HR leaders are ideally positioned to overcome common roadblocks that stand in the way of organizational change management. Key to paving the way for change is engaging the workforce as an active participant in the process. Even though 90% of organizations are in some stage of transformation, only 30% of change initiatives succeed—so the stakes are very high. This roadmap offers seven proven steps HR can take to ensure successful transformation.
1. Acknowledge the Approach to Transformation – How are you changing? More than 50% of companies change by continuously aligning business models with their overall strategy. Others transform through more localized, or project- or process-specific efforts. It’s essential that HR take the lead in devising the change approach and establishing a plan for executing it.
2. Communicate and Engage, Making the Business Case for Change – To mitigate resistance, HR should engage in a consistent, 360-degree dialog with everyone impacted by the change. That means speaking with employees across the organization so they know why change is vital to the business and how it will affect their roles, career plans, and compensation.
3. Prioritize Programs and Define a Clear Beginning, Middle, and End – HR can orchestrate successful change by playing a central role in coordinating employees’ change-related workloads so they do not become overwhelmed. This requires careful planning as HR delineates a clear beginning, middle, and end for the transformation. Building in milestones and success metrics can create added momentum for change.
4. Leverage Technology to Gain HCM Flexibility – Transformation may require moving people quickly into new roles, often with rapid shifts in career paths, training requirements, and compensation. HR systems need to be agile in response—capturing these changes and giving employees the information they need to evolve with the business.
5. Tap into Cultural Pride Points – Culture can be thought of as the unwritten rules for how people interact and get things done in your organization. It dictates how a change will be implemented, regardless of what’s in your plan. HR should highlight cultural factors that make employees proud of the changes occurring, so they can in turn become champions of business growth. In this post we highlighted HR's Role in helping to facilitate large-scale transformation by harnessing the power of culture.
6. Unleash the Power of Informal Influencers – Sometimes, it’s the hallway conversations in a company that make a significant difference in the outcome of a change program. Highly connected people are often at the heart of the change process, regardless of their official positions. HR can identify these informal leaders and work with them as cultural change agents to build support for change.
7. Manage Across the Organization, Engaging the Right People – HR is uniquely qualified to facilitate large-scale transformation by communicating consistent messages through multiple channels across the organization. Everyone from entry-level employees to middle management to the C-suite needs to be engaged, knowing what to do to make the change initiative a success. They also need to understand that HR is there to support them as they make the transformation.
Organizational Transformation Case Study: Newfield Exploration
Newfield Exploration, a leading oil and gas company, leveraged Oracle HCM Cloud to connect employee goals to its overall strategic objectives. By giving employees greater information access, and a better ability to communicate with their managers, Newfield realized significant gains in workforce productivity and efficiency. The company has also been able to develop and optimize its talent by placing the right people in the right jobs for rapid business growth.