Business Transformation Change Management Requires Good Governance
By Betsy Burton
Business Transformation Change Management Requires Good Governance
A client recently asked me to help them scope out a change management program within their organization. They were going through a massive business transformation effort in which they were transforming some of their cross organizational business processes as well as modernizing some of their existing applications and systems.
The question they asked me was, what are the critical elements of change management?
Critical Elements of Change Management
Change management is all about helping people within your organization, as well as external partners, suppliers and customers, to understand, support and execute on a significant business change. Change management really is a people-centered discipline. It is not just about telling people what to do, it is about gaining their support, interest, and desire to make change happen.
There are several elements of change management that I would consider critical, including:
- Actionable Business Strategy
- Roles and Responsibilities
- Metrics
- Communication
- Operational Execution Roadmaps
And last, but certainly not least, a lot of empathy.
Change is hard for many people. I tend to find most people want to know why change is happening and the benefits, not just what is changing. And increasingly, people want to know the societal, cultural, and environmental benefits or impacts.
Governance is Critical
To drive execution, governance is critical. I wrote a note earlier this year on governance (Aragon Research’s Governance Framework: Achieving Business Outcomes) in which I highlighted Aragon Research’s Governance Framework.
There are several elements in this framework that are important to help drive change management. For one, organizations need a defined RASCI chart for roles and responsibilities. Measurable clear metrics that can help people prioritize their work and demonstrate their impact on achieving change. An ethics program and digital ethicist to help people understand and weigh the broader impact of decisions.
Here Is the Rub
The big rub in all of this is the executives want business transformation and they want business change, but the vast majority are very reluctant and/or lack the discipline it takes to define their business strategy and define clear governance.
Why, you ask?
Because if they define a clear actionable strategy and governance, it means that they will actually need to deliver on it and be measured. And they will actually need to adhere to defined governance. Most people, including business executives, don’t like to be held accountable. It is far easier to direct change, and hope people just figure out how to make it happen.
Bottom Line
If you have been reading my blogs and research, you know that I am all about having a clear and actionable business strategy and using a future-state first approach to architecting your business. In addition, in order to drive business transformation change, you must have clearly defined governance and a lot of patience and empathy.
Speaking from my own experience, the biggest issue that I have seen in organizations and between partners is lack of clear governance for any business evolution, change or transformation. If employees, partners and customers don’t know “what, why, how and when” of change, they will naturally fight against it. This is one of the biggest impedances to change management and thus, business transformation.
Upcoming Webinar With Aragon’s VP of Research
Using Business Capability Modeling to Guide Business Transformation
A big challenge for organizations going through business transformation is understanding and exploring their future-state business model.
Business capability modeling can provide a powerful technique for exploring and communicating your future state in a way that is unencumbered by political issues related to domains, organizational structure, processes, or functions.
In this webinar, Aragon’s VP of Research, Betsy Burton, will be reviewing how business capability models can be used to guide strategic and operational investments. Webinar topics:
- When and why do organizations use business capability modeling?
- How does business capability modeling differ from other business modeling techniques?
- Examples of how a business capability model can be used.
Register Here
This blog is a part of the Business Transformation blog series by Aragon Research’s VP of Research, Betsy Burton.
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