The majority of change initiatives fall short of their goals. Research published by Harvard Business Review indicates that 60-70% of change initiatives do not succeed, primarily due to employee resistance and lack of management support. Similarly, McKinsey reports that 70% of change programs fail to meet their objectives. These statistics align with my experience as an asset management consultant: many companies do not fully consider how important actively leading change is to achieve long-term success.
Not in Isolation
First off, and this is important: change management should be viewed as an integral component of asset management and reliability improvement projects, rather than as a separate initiative. Its success hinges on being embedded within the broader project framework, ensuring that the technical, organizational, and cultural aspects of the project are aligned and effectively managed. This approach helps achieve sustainable outcomes and minimizes resistance, making the overall project more cohesive and successful.
The Three Stages of Change and Recommendations
A structured approach comprising three stages—creating a climate for change, empowering the organization, and making the change stick—can help organizations tackle change effectively.
- Stage 1: Creating a Climate for Change
The first step in managing change is to assess the current state of the organization and determine where it needs to be. Take into consideration what this assessment of the current tells you; this will help in setting realistic expectations and scaling correctly. In other words, set yourself up for success.
Additionally, set up a dedicated, multidisciplinary team to lead the change. The team should ideally include roles such as senior management sponsors, project owners responsible for results, middle managers as change leads and change agents who facilitate and coach. At a water company they called this change team the ‘Pioneers Team’ for an important and big change project. This worked well within the organization to get attention and engage coworkers.
At the core of this first stage is the Change Story—a fundamental communication message outlining the where, how, what, when, and why of the change. The Change Story should be leading in communicating about the change project, so all key stakeholders should agree with the message. Early and continuous communication is crucial to ensure everyone feels engaged and will adopt the planned changes. Regular temperature checks can help gauge employees' attitudes and engagement levels, allowing the organization to act promptly if issues arise.
- Stage 2: Empowering the Organization
To empower the organization, it is beneficial to hold face-to-face sessions or workshops with key stakeholders. In my Failure Mode, Effects and Criticality Analysis projects, I always involve stakeholders from various disciplines, encouraging them to collaborate. This approach fosters quick adoption of new practices, boosting engagement and commitment. Tracking progress diligently is essential, and if any regression or roadblocks arise, it’s crucial to communicate these challenges and develop a solution-focused plan at a tactical level, without assigning blame. Continuous emphasis on communication and coaching ensures the organization feels supported and informed, which can significantly enhance buy-in and reduce resistance.
The final stage is to embed the change into the organization’s fabric to ensure it becomes part of daily operations. This involves regular evaluations, adjustments and temperature checks. Documentation is key to supporting and facilitate sustainment of the new way of working, including onboarding materials and training programs. Data, systems, and processes must align with the change project approach to reinforce the new methods.
Communication will stay important but shift towards celebrating successes, sharing learnings and looking towards the future and continuous success; Celebrating successes and sharing learnings transparently helps maintain momentum and morale, further embedding the change within the organization. In the past, I celebrated success in small ways, such as having the team highlighted as a success in internal newsletters, celebratory cake and in bigger ways such as external success stories shared at e.g. senior management meetings, on LinkedIn and at industry events, etc.
Change Management in Action: Synergized Way of Working for Waste-to-Energy Plants
A prime example of successful change management is the synergized way of working implemented at two waste-to-energy plants. The objectives were to improve efficiency, lower total operational costs and reduce downtime by eliminating silos and enhancing communication.
The approach involved Asset Improvement Mapping at two sites, providing both site-specific and collective recommendations. The focus was on collaboration and change management. Progress was tracked in a KPI dashboard and a change progress tracker. These tools were used to monitor growth and keep senior management engaged.
One significant KPI, efficiency in labor hours, saw a 10% enhancement in the first year. The workforce became more efficient and downtime decreased. If the project continues as planned, it is expected to achieve a 3.5% reduction in unplanned downtime, significantly improving the maintenance cost to processed waste ratio. Internal collaboration across the organization improved markedly.
Conclusion
Change management is pivotal for maximizing the value of organizational transformation. By adopting a phased approach and embedding this in the overall project approach, organizations can make change more manageable and sustainable. Empowering the organization through consistent communication and transparency, as well as engaging the team with multidiscipline and multilevel ownership, are all important elements for success. Remember, change takes time, but with a strategic approach, the benefits can be substantial and long-lasting.
