What are the three main components that needs to be managed when there are changes?

Chart: Ken Thomas

As landscape industry consultants, my team and I are typically engaged for a few reasons. Either clients are having trouble breaking through some growth barrier, not making enough money or just not having any fun. Sometimes all three.

At Envisor, we’re always looking for the root cause to these challenges. As we identify the root cause of the problems, we recommend improvement and change that’s needed to move the organization toward its stated goals.

Therein lies the problem. Change is difficult! The ability for an owner, and more importantly an organization, to implement positive change is the key to success.

Change, as illustrated in the figure below, can be lumped into four categories: 1. high value/low difficulty; 2. high value/high difficulty; 3. low value/low difficulty; 4. low value/high difficulty.

To get maximum benefit, we want to focus on and implement high-value changes in our organizations first. High-value change is positioned in quadrants 1 and 2. Changes in quadrant 1 are fairly easy to understand and implement. Changes in quadrant 2 typically involve people, including structure change, job descriptions and accountabilities, as well as changes to systems and processes. These changes are more difficult to implement. They can be uncomfortable and require an intentional approach to gain buy-in.

Any change initiative needs to begin with a change management plan and a designated change manager. The change manager must be accountable for driving the implementation. In small businesses, the change manager is typically the owner.

Effective change management plans are composed of six components:

1. Objectives: Clearly defining the change objectives develops the “why” behind what we’re doing. As with most complex change, there needs to be a clear and compelling motivation to disrupt the current way of doing business.

2. Risk assessment and management: With any change, there can be risks. Change may impact your customers, personnel or financial position negatively if not handled properly. It’s important to quantify the ultimate downside of the change process along with the benefits. When changing how you price work or when rebalancing your maintenance portfolio, consider the impact on your customer and potential sales conversion rates.

When changing your structure, business approach or processes, your internal team may have negative perceptions or reactions. Will anyone feel threatened or leave? How will the proposed changes impact the organization financially in the short or long term? Do your best to quantify the negative risks in all areas so you can adjust and muscle through when the going gets tough.

3. Communication plan: A strong change management communication plan addresses the advantages of the change for the company and for the individuals. In other words, develop positive change messaging that demonstrates a win-win for the company and team members. As the initiative is implemented, keep the team up to date on progress, challenges and next steps.

4. The plan: The guts of the change initiative are outlined in the plan. What’s the proposed timeline? Who will be involved and how much time will be required from them? What are the key steps? What are the milestones?

5. Manage resistance: Change is emotional. There will be some initial resistance. Work to overcome it with empathy and understanding. As the change initiative progresses, there may be more obstructive resistance that needs to be addressed. As the change manager, it’s your job to overcome the resistance in order to move the ball forward. Consider that in the life cycle of complex change, there is a low point where resistance is greatest prior to breaking through. Don’t get stuck there!

6. Continuous improvement: As change is rolled out, be open to improvement opportunities and suggestions. As the team begins to see the change objectives come to light, the environment for collaboration improves, as well. Sustaining change depends on continuous improvement.

Businesses must constantly evolve and adapt to meet a variety of challenges—from changes in technology, to the rise of new competitors, to a shift in laws, regulations, or underlying economic trends. Failure to do so could lead to stagnation or, worse, failure.

Approximately 50 percent of all organizational change initiatives are unsuccessful, highlighting why knowing how to plan for, coordinate, and carry out change is a valuable skill for managers and business leaders alike.

Have you been tasked with managing a significant change initiative for your organization? Would you like to demonstrate that you’re capable of spearheading such an initiative the next time one arises? Here’s an overview of what change management is, the key steps in the process, and actions you can take to develop your managerial skills and become more effective in your role.

What is Change Management?

Organizational change refers broadly to the actions a business takes to change or adjust a significant component of its organization. This may include company culture, internal processes, underlying technology or infrastructure, corporate hierarchy, or another critical aspect.

Organizational change can be either adaptive or transformational:

• Adaptive changes are small, gradual, iterative changes that an organization undertakes to evolve its products, processes, workflows, and strategies over time. Hiring a new team member to address increased demand or implementing a new work-from-home policy to attract more qualified job applicants are both examples of adaptive changes.
• Transformational changes are larger in scale and scope and often signify a dramatic and, occasionally sudden, departure from the status quo. Launching a new product or business division, or deciding to expand internationally, are examples of transformational change.

Change management is the process of guiding organizational change to fruition, from the earliest stages of conception and preparation, through implementation and, finally, to resolution. An effective management strategy is crucial to ensure businesses successfully transition and adapt to any changes that may occur.

Change processes have a set of starting conditions (point A) and a functional endpoint (point B). The process in between is dynamic and unfolds in stages. Here’s a summary of the key steps in the change management process.

Check out our video on the change management process below, and subscribe to our YouTube channel for more explainer content!

5 Steps in the Change Management Process

1. Prepare the Organization for Change

For an organization to successfully pursue and implement change, it must be prepared both logistically and culturally. Before delving into logistics, cultural preparation must first take place to achieve the best business outcome.

In the preparation phase, the manager is focused on helping employees recognize and understand the need for change. They raise awareness of the various challenges or problems facing the organization that are acting as forces of change and generating dissatisfaction with the status quo. Gaining this initial buy-in from employees who will help implement the change can remove friction and resistance later on.

2. Craft a Vision and Plan for Change

Once the organization is ready to embrace change, managers must develop a thorough and realistic plan for bringing it about. The plan should detail:

• Strategic goals: What goals does this change help the organization work toward?
• Key performance indicators: How will success be measured? What metrics need to be moved? What’s the baseline for how things currently stand?
• Project stakeholders and team: Who will oversee the task of implementing change? Who needs to sign off at each critical stage? Who will be responsible for implementation?
• Project scope: What discrete steps and actions will the project include? What falls outside of the project scope?

While it’s important to have a structured approach, the plan should also account for any unknowns or roadblocks that could arise during the implementation process and would require agility and flexibility to overcome.

3. Implement the Changes

After the plan has been created, all that remains is to follow the steps outlined within it to implement the required change. Whether that involves changes to the company’s structure, strategy, systems, processes, employee behaviors, or other aspects will depend on the specifics of the initiative.

During the implementation process, change managers must be focused on empowering their employees to take the necessary steps to achieve the goals of the initiative and celebrate any short-term wins. They should also do their best to anticipate roadblocks and prevent, remove, or mitigate them once identified. Repeated communication of the organization’s vision is critical throughout the implementation process to remind team members why change is being pursued.

4. Embed Changes Within Company Culture and Practices

Once the change initiative has been completed, change managers must prevent a reversion to the prior state or status quo. This is particularly important for organizational change related to business processes such as workflows, culture, and strategy formulation. Without an adequate plan, employees may backslide into the “old way” of doing things, particularly during the transitory period.

By embedding changes within the company’s culture and practices, it becomes more difficult for backsliding to occur. New organizational structures, controls, and reward systems should all be considered as tools to help change stick.

5. Review Progress and Analyze Results

Just because a change initiative is complete doesn’t mean it was successful. Conducting analysis and review, or a “project post mortem,” can help business leaders understand whether a change initiative was a success, failure, or mixed result. It can also offer valuable insights and lessons that can be leveraged in future change efforts.

Ask yourself questions like: Were project goals met? If yes, can this success be replicated elsewhere? If not, what went wrong?

How to Manage Change Effectively

While no two change initiatives are the same, they typically follow a similar process. To effectively manage change, managers and business leaders must thoroughly understand the steps involved.

Some other tips for managing organizational change include asking yourself questions like:

• Do you understand the forces making change necessary? Without this understanding, it can be difficult to effectively address the underlying causes that have necessitated change, hampering your ability to succeed.
• Do you have a plan? Without a detailed plan and defined strategy, it can be difficult to usher a change initiative through to completion.
• How will you communicate? Successful change management requires effective communication with both your team members and key stakeholders. Designing a communication strategy that acknowledges this reality is critical.
• Have you identified potential roadblocks? While it’s impossible to predict everything that might potentially go wrong with a project, taking the time to anticipate potential barriers and devise mitigation strategies before you get started is generally a good idea.

Developing the Skills You Need for Success

If you’ve been asked to lead a change initiative within your organization, or you’d like to position yourself to oversee such projects in the future, it’s critical to begin laying the groundwork for success by developing the skills that can equip you to do the job.

Completing an online management course can be an effective way of developing those skills and lead to several other benefits. When evaluating your options for training, seek a program that aligns with your personal and professional goals; for example, one that emphasizes organizational change.

Do you want to become a more effective leader and manager? Explore Leadership Principles, Management Essentials, and Organizational Leadership—three of our online leadership and management courses—to learn how you can take charge of your professional development and accelerate your career. Not sure which course is the right fit? Download our free flowchart.

This post was updated on October 25, 2022. It was originally published on March 19, 2020.

What are the three components to change?

What are the components of change management?

What are the three change management?

What are the 3 typical types of changes that can occur within a project?