The world is in constant flux, as we’ve witnessed since the start of 2020 – our personal and business worlds have been turned entirely upside down. In addition to Covid-19 and environmental disasters, social movements have also significantly changed how we act and think. The impact of this has shown that it is vital to be prepared for all eventualities.
The necessitated changes are multi-faceted and can be aspirational as well as functional in a personal and business context. When talking about changes in a business context, transformations of all shapes and sizes come to mind. The last year has been extraordinary, but even the prior decades have proven the necessity of transformations – we have seen digitalization, globalization and workforce mobilization that have motivated the need for change amongst organizations. For an organization to successfully survive within a competitive environment, adapting and having a sustainable transformation program is vital.
Claudio Stadelmann, Partner Insurance at BearingPoint Switzerland
Studies have shown that most transformation projects fail due to employee resistance and the lack of strong leadership support. It is important to focus on and consider the three components of change: why, what and how.
First, the “why” must be considered. It is crucial to understand the context and why something is about to be transformed. Then “what” must be microscopically analyzed to drive change successfully. The subject of the changes must be clearly defined, such as the structure, the processes or the organizational culture. Finally, the “how,” which means we must understand the change process steps and impacts and define how the desired changes can be achieved and remain sustainable post-implementation.
This study primarily focuses on the last component, on how change management is anchored in organizations.
Does size matter?
The size of an organization matters in total transformation. The emphasis is on the importance of change management and how that is implemented. Large complex organizations often have institutionalized change management processes. Whereas smaller companies have an organic change approach as a by-product of regular communication and knowledge exchange.
Is your change management really as good as you think?
There is a difference in the perception of change management on different hierarchical levels within organizations. While top management members often overestimate their influence on the rest of the company, most employees will not change their behaviors and attitudes based on a one-time newsletter. Change requires a relevant goal, time, attention, and structured process guided by skilled leaders who can walk the talk.
Transformations are difficult – so do not neglect the soft factors
Organizations need to create an environment open to change, where employees feel comfortable and not deterred. Soft factors play a crucial role in the success of transformation processes. As we know, most transformations fail due to employee resistance and lack of solid leadership. Soft factors often are significantly more critical for successful change management than hard factors.
The six most frequently mentioned causes for change failure
1. Culture / mindset: Emotional resistance to change is the result of lack of understanding
2. Leadership: Lack of leadership and inadequate support causes change failure
3. Communication: Change initiatives are not communicated clearly within the organization
4. People / skills: Limited resources and a lack of know-how prevent successful change
5. Structure / processes: Company structures and processes are not ready for change
6. Implementation: Without vision, strategy and goals as well as a clear roadmap, companies get lost during implementation
About the study
This study was conducted by BearingPoint, and its results are based on a survey of 300 managers and executives in Switzerland conducted in April of 2021 over ten days. The survey was via an online access panel about change management and its meaning in their respective organizations.
We hope you enjoy reading the study and look forward to your feedback!
