When you commit to change in your business, it’s because you have recognised the need for transformation to improve results and move towards your goals. Change can be critical for driving productivity, optimising processes and improving profitability – all of which you want to experience.
However, deciding to commit to change and actually doing it are two different things. You and your staff will be used to old processes, so switching tact can be a challenge. We’ve all heard the phrase “you can’t teach an old dog new tricks”, but when facilitating change, you need to embed new ways into your business.
This is where change management comes in. Change management is the process of enabling and supporting your business to adapt to updated approaches. Effective change management should also ensure that the changes you have dedicated to are correctly implemented and have a lasting effect.
In this blog, we have listed some of our top tips for change management so that you can successfully enable change in your business and make sure that it sticks.
- Set goals
- Ensure everyone knows the new processes to follow
- Make sure you have the resources you need
- Know the financial implications
- Practice what you preach
- Track results
Set goals
When you decide to transform your business, it’s crucial that you understand why you’re doing it and the results you expect to see. By pinning these down as goals, you can continually refer to them to remind yourself why the change is needed.
Once you have set goals for change, ensure you communicate them with your workforce and other stakeholders and explain how they will benefit. This will allow them to see the drivers behind the new measures and be motivated to play their part.
By setting out your expected results, you can also monitor progress during the change process and adapt if you don’t see the expected outcomes.
Ensure everyone knows the new processes to follow
Once everyone knows the reason for change, it’s time to tell them what procedures and precautions they need to follow. Depending on their role, the impact on their daily work may vary, so you need to be prepared to give tailored advice and support to each department and employee.
It may be worth holding onboarding sessions with your workforce where it is clearly stated what you expect them to do in their roles during the transformation process. Department heads and line managers should particularly be aware so that they can motivate their team members to execute the new procedures. Training can also empower employees to carry out their jobs properly, with a complete understanding of what they need to do and how.
Consider creating documentation and support (such as guides, emails and posters around the workplace) that remind workers of the change in protocol and indicate how to follow it. This will enable them to consistently meet expectations and not fall into old habits.
Make sure you have the resources you need
When incorporating new processes into your business, you might find the resources you need to operate vary. For example, you may need new supplies, equipment, external support or even staff members.
When planning business change, make sure to note what resources you may need and identify any gaps in your existing operations. Before implementing new processes, ensure you have everything you need to facilitate them and that the relevant staff members know how to access resources properly.
If you try to push change without adequate resources, it could lead to barriers when following new protocol and demotivate your employees. By looking ahead, you can enable the transformation to take place smoothly and manage it better.
Know the financial implications
In the long-term, change should enable you to operate cost-efficiently and maximise profit. However, depending on the transformation you are bringing into your company, it might not necessarily lower costs in the short term.
Sometimes, facilitating change means investing in new strategies or assets. This requires up-front spending, which should pay off down the line once you achieve your expected results.
If you don’t have an adequate amount of reserves, investing in change can drain your finances. If the pressure is too much, it can result in cash flow issues and debt, which would hinder your progress and likely go against your transformation goals.
Fortunately, there are options to help businesses fund new processes and assets. These include short and long-term funding solutions, such as commercial loans, leasing, invoice discounting and trade finance.
By understanding the impact on your finances, you can make sure you have the best financial support in place to empower change and enable your business to see it through.
Practice what you preach
When running your business, you should set an example for how you expect your staff to act. If you’re undergoing change, this means ensuring that you instil the values of the project and carry out appropriate measures in your own work every day.
Ensure that it is clear across your business what is expected and that the buck stops with everyone. If you put more pressure on specific departments, it could alienate them and lead to dissatisfaction.
You should also make sure that all strategies and policies align with the motivations of your change management. For example, if you are asking people to be more cost-effective in their roles, it won’t come across well if your senior executives still claim high levels of expenses each month.
Instead, make sure everyone is bought into your vision, and there are no mixed messages. Be prepared to answer questions and address feedback. This will help you to bring everyone on board and create a collaborative effort.
Track results
An essential step in change management is tracking your results. The first tip we listed in this article was to set goals – and the only way you can know if you’ve realised those goals is to monitor your progress.
Focus on the KPIs you have designated for your business and the expected outcomes from the transformation project. Revisit these regularly after implementing new processes to determine what impact it’s having. Change can be slow in some cases, but you should still start to see an effect on your performance.
If you don’t see the results you want, you are in an excellent position to adjust your strategy and make sure that the change is effective. If you are starting to see the signs of improvement, it can be a great motivator for your staff and stakeholders that their work is paying off.
By the end of the project, you will hopefully have realised the targets you set out initially. If not, it could indicate that further change is needed, and you go again.
Conclusion
Even a small change can be a sizeable commitment for a business, especially if it means teaching an entire workforce to do things in a different way than they’re used to. However, if nothing changes in your business, it’s unlikely that anything will ever change in your results.
By identifying the right course for transformation and utilising effective change management, you can empower your business to adapt to new processes and measures that drive revenue and profit while improving productivity and costs.
Over time, everyone should reap the associated benefits and take your updated approach as the ‘norm’ – allowing your business to go from strength to strength.
If you need support in facilitating change in your business, including understanding the financial implications, we can help.
Our advisors have worked with a diverse range of businesses to help them optimise their operations and do what they need to enable growth or turnaround in their operations. We also have a vast network of funding contacts, so we can determine the best financial solution for you and help you access the capital you need to fuel change.