Every organization goes through periods of change. Some changes are significant, with a wide-ranging impact, while others are simpler and relatively contained.
In truth, most organizations are always changing in one way or another. That’s a good thing. Change is vital for growth, innovation and competition.
Still, it can be disruptive for employees, customers and other stakeholders. Excitement can quickly turn to anxiety. Unfamiliar processes, fear of the unknown, and potential resistance to change can undermine the potential benefits of changes both large and small.
In an era when the pace of change is accelerating at unprecedented rates, the ability to navigate and manage organizational change has never been more critical.
If you lead a team, whether that means one employee or 100, learning the art of organizational change management (OCM) is crucial.
In this guide, we’ll share insights and best practices to help you:
- Understand the principles of organizational change management
- Guide your team with empathy and confidence
- Keep one eye on future opportunities without losing sight of current performance
Change comes in many forms, from strategic transformations and technological adoptions to cultural shifts and structural reorganizations. But with preparation and the right tools, your team will be ideally positioned to minimize disruption and maximize the benefits.
Table of Contents
- What is organizational change management?
- What causes organizational change?
- The essential skills of organizational change management
- Conquering the art of organizational change management
What is organizational change management?
At its core, organizational change management is a structured framework that addresses the human side of change within an organization.
It involves planning, implementing and sustaining change initiatives by guiding individuals, teams and organizations from their current state to a desired future state.
Unlike traditional change management, which might focus solely on project management or technical aspects, OCM takes a more holistic view. It recognizes the importance of leadership, culture, and communication in facilitating change.
A brief history of OCM
The history of organizational change management, at least in the formalized sense, is hotly debated. After all, as long as there have been organizations (in business, culture and society) there has been change and the need to manage it.
What we do know is that the current evolution of OCM started to take shape around the late 1990s. This likely coincides with the pace of change itself picking up, thanks to rapid globalization and technological advancement.
Around that time, the rhetoric starts to shift from rigid top-down change management models to ‘managing at the pace of change.’ In other words, moving with the times.
Why this approach is more important than ever
If the pace of change during the late 90s and early 2000s was considered fast, then we’re moving at warp speed today.
According to PwC, the percentage of CEOs who think their organization won’t last a decade without transforming has risen from 39% to 45% in the last year alone.
“Your choice is stark: either change the company to enable survival or risk having change forced upon it.”
- PwC, The CEO’s 2024 agenda
It’s a bleak outlook, but they’re not wrong. Organizations must evolve – and fast.
What causes organizational change?
The business landscape is constantly evolving. You could say that life, or human nature, is the cause of change. It’s one of those things that just is.
But that’s not a useful answer. So let’s look at some of the common catalysts that spark a need for leaders to draw on their organizational change management skills:
- New leadership bringing fresh perspectives and new strategic goals. This can necessitate changes in processes, workflows, or even company culture.
- Team restructuring to allow for growth and adaptation. This could mean redefining roles, introducing new teams or restructuring departments to align with the organization’s goals.
- Technological advancements like the rise of AI (an external factor) or the rising popularity of time management tools (an internal prerogative) often require employee training and workflow adjustments.
- Evolving business models due to changing market dynamics, customer preferences or competitive pressures, all of which require adaptation to remain relevant.
Two types of change
All the change catalysts above – and the dozens of factors we haven’t listed – can be broadly categorized as “adaptive” or “transformative.”
- Adaptive changes are typically incremental changes that address evolving needs or challenges. They often require minimal disruption and can be implemented relatively quickly. Think of things like upgrading software, hiring a new colleague, or trialing new time management strategies within a team.
- Transformative changes are far-reaching and radical shifts that can affect the organization’s strategy, structure, culture or operations at a foundational level. They’re more complex and require planning and resources. Transformational change can include merging with another company, implementing an organization-wide time management tool, restructuring a department or launching a new product line.
Of course, few things are black and white in business. Most change management challenges you’ll face as a leader fall somewhere between adaptive and transformative.
Time management tools are a great example of this. Although the eventual goal is to transform your organization with wide-ranging workforce analytics data in one centralized location, it’s more likely that you’ll start with a pilot implementation and scale up.
That’s how Executive Mosaic approached the change, starting with a controlled Time Doctor trial before implementing the platform for the entire workforce.
Crucially, the rollout coincided with COVID-19 restrictions. However, because Executive Mosaic’s management team had seen the outcomes of an adaptive change, they were ready for the transformation.
“It looked like a stroke of unintentional genius,” said Executive Mosaic CEO Jim Garrettson. “We were just lucky to be ahead of the curve.”
This is just one example of the need for robust and flexible organizational change management skills. The changes today’s leaders face are more complex and wide-ranging than ever, with ramifications nobody can predict.
Imagine telling one of the leaders who pioneered ‘managing at the pace of change’ in the 90s about the global pandemic that hastened the transition to remote and hybrid work, and AI’s double-edged role as facilitator and disruptor.
The essential skills of organizational change management
Let’s step back for a moment and revisit something that we might have sped past earlier.
That’s the idea that OCM ensures a smooth transition by focusing on the human element of change.
Modern organizations are increasingly made up of subject-matter specialists who excel in their field. If your field is managing your team of experts while minimizing friction, you’ll go far.
We can’t afford to let organizational change management become a lost art. As exciting as AI, globalization and remote working are, their potential will remain unrealized without leaders who understand that successful change isn’t just about implementing new technologies or processes; it’s about people adapting to new ways of working.
Leadership commitment
Change doesn’t always begin at the top anymore. Sometimes it does, but culture is one example where leadership buy-in becomes important in capturing the potential benefits of transformative change.
Still, any change initiative needs the leadership team’s unwavering support. Executives and top-level leaders must champion the change, clearly communicate its purpose and benefits, and be visible throughout the process.
Team leaders and department heads become mission-critical conduits, translating employee feedback to organizational leaders and maintaining a clear line of sight that’s important for trust.
Vision and objectives
There’s increasing evidence that an employee’s sense of purpose is a powerful motivator for performance and engagement. For you as a leader, that means clarifying the strategic need for change, securing leadership buy-in, and sticking to the vision for the entire process.
A clear and compelling vision for the organization’s future state is essential for guiding change.
Translating the vision into specific, measurable objectives provides a roadmap for the change effort that everyone can work towards.
Communication strategies
Effective communication is the engine that keeps organizational change moving in the right direction.
Employees need to be informed about actions and timelines, and how they’ll be impacted.
This is easier for adaptive changes, as the time between kick-off and post-project review is relatively short. But fatigue can creep in over longer or more complex transformations.
Here are a few things you can do to keep the communication engine purring throughout the change:
- Establish a cadence for communication so employees know when to expect updates
- Make it manageable, ensuring every update adds value, and don’t over-communicate
- Communicate challenges transparently alongside the wins
- Ask for – and act on – feedback from affected employees
Consider setting up a dedicated comms channel for employees to view the latest updates and provide feedback. This makes communication more two-way and helps foster a sense of ownership.
Support structures and mechanisms
Change can be challenging.
Leaders need to architect or build support structures, such as training programs, mentorships, contribution opportunities and internal communication channels to help employees navigate the transition. This also includes mechanisms for dealing with resistance, feedback and non-adoption.
Start early. Design the systems proactively, with room to adapt as things inevitably change.
If you’re working with an external vendor, for example, when rolling out time management tools or transitioning to a new CRM, seek their advice on strategies to manage organizational change.
At Time Doctor, we’ve compiled our experience from 200k+ users into organizational change management resources, including emails, best-practice guides and communication support. They’re free to download and personalize as you need.
Conquering the art of organizational change management
You’re living (and leading) through a period of unprecedented change. While that’s exciting, and change is inevitable, it can also be daunting.
By equipping yourself with the knowledge and tools of organizational change management, you can transform challenges into opportunities and maximize the potential benefits of organizational evolutions – even the small ones.
Just remember that successful OCM is all about people. It’s about transforming how you think, work, and lead to get the most out of an engaged team and create a future that aligns with your vision and values.
Focus on clear communication, strong and empathetic leadership, and employee support, and you’ll ensure a smooth transition.
Time Doctor can be your partner in navigating change
Our workforce analytics platform provides valuable insights into team activity and performance, helping you identify training needs, monitor progress, and measure the impact of change initiatives.
Sign up for a free trial to start gathering the insights you need to help your team work more effectively by the minute.
Andy is a technology & marketing leader who has delivered award-winning and world-first experiences.