Research has shown that organisations
look regularly for new and better ways to work after introducing a
change, in order to increase chances of successfully sustaining
improvements.
According to a report by Mckinsey and Company, communication, contributes the most to a transformation’s success.
In its research, it notes that managers
in companies where senior staff communicate openly and across the
organisation about the transformation’s progress, report a successful
transformation eight times more than those who report lack of
communication.
The
report titled, “How to beat the transformation odds”, says good
communication has an even greater effect at enterprise-wide
transformations, where company-wide change efforts are 12.4 times more
likely to be successful when senior managers communicate continually.
In other to carry out the changes that
would involve the participation of the employees, the report have
suggested the following.
Lead, don’t manage
The research shows that leadership matters as much during a transformation as it does in the company’s day-to-day work.
According to the report, leadership
cannot be delegated to a project-management office or central team while
executives carry on with business as usual.
It affirms that when senior leaders show
exemplary behaviour with regard to the changes they are asking
employees to make, transformations are 5.3 times more likely to be
successful.
“Success is twice as likely when senior
leaders and the leaders of initiatives spend more than half of their
time on the transformation. In practice, though, only 43 per cent of
these leaders say they invested that much working time in the
transformation’s initiatives,” the report adds.
Choose the right people and empower them
Executives report that for
transformations to truly succeed, companies must think about the role
that employees play as well as their needs across the organisation.
It notes that the largest share of
executives say they would move faster to keep people resistant to
changes out of leadership or influencer roles, if the transformation
happened again.
Reports note that it is important to
define clear roles so employees at all levels are prepared to meet the
post-transformation goals—a factor that makes companies 3.8 times more
likely to success.
Mckinsey and Company reports says, “Also
key to an effective people strategy is allocating enough employees and
the right ones—that is, the high performers and active supporters—to
work on the transformation. One effective way to hold these people
accountable, according to the results, is using transformation-related
metrics.
“Executives who say their initiatives’
leaders were held accountable for their transformation works in annual
evaluations are 3.9 times more likely than others to report a successful
transformation.”
Prepare for continuous improvement
It states that several specific
practices help companies connect strategy to daily work, deliver value
more efficiently to customers, enable people to contribute to their best
ability, and discover new ways of working.
All these, according to the report are
linked to an organisation’s long-term health—and can keep companies from
backsliding on performance gains and support continuous improvements
after transformation.
For example, it adds that organisations
where people understand how their individual work supports the company’s
broader vision, executives are 5.5 times likelier than others to say
the transformation has been successful.
It says, “To achieve long-term success,
that link must also be reinforced with a company-wide commitment to
identifying opportunities for improvement—a practice that more than
quadruples the likelihood of success.”
Focus on people, not the project
Transformations are about the people in the organisation as much as they’re about the initiatives, the report says.
It notes that the long-term
sustainability of a transformation requires companies to engage
enthusiastic high-potential employees, equip them with skills, and hold
them accountable for—as well as celebrate—their contributions to the
effort.
“Companies should, in our experience,
take the same steps toward developing people throughout the
organisation. To build broad ownership, leaders should encourage all
employees to experiment with new ideas: starting small, taking risks,
and adapting quickly in their work. Doing so can create far-reaching and
positive support for change, which is essential to a transformation’s
success,” it says.
Communicate continually
The report advises executives not to
underestimate the power of communication and role modelling when
embarking on a transformation.
It adds, “The results suggest that
continually telling an engaging, tailored story about the changes that
are under way—and being transparent about the transformation’s
implications—has substantially more impact on an effort’s outcome than
more programmatic elements, such as performance management or capability
building. But the communication doesn’t end once the change story has
been told.”
It says that leaders must continually
highlight progress and success to make sure the transformation is top of
mind across the organisation—and to reduce the gap between what
employees believe is happening and what they see.
Take more action
Transformation is hard work, and the
changes made during the transformation process must be sustained for the
organisation to keep improving, Mckinsey and Company says.
It adds that while some factors have
more impact than others on a transformation’s outcome, the real magic
happens when these actions are pursued together
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