Why PEOPLE - at all organisational levels - are pivotal to change management

Recently, my colleague Charlotte Kristjansson published two articles on Sustainability while I talked about Demand Driven Planning. These two seemingly unrelated topics have a crucial aspect in common: the need for robust change management driven by people to ensure successful implementation.

At Kinetic Consulting Ltd, we have a simple and intuitive 4-box model that has been proven effective every time we use it. Four elements centred around people. It can be used throughout every level of an organisation, in any region and industry and help you achieve long-term success.

WHAT it is

The model comprises four elements that should be addressed and defined in the order they are presented.

Case for Change: Why do we need to change? It should be defined by senior management; it sets the tone for change and should cascade throughout the organisation to give purpose. It should not be only about financial returns but explain the rationale for change, and what it means for the people involved.

Compelling, Clear and Shared Vision: What do we want to achieve? Our North Star. According to the scope of the transformational project, the vision could be defined by senior management (company transformation) or middle management (process transformation). What is essential - no matter at what level it is defined - is for the vision to be shared with everyone involved. Sharing it drives engagement even when people are busy running the business.

Feasible Plan: How will we achieve our objectives? It clarifies the building blocks, the actions, and what needs to be true to deliver a successful change program. In this case, it is critical to involve the Subject Matter Experts; they are the ones who know in detail how the activities are carried out, what the roadblocks are, and what the solutions could be. Co-designing an action plan with the people who do the work means that they will support it when implementation comes.

Capabilities to Deliver: What skills, tools, and knowledge do we need to drive change? The focus is on all people involved in a project. Define what is required, identify gaps and set up a plan to close those gaps. As you move along your change program, ensure you grow your team's capability.

As you have noticed, the model is just a tool to structure your approach. Everything is about people.

WHY it is important

It is a well-known fact that about 70% of all change initiatives fail. The cost of a failed transformation can be high, with direct costs (management time and consulting expenses) being only a fraction of the cost of lost opportunity and disruption.

The common belief is that failure happens because of poor execution. However, in a recent study, IMD argues that the top 3 reasons for a failed change effort are:

1. No clear and compelling case for change
2. Lack of senior team alignment
3. Abdication of leadership’s responsibility to drive the process

SOURCE: 10 Reasons why organisational change fails

Using a simple yet effective framework such as the 4-box model, you address all common causes for unsuccess and deliver successful and sustainable change. That's why it is essential to focus on all the elements at the right moment and centre them on people. Missing to have even only one in place will jeopardise your entire change program. You can see below what happens when people are not a pivot element of your change plan:

HOW it works

The model is intuitive. You should spend enough time on each element to build it robustly. Most importantly, avoid jumping straight to developing a plan and rolling it out to the organisation. The most essential "ingredient" is people. The more time you invest upfront with the people affected, the more successful you will be. Involve your team, give them a rationale and a North Star, and have them build solutions and grow within the process.

What is coming next 

I will continue to share articles on topics relevant to any finance leader. In the meantime, I look forward to continuing the conversation with you and getting your perspective on change management.