It is often the COO who will be leading their firm through the implementation of a new process or adoption of a new technology tool, therefore, a common question I pose to guests on the COO Roundtable podcast is, “How do you successfully affect change at your organization?” Many assume that the COO role is mostly technology-oriented, but in fact, it is usually the people part of the job that is most difficult. Choosing the various tech vendors that make up the tech stack is relatively easy compared to getting your teammates to adopt and interact with the technology—that’s where true change management comes in. It seems that COOs are always butting up against the, “But we’ve always done it this way …” mentality from their teammates.
Over the years, we’ve received some great advice from our guests, who describe how they act as change agents at their organizations, implement change and get buy-in from the various stakeholders at the firm. But possibly no one provided such a succinct framework for change as industry consultant Carolyn Armitage. She described her five elements of change and pointed out, “If you are missing any of these five elements, there will be undesirable consequences.”
Carolyn Armitage’s Five Elements of Change
- Establish a Clear Vision: The foundation of any successful change initiative begins with a well-defined vision. Without a clear understanding of why the change is necessary and where the organization is headed, employees can quickly become confused and resistant. Effective leaders must take the time to craft a compelling narrative that not only outlines the desired future state, but also connects the change to the organization’s core values and strategic objectives. By providing a clear, inspiring sense of purpose, leaders can rally their teams around a common goal and build the momentum needed to see the transformation through.
- Ensure Employees Have the Right Skills: As the saying goes, “change is hard.” And for good reason—it often requires people to step outside their comfort zone and learn new ways of working. Carolyn says, “Without the right skills, team members will have anxiety and uncertainty because they aren’t sure if they can perform the new tasks being asked of them.” To combat employee angst associated with change, leaders must ensure that their teams have the necessary skills and capabilities to succeed in the new environment. This may involve comprehensive training programs, mentorship initiatives or even strategic hiring to fill any gaps. By proactively investing in the development of their people, organizations can empower their workforce to embrace the change and contribute to its success.
- Align Incentives with the Change: One of the most common pitfalls in change management is a disconnect between team members’ desired behaviors and the organization’s reward system. If employees don’t perceive a clear personal benefit to embracing the change, they are less likely to put in the effort required to make it a success, declaring, “This isn’t in my job description.” Effective leaders must carefully examine their existing incentive structures and align them with the new ways of working. This could involve adjusting performance metrics, modifying compensation plans or introducing new recognition programs that celebrate the behaviors and outcomes that are critical to the transformation.
- Allocate Sufficient Resources: Successful change management requires a significant investment of time, money and energy. Without the necessary resources to support the transformation, employees can quickly become frustrated and lose faith in the process. Leaders must carefully assess the resource requirements for each phase of the change initiative and ensure that their teams have access to the tools, technology and support they need to execute effectively. This may mean reallocating budgets, bringing in external expertise or securing buy-in from key stakeholders to free up the required resources.
- Develop a Comprehensive Action Plan: Finally, no change management initiative can succeed without a well-crafted implementation strategy. Effective leaders must take the time to map out a detailed action plan that outlines the specific steps, timelines and accountabilities for each phase of the transformation. This not only helps to ensure that the change is executed with precision and efficiency, but also provides a clear framework for monitoring progress and making adjustments as needed. Carolyn states, “Without a proper action plan, the firm will experience a lot of false starts.” By maintaining a laser-like focus on the execution of the plan, leaders can minimize the risk of delays and other setbacks that can derail the change process.
Navigating the complex waters of organizational change requires a multi-faceted approach that addresses the needs of both the business and its people. By focusing on these five essential elements—vision, skills, incentives, resources and action planning—leaders can increase the likelihood of driving meaningful and sustainable transformation within their firms. In doing so, they can not only position their companies for long-term success, but also empower their teams to embrace the challenges and opportunities that lie ahead.
This article originally appeared on Wealthmanagement.com.