Credera Whitepaper - 5 Myths of Organizational Change ......5 Myths of Organizational Change & How...
Transcript of Credera Whitepaper - 5 Myths of Organizational Change ......5 Myths of Organizational Change & How...
In today's digitally charged and fast-paced
world, leaders have the power to implement five key strategies to make successful change
management a reality and overcome prominent
organizational change obstacles.
5 Myths of Organizational Change & How to Overcome Them
!5 Myths of Organizational Change & How to Overcome Them
Contents
Conclusion 23
Myth #1 | Executive Sponsorship & Change Teams 3
Introduction 2
About Credera 24
Works Cited 25
Myth #2 | Purpose & Communication 8
Myth #3 | Technology & Enterprise Collaboration 12
Myth #4 | Training & Personalized Employee Experiences 16
Myth #5 | Transition Engagement & Commitment 20
!5 Myths of Organizational Change & How to Overcome Them
Change is happening faster today. In the age of 3-D printed houses, electric semi-trucks, and homes that
listen to you, rapid technological advancement is the new normal. The days of companies achieving one
amazing accomplishment per year are long gone. While one or two big changes a year may help, fostering a
culture of adaptability can provide a more valuable competitive advantage over time.
58% of CEOs cited growth as their number one priority
In today’s marathon of sprints, companies must become more adaptable to address the increasing speed of
change. In a 2017 Gartner survey, 58% of CEOs cited growth as their number one priority. With so many
changes at such a rapid pace, how are companies keeping up? Not everyone is. While some are successfully
implementing and adopting change, others are falling victim to common misconceptions of how to manage it.
In fact, we’ve identified five myths about organizational change that, if not handled properly, can become
pitfalls for your company’s change initiatives.
With this in mind, let’s take a closer look at five myths about organizational change and explore how to
employ successful change management to tackle change better.
Introduction
Executive Sponsorship & Change Teams
!5 Myths of Organizational Change & How to Overcome Them
Executive sponsorship is critical for change, but it’s the combination of top-down and bottom-up
support that will really move the needle on adoption. Executive buy-in is often difficult to attain, so
it’s easy to focus time and effort on winning over the higher-ups while forgetting about the everyday
users. This lack of connection to members of affected groups is disastrous for change initiatives, but
intentional leaders can help bridge the gap by adjusting their leadership style and employing change
management.
By fostering supportive and transparent leadership and assembling a
cross-functional change team, you can cultivate adoption at all levels
of the organization
Change management is the process of enhancing an organization or individual’s ability to handle
change.5 When change management is employed, projects are three times more likely to succeed.6
Pairing change management techniques with effective leadership drives success not only for the
project but for the company at large. Leadership styles are responsible for up to 30% of a company's
bottom-line profitability.7 Supporting effective leaders with a team of change agents from affected
groups can also help gain buy-in from working teams. By fostering supportive and transparent
leadership and assembling a cross-functional change team, you can cultivate adoption at all levels of
the organization.
Myth #1“As long as we have executive buy-in, we
should be in good shape.”
!5 Myths of Organizational Change & How to Overcome Them
Change teams that successfully drive buy-in typicallyhave these six characteristics:
Are made up of early adopters
Include team members who are most impacted by change
Meet regularly throughout the initiative
Clearly understand the goals and benefits of the transformation
Are able to address concerns that arise as quickly as possible
Help their peers understand the value of the transformation
With an invested leader, a change team can have a big impact on increasing users’ commitment to the
transformation.
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!5 Myths of Organizational Change & How to Overcome Them
Building the right change team accelerates adoption. Employees classified in the innovator, early
adopter or early majority adopter categories are more likely to be champions for change, and
therefore make the best change team members. Additionally, by including representatives from the
most impacted teams, change leaders can remain aware of the widespread effects of the
transformation. Employees’ responses to change will shift throughout the initiative, so it is important
for the change team to meet consistently to discuss new developments.
2.5%Innovators
13.5%Early Adopters
16%Laggards
34%Early Majority
34%Late Majority
Stakeholder Adopter Categories
Adapted from Diffusion of Innovations8
!5 Myths of Organizational Change & How to Overcome Them
Recently, Ryan, an award-winning global tax services and software provider, engaged Credera to
provide a comprehensive strategy and plan for company-wide customer relationship management
(CRM) and marketing automation. It was through this project where a great example of driving
successful stakeholder adoption came to life. During the development of Ryan’s CRM and marketing
automation strategy, a carefully curated change team of 8 champions representing different
divisions was assembled to promote user adoption.9 This team met every two weeks, encouraged
over 2,000 users through training, and accelerated speed to acceptance.
If the change team recognizes the need for the project and the benefits of the change, they will be
able to address concerns and resistance by helping their peers understand the value of the
transformation. A cross-functional change team with executive sponsorship and effective leadership
will motivate late adopters to accept and commit to change faster.
Purpose & Communication
!5 Myths of Organizational Change & How to Overcome Them
Developing a business case is important, but a different kind of case for change is also needed – one
that resonates with the heart as well as the mind. A convincing return on investment with a
persuasively short payback period might be necessary to satisfy executive audiences, but change
leaders and affected teams need a higher purpose. Employees need to know more than the “what”
(i.e., the change) and the “how” (i.e., money, time). They need to understand the “why” (i.e., the
motivation) before they jump on board.
Millennials are 6 times more likely to stay at a company if their work is
linked to a broader purpose, and 85% of Gen Z believes that their
companies are obligated to help solve social problems
Clearly identifying and communicating the purpose of the change is critical to leading
transformational change in organizations, specifically with Millennials and Gen Z. Employees who fit
into these generational categories are likely to demand a higher purpose from employers. In fact,
Millennials are 6 times more likely to stay at a company if their work is linked to a broader purpose,
and 85% of Gen Z believes that their companies are obligated to help solve social problems.10,11
Because of this need for meaningful work, if Millennial and Gen Z employees are bought into the
reason behind the change, they have the potential to become the best advocates for the initiative.
Myth #2“If we show employees the ROI, they will
understand the need for change.”
!"5 Myths of Organizational Change & How to Overcome Them
Successful change management leaders follow three key stepsto gain support from these emerging leaders:
Clearly define the purpose and benefits of the change
Communicate the purpose throughout the initiative
Connect each project activity back to the purpose
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When Ben E. Keith, a regional food distributor, rolled out The Entrée System, a mobile ecommerce
application that enabled sales representatives to better serve customers, it was critical for them to
explain the “why” behind the new platform.12 Some of the new automation capabilities of the system
were initially a threat to the more traditional practices of some sales representatives. However, once
the sales staff was educated on the benefits of the application as well as how it would help achieve
even better customer service—a significant part of the Ben E. Keith culture and values—the response
was overwhelmingly positive. “Everyone really gravitated to the [Entrée System|, because it is so easy
to use,” said Mike Sweet, President, Ben E. Keith Foods.
!!5 Myths of Organizational Change & How to Overcome Them
By establishing and maintaining a clear purpose and outlining the benefits of the change, employers
will capture the interest of change leaders. Continuing to communicate the purpose and benefits for
the duration of the project is key so employees don’t lose sight of the reason for the work or
miscommunicate it to others. Aligning each task or activity in the way it aligns with the purpose or
benefit of the change reduces resistance and increases motivation. Motivating employees,
particularly Millennial and Gen Z employees, with this sense of purpose will increase adoption and
provide a ripe environment for transformation.
Technology &Enterprise Collaboration
!"5 Myths of Organizational Change & How to Overcome Them
It’s easy to think that buying the latest technology for employees will elicit excitement and encourage
adoption, but in all likelihood, many will still resist. Acquiring the latest tech for the team could mean
increasing efficiency, reducing errors, and improving collaboration; its fancy features and helpful
home screens could be aesthetically pleasing and house valuable data. Even so, employees might fear
job security, a steep learning curve, or change in general. Although the change is beneficial, late
adopters will still vocalize their concerns. And the voices of the concerned are being amplified on
social platforms.
The market for enterprise collaboration is expected to be
over $49 billion by 2021
In fact, as social media and mobile device use continue to rise, enterprise social platforms are
following suit. More and more businesses are implementing company-wide social networks, and the
market for enterprise collaboration is expected to be over $49 billion by 2021.13 Enterprise tools
bring the feeling of social networks into the workplace. While disgruntled employees do not always
feel comfortable speaking up about a new tool or an org change during meetings, they may feel right
at home behind a keyboard, typing their thoughts into private messages or public posts. Enterprise
social networks are the new version of watercooler chats. As others react to the comment or post,
negativity spreads. This type of attitude decreases the chances that the change will stick. When
addressed correctly, however, resistance can become an advantage.
Myth #3“If we buy the latest technology for our
employees, everyone will be excited about it.”
!"5 Myths of Organizational Change & How to Overcome Them
Noticing comments and concerns is the first step in addressing overt resistance. Ignoring negativity
allows it to circulate and often leaves employees feeling disconnected. By reading feedback and
following up with stakeholders to dig deeper into concerns, change teams develop a better
understanding of affected resources. Public discussions can elicit defensive behavior, but personal
Five primary change team activities can help turnthese detractors into success stories:
Take notice of negativity in the break room,after a meeting, or posted in a chat
Follow up with late adopters to betterunderstand their concerns
Address misconceptions and reinforce benefits of the change
Resolve issues in a personal manner before responding publicly
Develop and distribute key messages that address concerns
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!"5 Myths of Organizational Change & How to Overcome Them
interaction provides an opportunity for honest conversation. Translating this improved
understanding into key messages and including these messages in change communications will
provide encouragement to late adopters.
The aforementioned Ben E. Keith team created a pilot program for The Entrée System to gather
feedback and address any concerns early.12 This allowed time for honest discussions that led to
suggested improvements and adjustments to the system.
Upon recognizing that their concerns have been heard and addressed, employees that were
originally wary of change will become success stories that spur others on to adoption. Although the
new technology might not encourage late adopters, being understood and engaged will.
Training & PersonalizedEmployee Experiences
!"5 Myths of Organizational Change & How to Overcome Them
Training is an essential element in the success of organizational change. Employees will only accept
or adopt a change if they are properly equipped to succeed in a new environment or with new tools. It
may seem like the best way to provide quality training for each employee is to train everyone in a few
sessions of a detailed training course. While this approach is tempting, especially on a tight timeline, it
can cause disengagement and a lack of training content retention. A one-size-fits-all approach to
training might save time on the front end, but it risks long-term rejection of the change.
A customized experience with curated content will boost employee
engagement and increase the likelihood of retention
88% of customers today expect a personalized experience with companies, and employees are no
different.14 An exhaustive training with all of the details relating to the change will certainly be
helpful content to have on hand. However, if it is delivered all at once, the audience can be
overwhelmed. Without an understanding of the direct relationship to their role, employees will tune
out information that does not appear personally important. Instead, a customized experience with
curated content will boost engagement and increase the likelihood of retention.
Myth #4“We can provide one training course that’s
relevant to all employees.”
!"5 Myths of Organizational Change & How to Overcome Them
Instead of relying on one large session to check the box on training requirements, identify the job
functions of those that are affected by the change. Then create training curriculum based on these
job roles. Dividing the content into user-specific sections will allow for more personalized sessions
that include realistic applications of the training. The unique practical examples will allow the
audiences to visualize their new work environment. Effectively engage employees who may learn in a
variety of ways by delivering training through multiple mediums (e.g., instructor-led training,
Completing the following steps can help change managementleaders conduct successful personalized training sessions:
Identify several user groups and divide traininginto those categories
Create training content that is specific to each ofthose user groups by including real-life examplesthat are unique to that audience
Deliver training via multiple channels to allowaudiences to engage in their preferred manner
Curate training aids for each job role and deliver tousers for continued post-training use
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!"5 Myths of Organizational Change & How to Overcome Them
interactive online learning, on-the-job training, videos, etc.). For continued learning, provide users
with resources such as job aids, FAQ documents, and follow-up training options.
Backcountry.com, an online retailer of outdoors gear, partnered with Credera to optimize their
mobile shopping experience.15 During the transition to a responsive design with server-side
components (RESS), Credera provided a week-long hands-on training specifically for
Backcountry.com’s mobile development team. This personalized training was critical in
understanding how to carry on the established implementation patterns and design language.
Hands-on training was followed by job aids and documentation of best practices, standards,
processes, and development methodologies.
Providing personalized training gives employees the information they need in the ways that they
want it, which sets them up for success during a transition.
Transition Engagement& Commitment
!"5 Myths of Organizational Change & How to Overcome Them
While training is critical to change initiatives, training alone will not guarantee the success of a
transformation. According to change expert John Kotter, 70% of change initiatives fail.16 Training is
an important step in an involved journey to the successful 30%. Keeping track of the stakeholders
that complete training is a good place to start, but companies also need to monitor additional
quantitative and qualitative metrics to truly understand where they are in the change process.
Myth #5“If everyone completes the required training,
this implementation will be successful.”
The following three steps can provide useful data to assesschange adoption and showcase momentum:
Obtain qualitative and quantitative “adoption data” fromchange agents to better understand how each team is responding to the change
Monitor employee engagement with usage metrics fromthe new tool/system
Identify data that supports declining usage patterns withthe prior tool/system to show momentum
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!!5 Myths of Organizational Change & How to Overcome Them
Measuring transition engagement and commitment is key to successful transformations. Cross-
functional change agents can supply adoption data from their teams, allowing the project team to
pivot or reinforce where necessary. This data can represent quantitative measurements such as the
percentage of their team at each stage of the commitment curve, or it could highlight qualitative data
such as which team members are at risk of checking out.
Usage metrics let you know who is using the product and can help broach conversations about key
features still needed. These metrics can include the number of logins, duration of use, number of
unique users, etc. Usage data can also highlight groups or individuals that may need more attention
during the transition. Lastly, it’s important to monitor the previous tool or process to see which users
or teams are still relying on it to get the job done. Much like training, data doesn’t independently
solve all of the unique challenges of change, but it equips teams with the tools to help employees
navigate the change well.
When Interstate Batteries launched their marketing-driven, strategic business intelligence platform,
which dramatically transformed a 60-year old sales process, several key metrics indicated the health
of the change.17 Out of over 250 distributors, 97% participated in training, and 99% of that group felt
equipped to use the system upon training completion. These metrics were a leading indicator of the
initial 90% adoption rate Interstate Batteries experienced upon launch of the solution.
If leading indicators are not satisfactory, it provides an early warning signal that allows time for the
team to pivot and address concerns to get back on the track to successful transformation. Data
doesn’t independently solve all of the unique challenges of change, but it equips teams with the tools
to help employees navigate the change well.
!"5 Myths of Organizational Change & How to Overcome Them
Keep Your Change Efforts on Track
Gaining change adoption in today’s digitally charged, fast-paced world is more challenging than ever before.
The fear of change and the unknown has never been greater. Company adaptability is key, but the days of
providing employees with a simple online training course for each change just won’t cut it anymore. Change
must be addressed on a more personal level.
Now that you know the five myths about organizational change, you have the power to keep your change
efforts on track and deliver lasting change in your organization. You know how to develop user buy-in, drive
deeper engagement with your employees, address concerns, and provide the right types of training and
ongoing measurements. And most importantly, you know the common challenges that prevent successful
change adoption and can take steps to personalize and tailor your change efforts to make them more relevant
to your teams.
Now is the time to take change management at your company to the next level. You have the opportunity to
prevent your next major investment or initiative from falling flat. You can’t afford to not make change stick.
Take full advantage of the key lessons from the five myths and make successful organizational change a
reality at your company today.
Conclusion
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About the Authors
Credera is a full-service management consulting,user experience design, and technology solutions firm.
We work with Fortune 500 companies, medium-sized businesses, government organizations and clients across a broad range of industries, and we give them the experience and perspective to solve today’s toughest business and technology challenges. Credera delivers solutions to clients across North America. Founded in 1999, we currently have office locations in Dallas (headquarters), Houston, and Denver.
With over 300 professionals on staff, Credera possesses a unique combination of deep technical expertise with extensive business backgrounds. Our business acumen and process-oriented approach to technology solutions separates us from our competitors.
5 Myths of Organizational Change & How to Overcome Them
Ben Grotta, Senior Consultant
Ben is a Senior Consultant at Credera in the Management Consulting practice. During his time at Credera, Ben has primarily served as a digital analyst, partnering with clients to create valuable, personalized experiences across customer-facing channels. Ben is passionate about helping clients untangle the intricacies of the modern digital media ecosystem. His other areas of focus include customer experience strategy, research & analysis, strategic communications, and organization design. Before joining Credera, Ben held a position at PulsePoint Group, an Austin-based consulting firm that specializes in brand strategy and crisis communications. Ben holds a BS in Public Relations from the Moody College of Communication at the University of Texas.
Kevin Erickson, Vice President
Kevin is a Vice President at Credera and leads the Management Consulting practice. He has more than 15 years of management, operations, and technology consulting experience, working with Fortune 500 and mid-market clients across numerous industries. Prior to joining Credera, Kevin worked at Accenture as a Senior Manager and as president of a national franchisor. Kevin received his BA in Accounting & Business Administration from Taylor University and his MBA from The University of Chicago Booth School of Business.
Emily Crawford, Senior Consultant
Emily Crawford is a Senior Consultant with Credera in the Management Consulting Practice. During her time at Credera, Emily has led Change Management initiatives, conducted vendor selections, and developed and led training for Fortune 200 companies during transformational implementations. She has conducted business analysis, gathered market research, and aligned business requirements to develop strategic project plans and roadmaps for our clients. Emily also has experience helping businesses transform digital marketing through the implementation and configuration of marketing automation tools. Prior to joining the Credera team, Emily gained experience with The Philanthropy Lab, working with 501(c)(3) organizations. She worked as part of their Board to allocate $100,000 to eight unique philanthropies. Emily graduated Magna Cum Laude from Baylor University with a Bachelor of Business Administration, majors in Business Fellows and Finance, and minors in English and History.
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1https://www.fastcompany.com/40538464/this-house-can-be-3d-printed-for-4000
2https://www.nbcnews.com/business/autos/tesla-unveils-electric-truck-world-s-fastest-production-car-n821746
3http://www.businessinsider.com/survey-says-consumers-have-privacy-concerns-with-smart-home-devices-2018-4
4https://www.gartner.com/newsroom/id/3689017
5http://www.connerpartners.com/daryl-conner/glossary
6https://www.mckinsey.com/business-functions/organization/our-insights/how-to-beat-the-transformation-odds
7https://www.fastcompany.com/1838481/6-leadership-styles-and-when-you-should-use-them
8Rogers, Everett M. Diffusion of Innovations. New York: Free Press, 2003. Print.
9https://www.credera.com/case-study/ryan/
10http://fortune.com/2017/06/27/best-companies-millennials/
11https://www.fusemarketing.com/thought-leadership/future-consumers-views-social-activism-cause-marketing-differs-millennials-think/12https://www.credera.com/case-study/ben-e-keith/
13https://www.marketsandmarkets.com/PressReleases/enterprise-collaboration.asp
14http://www.evergage.com/wp-content/uploads/2016/06/2016-Trends-in-Personalization-Survey-Report-Evergage-final.pdf
15https://www.credera.com/case-study/backcountry-com/
16https://hbr.org/2017/07/stop-using-the-excuse-organizational-change-is-hard
17https://www.credera.com/case-study/interstate-batteries/interstate-batteries-ocm/
5 Myths of Organizational Change & How to Overcome Them
Works Cited
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