Many people react to change management with resistance and a fear of what comes next. Yet managing change well is often the key to company success and to satisfied employees. As Head of Customer Success at Operations1, Rafael Koch has guided many change management processes. In this interview he shares what makes change management work and why involving employees matters so much.
What this interview covers
Rafael Koch is Head of Customer Success at Operations1. Together with his team he rolls out the Operations1 software at customer sites and has guided many change processes to success. In the interview he explains how change management can work for every stakeholder involved, and why communication and empowerment are decisive success factors.
When is the right time for change management?
Rafael, what does change management mean and why does it matter so much?
Change management is the systematic adaptation of a company to shifting circumstances. It matters because it gives companies a set of methods and processes to adapt to changes that lie outside their control. That way, firms reduce the internal resistance that often surfaces during reorganization.
At the latest, when should a company start a change management process?
That depends on several factors and on what exactly a company wants to change. A good moment for change management arrives as soon as structures, processes or technologies are about to change significantly, for example the restructuring of a department, a new corporate strategy or the introduction of a new technology. The important part is to start the process as early as possible.
Which companies or change initiatives benefit most from change management?
There are no restrictions here, no limits to specific areas, industries or company sizes. The beauty of change management is that it is a universal tool for any company that wants to implement the kind of changes just described in its operations.
Change management stages
Which phases are typical, and what matters in each one?
There are many different frameworks for running a change management process. Well-known models include Lewin, McKinsey, Kübler-Ross and the model of psychotherapist Virginia Satir. What they share is the assumption of distinct phases that usually accompany profound change, such as shock, resistance, fear or denial. At the end of a successful change management process there is always acceptance of the new, which people can then integrate into their own personality and environment in a valuable way.
Because a change management process is often a project with such a clearly defined outcome, I recommend the phase model of traditional project management to our customers. It distinguishes 5 phases:
Analysis and initiation: taking stock and determining the current state, with a view to whether a process or an activity needs to change.
Planning: developing a change concept and drawing up a corresponding plan.
Implementation: putting the change concept and the change plan into practice.
Control: monitoring the change process and identifying deviations.
Closure: reviewing the change process in hindsight, monitoring the new processes and systems, and producing a final report.
Even this traditional model includes the change request, which accounts for adjustments along the way. When the outcome of a change initiative is not fully clear, an agile or hybrid model can help. Changes are then implemented in small increments and reviewed afterwards. Working fully agile, for example with SCRUM in sprints, is particularly useful when the new environment holds many uncertainties. The goal and the environment dictate the tactics for success.
Which department should drive the change management initiative?
Leadership, without question. Good change management starts with a clear vision from the leadership team of how the company wants to develop. When those in charge commit to it, they create an environment in which employees can prepare themselves for the changes ahead. This is also where Shopfloor Management comes in, because it brings leadership and communication directly to where the work happens.
"People who understand the opportunities in change accept it more easily." Rafael Koch, Head of Customer Success, Operations1
Appreciation and cooperation
How can every business area be integrated in a way that creates value?
The first step is to select a change management team or a change management officer who takes responsibility for implementing the process. If it is a full team, it consists of people from every business area involved. The team supports the departments in implementing the upcoming changes by setting timelines, providing resources and monitoring progress. What matters most are the regular feedback loops between the departments and the change management team, because that is the only way to make sure the agreed changes are implemented successfully. Beyond these formal aspects, an appreciative and cooperative attitude across the team helps enormously.
Why do some people react with resistance, frustration or concern?
Change management processes initiate change, a kind of farewell to the old and familiar that provided security. For some people this triggers negative emotions connected to the fear of the unknown. Ultimately that reaction is human and, to a certain degree, normal. Each of us has been in a completely new situation that felt uncontrollable and has responded with defense mechanisms. In corporate change processes such feelings surface especially when employees feel threatened or overwhelmed by the new, and when they were given neither enough information nor enough time to understand the changes.
The right attitude of expectation
Which strategy works when individual areas or employees resist?
Successful change management involves everyone. People who understand why change is necessary and who are allowed to see both its opportunities and its risks can usually accept it. Workshops or training sessions are one way to create that involvement. Companies that do more than train people once, and instead make the necessary knowledge permanently available in the process, benefit from a knowledge management and training software that provides experience-based knowledge exactly where the work happens.
It is essential to take up every concern and doubt, but also every idea and opinion employees bring, to take them seriously and to involve people actively in the change process. It also helps to bring in those employees who have a strong and positive influence on their colleagues, which is initially independent of their position in the company. These people usually serve as role models and, much like influencers, shape their environment through their stance and behavior.
How long does a change management process typically take?
That depends heavily on the complexity and scope of the change. As a rule, expect at least several months, and in some cases even several years.
What are realistic expectations for the results?
It is important not to assume that the change processes you initiate will deliver visible results immediately. Good change management is built to last, so it takes time before the expected results show.
"Good change management is built to last, and that takes time." Rafael Koch, Head of Customer Success, Operations1
What else is needed
In your experience, which 3 factors are decisive?
Three factors are essential for change management to last:
Skills: everyone involved in a change management process should bring certain skills for the transformation to succeed. Alongside technical and organizational knowledge, these include soft skills such as strong communication, stakeholder management, patience and leadership. Of course, these skills do not have to come together in one single person.
Empowerment: managing change is demanding, not only because of the change itself but also because of the time it takes. That is why the people involved need access to the resources mentioned above throughout the process. Without them, you get delays, frustration and errors.
Trust: it is the basis for engaging with change internally and then carrying it through successfully on the outside.
Rafael, thank you for the detailed explanations and the valuable insights.
Change management when introducing digital processes
When manufacturing processes go digital, change management decides whether people accept and actually use the new way of working. Operations1 supports that journey as a Connected Worker Platform: employees work with Digital Work Instructions Software instead of paper, document results directly in the process, and earn qualifications automatically when they complete a report. The rollout deliberately starts small, with pilot areas, feedback loops and multipliers from the team.
Are you planning to introduce a new solution on the shopfloor? Talk to our team about a rollout that takes your people along from day one.