How an efficient and effective Change Management or Transformations can be achieved in any company?
I have published this post on LinkedIn and had a very good response and discussions from industry experts and business pros. Check it out here and connect with me on LinkedIn.
Change Management or Transformations can be achieved in any company.Change Management or Transormations can be a daunting task for any company in any industry. But, with growing competition, recent recession, and the customers being more informed, companies need to transform themselves into a better players if they want to stay in the field. Starting from the Board and the CEOs until the Managers and the floor employees, everyone need to understand the importance of an efficient Change Management and strive to implement the same.
I have done a consulting project for one of the three largest banks in the Netherlands, and a prominant bank in the Europe. I had two other colleagues with me and we have analyzed and recommended certain strategic steps for the Private Banking wing of the said bank. As a part of the 3-month project with them, we have developed a Framework for an effective Change Management based on which we have made the recommendations for the bank. The Board, the CEO, and several other employees have mentioned that they had found these recommendations useful and they are actually implementing some of them.
I have decided I would share the Framework with anyone looking at transforming their company, however small or large it might be.
This framework is intended for developing and implementing a successful Change Strategy within a company in any industry. The main aspects of this framework include
Stage 1 – Balanced Change
This stage focuses on the WHY of the Change; why does the company want to change? There should be a balance between the intentions of the management and the aspirations of the stakeholders. If the intended change, even if achieved, does not address the needs and meet the expectations of the stakeholders, then such a change is unnecessary. In this context, this stage also focuses on if the intended change is a result of internal realization or the public pressure and trends in the market.
Stage 2 – Leverage
This stage focuses on the WHAT of the Change; what are the areas that need to be changed? Trying to change a lot of little things slows down the process and derails the intended strategy. So, priorities should be defined in terms of which areas to focus on, which key people to involve and which change processes to set up. These priorities should be few in number but have a huge and definite effect on the organization as a whole. To maintain the balance between the intentions of the management and the aspirations of the stakeholders, as said in the previous stage, it is very important to involve stakeholders in decision making in this stage.
Stage 3 – Processes and Pace
This stage focuses on the WHERE the energy comes for change; is it from the internal realization that they should change or adapt a new strategy to be more sustainable in the longer run or is from the external pressures such as from the Government, the market or the competitors. More importantly, besides identifying this source of inspiration for the change, this stage also deals with the momentum of the change. It is very commonly observed that a very effective strategy developed by a company is easily derailed as some complexities arise in implementing it. These complexities can be a shift in the market, inflation, change in the Governmental regulations or change in the key management people. To avoid this, there should be continuous management of momentum to pursue this change strategy. There should be dedicated systems for training, monitoring and reporting these systems in place.
Stage 4 – Communications
This stage focuses on the HOW to communicate the strategy; to both the employees and the stakeholders, collecting feedback, making adjustments and advertise the outputs.
Stage 5 – Leadership
This stage deals with the WHO should oversee all this change management; the C-Level Executives or the top management should act as the catalyst for this change. Even though this is last stage, this is the heart of this framework and binds all the other stages into the strategy. The mission and vision should be communicated to the employees and motivate them. It is their responsibility to set realizable goals and provide directions on how to achieve them with enough flexibility. It is also their responsibility to communicate this to all the employees. Besides the C-Level Executives, small cross-functional and responsible teams can be set up to dedicatedly work on monitoring and implementing such a strategy.
This framework has definitely helped us evaluate the current practices of the bank, analyze the trends in the industry and practices of the competitors, and come up with a strategic plan to implement much-needed change in the bank. The fields we have used this framework were Private Banking, Wealth Management, Investments, all financial related fields, and their overlapping with the recent trends of Corporate Social Responsibility of banks. It has helped us. I am sure it would help you too.
For more information on the framework, a detailed description, or about using the framework in your company, articles, or any publications, please email me. I would be glad to share my knowledge with you. I believe, ‘By sharing knowledge, you increase it’.
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