In a global business environment characterized by the constancy of change, it’s no surprise that worldwide spending on transformations is expected to reach $3.9 trillion dollars by 2027.
That’s because enterprise-wide transformations are occurring at nearly half of all companies, with almost three-quarters transforming at least one business unit, according to recent research by the PEX Network.
Further, among the key methodologies required for fueling successful transformations, enterprises name change management as their top priority.
With this clear agreement on the necessity for adeptly managing change, the question becomes how to get it done. To help you nail the ‘how’, here are seven steps recommended by leaders from the PEX Network, lululemon, tms, and Graphite.
Step 1: Understand the “why”
Before you can start to tackle the “how,” it’s vital to understand why change management is so important.
Essentially, successfully executing a transformation initiative requires that employees feel actively involved and keen on realizing a positive outcome. When employees feel involved and committed to the change, McKinsey research shows transformations are 3.5 times more likely to succeed, enhancing the quality and ultimate effectiveness of the transformation.
“Leadership needs to articulate a compelling vision of the future and inspire teams to create a roadmap to achieve that vision,” said Vik Ashok, CEO at Graphite. “They must define clear goals and take on the role of change drivers.”
Step 2: Embrace a human-centric approach
To achieve the necessary level of employee involvement, the next step is addressing the needs, emotions, and behaviors of people affected by the change.
As a Siemens change leader puts it, prioritizing human-centric change management ensures smoother transitions, greater engagement, and higher adoption rates of the changed state.
“By focusing on clear communication, empathy, and encouraging active participation from a wide variety of stakeholder groups, an organization can help foster a supportive environment that maximizes the probability of success,” said Ryan Mayer, Head of Healthineers Performance System, Americas Region at Siemens Healthineers.
Step 3: Prepare to reduce resistance to change
Getting human-centric change management right necessitates dodging the common pitfall of change resistance. Although resistance to change is natural and expected, overcoming it involves breaking down the perception of change as a threat.
To combat resistance, provide transparent and authentic communication from the very start, during the formation phases, well in advance of implementation. Communications should include the rationale for change and emotional statements to contextualize it.
In addition, the scale and frequency of communications must remain robust and consistent throughout the transformation for effective resistance reduction.
“It’s important to say something even if it’s just ‘we’re working on it,’” explained Jots Sehmbi, CIO for the City University of London. “I’m a fan of communicating frequently, even if it’s just to say that we are listening.”
“I’m a fan of communicating frequently, even if it’s just to say that we are listening.” Sehmbi added.
Step 4: Get the WIFM right
Another key factor for achieving the necessary employee buy-in is listening deeply to employees and then clearly articulating the “what’s in it for me” (WIFM).
“If we can't really speak to how a transformation initiative will make the job better, the work easier, and the stress come down, then why even pursue it,” pointed out Alice Chi Martin, President of Global Merchandise Services at tms, during a PEX Network panel discussion.
Defining and articulating the WIFM helps employees navigate their discomfort during a transformation, noted Ana Badell, the Senior Vice President for Global Enterprise Business Transformation at lululemon. “Transformation and change are about putting people in a place of discomfort,” she said. “And, because it’s uncomfortable, you need to know and communicate the WIFM workers will experience at the end of it.”
Step 5: Engage experienced change leaders and managers
Naturally, expert change leaders and managers are vital to developing a winning strategy, defining the WIFM, and motivating teams to carry out transformation tasks.
“Having the right leaders is critical,” said Martin. “If you don't have the right leaders to drive change, it's going to cause big problems out of the gate.”
Some enterprises may already have such leaders and managers, but many discover they require external talent to gain the expertise and experience required for skillfully managing change.
“Depending on where you are in your transformation journey, you may need to bring in external talent temporarily to build up your change management capabilities,” said Ana Badell.
Step 6: Balance internal change management talent with new perspectives
Despite the abundance of intelligent, energetic, and talented individuals within every enterprise, many organizations lack individuals with sufficient skills and ability to manage complex change requirements during a large-scale transformation initiative.
To answer this challenge, the experts recommend augmenting existing teams, including by engaging with external talent for project-based work. “Bringing in external consultants who have navigated similar journeys is a prominent theme we’re seeing,” said Ashok.
Badell and Martin agree.
As Martin puts it, “good ideas come from everywhere, and external experts come in with a fresh perspective.”
Badell echoed that statement and amplified it. “Having a balance of internal operators and fresh new transformation professionals coming together makes transformations successful,” she said. “A team that’s composed of existing talent peppered in with external talent is really important.”
Step 7: Leverage independent talent to fill change management gaps
Many respected enterprises are turning to independent experts to fill change management gaps. Unlike in the past, this is now an effective strategy for building strong organizational capabilities through skilled change agents.
That’s because recent trends toward a more distributed workforce and remote work have seen a significant number of talented change management professionals opting to join the independent workforce, providing you with exceptional talent that is readily available and affordable.
This rise in highly-experienced independent talent, with MBB, Big 4, and Fortune 500 change management experience, has eliminated a historical binary straightjacket. You are no longer required to sign complex contracts with consulting firms that suggest bloated teams.
“On-demand talent is enabling our client companies to fill change management gaps quickly with amazingly skilled individuals,” Ashok said. “This helps with maintaining momentum and adapting in real time to address immediate skill needs, stay super-agile and evolve continuously without being constrained by internal limitations.”
Navigating the road ahead
Armed with the advice offered by experienced transformation leaders, you can begin charting your human-centered approach to developing and implementing an effective change management strategy. From addressing change resistance and defining the WIFM to augmenting internal teams with seasoned independent change management professionals, you’re ready to embark on your journey toward success.
For more in-depth discussions of the topics we’ve noted in this blog and other significant insights our experts have shared, we invite you to access the PEX Network 2025 State of Business Transformation and replay a recent PEX webinar on business transformation strategies to overcome execution hurdles in complex times.
