credera whitepaper - 5 myths of organizational change ......5 myths of organizational change &...

In today's digitally charged and fast-paced

world, leaders have the power to implement five key strategies to make successful change

management a reality and overcome prominent

organizational change obstacles.

5 Myths of Organizational Change & How to Overcome Them

!5 Myths of Organizational Change & How to Overcome Them

Contents

Conclusion 23

Myth #1 | Executive Sponsorship & Change Teams 3

Introduction 2

About Credera 24

Works Cited 25

Myth #2 | Purpose & Communication 8

Myth #3 | Technology & Enterprise Collaboration 12

Myth #4 | Training & Personalized Employee Experiences 16

Myth #5 | Transition Engagement & Commitment 20


Change is happening faster today. In the age of 3-D printed houses, electric semi-trucks, and homes that

listen to you, rapid technological advancement is the new normal. The days of companies achieving one

amazing accomplishment per year are long gone. While one or two big changes a year may help, fostering a

culture of adaptability can provide a more valuable competitive advantage over time.

58% of CEOs cited growth as their number one priority

In today’s marathon of sprints, companies must become more adaptable to address the increasing speed of

change. In a 2017 Gartner survey, 58% of CEOs cited growth as their number one priority. With so many

changes at such a rapid pace, how are companies keeping up? Not everyone is. While some are successfully

implementing and adopting change, others are falling victim to common misconceptions of how to manage it.

In fact, we’ve identified five myths about organizational change that, if not handled properly, can become

pitfalls for your company’s change initiatives.

With this in mind, let’s take a closer look at five myths about organizational change and explore how to

employ successful change management to tackle change better.

Introduction

Executive Sponsorship & Change Teams


Executive sponsorship is critical for change, but it’s the combination of top-down and bottom-up

support that will really move the needle on adoption. Executive buy-in is often difficult to attain, so

it’s easy to focus time and effort on winning over the higher-ups while forgetting about the everyday

users. This lack of connection to members of affected groups is disastrous for change initiatives, but

intentional leaders can help bridge the gap by adjusting their leadership style and employing change

management.

By fostering supportive and transparent leadership and assembling a

cross-functional change team, you can cultivate adoption at all levels

of the organization

Change management is the process of enhancing an organization or individual’s ability to handle

change.5 When change management is employed, projects are three times more likely to succeed.6

Pairing change management techniques with effective leadership drives success not only for the

project but for the company at large. Leadership styles are responsible for up to 30% of a company's

bottom-line profitability.7 Supporting effective leaders with a team of change agents from affected

groups can also help gain buy-in from working teams. By fostering supportive and transparent

leadership and assembling a cross-functional change team, you can cultivate adoption at all levels of

the organization.

Myth #1“As long as we have executive buy-in, we

should be in good shape.”


Change teams that successfully drive buy-in typicallyhave these six characteristics:

Are made up of early adopters

Include team members who are most impacted by change

Meet regularly throughout the initiative

Clearly understand the goals and benefits of the transformation

Are able to address concerns that arise as quickly as possible

Help their peers understand the value of the transformation

With an invested leader, a change team can have a big impact on increasing users’ commitment to the

transformation.

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Building the right change team accelerates adoption. Employees classified in the innovator, early

adopter or early majority adopter categories are more likely to be champions for change, and

therefore make the best change team members. Additionally, by including representatives from the

most impacted teams, change leaders can remain aware of the widespread effects of the

transformation. Employees’ responses to change will shift throughout the initiative, so it is important

for the change team to meet consistently to discuss new developments.

2.5%Innovators

13.5%Early Adopters

16%Laggards

34%Early Majority

34%Late Majority

Stakeholder Adopter Categories

Adapted from Diffusion of Innovations8


Recently, Ryan, an award-winning global tax services and software provider, engaged Credera to

provide a comprehensive strategy and plan for company-wide customer relationship management

(CRM) and marketing automation. It was through this project where a great example of driving

successful stakeholder adoption came to life. During the development of Ryan’s CRM and marketing

automation strategy, a carefully curated change team of 8 champions representing different

divisions was assembled to promote user adoption.9 This team met every two weeks, encouraged

over 2,000 users through training, and accelerated speed to acceptance.

If the change team recognizes the need for the project and the benefits of the change, they will be

able to address concerns and resistance by helping their peers understand the value of the

transformation. A cross-functional change team with executive sponsorship and effective leadership

will motivate late adopters to accept and commit to change faster.

Purpose & Communication


Developing a business case is important, but a different kind of case for change is also needed – one

that resonates with the heart as well as the mind. A convincing return on investment with a

persuasively short payback period might be necessary to satisfy executive audiences, but change

leaders and affected teams need a higher purpose. Employees need to know more than the “what”

(i.e., the change) and the “how” (i.e., money, time). They need to understand the “why” (i.e., the

motivation) before they jump on board.

Millennials are 6 times more likely to stay at a company if their work is

linked to a broader purpose, and 85% of Gen Z believes that their

companies are obligated to help solve social problems

Clearly identifying and communicating the purpose of the change is critical to leading

transformational change in organizations, specifically with Millennials and Gen Z. Employees who fit

into these generational categories are likely to demand a higher purpose from employers. In fact,

Millennials are 6 times more likely to stay at a company if their work is linked to a broader purpose,

and 85% of Gen Z believes that their companies are obligated to help solve social problems.10,11

Because of this need for meaningful work, if Millennial and Gen Z employees are bought into the

reason behind the change, they have the potential to become the best advocates for the initiative.

Myth #2“If we show employees the ROI, they will

understand the need for change.”

!"5 Myths of Organizational Change & How to Overcome Them

Successful change management leaders follow three key stepsto gain support from these emerging leaders:

Clearly define the purpose and benefits of the change

Communicate the purpose throughout the initiative

Connect each project activity back to the purpose

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When Ben E. Keith, a regional food distributor, rolled out The Entrée System, a mobile ecommerce

application that enabled sales representatives to better serve customers, it was critical for them to

explain the “why” behind the new platform.12 Some of the new automation capabilities of the system

were initially a threat to the more traditional practices of some sales representatives. However, once

the sales staff was educated on the benefits of the application as well as how it would help achieve

even better customer service—a significant part of the Ben E. Keith culture and values—the response

was overwhelmingly positive. “Everyone really gravitated to the [Entrée System|, because it is so easy

to use,” said Mike Sweet, President, Ben E. Keith Foods.

!!5 Myths of Organizational Change & How to Overcome Them

By establishing and maintaining a clear purpose and outlining the benefits of the change, employers

will capture the interest of change leaders. Continuing to communicate the purpose and benefits for

the duration of the project is key so employees don’t lose sight of the reason for the work or

miscommunicate it to others. Aligning each task or activity in the way it aligns with the purpose or

benefit of the change reduces resistance and increases motivation. Motivating employees,

particularly Millennial and Gen Z employees, with this sense of purpose will increase adoption and

provide a ripe environment for transformation.

Technology &Enterprise Collaboration


It’s easy to think that buying the latest technology for employees will elicit excitement and encourage

adoption, but in all likelihood, many will still resist. Acquiring the latest tech for the team could mean

increasing efficiency, reducing errors, and improving collaboration; its fancy features and helpful

home screens could be aesthetically pleasing and house valuable data. Even so, employees might fear

job security, a steep learning curve, or change in general. Although the change is beneficial, late

adopters will still vocalize their concerns. And the voices of the concerned are being amplified on

social platforms.

The market for enterprise collaboration is expected to be

over $49 billion by 2021

In fact, as social media and mobile device use continue to rise, enterprise social platforms are

following suit. More and more businesses are implementing company-wide social networks, and the

market for enterprise collaboration is expected to be over $49 billion by 2021.13 Enterprise tools

bring the feeling of social networks into the workplace. While disgruntled employees do not always

feel comfortable speaking up about a new tool or an org change during meetings, they may feel right

at home behind a keyboard, typing their thoughts into private messages or public posts. Enterprise

social networks are the new version of watercooler chats. As others react to the comment or post,

negativity spreads. This type of attitude decreases the chances that the change will stick. When

addressed correctly, however, resistance can become an advantage.

Myth #3“If we buy the latest technology for our

employees, everyone will be excited about it.”


Noticing comments and concerns is the first step in addressing overt resistance. Ignoring negativity

allows it to circulate and often leaves employees feeling disconnected. By reading feedback and

following up with stakeholders to dig deeper into concerns, change teams develop a better

understanding of affected resources. Public discussions can elicit defensive behavior, but personal

Five primary change team activities can help turnthese detractors into success stories:

Take notice of negativity in the break room,after a meeting, or posted in a chat

Follow up with late adopters to betterunderstand their concerns

Address misconceptions and reinforce benefits of the change

Resolve issues in a personal manner before responding publicly

Develop and distribute key messages that address concerns

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interaction provides an opportunity for honest conversation. Translating this improved

understanding into key messages and including these messages in change communications will

provide encouragement to late adopters.

The aforementioned Ben E. Keith team created a pilot program for The Entrée System to gather

feedback and address any concerns early.12 This allowed time for honest discussions that led to

suggested improvements and adjustments to the system.

Upon recognizing that their concerns have been heard and addressed, employees that were

originally wary of change will become success stories that spur others on to adoption. Although the

new technology might not encourage late adopters, being understood and engaged will.

Training & PersonalizedEmployee Experiences


Training is an essential element in the success of organizational change. Employees will only accept

or adopt a change if they are properly equipped to succeed in a new environment or with new tools. It

may seem like the best way to provide quality training for each employee is to train everyone in a few

sessions of a detailed training course. While this approach is tempting, especially on a tight timeline, it

can cause disengagement and a lack of training content retention. A one-size-fits-all approach to

training might save time on the front end, but it risks long-term rejection of the change.

A customized experience with curated content will boost employee

engagement and increase the likelihood of retention

88% of customers today expect a personalized experience with companies, and employees are no

different.14 An exhaustive training with all of the details relating to the change will certainly be

helpful content to have on hand. However, if it is delivered all at once, the audience can be

overwhelmed. Without an understanding of the direct relationship to their role, employees will tune

out information that does not appear personally important. Instead, a customized experience with

curated content will boost engagement and increase the likelihood of retention.

Myth #4“We can provide one training course that’s

relevant to all employees.”


Instead of relying on one large session to check the box on training requirements, identify the job

functions of those that are affected by the change. Then create training curriculum based on these

job roles. Dividing the content into user-specific sections will allow for more personalized sessions

that include realistic applications of the training. The unique practical examples will allow the

audiences to visualize their new work environment. Effectively engage employees who may learn in a

variety of ways by delivering training through multiple mediums (e.g., instructor-led training,

Completing the following steps can help change managementleaders conduct successful personalized training sessions:

Identify several user groups and divide traininginto those categories

Create training content that is specific to each ofthose user groups by including real-life examplesthat are unique to that audience

Deliver training via multiple channels to allowaudiences to engage in their preferred manner

Curate training aids for each job role and deliver tousers for continued post-training use

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interactive online learning, on-the-job training, videos, etc.). For continued learning, provide users

with resources such as job aids, FAQ documents, and follow-up training options.

Backcountry.com, an online retailer of outdoors gear, partnered with Credera to optimize their

mobile shopping experience.15 During the transition to a responsive design with server-side

components (RESS), Credera provided a week-long hands-on training specifically for

Backcountry.com’s mobile development team. This personalized training was critical in

understanding how to carry on the established implementation patterns and design language.

Hands-on training was followed by job aids and documentation of best practices, standards,

processes, and development methodologies.

Providing personalized training gives employees the information they need in the ways that they

want it, which sets them up for success during a transition.

Transition Engagement& Commitment


While training is critical to change initiatives, training alone will not guarantee the success of a

transformation. According to change expert John Kotter, 70% of change initiatives fail.16 Training is

an important step in an involved journey to the successful 30%. Keeping track of the stakeholders

that complete training is a good place to start, but companies also need to monitor additional

quantitative and qualitative metrics to truly understand where they are in the change process.

Myth #5“If everyone completes the required training,

this implementation will be successful.”

The following three steps can provide useful data to assesschange adoption and showcase momentum:

Obtain qualitative and quantitative “adoption data” fromchange agents to better understand how each team is responding to the change

Monitor employee engagement with usage metrics fromthe new tool/system

Identify data that supports declining usage patterns withthe prior tool/system to show momentum

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!!5 Myths of Organizational Change & How to Overcome Them

Measuring transition engagement and commitment is key to successful transformations. Cross-

functional change agents can supply adoption data from their teams, allowing the project team to

pivot or reinforce where necessary. This data can represent quantitative measurements such as the

percentage of their team at each stage of the commitment curve, or it could highlight qualitative data

such as which team members are at risk of checking out.

Usage metrics let you know who is using the product and can help broach conversations about key

features still needed. These metrics can include the number of logins, duration of use, number of

unique users, etc. Usage data can also highlight groups or individuals that may need more attention

during the transition. Lastly, it’s important to monitor the previous tool or process to see which users

or teams are still relying on it to get the job done. Much like training, data doesn’t independently

solve all of the unique challenges of change, but it equips teams with the tools to help employees

navigate the change well.

When Interstate Batteries launched their marketing-driven, strategic business intelligence platform,

which dramatically transformed a 60-year old sales process, several key metrics indicated the health

of the change.17 Out of over 250 distributors, 97% participated in training, and 99% of that group felt

equipped to use the system upon training completion. These metrics were a leading indicator of the

initial 90% adoption rate Interstate Batteries experienced upon launch of the solution.

If leading indicators are not satisfactory, it provides an early warning signal that allows time for the

team to pivot and address concerns to get back on the track to successful transformation. Data

doesn’t independently solve all of the unique challenges of change, but it equips teams with the tools

to help employees navigate the change well.


Keep Your Change Efforts on Track

Gaining change adoption in today’s digitally charged, fast-paced world is more challenging than ever before.

The fear of change and the unknown has never been greater. Company adaptability is key, but the days of

providing employees with a simple online training course for each change just won’t cut it anymore. Change

must be addressed on a more personal level.

Now that you know the five myths about organizational change, you have the power to keep your change

efforts on track and deliver lasting change in your organization. You know how to develop user buy-in, drive

deeper engagement with your employees, address concerns, and provide the right types of training and

ongoing measurements. And most importantly, you know the common challenges that prevent successful

change adoption and can take steps to personalize and tailor your change efforts to make them more relevant

to your teams.

Now is the time to take change management at your company to the next level. You have the opportunity to

prevent your next major investment or initiative from falling flat. You can’t afford to not make change stick.

Take full advantage of the key lessons from the five myths and make successful organizational change a

reality at your company today.

Conclusion

!"

About the Authors

Credera is a full-service management consulting,user experience design, and technology solutions firm.

We work with Fortune 500 companies, medium-sized businesses, government organizations and clients across a broad range of industries, and we give them the experience and perspective to solve today’s toughest business and technology challenges. Credera delivers solutions to clients across North America. Founded in 1999, we currently have office locations in Dallas (headquarters), Houston, and Denver.

With over 300 professionals on staff, Credera possesses a unique combination of deep technical expertise with extensive business backgrounds. Our business acumen and process-oriented approach to technology solutions separates us from our competitors.


Ben Grotta, Senior Consultant

Ben is a Senior Consultant at Credera in the Management Consulting practice. During his time at Credera, Ben has primarily served as a digital analyst, partnering with clients to create valuable, personalized experiences across customer-facing channels. Ben is passionate about helping clients untangle the intricacies of the modern digital media ecosystem. His other areas of focus include customer experience strategy, research & analysis, strategic communications, and organization design. Before joining Credera, Ben held a position at PulsePoint Group, an Austin-based consulting firm that specializes in brand strategy and crisis communications. Ben holds a BS in Public Relations from the Moody College of Communication at the University of Texas.

Kevin Erickson, Vice President

Kevin is a Vice President at Credera and leads the Management Consulting practice. He has more than 15 years of management, operations, and technology consulting experience, working with Fortune 500 and mid-market clients across numerous industries. Prior to joining Credera, Kevin worked at Accenture as a Senior Manager and as president of a national franchisor. Kevin received his BA in Accounting & Business Administration from Taylor University and his MBA from The University of Chicago Booth School of Business.

Emily Crawford, Senior Consultant

Emily Crawford is a Senior Consultant with Credera in the Management Consulting Practice. During her time at Credera, Emily has led Change Management initiatives, conducted vendor selections, and developed and led training for Fortune 200 companies during transformational implementations. She has conducted business analysis, gathered market research, and aligned business requirements to develop strategic project plans and roadmaps for our clients. Emily also has experience helping businesses transform digital marketing through the implementation and configuration of marketing automation tools. Prior to joining the Credera team, Emily gained experience with The Philanthropy Lab, working with 501(c)(3) organizations. She worked as part of their Board to allocate $100,000 to eight unique philanthropies. Emily graduated Magna Cum Laude from Baylor University with a Bachelor of Business Administration, majors in Business Fellows and Finance, and minors in English and History.

!"

1https://www.fastcompany.com/40538464/this-house-can-be-3d-printed-for-4000

2https://www.nbcnews.com/business/autos/tesla-unveils-electric-truck-world-s-fastest-production-car-n821746

3http://www.businessinsider.com/survey-says-consumers-have-privacy-concerns-with-smart-home-devices-2018-4

4https://www.gartner.com/newsroom/id/3689017

5http://www.connerpartners.com/daryl-conner/glossary

6https://www.mckinsey.com/business-functions/organization/our-insights/how-to-beat-the-transformation-odds

7https://www.fastcompany.com/1838481/6-leadership-styles-and-when-you-should-use-them

8Rogers, Everett M. Diffusion of Innovations. New York: Free Press, 2003. Print.

9https://www.credera.com/case-study/ryan/

10http://fortune.com/2017/06/27/best-companies-millennials/

11https://www.fusemarketing.com/thought-leadership/future-consumers-views-social-activism-cause-marketing-differs-millennials-think/12https://www.credera.com/case-study/ben-e-keith/

13https://www.marketsandmarkets.com/PressReleases/enterprise-collaboration.asp

14http://www.evergage.com/wp-content/uploads/2016/06/2016-Trends-in-Personalization-Survey-Report-Evergage-final.pdf

15https://www.credera.com/case-study/backcountry-com/

16https://hbr.org/2017/07/stop-using-the-excuse-organizational-change-is-hard

17https://www.credera.com/case-study/interstate-batteries/interstate-batteries-ocm/


Works Cited

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