Regardless of the scale of the change, the key to success is that it helps the company achieve its growth goals. This is precisely why the change management skills are important for CEOs, managers, and entrepreneurs. They need to understand that it is right for change management to focus on how people receive and adapt to new ways of working. At the same time, it is important to find the appropriate sequence of processes and stages for the changes to be effectively implemented in the organization.
1. The "roulette" of results in change management
Studies by numerous consulting companies show the explosive growth of organizational change projects over the past five years globally. However, 85% of organizations reported unsuccessful change initiatives in the past two years, underscoring the urgent need for better change management strategies and methodologies.
According to a WTW analysis, only 25% of companies have employees who say that managing change is a major quality of top management leaders. Other studies show the pervasive nature of resistance to change, indicated by the failure of 72% of transformations. The main causes are employee resistance (39%) and lack of adequate management support (33%).
Burnout is another very important issue. Data published by Gallup shows that, globally, 76% of employees feel burned out at work. This underscores the need for empathetic leadership and tailored communication strategies, especially when introducing change in an organization whose employees are already experiencing high levels of stress.
2. The skills CEOs need to succeed in change management
CEOs need to address these issues head-on, fostering a culture that embraces change and providing support to people to mitigate resistance to change. They must master three skills at the level of excellence to be successful:
• Strategic vision: CEOs must have a clear and strategic vision of the direction the company will take in the context of change. The ability to define and communicate a coherent vision will ensure team alignment and inspire confidence in the change process.
• Communication and influence: Transparent and effective communication is essential in times of change. CEOs must be able to communicate clearly, listen to feedback and provide confidence to avoid confusion and resistance among employees.
• Empathy and leadership: The ability to understand employee perspectives and concerns is extremely important. CEOs must be true leaders, able to inspire, motivate and encourage their team in times of uncertainty and change.
3. Change management and digital transformation
For over 15 years, there has been an increasingly close correlation between technology and effective change management practices. In 2023, it is estimated that 2.3 trillion dollars have been allocated globally for digital transformation, a value that shows how great is the strategic importance of technology in the operations of companies.
However, the success rate of digital transformations remains low: only 26% in industries more advanced on the road to implementing digital technologies and only 4%-11% in traditional industries. It is becoming clear that business leaders must recognize the challenges of these digital transformation projects, invest in employee training and ensure that the workforce is equipped with the necessary skills to benefit from technological advances.
Significant investments in information security and risk management technologies, which will exceed $150 billion this year, underscore the priority given to cybersecurity awareness and employee training to ensure a smooth transition.
4. Valuable resources on change management
There are many valuable books that can help a CEO, manager or entrepreneur develop their change management skills. Here are some recommendations:
• "Leading change" by John P. Kotter: It is a classic book in the field of change management, with a structured and practical approach to successfully leading changes in the company. LINK.
• "The innovator's dilemma" by Clayton M. Christensen: In this book, Clayton Christensen discusses the challenges and opportunities associated with innovation and change in organizations, providing valuable insights for leaders facing technological change. LINK.
• "Switchers" by Dr. Dawn Graham: Although not about organizational change management, this book provides useful strategies for leaders facing major changes in their careers and the organizations they lead. LINK.
• "The heart of change" by John P. Kotter and Dan S. Cohen: A follow-up to "Leading Change", this book brings to the fore real stories that illustrate how organizational change can be successfully managed by focusing on the human aspects of the process. LINK.
• "Drive: The surprising truth about what motivates us" by Daniel H. Pink: Although not exclusively focused on change management, this book explores the mechanisms of motivation and can provide valuable insights into how leaders can inspire and guide the team in time of change. LINK.
In conclusion
CEOs, managers and entrepreneurs must approach change management as a strategic imperative. Understanding the factors that make a difference and produce results is more important than ever. The business leaders who embrace change as an opportunity for growth, prioritize the well-being of the people on their team, and make informed decisions will be able to lead their organizations successfully regardless of the accelerating pace of change.
* * *
About Valoria
Valoria is a consulting, training, and executive coaching company. Through our services, we help entrepreneurs to grow their business and make success concrete and predictable. Companies turn to us for marketing, human resources and sales consulting. We often respond to requests for training or coaching of management teams. Competence, trust, innovation and passion are the values we uphold in everything we do. We build long-term partnerships and collaborations, because we offer guaranteed results and the best quality, at the right price. In 2022, the Daily Finance publication nominated Valoria in the Top 20 management consulting companies in Bucharest. Find out more at: www.valoria.ro.
