The 5 Forces Of Change
Porsche Consulting has published their white paper „change management compass 2023“. It confirms that companies are going through fundamental transformations to prevail in a highly competitive global market. No stone remains unturned, and entire business models are up for discussion. In 2023, megatrends such as digitalization and sustainability will continue to be the most relevant triggers for strategic transformations. After sustainability, diversity is the number 2 ascending topic.
While the need for strategic change leaves no industry unaffected, seven out of ten transformations fail due to insufficient change management.
Willingness & Skills
While willingness to change at the management level has increased significantly. The gross majority below the executive level isn’t willing to follow through with a transformation—and even if they wanted to, they lack the necessary skills.
Transformational Success Factors
Organization-wide change requires creative ideas put together in a structured way. Five forces of change represent the most relevant levers for organization-wide change:
- Guidelines and policies
- New ways of working
- Future skills
Hybrid Change Management
The global COVID-19 pandemic has altered the way of collaboration and how workdays are organized. Change management needs to reflect these new ways of working.
- Implement modern IT tools for remote collaboration to ensure seamless integration of both on-site and remote team members. Collaboration must be absolutely fluid
- Facilitate remote team events and exchange. Since 2020, the possibilities for such events have been countless
- Set up informal learning sessions—inviting colleagues to share knowledge in a compact meeting format- maybe over lunch.
Leading Future Transformations
As challenging as transformations are, the results are promising for those who are open to approach them differently than traditional change management suggests. The five forces of change have the power to effectively activate people for the upcoming changes and thus support CEOs in mastering their strategic agenda. While challenges and circumstances differ, there is a pattern that clearly distinguishes between those who triumph in their quest for strategic change and those who fail. The application of these five forces and the central success factors herein are shared across all types of transformations and industries. Carefully orchestrated to meet the specific challenge under the respective circumstances, success is likely.
By following the transformational success factors and taking a structured approach, CEOs and their teams can overcome stalling change and create a successful future for their company and employees. Nobody is doomed to make the same mistakes (or the mistakes of others) over and over. Every successful strategic transformation starts with a bold, inspirational CEO and is further carried by a skilled and motivated leadership team. Let’s get the ball rolling from the top!
A brief look at what CEOs do to change successfully.
- Strategic change management must be a personal priority for the CEO
- Change communication must be conducted across a multitude of channels
- Employee authorities need to be increased
- Human resources must be deployed flexibly
- Self-directed learning must replace more rigid, directed learning curricula
Success stories like RWE Nuclear and Audi BKK are just the beginning. Let me support you in your successful transformation.