What is Organizational Change Management (OCM)? Importance and 5 Elements

“Slowness to change usually means fear of the new” by Philip Crosby.

With technology advancement, current events shift & how fast industries switch to organizational change management ocm is now a normal part of doing business. Practically every organization will, at some point, experience a transition to remain feasible. When these changes need adjustments at the structural as opposed to the project level, businesses are required to implement organizational change.

But change is rarely easy. And the bigger & more complex a business is, the more challenging it is to implement change successfully. Further, To authorize the change, companies should design for positive impact, promote a culture of trust & permit employees to be their true selves. Furthermore, The ability to integrate essential changes into how you do business plays a straight role in long-term success. So, That means more extensive & more recurring change programs.  Thus, It requires a thoughtful, strategic approach to every change the business takes on, which is what Organization Change Management is all about.

There is a gap between where most organizations are today & where they will need to be to succeed in the coming decade. The companies that win in the 2020s will be designed to consistently learn and adapt to changing realities and exploit the benefits of wider Business ecosystems.

Organizational Change Management (OCM) Meaning

Organizational change management ocm is a structure that manages the effect of new business processes & technologies, changes in organizational structure, or cultural changes within an enterprise. It is the method of holding change to produce a successful resolution, and it generally includes 3 major phases: Preparation, implementation & follow-through. 

Michigan State University Professor Russell E. Johnson defines organizational change management (OCM) as “the planned organizational-wide effort to increase individual & organizational effectiveness via behavioral science knowledge.” So, OCM strategies are designed to decrease the potential negative effect of any structural changes in a business. Further, A systematic approach to OCM focuses on both the micro & the macro levels. Whether requiring workers to learn new skills, redistributing responsibilities & priorities, or investing in new techniques, the organizational change management process includes a top-down approach to manage the change.

Fortunate OCM strategies include

1. Harmony on a common vision for change
2. A strategy for training employees about how their regular work will change.
3. Rewards, both financial & social, that inspire individuals & teams to take ownership of their new tasks & responsibilities.
4. Sound executive leadership to communicate the vision as well as sell the business case for change.
5. A solid plan for how to measure whether or not the change is a success & follow-up plans for both successful & failed results.

Leader’s Tip
To win over and win over the support of stakeholders, communicate the necessity for change, the vision, and its advantages.

What is Importance of Organizational Change Management (OCM)?

Organizational change management strategies are necessary for companies to succeed & grow. Change at the organizational level affects all employees in a company, including the individuals & teams working on various projects. So, Change management drives the successful adoption & usage of change within the business. Thus, Managing a successful organizational change can increase morale among employees & lead to positive team building and job enrichment.

These factors can directly & positively affect productivity and quality of work while shortening production cycles & reducing costs. Effective organizational change management plan allows workers to remain motivated & productive during the introduction of new technologies or procedures.

• Prepare for Organizational Change

The shift isn’t restricted to implementing new tools & adopting modern technology. So, It’s essential to first define the organizational change, understand why it’s condemning, and gather support from your colleagues, to prepare for organizational change. Then, expand your definition of success & how you measure it. Staying within budget & generating revenue opportunities are essential, but user adoption & customer satisfaction must also be key success metrics when moving your organization to a driving mindset.

Make sure the organizational change management plan lines up with business goals & shapes the implementation and durability of the organizational change. Change management doesn’t stop once you’ve successfully executed the transition. Both throughout & following the process, you need to consistently evaluate results, train employees on new methodologies & business practices, measure data and restructure goals as necessary.

• Examining Past Failures

40 years ago, 70% of transformations failed. So, At the birth of the digital era, that percentage increased to 84%. Today, 90% of transformation programs fail to meet the expectations defined in the business case. 

For some organizations, failure arises from a lack of alignment to purpose, business results, or among leadership. For others, it’s the incapacity to adapt to a developing, increasingly complex scenery. Not leveraging the quantity of data companies gather to make better decisions is another block. And then perhaps the most essential of all, there’s failure to consider the human factor.

Leader’s Tip
To ensure smooth transitions, involve employees in the process of change, offer training and resources, and address any concerns.

Also See- What is Leadership Develpoment?

What are 5 Essential Elements of Organization Change Management (OCM)?

1. Define your Purpose

Take time to share your purpose with your team & mentor them on the importance of taking action. The purpose is the guiding star of all change experience activities. Purposeful change requires to be why oriented & answer the question for everyone impacted: why are we doing this?

When the whole team understands the “why,” they set themselves & each other up for success by acting energetically. The purpose is integrated with a practical focus on adoption, with initiative teams working to find out & remove possible friction points to make the transformation work for the organization. Leaders need to be aligned on what the purpose is & adopt the behaviors that mark its importance and relevance frequently.

2. Exploit Near-Real-Time Data to Power Intuitive Decision-Making

A recent Gartner study presents that more than 90% of organizations have not still reached a transformational level of maturity in data & analytics. Using available data & analytics can help companies attain near-real-time visibility of a transformation journey’s progress. It can inspect when issues arise.

Observations & data on current behavior, performance & preferences can identify patterns that will help in customizing change approaches. Quantitative analysis & digital tools can support collaboration and engagement, while both quantitative and qualitative analysis of workforce responses can provide a near-real-time picture of emotions and energy throughout the transformation journey.

3. Connect with the 4 Motivation Centers of the HumanOS

The Human OS (human operating system) consists of four motivation centers: the head, the heart, the hands, and the feet. How does this relate to your long-term vision?

The head helps your team understand the change you’re making, why it’s happening & the importance behind the move. The heart allows them to believe in the whole mission. The hands inspire them to roll up their sleeves & get to work, diligently participating in the organizational change. The feet represent your team sharing their passion with others to extend the mission to other departments. Developing personas can help leaders think about employee behaviors — what they think, feel, need & how they work. Such human-centered design, when constantly applied, will encourage employees to bring the best of who they are to the workplace, allowing them to release a wave of human potential.

4. Establish Success Metrics

In any IT project, it takes time to measure the success of a project. Make sure you have the genuine resources to measure success by observing adoption, offering additional training & establishing a consistent loop of feedback and improvement. 

5. Celebrate the Wins

Celebrate the wins with your team, even the smallest ones. In doing so, you restate a culture of acceptance & support. A big reason people leave their jobs is that they don’t feel happy or appreciated. Ensure your whole team celebrates wins together, & always praise employees for even their small efforts.

Final Word

Change in the workplace can frustrate workers who are used to a specific routine which may result in a resistance to change. It is important to remove this resistance before beginning the change process. Organizational change management is a process that needs full planning, open communication, clear goals & constant attention paid to feedback from employees. Furthermore, if change can be inspired, managers may find workers more willing to alter their existing routines. If change can be seen as a desired process instead of disruption in routine, the whole transition period may proceed more smoothly than it would otherwise.

FAQs

Key Takeaways

• OCM entails evaluating preparedness for change, planning it out, and carrying it out while minimising resistance and maximising adoption.
• Successful OCM efforts depend on effective stakeholder participation, transparent communication, and strong leadership.
• Organisational adaptability and sustained effectiveness are guaranteed by ongoing review and adaption of change efforts.