Poor Change Management

Change is unavoidable both personally and professionally.  To meet market conditions and survive in today’s competitive system, companies must excel at change. 

If companies do not excel in managing change, the entire company will likely suffer as a consequence.

Management must focus on all aspects of the company, utilizing resources and assets to their maximum potential to achieve successful change. 

Now more than ever, energy companies are faced with large-scale transitions encompassing new technology systems, complex regulatory requirements and cyber threats. These types of broad scale changes are more likely to not only affect multiple work groups at one time but also impact a more diverse population across the entirety of the organization. This makes the tactics and approaches designed, chosen and applied in transition management a fundamental pillar when implementing change in an organization. 

To effectively introduce and implement lasting change initiatives, businesses must have strategized techniques. They will also need frameworks to successfully manage long lasting change efforts while emphasizing business imperatives.  This includes using the following organizational activities at the appropriate time in the change process: 

- Leading activities
- Measuring activities
- Sustaining activities
- Communication
- Involving
- Learning 

Successful change agendas necessitate strong and operative leadership to sell and steer procedural methods. More importantly, leadership must guide the behavioral methods in aligning the workforce. Active and capable leadership ensures confidence, communication, satisfaction and support for a company’s goals. 

The Towers Watson ROI Study of 604 global companies showed only 19% of companies with low change effectiveness have a clear vision of what their organization change is intended to achieve. In highly effective companies, 84% had a clear vision. 

Effective organizational leadership can create a more aligned workforce through guided and systematic communication. This empowers and educates employees to understand:

- The reasons for change.
- What will happen during the change.
- What new skills or behaviors they’ll need to succeed through the change process. 

Leaders must also build change coalitions. 

The most efficient organizations have formal, systematic processes and dedicated staff members who help communicate and support change. Companies that combine communication methods with the influence of their managers to support change are seven times more likely to create a sense of ownership of the change among employees throughout their organizations. Involving internal communications early, while the company is still identifying challenges, opportunities and weighing suitable solutions, is a hallmark of successful transition processes. Employees and leaders “in it together” create a highly effective change atmosphere. 

Organizations that successfully utilize their technical capabilities, empower and enable their people and continually improve operating processes will establish themselves as leaders in the ever-changing energy landscape.