raising awareness. Encourage communication between leadership and employees as well as between employees and leadership.

Establish avenues for staff members to contact you with inquiries or grievances. Encourage interdepartmental contact as new procedures take root to facilitate the dissemination of ideas and innovation. Similar to your goal, communication can influence culture and spur efficiency.

5. Recognize That Change is the Norm, Not the Exception 

Do you approach change as though it were a project with a start and a finish? Since change is a continuous process rather than a one-time event, you could encounter challenges. The world of today evolves quite quickly; markets, technology, consumer preferences, and even environmental circumstances all change drastically in an instant.

In order to stay up with the changing needs of their clientele, businesses must not only adapt their internal processes but also anticipate and prepare for future changes. Knowing that change is a constant and inevitable part of the ecosystem in which your company operates only serves to highlight how critical it is to develop a strong change management plan that lays out procedures and facilitates the transfer process for all parties.

key Takeaways to Keep in Mind when Considering Change Management Strategies

Since customer preferences shift over time and technology continues to evolve at a rapid pace, change management is essential to modern company. Being aware of the fact that your company must adapt over time can help you adopt a change management perspective and see the importance of creating a formal change management plan.

• Because of their uniqueness, organizations are impacted by change in many ways. Various organizations will have different approaches to change management.
• No matter how big or little the change, it always demands a dedicated, proactive leadership that promotes effective communication, a culture of learning, and a clear understanding of what the change will involve.
• In today’s environment, change is an essential and unavoidable part of operating a corporation. Businesses can, however, turn change from a difficulty to an opportunity by adopting change readiness.
• Every change causes some disturbance at work, but you may enable it to infuse your processes with innovation while minimizing negative effects.

Staying ahead of the curve in the market requires the ability to conceptualize and execute organizational evolutions in operations, technologies, and even corporate structure.

Current Problems of Change Management in Digital Transformation 

Significantly altering current corporate procedures is frequently a difficult and drawn-out process. This is especially true when it comes to making the necessary changes to long-standing company components. Up from 56% in 2021, about three-quarters of IT leaders now state that their organizations are giving digital transformation top priority. Nowadays, digital transformation is given more importance than cloud deployment (65%) and cybersecurity (73%).

A lack of planning and strategy is nearly always the cause of failure in digital transformation initiatives. Maintaining budget, setting clear goals, communicating them clearly, and reporting progress on a regular basis are all essential to seeing an endeavor through to completion. Companies who are dissatisfied with the outcomes of their digital initiatives frequently lack focus in three crucial areas.

This is one of the main reasons why companies are using managed service providers (MSPs) more often. Businesses wishing to change find it appealing to outsource the strategy and implementation to a third party that has proven experience over a number of years in initiatives comparable to theirs. An organization’s first concern when implementing new technology should be having a strong change management strategy.

Conclusion

To accomplish desired results, change management is the process of organizing, planning, and guiding teams, individuals, and organizations through change efforts. It entails handling the human aspect of change, including how stakeholders respond and how staff members interact throughout a period of transition. This is particularly crucial for disruptive digital transformation projects since they frequently call for dramatic changes to team dynamics and organizational culture.

There will always be change. We all have to accept it as a reality of life. However, the way we handle change determines everything. This is particularly true with regard to the often-confusing process of digital transformation and the adjustments that businesses must make in order to transition to a cloud-native environment. People may frequently need to unlearn specific roles and duties while embracing new processes as a result of this kind of change, which is not always an easy feat. A sound change management plan is crucial to lowering employee resistance to digital transformation.

Change management is fundamentally both a science and an art. Finding strategies to assist individuals in reframing change as a positive and comprehending the psychology underlying resistance to change are two delicate balancing acts. Ensuring that all parties are in agreement through communication and teamwork is the essence of change management. Furthermore, the accomplishment of any digital transformation project depends on it.

Resources:

RST | ASUG | Mondo | ImpactmyBiz | NauticalCommerce | Imagineer | Olive

For all the pictures: Freepik