Do you feel like your company is always playing catch-up with market changes? Have you ever thought about what it would be like to anticipate those shifts and lead internal innovation with confidence?
Organizational change is the process of moving individuals, teams, and companies from their current state to a more effective one. It can involve both people and:
- Routines;
- Structures;
- Environments;
- Technologies.
The purpose of these changes is to optimize routines for companies to deal with market trends and uncertainties.
In most cases, organizational changes can be summarized as the processes that change people’s behavior concerning the corporation’s activities and technologies.
Keep reading and see how to succeed in this challenge using our five tips to carry out a change process the right way.
What is organizational change?
Organizational change is any process, action, or structuring of a specific procedure that transitions people, teams, and areas from a current state to a new one.
In some contexts, organizational change refers to a corporate project in which procedures and technologies are used to control multiple efforts toward a business model.
What are the core principles of organizational change?
- Have a clear plan: define a plan with a clear work process that includes information about how things will be better after implementation.
- Communicate transparently: avoid formal speeches and talk openly about the company’s vision and ensure that change initiatives involve all levels of the organization.
- Empower people: empower people to support and advocate for complex change through leading tasks, connecting teams, organizing and disseminating news.
- Invest in training and idea sharing: training and brainstorming help employees navigate cycles of change by sharing their knowledge with others individually.
- Take responsibility as a leader: Leaders must take responsibility for their teams, communicating the company’s expectations, providing feedback, and helping all stakeholders.
What are the types of organizational changes?
Because it is too varied and applicable to different people, sectors or companies, organizational change is difficult to categorize.
However, some types of organizational changes are usually more comprehensive and present in various situations and corporations.
Rebooting
This type of organizational change is focused on redesigning:
- Procedures
- Workflows
- Processes.
This can be done using digital tools, new or even old techniques, as long as the goal is to optimize results.
What is the main challenge of a reset strategy?
It’s definitely the biggest challenge of all when it comes to corporate change, as it requires teams to rethink how activities are being executed, how workflows are connected, and how the results of it all are connected.
Overview of the reset process for organizational change
- Complete redesign of workflows, processes, and tools;
- May involve new or legacy technologies, as long as they optimize results;
- Requires a holistic view of business goals.
The “reset” process emphasizes the holistic view of business objectives, such as a business process map with deliverables and expected outcomes.
Incremental
The incremental method in organizational change that uses small adjustments to get better results. In this process of change, there are no major changes in existing structures or patterns.
Why use the incremental method in organizational change?
It is primarily used to augment or introduce small, unplanned changes to a project, process, and/or procedure. This replaces the high risk of a large, usually planned change.
This model is recommended to reduce time and costs by increasing efficiency through small improvements.
What’s an example of the incremental method in practice?
Experimenting with extra components in a product can be seen as an incremental change, where new components are included on top of the main product to seek new results or customer insights, for example.
Overview of the incremental method for organizational change
- Small adjustments with low risk;
- Ideal for continuous improvement without changing the core structure;
- Allows for evaluating and fine-tuning each change independently.
In this organizational change, the results can be evaluated more accurately by separating each improvement and making the necessary adjustments. This model is recommended to reduce time and costs by increasing efficiency through small improvements.
Technological
This type of change involves innovations and improvements. In it, you can merge or discover technological resources that can even be explored commercially. In this type of organizational change, you improve the technologies used.
Why apply technological organizational change?
It is usually intended to reduce costs or serve a certain group of customers. After the change, this new technology can integrate the current business structure, adding new concepts, processes, or even other products/services.
Overview of technological organizational change
- Focus on innovation and cost reduction;
- May include new software, automations, or system integrations;
- Becomes part of the company’s operational structure.
How to manage organizational change effectively?
To make complex changes, there are a few issues that must be taken into account.
Measurable strategy for organizational change
Managers must put together a measurable strategy, setting goals and indicators that meet the stakeholders’ vision of success. Remember that this change should encompass and show the continuous monitoring of factors such as:
- Risks;
- Dependencies;
- Costs;
- Return on investment;
- Cultural issues related to work.
Clear and effective communication
In addition, communication needs to happen seamlessly. Leaders must align with the team and other stakeholders on how the change will occur. It is important to clarify the benefits of implementation so that everyone knows what is at stake.
Employee training
The involvement of participants alone is not enough, as the manager must act by training employees. Remember that any employee can become an authority and source of knowledge, as long as they create initiatives that bring the team closer to the expected results — as well as training or qualification for process improvements.
People often confront change, so identify and prioritize the issues that interfere with important transformations. Adapt activities when necessary to increase the motivation of those involved.
Progress monitoring of implemented organizational change
Also don’t forget to track the progress of the implementation and adjust as needed. Last but not least, try to be more human. If necessary, offer personal counseling to dispel fears and boost confidence in teams.
What is the step-by-step process for making organizational change happen?
Below you can see five tips to manage organizational change with maximum efficiency!
Align changes with objectives
More than results, changes need to maintain coherence with the objectives they aim to achieve. Transformations must take the business in the right direction, strategically, tactically, financially, and ethically.
- Ensure every transformation aligns with business goals;
- Evaluate strategic, financial, tactical, and ethical impact.
Track team impacts
Understand how the changes affect each team. Evaluate the effects and how they flow through other departments. Create a checklist with this information and ask for opinions, suggestions, and perceptions to align expectations. Then, build an action plan to assess and support important issues, as well as mitigate negative impacts.
- Understand how changes affect each department;
- Collect suggestions and build a mitigation plan;
- Monitor risks, dependencies, costs, and ROI.
Renew internal communication
Identify the most effective means of communication and make sure it makes the information bidirectional, as this will bring groups and individuals closer to the goals. But remember to plan the timeline, channels, and media to show how changes will be communicated incrementally, covering subjects, topics, and questions.
- Choose effective channels and promote two-way communication;
- Plan the change rollout timeline;
- Address doubts, gains, and expectations.
Share knowledge with stakeholders
Rapid knowledge sharing is important to raise awareness among stakeholders. Implementing changes can involve learning through online courses, training sessions, or even mentoring in the company. Create a sequence of content to prepare everyone for the difficulties and changes that lie ahead.
- Use training, mentorships, and sequenced content;
- Prepare everyone to handle the transition challenges.
Structure support and follow-up
To help employees adapt to changes, mentoring from experts or managers can help solve problems. This structure is crucial to emotionally prepare individuals for uncertainties. As long as teams are being supported, they will gain proficiency quickly.
This will allow them to adjust their skills and techniques to achieve their desired goals.
- Rely on specialists to guide teams;
- Provide emotional support;
- Help employees build new skills.
When does your company truly need organizational change?
But how do you know if you really need to make a major organizational change? Often this is precisely a point of doubt and fear. After all, the process of change often requires time, energy, and investment.
So that you don’t suffer from this, we have listed below the three most common reasons that cause an organizational change. But remember that these are general examples. Always seek to study your market and identify opportunities and needs for changes regarding the sector in which you operate.
Competition
Your rivals may be developing new services, products, or strategies. Therefore, it is a good practice to assess whether this is a good or bad transformation, as well as whether you need to take this action to stay competitive in the market.
Cost reduction
Changes can often affect the corporation’s finances, helping to reduce costs and optimize spending. This usually occurs when the organization identifies duplicate or costly activities and replaces them with automated flows.
System
The use of various methods such, as the Lean Manufacturing System, Kanban, Six Sigma, among others, can eliminate unnecessary processes and improve the results of the company’s teams. Therefore, they are motivators of changes that optimize the operation.
Conclusion
Learning from mistakes and acting quickly increases the chances of success in implementing organizational change. Therefore, be aware at all times, regardless of the complexity of the change.
Even in small businesses, changes can go through difficult situations and become serious problems. Therefore, be transparent about the processes, activities, and responsibilities established, so that stakeholders can evaluate, act, and correct any issues as soon as possible.
Finally, simple metrics should be created so that teams can clearly understand the goals and KPIs. These indicators must accurately show the organization’s current situation so that the company does not lose its vision of where it wants to go.
FAQ: Frequently Asked Questions about organizational change
Where should I start with organizational change?
Begin with a full diagnosis. Identify the change objectives, expected impacts, and your teams’ readiness. With this data, you can build a structured plan with clear goals and the resources needed to move forward..
Which type of organizational change carries the least risk?
Incremental change is the least risky since it promotes gradual improvements without major disruptions. It supports ongoing adjustments, offers more control over outcomes, and boosts team engagement.
What should I do when teams resist organizational change?
Resistance can be reduced through transparent communication, early employee involvement, active listening, training, and emotional support. Highlighting the benefits for each area and individual helps build trust and collaboration.
How do I know if organizational change was successful?
Success can be measured with KPIs such as productivity gains, cost savings, or increased team engagement. It’s also important to compare current outcomes with previous scenarios and gather regular feedback for continuous improvement.
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