Change Management

Companies are facing periods of change to their business at ever shorter intervals. These changes affect all areas of the business, from strategy, systems, processes to its culture and its people. In some instances, the impact of these changes on staff can be very considerable indeed, or it is, at the least, perceived as such. One of the foremost duties of leadership is therefore to lead successfully through times of change, i.e. to apply change management.

Background Situations for Change Processes

The motives for change management can take many forms:

• Changes on a strategic level, such as a revised strategic direction, innovation in corporate strategy etc.
• Introduction of changes to the procedural or structural make-up of the organization.
• Mergers or unions of all types, in particular when different organizations or structures need to become one.
• Coping with crises.

A look at a model merger between two companies shows that all bigger change processes affect all areas of a business on a variety of levels:

• Organization: Changes to organizational units or in the allocation of roles and functions.
• Leadership: Slimming or expanding management and different levels of hierarchy, changes to leadership cultures, decision-making hierarchies etc.
• Products and Services: Adjustments to the product or service portfolio of the merged companies to improve their focus on the markets and customers.
• Staff: Development of new capabilities, changes to old behaviours, realization of synergies by adjusting existing capacities, appointments to new functions, positions etc.
• Technology/Infrastructure: Changes to existing systems, introduction of new hard- or software.
• Processes: Changes and optimization measures introduced to existing processes, establishment of new processes.

The Human Factor in Times of Change

Oftentimes, the impact of the human factor in change processes is still being underestimated by companies. However, the behaviour of staff is critical for the success of any change venture. The central challenge for change management therefore consists in getting staff to not only tolerate, but to accept or, ideally, identify with the changes. This is the crux of the question when it comes to make your staff take part in or actually “live” the change processes.

The successful planning of change processes also includes anticipating potential frictions. These can be caused by:

• Different patterns of thinking or acting among staff.
• Different terminologies or corporate “semantics”,
• Different leadership styles and cultures,
• Different experiences with past reorganizations,
• Existing monopolies on information,
• Winner-loser conflicts,
• Internal communication reacting to external communication.

Change management should help to avoid such potential friction by initiating suitable countermeasures.

The Objectives of Change Management

To counter the apprehensions and concerns of staff, change management pursues three basic objectives:

(1) Information

• Creating transparency and a sense of identification in staff.
• Communicating the benefits of the changes to all affected parties and stakeholders.
• Homogenizing internal and external communication.
• Providing contact persons for the affected members of staff.

(2) Integration

• Developing a change mindset.
• Realigning different patterns of behaviour.
• Reducing prejudices or cultural misunderstandings.
• Avoiding winner-loser conflicts.

(3) Motivation

•  Making changes visible.
• Showing changes to be valuable and competitively effective.
• Staging the “new” world in “hands-on” events.
• Inspiring and motivating staff for the change process.

Kienbaum’s Approach to Change Management

In the projects we support, the changes commonly affect the staff of our client’s companies. Therefore, we place particular emphasis on the potential human impact.

The design of our change management measures depends on the type, length and the purposes of the project as well as the circumstances and expectations of our clients.

(1) Analysis of the Company

After presenting our project roadmap in a kick-off event, we begin with a phase of systematic analysis. The object of this analysis is the strategic direction, the existing corporate culture (motivation, commitment, cooperation and so on), current HR systems, and an analysis of the relevant stakeholders. Our findings are collated in individual focal points for the analysis, which includes a holistic survey of our insights as well as the presentation of an overall report.

(2) Definition of Strategic Areas of Interest


On the basis of our analytical insights, we design a range of project-specific interventions for promoting the change process. Possible areas of interest include: relocating management, governance models, HR systems, skills management, more traditional instruments for the change process, or communication strategies. The results of this phase are finely tuned interventions and instruments that include the development of the necessary structures, processes, programmes, instruments, templates etc. All individual steps that are required along the lines of approach we have identified are aligned with the wider umbrella concept.

(3) Intervention

The third phase sees the actual intervention in the change process by way of the measures developed and coordinated with the client. In the rollout, the proposed change management instruments are used for the identified areas of interest. We involve all executives and employees fully and move them from being affected by to being stakeholders in the change process.

The Success Factors for Change Management

Our consultancy approach is based on the following key factors that are critical for success:

A Public Target Vision


All members of staff affected by the changes are informed about the new vision as early on as possible in the process and are kept up to date about the project’s progress at regular intervals. Change management calls for intensive and continuous communication.

Supporting Executives


Executives are the actual promoters and transformers in the change process. The quick establishment of a functioning leadership organization is crucial in order to make managers adapt their behaviour to the requirements of the change process and act as role models for their people.

Involving Staff


Paying attention to the attitudes that exist among staff towards the planned changes is a precondition for successful leadership in any change process. Key players and opinion formers need to be involved actively in the change process in order to influence the behaviour and mindset of all affected members of staff.

Qualification


All executives and employees whose duties are affected by the changes need to be prepared for their new work through suitable HR development measures offered in good time.

At Kienbaum Management Consultants, we perceive our work as a form of transformation consultancy. This means that we combine our specialist knowledge of the industry with our proven HR expertise in all of our projects and use our change management techniques to lead change projects to sustainable successes.

Please do not hesitate to contact us. We are always ready for a first, general exchange of ideas with you.