{"id":32510,"date":"2024-09-30T06:20:25","date_gmt":"2024-09-30T06:20:25","guid":{"rendered":"https:\/\/www.insentragroup.com\/nz\/?p=32510"},"modified":"2024-09-30T08:26:22","modified_gmt":"2024-09-30T08:26:22","slug":"the-role-of-adoption-and-change-management-in-digital-transformation","status":"publish","type":"post","link":"https:\/\/www.insentragroup.com\/nz\/insights\/geek-speak\/professional-services\/the-role-of-adoption-and-change-management-in-digital-transformation\/","title":{"rendered":"Driving Seamless Change: The Role of Adoption and Change Management in Digital Transformation"},"content":{"rendered":"\t\t
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DRIVING SEAMLESS CHANGE:<\/h1>\t\t\t\t<\/div>\n\t\t\t\t
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The Role of Adoption and Change Management in Digital Transformation<\/h1>\t\t\t\t<\/div>\n\t\t\t\t
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DRIVING SEAMLESS CHANGE:\u200b<\/h1>\t\t\t\t<\/div>\n\t\t\t\t
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The Role of Adoption and Change Management in Digital Transformation<\/h1>\t\t\t\t<\/div>\n\t\t\t\t
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Table of Contents<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Introduction<\/strong><\/a><\/p>

What is Change Management?<\/strong><\/a><\/p>

Why is Change Management Important?<\/strong><\/a><\/p>

Barriers to User Adoption<\/strong><\/a><\/p>

Benefits of Change Management<\/a><\/strong><\/p>

Change Management Best Practices<\/a><\/strong><\/p>

Step-by-Step Change Management Plan<\/a><\/strong><\/p>

Insentra\u2019s Approach to Change Management<\/a><\/strong><\/p>

Your Partner in Navigating Change<\/a><\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Digital transformation is no longer an option. In today\u2019s ever-evolving, technology-driven business landscape, organisations must leverage digital tools to remain competitive and relevant in their industry.<\/p>

According to the International Data Corporation (IDC), 70% of organisations either already have a digital transformation strategy or are currently creating one. Flexera\u2019s 2023 Tech Spend Pulse revealed that 74% of organisations name digital transformation as a top priority\u2014up from 56% in 2021.<\/p>

However, digital transformation isn\u2019t as simple as investing in advanced tools and software. Adoption is key to successfully integrating new technologies into your organisation\u2019s day-to-day functions and processes.<\/p>

The challenge is that adoption isn\u2019t an overnight process. Most employees\u2019 initial perception of new tools and processes is resistance because they are reluctant to change their existing work routines and habits.<\/p>

So, how can organisations successfully usher in digital transformation? The answer is Adoption and Change Management or ACM.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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WHAT IS CHANGE MANAGEMENT?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Change Management is the discipline that manages, executes, and optimises organisational change projects. It is a structured process encompassing how businesses handle major changes, such as adopting new technologies, redefining their organisational structure and digital transformation.<\/p>\n

This process leads organisations through every stage of change, supporting individuals at every level of seniority and managing resistance to ensure that the workforce fully embraces and incorporates the new system into their day-today workflows.<\/p>\n

It is important to know that change management isn\u2019t simply about communications or training. It\u2019s a discipline that runs in parallel to project management. While project management takes care of the technical side and delivery, change management looks after the people side. Together, these two disciplines ensure user adoption and the success of any change project, empowering organisations to reap the benefits they expect from their investment.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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WHY IS CHANGE MANAGEMENT IMPORTANT?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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According to McKinsey, 70% of digital transformation projects fail<\/a> to meet their planned goals. And the lack of a proper change management strategy is among the reasons behind this high failure rate.<\/p>

Digital transformations may involve overhauling an organisation\u2019s entire operations. The problem is individuals cannot easily adapt to new situations and systems. Without proper management, organisations will likely hit barriers to adoption, resulting in wasted time and money.<\/p>

Change management is the key to successfully implementing changes that stick.<\/p>

Prosci\u2019s Best Practices in Change Management benchmarking studies<\/a> revealed that 88% of participants who rated their project\u2019s change management activities as excellent, met or exceeded their objectives, while only 13% of those with poor change management met their goals.<\/p>

This means that through effective change management, organisations are seven times more likely to have successful change projects, such as digital transformation.<\/p>

The same research shows a strong correlation between dedicated resources and effective change management. Projects with dedicated ACM resources \u2014 such as sufficient funding, people with change management experience, a change team composed of flexible, decisive, collaborative individuals \u2014 are significantly more likely to achieve exceptional results.<\/p>

One research participant put it best: \u201cIf it isn\u2019t someone\u2019s job, then it\u2019s no one\u2019s job.\u201d To reap the total rewards of change management, there needs to be a dedicated person responsible for it, along with sufficient funding.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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70% of digital transformation projects fail to meet their planned goals.<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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BARRIERS TO USER ADOPTION<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Change management helps employees seamlessly adopt new technologies and processes by addressing the following barriers to user adoption:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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INSUFFICIENT INFORMATION<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Employees not having enough information about an upcoming change is a huge barrier to user adoption. They must know why, how, and when the change is going to happen for them to be fully engaged and involved in the project. If they understand how the new tool or process will benefit them, they are more likely to participate and the quicker they will adapt to the change.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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RESISTANCE TO CHANGE<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Employees resist change for many psychological and emotional factors<\/a>, from anxiety and stress to doubt and loss of control, as well as for operational reasons such as concern it will make their roles more difficult. It\u2019s important to understand the psychological and operational impacts of change so managers and change leaders can better support their workforce through the transition.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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NOT ENOUGH TIME<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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New technologies rolled out quickly can be difficult for employees to embrace. Workers need time to learn how to use a new tool and figure out how it will fit into their existing routines and processes. If they do not have enough time to study the technology, employees are not likely to incorporate it into their day-to-day functions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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LACK OF SUPPORT NETWORKS AND COMMUNICATION CHANNELS<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Without adequate support, employees may struggle to understand and effectively use new technologies. Efficient communication and support channels are essential for providing timely assistance, sharing best practices, and resolving issues quickly. Lack of support can result in employees feeling isolated and reluctant to embrace new tools, leading to poor user adoption. Additionally, communications that feel irrelevant to groups of users can result in them distancing themselves from the change initiative: inclusive communication is vital.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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CHANGE FATIGUE FROM OTHER INITIATIVES<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Change fatigue is one of the top challenges leaders face when implementing organisational changes. Employees may feel they\u2019re repeatedly instructed to change their processes and practices or embrace new tools. The constant changes might create the perception that the executive team does not have a clear idea of how they want to design their operations.<\/p>

Change management should be considered from a portfolio level as well as in individual projects to help organisations address change fatigue among their workforce, enabling them to innovate for greater business success.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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LACK OF EXECUTIVE SUPPORT<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Lack of executive support undermines the credibility and importance of the new technology. When leaders do not actively champion and use the technology themselves, employees may perceive it as non-essential or temporary, leading to resistance or apathy. Digital transformation initiatives can falter if there is no visible and consistent support from leadership.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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BENEFITS OF CHANGE MANAGEMENT<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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All organisational changes, whether big or small, benefit from a well-planned and well-executed change management strategy. Below are some of the benefits change management can bring to organisations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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IMPROVED EMPLOYEE ENGAGEMENT<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Good change management keeps your employees informed about any changes that may affect them. This approach helps them feel included in the decisionmaking process rather than just being handed directives without understanding the reasons behind them. As a result, they are more eager to participate in the transition and do what is necessary for the entire organisation to fully embrace the new process.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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SMOOTHER TRANSITION PROCESS<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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The transition from one system to another becomes smoother and more seamless when there\u2019s a change management strategy in place. Change management enables leaders to foresee potential barriers to adoption and other conflicts, allowing them to prepare solutions to quickly address these issues.<\/p>\n

A change management plan also lays down support and communication channels, so employees know where to go and who to ask for help when they need it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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MINIMISE EMPLOYEE RESISTANCE<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Leaders can ease their employees\u2019 anxiety and negative feelings about the transition through a change management strategy. When workers know all the details about a change project\u2014why it\u2019s necessary, how they can benefit from it, when and where the change will happen and what they need to do to prepare\u2014they are more likely to participate in the transition process.<\/p>

Additionally, when employees feel included in major changes happening in the workplace, they feel more valued and empowered in their roles, which boosts employee morale.<\/p>

Ultimately, change management empowers individuals to navigate change easier, allowing them to embrace the new process or system quickly.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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AVOID THE COSTS OF POORLY MANAGED CHANGE<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Change can be expensive, and a poorly managed one even more so. Delays, complications, and mishaps are likelier to happen when there\u2019s no change management plan in place, which can lead to increased costs, missed deadlines, and wasted resources.<\/p>

A well-thought-out change management plan helps avoid problems throughout the transition, enabling organisations to optimise the total costs of the change project.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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MAXIMISE ROI (RETURN ON INVESTMENT) OF NEW TECHNOLOGIES<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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The overall goal of change management is to empower organisations to embrace change seamlessly, so that their new investments may pay off.<\/p>

With proper processes and support systems in place, employees can go through the transition relatively worryfree, which helps them adapt to the change faster. This allows organisations to realise the full potential of their new technologies faster, such as improved productivity and efficiency.<\/p>

This is especially important when considering emerging technologies such as Copilot and Employee Experience suites like Microsoft Viva \u2013 the business value of these technologies is dependent on the extent to which users engage with the application. Unlike an operating system upgrade or tenant migration, users can choose to opt out of using the technologies entirely. A small pocket of user resistance can heavily impact ROI, and effective change management mitigates this risk.<\/p>

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CHANGE MANAGEMENT BEST PRACTICES<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Change management often has a reputation for being either cumbersome and complex, or flimsy and unproductive, but it doesn\u2019t have to be that way. As long as your organisation sticks to these best practices, you can have an agile but solid change management strategy.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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CONSIDER CHANGE MANAGEMENT FROM THE PROJECT OUTSET<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Before introducing any new tool or process into your organisation, create a plan for how you will manage this change to ensure that everyone will participate. When change management strategies are integrated early, they help prepare and align all stakeholders with the project\u2019s goals, addressing people\u2019s concerns and building user support. Ideally, change management and project management should be planned in parallel, with aligned reporting approaches and key activities.<\/p>

This proactive approach enables you to identify possible challenges and develop targeted communication and training plans, ensuring that everyone understands the benefits and impacts of the change.<\/p>

Early change management involvement makes it easier for employees to adapt and sustain the change long-term. By anticipating and addressing the human aspect of change, change leaders can reduce disruption, enhance employee engagement and increase the likelihood of project success.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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IDENTIFY, COACH, AND SUPPORT YOUR SPONSOR<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Prosci\u2019s research identifies active and visible sponsorship as the key contributor to a successful change initiative, but most organisations consider project sponsors to be executive figureheads and decision makers, rather than key drivers of effective change management.<\/p>

By identifying an appropriate sponsor of the change at the outset, ensuring they understand what makes an effective sponsor, and helping them create a sponsor coalition to increase their reach while reducing the sponsorship workload, you can set your change initiative up for success from the outset.<\/p>

Sponsorship visibility must be maintained throughout the project for the best results, so regular time with your sponsor, the capability to support them and objectively assess their impact on the change initiative is vital.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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PLAN ACCORDING TO YOUR ORGANISATION\u2019S RISK TOLERANCE<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Each organisation has its own risk tolerance, which is influenced by its culture and regulatory requirements. Your change management approach must balance project speed against your risk tolerance, making sure that you are rolling out change at a pace that is efficient but still comfortable for everyone involved.<\/p>

Understanding your risk tolerance involves considering your business\u2019s regulatory and compliance obligations. When regulations come into play, it\u2019s not just about the risk of system downtime or the cost of addressing issues; it\u2019s about adhering to non-negotiable rules to avoid fines and sanctions.<\/p>

Your change rollout timeline must be realistic and include the approvals you\u2019ll need to obtain, even if it means slowing down your project a little.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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COMMUNICATE FREQUENTLY AND OPENLY<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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There is a misconception that change management is \u201cjust communications.\u201d However, it is still true that open, effective communication is necessary to lead change successfully. Without communication, the change process can be chaotic and confusing, which can result in complications and frustrated users.<\/p>

When it comes to change communication, employees see the following factors as the most important:<\/p>