Effective Institutional Change Management

University organizational change happens every day, but is it effective?

Source: Nikolayhg/Pixabay

Organizations—hospitals, schools, banks—all undergo change. Those changes may be as simple as the use of a new electronic record system or as daunting as organizational restructuring.

A 2023 review of the literature is clear: If mismanaged, organizational change can lead to a range of negative impacts among workers. These include worsened social relationships, efforts to leave or sabotage the organization, neglect of duties, and lower job satisfaction. Further evidence suggests experiencing a re-organization, especially repeated over time or multiple changes at once, may negatively impact employee mental health.

Leadership is a critically important factor in organizational change. The same 2023 review concluded that leadership accounts for about 70 percent of effective organizational change. One can infer that the opposite is also true: Ineffective leadership sets up a greater chance of failed organizational change.

So what should organizational change management look like? Glad you asked. Turns out there is a pretty clear consensus about the steps and factors involved.

Steps in Effective Organizational Change

A 2018 integrated review provided the following step-by-step process for successful organizational change:

Even toy Mr. Spock knows reasons for change must be logical.

Source: Brenkee/Pixabay

Step 1: Understand the problem necessitating change. This step involves gathering perspectives from multiple constituent groups in the organization. The focus should be on two items: whether change is needed and, if so, what constraints may exist. Those on the receiving end of the change must believe the reasons for change are both legitimate and rational. To quote Mr. Spock, organizational change must be undertaken for “logical” reasons.

Step 2: Assess the organization’s readiness to change. This assessment should cover the organization’s history of (and lack of) successful change. It should also consider the current stress level faced by change recipients as well as any steps that should be taken to mitigate the worsening of that stress. Finally, readiness evaluation requires an honest assessment of leadership’s ability to conduct and lead effective change.

Should the reasons for change be perceived as irrational or coerced, change should not be forced. Also, if any gaps in readiness are present, organizational change should be paused in favor of rectifying readiness gaps.

With that said, we can learn much from the president of Star Trek's United Federation of Planets, who advised (in part): “…just because we can do a thing [organizational change], it does not necessarily mean we must do that thing [organizational change].” (Star Trek VI: The Undiscovered Country)

Wisdom suggests that change for change’s sake may do more organizational harm than good.

Step 3: Use change interventions that work. Solutions should match identified need(s). Experts in and out of the organization can advise on solutions for the problem. Likewise, those directly affected by the change—employees, managers, etc.—can be actively engaged for input on solutions. Finally, the scientific literature may provide insights into effective solutions.

The change solution should be evidence-based and consensus-driven, as opposed to forced and mismatched with the problem. Captain Picard understood this, as he regularly drew on the expertise and consensus of his senior team (including the wise android Data).

(Competent) leadership is perhaps the most important factor in successful organizational change.

Source: Mangomatter/Pixabay

Step 4: Develop leadership throughout the organization. The nature of the leadership must be transparent, trustworthy, and supportive of all involved in the change process. Changes in training for identified leaders should take place prior to the change.

Captain Picard again advises us: “A lie of omission is still a lie!” The lesson? Leaders must communicate with their teams in an honest, transparent manner in order to lead effective organizational change.

Step 5: Communicate a vision for change. The vision should be motivating. As such, it should follow from input gathered from those affected by the change, as opposed to being unilateral, top-down messaging. Overall, the goal should be shared and achievable. The messaging should be conducted across channels and data-driven.

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Step 6: Identify change agents with social influence. Leadership can partner with change agents who have both interpersonal skills and strong, positive ties with large networks in the organization. Leveraging such agents can be most effective when change agents themselves believe in the mission or change.

Step 7: Use effective processes to support the change implementation. A number of strategies can be used to facilitate effective change. Goals should be clearly set at the personal, unit, and organizational levels in order to manage instances in which goals or motivations between units may conflict. A vital aspect of effective change implementation is involving employees in such ways as shared decision-making, problem identification, and solution generation. Finally, leaders must use fair and just processes in decision-making.

Star Trek has much to teach us about organizational change and communication!

Source: Stefan Cosma/Unsplash

Step 8: Allow latitude and feedback. Empowering those impacted by the change to make small-scale alterations to solve local quandaries can increase the likelihood of change succeeding. Minor employee-driven changes leading to improvement can also spread throughout an organization.

As Mr. Scott did so bravely by breaking Captain Kirk, Mr. Spock, and Dr. McCoy out of the brig in Star Trek V, sometimes organizational change benefits from creative individual solutions from particular team members.

Step 9: Monitor change progress. Process and outcome evaluation are essential to any intervention, including organizational change. Pre-selected metrics of success should be identified for each group affected by the organizational change (e.g., managers, employees). Ongoing assessment provides the chance to see what is working and where course correction may need to occur.

Step 10. Institutionalize the change. This goal is accomplished through policy codification and culture change. Leadership should provide the resources necessary to ensure the long-term success of change. Leaders may also need to be replaced to ensure the continuity of the organizational change. Finally, training and socializing new employees to the change can foster the long-term sustainability of the change.

So This Is How Change Should Happen?

Yes. Organizational science provides a clear, useful roadmap in guiding effective change:

• A two-step diagnosis should focus on legitimate, rational need and a thorough assessment of readiness.
• Where there is a need for change, consensus-driven change process identification is followed by leadership’s transparent communication and the development of a shared, achievable vision.
• Strategies to facilitate effective change include identifying socially-connected change agents, setting goals across organizational levels, and engaging employees in shared decision-making.
• Allowing for bottom-up, small-scale solutions can benefit the change process.
• Efforts to ensure long-standing organizational change include ongoing evaluation and approaches to institutionalize the change, like training new employees and changing leadership where necessary.