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4 benefits of HR following change management practices
Change is often difficult, but following these change management best practices can benefit organizations in several ways. Learn more about the benefits.
Companies implement major changes for various reasons, including industry trends, government regulations, technological advancements and post-M&A reorgs. Pursuing change management best practices can bring organizations various benefits, and CHROs and other senior HR leaders must take the lead in implementing these initiatives.
Some change management best practices include communicating frequently with employees about the change and providing appropriate resources, such as training. CHROs should be involved at every stage of planning and implementation, and successful change management also requires thoughtful planning by stakeholders in Operations, Legal and IT.
Here are some benefits of following change management best practices.
1. Increased employee buy-in
Following change management best practices can result in employees being more open to the change. Resistance from employees will make successful change implementation more difficult, if not impossible, and employees who understand the reason for a change are more likely to support it, even if they dislike the new initiative.
Securing employee buy-in requires CHROs to communicate why the change is necessary, how it will be implemented and how it will affect the workforce. CHROs must be candid when sharing the effects on the workforce and should be open to feedback from rank-and-file employees, as workers might raise issues and identify obstacles that senior management is unaware of.
The company should provide employees with opportunities to consult with their managers on how the change should be carried out, as involvement fosters a sense of ownership. Engaged employees are more likely to adapt well to new technologies or hierarchies.
CHROs should also invest in training to ensure that employees possess the needed skills for the new technology or processes.
Mergers and acquisitions require specialized change management strategies, since these changes most directly affect employees. CHROs must be sensitive to employee fears when communicating about changes. Nearly every aspect of the employee experience will be different, from benefits to org charts, but CHROs can provide a sense of continuity.
2. Improved customer satisfaction and loyalty
Successful change management can help improve customer satisfaction. For example, if a company successfully implements a new system, it might make its website easier to navigate, thereby improving the customer experience.
Customer loyalty might also improve if change management is successfully implemented. For example, a new initiative might include extending the time customers have to return an item. If a company successfully implements the new program, customers could become more loyal because they are happy with the longer return period.
3. An easier transition
Implementing effective change management practices can lead to a smoother transition, with reduced disruptions to customer services or internal operations.
For example, CHROs should work with IT and Operations to beta test changes before releasing them so unforeseen problems can be addressed prior to implementation. If a retail company fails to test changes on its website and the website becomes unavailable, sales could be reduced.
4. Improved ROI
Following change management best practices, such as launching required training, can help improve the ROI for new technology. Technology initiatives such as system upgrades require significant investment, so senior leaders want to see a strong ROI quickly.
CHROs implementing training for the new technology -- first for employees and then for customers -- makes their investment more likely to succeed, as employees and customers will feel confident about how to use the new technology and so will be more likely to use it.
Lynda Spiegel is a freelance writer and former global HR executive for financial services, telecommunications and SaaS companies.
