Best practices in change management

Change management is a story of many paradoxes. Change is inevitable, but very difficult to initiate and implement. Get it right, and you become a world-beater; get it wrong, and you can destroy a business built over many decades. It can be a source of energy for people or destroy their morale. And, when it comes to HR, change can even make you a hero or a villain!

I have had the opportunity to be centrally involved in change management across multiple organizations. It started in McKinsey, where I had the opportunity to transform the McKinsey Knowledge Centre from a back-office research centre into a cutting-end innovation centre. My change management journey continued at Fidelity International, then Flipkart, and now at Incedo. While the industry focus and the change management objectives have been different across the organizations I have been involved in, there have been some common lessons.

1. Focusing on the right type and amount of change. While change is inevitable, leaders need to make a conscious choice to change those things that will produce the most impactful results. Change is inherently difficult, so it is important to focus one’s efforts and not dissipate one’s energy. Change for the sake of change does not help. For example, there is often an over- reliance on changing organizational structures as a way of driving performance change. In my experience, such changes cause a lot of heartburn while rarely fulfilling their promise. In addition, it is important to recognize that any organization has only a certain capacity to absorb change. Therefore, it is critical to prioritize and sequence change initiatives, so managers have clarity on what to focus on and equally the capacity to execute the changes. This is an area where my perspective, as a manager, has changed significantly from when I was a consultant. As a consultant, I was focused on getting all possible smart ideas on the table. As a manager, I realized that if you put too much on the table it will confuse your people. To ensure successful execution, you have to focus on a few, not many, ideas.
2. Establishing ‘why change?’, clearly and persistently. The biggest challenge in change management is to move people out of their ‘comfort zones’ and get them to truly accept the need for change. Inertia is inherent in human beings. We like predictability and certainty. We convince ourselves that what we are doing is the right thing. Moreover, it is hard for people to achieve the objectivity needed to question and change their daily routine while they are actively immersed in it. Therefore, it is critical that you establish the need for change clearly and persistently.It is important to go beyond the corporate logic and see the change from the perspective of the individual – why should he or she change, what can he or she do differently, and what will be the impact. In doing this, you have to appeal to both the head and the heart. Moreover, you need to be persistent in establishing the need for change. Rarely do people accept significant change at one go even if they say they do. You have to keep at it! If you are persistent, you can reach a tipping point when people finally get convinced about the need for change. That is perhaps the most important milestone in your change journey.
3. Identifying change agents. It is critical to have a core team of committed and inspiring change agents at the centre of the change programme. No leader, however inspiring, can drive significant change alone. You need to have force multipliers who will not only embrace the change themselves but evangelize it across the organization, those who will stay through the journey through its ups and downs. There are certain types of individuals who are more open to change – those who have high levels of personal confidence and a broader outlook. They are analogous to the ‘early adopters’ in marketing! In my experience, I have often found more change agents in the second line of management than in the first. The latter are often too vested in the status quo, while the former can see opportunities in the change.
4. Focusing on some early wins: Driving change is not just about strategy but also about tactics. You need to ensure some early wins. This will build credibility for your change agenda so that it is no longer merely conceptual but also tangible. It is not easy for people to agree to change when the status quo is disturbed. Moreover, people have an inherent distrust of words and respond much better to actions or outcomes that are concrete and visible. Early wins will work as compelling reference cases and help you gather momentum. They will help build understanding among the team about what you are trying to accomplish and encourage people to embrace the change.
5. Going slow to go far: While I have talked about early wins, it is important to recognize that organizations have a lot of inertia, and change, especially in mindset and behaviours, takes time. You have to be patient and persistent. Often, new managers rush to declare all that was done before them as rubbish in their frenzy to change everything. This is a recipe for failure. You have to take the time to fully understand the situation, especially the history and culture of the organization, and build trust with the people. The ‘Hare and Tortoise’ story is very relevant in change management. You need to take not a one or two-year view but a three-to-five-year view for achieving substantial change outcomes. I have experienced that progress at the two-year mark can be underwhelming, but if you are persistent, results in the three-to-five-year period can be outstanding. Therefore, you need to pace yourself and set realistic expectations. Do not lose heart. It is OK to lose or not fight a few battles. If you are persistent, results will come.
6. Building a stakeholder coalition. You need to understand the organizational politics and recognize the power centres and learn to work with them to achieve your change objectives. One of the key aspects of my corporate education has been recognition of the reality of organizational politics. Self-interest is an inherent aspect of human nature, so politics exists in all organizations and you have to be prepared for it. Moreover, organizational politics is not always bad; you can also use it for good (Lord Krishna from Indian mythology provides an excellent role model for using politics for good!). Any organization will have power centres, and people are very sensitive to cues from them. You can give your change programme a big boost if you can understand the motivations of the key stakeholders and find alignment and visible support from them. If you don’t, your change programme can get derailed very quickly.
7. Communication, communication and communication. Communication is absolutely critical. There are four aspects important in communication – keeping it simple, coverage of all levels, frequency and consistency, and openness and honesty. You need to articulate the need for change (why), your vision (what), and the benefits of the change for the organization and its individuals in a simple manner. Employees at all levels should be able to understand the messages and what they mean for them. Often, the messages remain limited to the top levels and do not reach down the line; and if they do, they are articulated in ways that are not relevant for the majority of the staff. Moreover, you need to communicate often and be consistent in your messaging. When you are going through change, people feel insecure and have a high need to know. Repetition helps in such cases! Finally, you need to treat your people like mature adults and be open and honest with them, even if it is bad news you are bringing them. That works much better than trying to hide or soft-pedal any difficult messages.

Nitin’s conclusion:

I hope these best practices help you play a positive leadership role in transforming your organization in this digital age. Please remember, change management is not just about the CEOs, HR or the senior management, but something that professionals at all levels can and need to play a role in. Change needs to happen across the organization. This presents opportunities for professionals at every level of the organization to step up and make a difference. If you aspire to develop as a leader, then be proactive and take ownership of the change opportunities around you. Don’t let the size of the challenge weigh you down. Just be positive and focus on your karma. You will be surprised how much power your individual actions can have!

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