Why Change Management Must Be a Core Competency

Posted by Marbenz Antonio on August 17, 2022

9 Competencies Your Project Manager Needs to Succeed | IPM

Installing a new technology or educating staff on a new procedure is not the same as developing an organizational ability to manage change. Building organizational change management competency, commonly referred to as enterprise change management (ECM), focuses on the fundamental principles behind how the company functions as well as how its members view change. These people gain the perspective, power, and capabilities they need to support the various changes that occur in their lives over time when they develop the competency to manage change.

5 Causes to Develop Enterprise Change Management Competency

There are many reasons to manage the human side of change in the great company world of today. Here are five explanations for why developing enterprise-wide expertise is preferable to project-by-project change management:

1. Competitive advantage

One of the most important ways to differentiate yourself from your rivals is to have an organizational capacity to successfully implement and manage change. Many businesses have observed the foundations of their historical competitive advantage fading in today’s market. Many organizations now compete on an equal basis because of quick access to information, technologies, best practices, suppliers, and markets. Organizations are being forced to alter their domestic and international working practices by the global economy.

How will your company stand out if you can no longer rely on traditional sources of competitive advantage? Consider a situation in which your company can respond to change more quickly, effectively, and with a less negative impact on production. Your people are prepared for change and anticipate it will occur. You focus on their inquiries. You lessen or stop their opposition to the change. Every new project has a strategy and plan in place for handling the people aspect of change. The term “enterprise change management” refers to this.

Organizations have started to devote more time, money, and brainpower in recent years to developing change management as a core skill. In the upcoming years, how successfully you manage change—and develop internal change management competencies—will be an important source of competitive advantage that will set you apart from the competition.

2. Failed changes

Each of us may identify some changes that were badly implemented in our businesses. Some adjustments take longer than expected. Some go beyond their budget. Some encounter strong staff resistance. Some are put into practice, but the desired outcomes are never realized. Sometimes modifications are entirely unsuccessful and given up on. Your initiatives’ inability to fully achieve the anticipated benefits in the past can be attributed to poor change management on the part of the personnel involved.

Now think about how much these unsuccessful changes have cost. How much time and money was devoted to projects that weren’t finished? What effects did these changes not being adopted have on the organization? Your company cannot take a chance on the extra expenses and lost opportunities caused by ineffectively handling the human side of change.

A cost-saving strategy that reduces the effects of failed changes is to increase organizational-wide competency in change management.

3. Upcoming changes

The quantity and variety of changes that are coming support the case for enhancing organizational capacity to manage change in addition to lowering the risk of failed change. The coming years hold the possibility of swifter, more significant, and more complex developments.

Organizations are continuously attempting to put new technology into use, modernize their systems, increase productivity, reduce costs, and manage their human resources. Your company might be working on 50–100 initiatives at once that have an impact on how people perform their jobs, and another 50–100 are planned. The success of any program that is already underway and those that are planned for the future will directly depend on how well your organization manages change. Additionally, the high-priority, more strategic initiatives usually directly affect how individuals perform their tasks, necessitating change management. With so much change in store, efficient change management will be essential to the success of the project and the business as a whole.

4. Consistent application

Although there is a benefit in using change management on a single project, the value is increased when organizations start using it consistently on all changes. This is an essential skill for managing organizational transformation. A standard method that has been adopted and put into use leads to more uniform implementation across various projects and by individual practitioners. This step of adopting a common approach entails using the same procedures, equipment, techniques, and language for all projects and levels.

Applying change management more regularly has a lot of advantages. First, a range of change management practitioners can be helped by a shared set of resources and subject matter experts. Learning curves get shorter when a common strategy is applied regularly. A shared strategy offers a framework for ongoing learning and development. Practitioners can produce lessons learned that will enhance subsequent change management efforts each time change management is used. The change management process and approach cannot be continuously improved without this consistent use.

Risk also exists when changing without following a standard procedure. Imagine that a single manager is required to do three entirely distinct duties by three change management professionals who are assisting with three distinct modifications. The manager may get disinterested in all aspects of change management as each practitioner attempts to maximize the adoption of their specific change. Senior business leaders, project teams, and other project support roles may experience the same backfire effect (such as communication specialists or training specialists).

The choice and implementation of a unified strategy, which enhances change management activities across the business, is one of the first steps in developing an enterprise change management system.

5. Personal competency

The individual viewpoint on developing organizational change management competencies should also be taken into account, to summarize. In addition to the organizational benefits mentioned above, leaders, managers, and supervisors across the organization need to expand their skill sets in managing change.

The importance of managing change as a personal ability at various organizational levels is demonstrated by some important best practices. In Prosci’s biennial Best Practices in Transformation Management research study, the position of the principal sponsor is regularly identified as the single biggest factor in successful change. The sponsor’s responsibilities include being an active and visible member of the project team, forming a coalition of support with peers and other managers, and personally informing staff members of the need for change. However, many senior executives find it difficult to carry out their responsibilities. Even the top leaders within a company could require coaching, training, and assistance in order to be a successful sponsor. When it comes to playing the roles of coach, communicator, and resistance manager when changes are implemented, the same is true for managers and supervisors.

Members of the project team can develop their own particular capabilities for handling change. Managing the human element of change has begun to be included in the list of project management competencies, according to the Project Management Institute.

The collective individual competencies developed across the whole business, from the person at the very top all the way down to front-line supervisors and employees, make up the final component of organizational change competency. The ability to handle change manifests itself throughout the entire organization, and it must be controlled from both an organizational and a personal standpoint.

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Enterprise Change Management Is the Future

There is a growing demand for enterprises all over the world to have the real capability in managing change. Building competency makes your business stand out and enhances the execution of every new project you launch. By doing so, you can lessen the severe negative effects of poor change management and better position yourself for future endeavors to be successful. It is difficult to develop the ability to adapt; it involves design, project management, change management, and organizational commitment. But in the coming years, it will be essential for success.

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