We need to drive change through people, rather than drive people through change, says Claudine Attard, Director, Management Consulting, PwC Malta and FHRD board member.

Given the volatile, uncertain and complex environment businesses currently operate in, most leaders have recognised that the need for change is increasingly becoming more of a constant. This is being driven by disruption stemming from advances in technology, change in customer profiles and their demands, markets and human capital. Research shows that around 70 per cent of change initiatives do not achieve the desired strategic outcomes.

Success at organisational transformation demands more than the best strategic and tactical plans, or the traditional focus of senior executives. It requires an intimate understanding of the human side, such as the company’s culture, values, people, and behaviours that must be changed to deliver the desired results. Plans themselves do not capture value and value is realised only through the sustained, collective actions of all employees who are responsible for designing, executing, and living the change.

Change management gets results by ensuring the organisational leaders set the tone for success, that people have a positive experience to embrace the change and are supported to change. Leadership teams that fail to plan for the human side of change often find themselves wondering why their best-laid plans go off track.

One of the most common issues we hear from organisational leaders is that they should have started managing the change process earlier. More time should have been dedicated to creating buy-in at the beginning of the process.

It is therefore essential we put people at the centre of any change initiative. We today speak about the need to drive change through people, rather than driving people through the change. This is why as PwC we have developed a people-centric change approach that is a unique and proven way to successfully drive change to achieve the overarching business strategy by driving positive and sustainable change through people.

These guidelines shed light on the key elements of managing organisational change.

Clear vision and leadership alignment

Employees will question to what extent change is needed, whether the company is headed in the right direction, and whether they want to personally commit to making change happen. Articulating a formal case for change and creating a written vision statement are invaluable opportunities to create leadership team alignment.

Address human side of change systematically

New leaders will be asked to step up, jobs will be changed, new skills and capabilities must be developed, and people will be uncertain and will resist. Dealing with these issues on a reactive, case-by-case basis puts speed, morale, and results at risk. The appropriate approach demands significant data collection and analysis and planning, as a redesign of strategy, systems, or processes is often required. It should be based on a realistic assessment of the organisation’s readiness and capacity to change.

Change starts at the top and begins on day one

Leadership must change first to challenge and motivate the rest of the organisation, speaking with one voice and modelling the desired behaviour. Executive teams that work well together, are aligned and committed to the direction change, that understand the culture and behaviours it intends to introduce, and can model those changes themselves are best positioned for success.

Real change happens atthe bottom

Change efforts must include plans for identifying a change network and pushing responsibility for design and implementation down through the organisation.

Implementation relies on line managers and other individual contributors within the change network who must be identified, including trained change champions and change agents motivated to make change happen. These individuals must be enabled to dedicate time to change.

Create ownership, not just buy-in

Change programmes require more than just buy-in or passive agreement that the direction of change is acceptable. It demands ownership by people willing to accept responsibility for making change happen in all of the areas they influence or form part of.

Ownership is often best created by involving people in identifying issues and crafting solutions. It is reinforced by a combination of tangible and psychological incentives and rewards.

Targeted communication

Too often, change leaders believe others understand the issues, feel the need to change, and see the new direction as clearly as they do. Communication should be targeted so as to provide employees the right information at the right time, to solicit their input and feedback and to check in on their emotional response. Change programmes often require over-communication through multiple channels. However, communication must be timed, coordinated, consistent and personal.

Address culture and required behaviours

Culture should be addressed as thoroughly as any other area. This requires developing a baseline through a cultural/organisational diagnostic, defining an explicit end state or desired culture, and devising detailed plans to make the transition. After completing the vision and thinking about the desired culture, leaders can assess the current culture to understand the gaps that need to be bridged and to identify strategies to accelerate the development of a new culture.