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Change Management

3 Things to Include in Your Change Management Plan

Forecasted or unforeseen, change is inevitable and you need to have a solidified change management plan in place to handle it accordingly and help employees and stakeholders buy in to the idea.

Here are three things to include in your change management plan to ensure success.

  1. Start With the Reasons for the Change
  2. Determine the Scope 
  3. Present Your Case to Stakeholders

 

1. Start With the Reasons for the Change 

A successful change management plan starts with a strategy. It’s vital to know why you want the change to take place and what the expectations for the outcome will be. The first step before anything is to build awareness around the need for change. 

Including this at the forefront of your plan is the ideal place to start. 

Identifying the main reason for the change can increase clarity across the board and highlights the individuals that will facilitate the implementation of the change. 

For example, Netflix changed their original business model that offered customers a monthly subscription to movies via mail in 2007 when streaming became available. Netflix successfully implemented change management to align with the needs of consumers who wanted to consume content online.

But do you think this would have succeeded if Netflix's internal teams were unaware of or disagreed with the goals of the change?

This is why it’s important for your staff members to understand the necessity of change. Otherwise, this can result in a disconnect when it comes to outlining how this change will affect the business and you’re likely to struggle when it comes to having everyone buying-in to this change. 

The benefits should be clearly outlined so that everyone involved understands the advantages of proceeding with the change, why it’s happening and the outcomes you hope to achieve with this change. 

For example, those in senior leadership roles will only want to know the high-level objectives. Things like how they’ll be measured and how well they align with those of the organisation are their main concern. Make sure to address those concerns preemptively and to guarantee the benefits.

2. Determine the Scope 

Defining the scope is crucial. How big is the change, how many people are affected and is it gradual or radical? Establishing these elements will make for a more successful implementation. Determine who the change might affect and what exactly it might impact. 

This covers all aspects of the organisations resources, so consider how your business planning that contains a model of organisational resources will adapt over time and how each area of the business will be affected. If your planning is contained in disconnected systems and spreadsheet models, assessing the true impact of change in all resources and business units could be tricky.

In addition, there’s an inherent risk of not clearly establishing scope. It can result in confusion, ineffective workstreams, overlapped activities and conflicts in responsibilities. 

As with most momentous ventures, there’s often a greater amount of resources and time necessary to achieve success than initially expected. An underestimated scope, resources and time constraints all play a large factor in the prosperity of your change management plan. 

 

3. Present Your Case to Stakeholders

Stakeholders will want to have a clear picture of the shape of the organisation now and the shape following the change. It's important to know your starting point and where you want to get to in order to plan the steps in between. This is where connected planning comes in. 

Connected planning enables scenario planning to prove the impact of change and the various options for delivering the end result. It provides clear measure and benchmark data to ensure that you stay on course throughout your change journey and bring stakeholders along with you.

You can avoid this by considering everybody that the project affects initially and getting stakeholders involved early to solicit their feedback. 

A successful change management plan requires considerable input from stakeholders, so mapping out what they will get out of the change is most important to them in your plan. 

Change will likely mean reducing resources whilst increasing others - with CP in place you have the tools to assess the impact, given key interdependencies across the organisation. Communicate the value of stakeholders’ investment and the benefits you expect it to bring as it can help model scenarios and see a clear picture of the new resource levels after implementation of the change.

Not only will this help them feel involved in the plan’s success and entice their buy-in but there’s also a good chance those stakeholders will have visibility into blind spots or weak points.

 

Now that you know what to include in your plan, you can get your all-in-one guide to Connected Planning which assists in making effective change management plans. 

Everything You Need to Know About Connected Planning

To help you unify your business and streamline processes, we’ve created an all-in-one guide for everything you need to implement Connected Planning successfully in your organisation. 

From its advantages, the tools you need for implementation and how to get started, we’ve covered it all. Get your copy using the link below.

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Change Management

Steve Benham

Steve's passion is to help finance departments become genuine business partners, transforming them from corporate historians into fortune tellers, so that CFOs become relied upon for insights into the effect of decisions on future profitability. Steve qualified as an accountant with PwC and spent 15 years of his early career in CFO roles, before forging a career in cost management consulting, spanning over 20 years. Steve has implemented large cost management projects and developed deep expertise in key sectors including Airlines, Utilities and Manufacturing. Prior to establishing Profit& in 2016, Steve was a Director in PwC Finance Consulting and Cost Management Practice Lead in Vantage Performance Solutions. Steve also led Consulting Practices for Cost Management in technology firms including SAP, Business Objects and ALG Software.

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