It’s early 2022. Time to pull out the old crystal ball and predict how the practice of Organization Change Management (OCM) will need to adapt to ensure successful change.
Before we do, however, let’s take a minute and define what we mean by OCM and how specifically it adds measurable value to organizations.
OCM Defined
OCM is a framework for managing the “people” side of change. The “people” side of change refers to the willingness, and ability, of people to learn and apply new skills, adopt to changes in the organization (e.g. operating model), changes in technology and processes, and new ways of working (e.g. collaboration).
THE VALUE OF OCM
I think it is safe to say that all organizations go through change and, for the ones that don’t, history tells us they ultimately die. So, what does this have to do with OCM’s future and its value?
OCM’s value is found in two distinct areas.
- Acceleration in the speed to which an organization adapts to change. New processes and technologies come to mind here. The time it takes for the workforce to learn and apply new skills is commonly called “the learning curve.” Shrinking the learning curve involves shortening the time to learn and apply new skills, and results in limiting the productivity loss that occurs with every change. The faster we can get to the future state the more quickly we can realize its benefits.
- Sustaining the benefits associated with the change. Oddly enough, we refer to this as sustainability and is driven by consistent change in behavior. An example of behavior change: Employees who work in an agile environment and collaborate, ask for help, and work with less than perfect information. Behavior change might also include eliminating the continued use of manual workarounds where a new technology is built on automation.
How does this help us understand the value of and predict trends in OCM? OCM is more than just a set of tools and methods. It is an integral part of the larger solution. It contributes to, and enables the success of, initiatives. As such, we are going to take a practical approach that first, identifies business trends (e.g., the impact of COVID-19, agile teams, strategic transformation), and second, identifies the OCM approach that best accelerates and ensures sustainability of the change.
Let’s get started:
McKinsey and Forbes predict 2022 will be a significant year for business change. I have summarized these, as well as other, predictions in the diagram below as well as the OCM response and respective value-added trends.
Wait! Before moving on you might be asking: isn’t the measurement of the success of OCM a trend? Why isn’t it included in the above? Good question! And an important one. We have chosen not to add it at this time as it is becoming standard fare. Having said that, we can now use data from measurement activities to assess and target OCM issues before they derail an initiative. We’ll cover this in detail as part of an upcoming blog.
So, what’s next?
We hope you found this article thought provoking and, more importantly, helpful in identifying areas where your OCM efforts can accelerate sustainable business value for your organization in 2022.
While our plan is to utilize our blog to take a deeper dive, provide examples, and case studies for each of the OCM responses above, please feel free to reach out to us as well at marketing@thecaragroup.com. We’d love to help you tailor your OCM program to your specific business changes and accelerate your business success.
Sources:
GARTNER: Businesses Move a Majority of their Applications to the Cloud
DELOITTE: Business’s Take a Transformational (multi year) View of their Business
FORBES: Significant Changes to the Operating Model
McKINSEY AND COMPANY: Significant Changes to the Operating Model
McKINSEY AND COMPANY: Significant Changes to the Operating Model
https://www.mckinsey.com/featured-insights/agile-organizations
KORN FERRY: Workforce of the Future
FORBES: An Agile Approach to the Business Continue to Gain Popularity
DELOITTE: Continuation of Active Merger and Acquisition Activity
PWC: Ensuring productivity during COVID, Managing through Inflation, and labor shortages
https://www.pwc.com/us/en/library/pulse-survey/executive-views-2022.html
