New research from global advisory, brokering and solutions company, WTW, suggests that companies taking a proactive approach to change management drive nearly three times more revenue than companies with below-average “change effectiveness.”
The new white paper, entitled Accelerating change amid disruption, also suggests that employee experience is a key differentiator for those succeeding in change management.
Based on an analysis of 600 global organizations, those identified as “change accelerators” perceived change management not as an expense, but as a catalyst for financial and business outcomes across several metrics.
Those who remain competitive and achieve their transformation objectives effectively, prioritize four critical dimensions: Purpose, people, total rewards and work.
Regarding purpose, they say 90 per cent of employees in change accelerating organizations reported that their leadership had a clear vision for the future, compared to only 73 per cent of employees in other transitional organizations. Similarly, almost 90 per cent expressed satisfaction with their involvement, and 84 per cent of employees in change accelerating organizations said decisions are made in a timely manner compared to 68 per cent of other transitioning companies. “Companies that focus on embedding the change into their organizations’ culture and daily work routines are more effective at convincing employees that the changes being made will be long-lasting,” they write.
Effective leaders, meanwhile, tend to act decisively across five areas to increase revenue amid constant disruption, they add. Purpose and people again take first and second spots in the researcher’s recommendations, followed by programs, work and risk.
“Effective leaders tackle risk associated with change and innovation head-on. They conduct comprehensive risk assessments in order to consider and mitigate exposed and unexposed risks, including disruptive innovations, regulatory changes, market fluctuations and more,” they write. “Data-driven risk reviews and feedback loops help identify emerging risks so they can be addressed promptly, preventing larger issues from arising. These reviews and feedback loops enable leaders to make informed decisions and refine their approach and interventions as needed.”
