Posts tagged change management
ROI Linked to Ability to Manage Change
Nov 4th
Change is in the air. It’s all around us … in the physical sense the leaves are changing, the crisp cooler weather tells us that winter is on our heels. And change is inevitable in our current economic climate. Our ability and effectiveness to manage that change can mean the difference between running a successful business and running out of business. Poorly managed change in the workplace leads to stress which, in turn, creates poor job performance, more absenteeism and increased employee turnover.
A recent survey by the American Psychological Association revealed that 74 percent of Americans identified work as the main cause of their stress; this is a 15 percent increase over the year before. Over half of the participants acknowledged that stress negatively affects their job performances. They also admitted that the mental and physical manifestations of stress caused them to leave or consider leaving positions. Forty-eight percent of employers surveyed recognized the problem, but only 5 percent were addressing the issue. Companies large and small must recognize the need for change management because the costs are high.
Keeping up with the global market, economic trends, information and technology requires companies to implement frequent changes. These changes, while often necessary, can cost millions. An individual company’s return on investment (ROI) for change is determined by how effectively that company implements the necessary changes. A study reported by the Graziadio Business Report of Pepperdine University revealed that companies with a strong change management program had an average ROI of 143percent while those without had an average ROI of 35percent. So, how does this affect the bottom line? A ROI of 143percent translates to a 43 cent gain for every dollar spent while a ROI of 35percent is a 65 cent loss for every dollar spent.
Half of all businesses recognize they are not managing change effectively, yet only 5 percent do anything about it! Yikes! Make a choice to better manage change in your organization. It is clear this is one factor that has a direct link to an organization’s success. Do you want to know how you score? Learn how effective you are at managing change by taking a free assessment. This assessment measures 17 personality traits and provides respondents with a snapshot and score in a variety of areas like time management, creativity and sensitivity. The personality assessment is available at www.northstar360.com/assessments. This is a complimentary assessment provided by NorthStar360.
Change: How to Effectively Manage It?
Nov 4th
Change can be scary. There’s no doubt about it. And, as leaders, it’s our duty to help our organizations navigate change seamlessly. Sometimes this voyage may seem like a trip down The Nile. Change can evoke anxiety, stress and fear for our employees. Fortunately, it is possible to reduce employee stress (and the turnover that comes along with it) with effective change management. Being an effective leader means managing change by understanding what factors influence behavior, how to address employee concerns and manage resistance. Addressing employee concerns can help reduce turnover and encourage engagement. The Society for Resource Management currently estimates that replacing an IT employee costs $80,000. They also previously estimated that it costs $3,500 to replace each employee earning $8.00 an hour; another incentive to better manage change at our organizations. So, what can we do? Where do we start?
As leaders the area that can seem most intimidating is receiving resistance to change from staff. The best leaders learn resilience by focusing on areas they are able to control. Even in the midst of change, people are able to control emotional responses, influence the change and take care of themselves. People practice resilience when they:
• Assess the situation at hand
• Consider solutions and actions
• Select the best choice
• Take action
• Learn what does and does not work
• Modify actions or behaviors to achieve results
Any leaders who feel that they react out of resistance, rather than acting with resilience, can benefit from creating a personal action plan. By enhancing their change management skills, leaders will be equipped to address problems and manage resistant employees.
Observe reactions to change. Leaders need to link organizational goals to their employees’ drives, needs and wants. This starts with observation. Observing and assessing personal and employee responses to change, provides leaders with the opportunities to address problems and find appropriate solutions, once assessments are made, problems must be addressed at the process and behavioral levels.
Clear and constant communication is essential to managing resistance at the process level. Various studies confirm that most failed changes are directly related to poor management and communication. Successful leaders understand that effective communication reduces resistance and motivates change. Articulate a clear vision of the future: Engage employees by explaining how change is necessary for long-term company success.
Identify goals for change and explain why the change must happen: Outline how change will help achieve specific goals. Communicate clearly about issues and respect dissenting opinions: Allow employees to voice their opinions, even if they are negative. They will be more open to change if they feel their opinions are heard.
Companies that invest in change management programs, (such as the Change Management workshop offered by NorthStar360) are statistically more successful than companies that do not. When all is said and done, effective change requires effective change management. Smoothly implemented organizational change reduces employee stress which saves money by reducing turnover and increasing productivity. Managing change effectively takes work, but the long-term fiscal and emotional payoff is worth it.