The Challenges of Transformational Change

Here at Metro HR we are often asked to help organisations make fundamental and significant changes to how they operate or how they are structured, or perhaps to re-shape their vision, focus or strategy – aka make transformational changes.

When you put it like that, it sounds big and scary, but even small businesses go through transformational change. It isn’t something that just larger organisations do.

In this week’s blog, we thought we would outline what transformational change is by definition, look at the key characteristics of it, the challenges and perhaps how we can overcome those challenges to help organisations realise their desire to make the required change(s) and move forward.

Transformational Change - Business Audit

Any business over time will need to adapt its approach and strategy to remain viable, competitive, relevant and keep up to date with the many things in the wider marketplace that impact on businesses, all of which can help secure long-term profitability.

However, there can come a point where it becomes clear that what a business is doing now needs to significantly change to react and respond to changes to the operating environment. This could be as a result of technological advancements – the development of AI is on the watch list for many at the moment. It could also be as a result of changes in government or legislation, environmental factors, shifts in how the market you operate in works, the introduction of competitors, changes in economic and fiscal policies such as inflation and the costs of employment or how the global economy is operating. Basically, anything in the wider macro environment which might have an effect on how the business operates.

When we think about transformational changes, we aren’t talking about little tweaks to a policy, process or pricing structure.

We are looking at a complete overhaul and a completely different way of working/thinking that may rethink the whole business model, the vision of the business, the purpose of the business and how it delivers or makes the services or products it wants to deliver and how it adds value to its customers.

It will need a strategic shift and mindset not only in leadership, but across the entire organisation. The proposed changes usually impact many different aspects such as strategy, policies, processes, products and services, staffing structures, organisational culture and ways of working. Openness and resilience to change and a willingness to be agile and adapt is needed here, and this is often where transformational change struggles. For further advice in this area, you can read our blog on ‘Building a Resilient Culture in Times of Change’.

Transformational Change - Business overhaul

Transformational Change - Arrows showing change of direction

The purpose of transformational change is to secure the future of the organisation by adapting to and working with changes and challenges that affect the organisation and ensure its survival, whilst also having the necessary contingencies in place.

That means meeting challenges in the marketplace head-on and taking action to overcome them. Transformational change, if done well, can improve performance and therefore profitability and encourage proactivity, creativity and innovation, all of which meet the need to ensure survival. The pandemic, although a fading memory, was a pivotal example of a major event that re-shaped how we all did business, almost overnight. We have to be ready to respond and adapt.

In its simplest summary, we need to:

Reconsider where the business is currently and what it is that isn’t working, or needs to change. That may include revisiting the business’s vision, values and objectives to check whether they remain current.
Go through the current business strategy and any contingencies or alternative plans to see whether the strategy needs to be re-written or adapted. Business strategies, whilst giving a longer-term view are meant to be a working document and should be open to change and adaptation.
Identify the core changes to be made and consider the impact of making those changes.
Prepare a change management plan and strategy from the impact assessment, which may include incremental steps over a particular timeframe.
Follow your change management plan and be committed to pushing it forward, reviewing how it is progressing, and adapting the plan if needed as you move through.
Review and evaluate how it went and whether the desired impacts of the changes have been realised.

There are many challenges to creating transformational change – here are our thoughts on ways to overcome them:

Transformational Change - manager training

Resistance to Change

Change can be resisted because of fear and apprehension about the change and the unknown. Employees get set in their ways and comfortable and accustomed in knowing how to deliver their job. They may also disagree with the views of the leadership team on the need for the proposed changes.

Try to actively involve your employees in the proposal for change and the actual change process.
Set out clear expectations and encourage them to take ownership and provide autonomy to help them to help you make the changes and roll out the transformational change plan.
Creating a culture that embraces learning, flexibility, agility, creativity and innovation will put you in a good position to implement a big change programme.
Address resistance by trying to alleviate fears, provide training and encouragement and encourage engagement.

A Lack of Clear Vision and Strategy

If you aren’t clear on your vision, objectives or purpose of change and if you don’t have a well-defined transformational change plan and strategy, you are going to struggle to communicate and engage your people to come along with you.

Have a clear plan and approach that creates alignment, understanding and sets out the purpose and the benefits. This will avoid confusion, anxiety and stress.
Implement your plan with clear steps or milestones to work through giving consideration to operational implications of each step.

Inadequate Communication and Employee Engagement

Poor communication can cause confusion, uncertainty, concern, disconnect, disengagement and resistance, and can become a barrier to implementing change successfully.

Ensure frequent, clear and open communication.
Be positive and transparent in the communication to gain buy in and reduce concern.

Transformational Change - Clear communication (Change ahead road sign)

Transformational Change - employee involvement

Insufficient Resources and Support

If there aren’t the resources, knowledge, skills or technologies within the organisation and ongoing support is lacking successful implementation will be prevented or delayed, and people may leave.

Assess the skills, knowledge, experience, technologies and resources needed as part of the project planning phase to identify gaps.
Invest in training and development of skills and abilities on the new ways of working and build that into the plan.

Leadership Capability Gaps

Gaps in knowledge, skills and abilities can apply to leaders too. As the leaders and guides of transformational change there needs to be consideration of whether leadership development and support is needed.

Ensure change leaders possess strong skills in communications, change management, resourcefulness and coaching, and where needed, seek leadership development and support.
Leaders will need to be patient, adaptable, and capable of motivating and inspiring their teams to embrace the change and move things along.

Change Fatigue and Burnout

Change and transformation over longer periods of time, or very quick but very significant change can lead to employees and leaders feeling fatigue, a lack of motivation or commitment and burnout.

Set clear but realistic goals and provide support to achieve them.
Regularly check in with your employees.
Communicate regularly but also give progress updates and positive feedback when milestones are reached.

Sustain Momentum

Sustaining momentum is really important. Transformational change takes a while and requires a sustained level of effort and commitment. Without it, there is a risk that change might be delayed, prevented or for old ways of working to creep back in.

Leadership teams need to stay committed to moving the process along to instil confidence in them and the process.

Transformational Change - change management plan

Ready to navigate transformational change in your business?

If you’re facing resistance, strategy gaps or burnout during change, let Metro HR guide your journey.

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The Challenges of Transformational Change and How to Manage Them Effectively

Here at Metro HR we are often asked to help organisations make fundamental and significant changes to how they operate or how they are structured, or perhaps to re-shape their vision, focus or strategy – aka make transformational changes.

When you put it like that, it sounds big and scary, but even small businesses go through transformational change. It isn’t something that just larger organisations do.

In this week’s blog, we thought we would outline what transformational change is by definition, look at the key characteristics of it, the challenges and perhaps how we can overcome those challenges to help organisations realise their desire to make the required change(s) and move forward.