Making Business Change Successful

One of the things I have learnt through being involved in big projects in big companies is the value of "Change Management". When I worked as the Finance person involved with projects and programmes costing millions in a multi-billion pound group, I was initially surprised that we employed a Change Manager as well as a Project Manager.

So if Change Management is not the same as Project Management, then what is it and what are the distinguishing features? And more importantly why is it worth reading an article about? How will it help you in your small business?

The following are just my observations. I am not an expert, I haven't read any books on Change Management. I have simply seen great Change Managers at work (people like Chris Collison), and seen the value of what they do.

Project Management relates to the best practice procedures for running projects - what documentation you need to define the project's objectives, terms of reference, scope, etc; what phases it goes through and how you manage each phase; resource management; etc etc.

Change Management seems to me to involve softer skills. If Project Management is about how to implement change, Change Management is all about how you make the change successful, so that it achieves what you wanted it to. (Change Management is also broader than projects, looking at how organizations and people cope with inevitable change, turning it to their advantage.)

Three things that a Change Management focus brings to any project, from my experience:

Focus on benefits: Whereas Project Management will focus on what we are planning to change and how, Change Management will ask why. Why are we implementing this new computer system? Why are we introducing these new forms?

It doesn't even have to be a project. So you can have Change Management, even where you don't need a formal project.

If you always keep in mind why you are doing something, what it is designed to achieve, why it will be helpful or value-adding, then you will implement the change in such a way as to achieve those benefits.

Let's face it, you don't spend thousands of pounds putting a new system in just because you want a new system (well, you might, but you shouldn't if you are concerned about the value of your business!) - you implement a new system because you think it will be beneficial.

But you have to be explicit and intentional about those benefits if you really want to achieve them.

And the value of thinking in that way is that it reminds you of other things you need to do. For example, Project Management processes will (hopefully) ensure that you implement the system you intended to. But a Change Management mindset will help you understand the things you need to do (e.g. the training, communications, process change, etc) to get the benefits you want out of the new system.

Focus on the stakeholders: Who is going to be impacted by the change or the project you are proposing? If you don't think about them then you may end up adversely affecting their ability to do their jobs. Or you may not get buy-in to your change. You'll have a new system (say) that people don't want to use because it came in suddenly and they struggle to get used to it.

So you need to think about all the people and groups of people that will be affected in some way by what you are proposing. Do you need to consult with them and ask for their ideas? Do you need to inform them in advance, so they can get ready? Do you need to train them to use new procedures and systems? Do some people need to do things differently? Are you looking for cost savings in their departments, and you need them to reorganize to get the benefits you want?

Constantly communicate: Of course, this is really the other theme in the point above. All people who are affected by change need to be involved in some degree of communication. There will be some level of consultation, information, advising, training, directing with everyone who has a stake - and at all times, listening.

Listening, I have found, is an oft-neglected part of communication. But people impacted by change know their jobs better than you do, even if you are the manager of the team or the MD of the company. And they can tell you how the change will affect them, and whether you need to modify your project to cater for their concerns, so that they can continue to do their jobs properly.

In fact, change that arises from ideas generated by the people at the "sharp end" are often the ones that get the best buy-in and are the most successful in adding value.

Conclusion: When you are looking at a big change in your business, you need to take a hard look at who is going to be impacted by the change and what benefits you are trying to achieve. Then you can communicate effectively about the change and make sure that everyone who is affected contributes positively to achieving those benefits.

© Charis Business Consulting Limited 2009