What is change management?
Change management is a structured effort that aims to help individuals, teams, and organizations get through changes. The focus is not only on project plans and technology but above all on people, their behaviors, attitudes, and ability to adapt to new ways of working.
Unlike classic project management, which primarily answers the question of what should be delivered, change management is about how change becomes a natural part of everyday life. When a new system is introduced, the goal is not for it to be installed, but for it to be used and create value.
Change management should not be confused with strategic planning or governance, as change management is dynamic in nature and is about putting strategies into practice.
But where do technology and digitization come into the picture? Change fundamentally occurs through the actions of employees, but today most positive changes occur in a digital context. New solutions and new technologies improve and simplify.
Are Swedish employees tired of change?
Despite the fact that the area is well documented, a large proportion of all change initiatives still fail. McKinsey has shown for several decades that up to 70 percent of major transformations do not deliver according to plan. In the report Nordic Champions: The value creation formula at the cusp of a new era, McKinsey specifically highlights that Nordic companies must combine culture, rapid adaptation, and structural transformation to succeed.
The same theme recurs in their recent analysis of Sweden, The paradoxes of Sweden’s success and struggles—and the path forward. It is stated here that Sweden has strong success factors but at the same time is lagging behind in productivity and implementation power. For Swedish organizations, this means that the ability to actually implement changes becomes a crucial competitive advantage.
Gartner also points to serious challenges. It appears that employees' willingness to support changes has decreased dramatically in recent years. In 2016, 74 percent answered that they were positive about change, but six years later the figure was down to 38 percent. The number of changes per employee, which has gone from 2 to 10 during the period, has led to change fatigue.
This means that management can no longer take for granted that the organization is "keeping up". They must work purposefully to build understanding and commitment.
43% av de som upplever en hög nivå av förändringströtthet vill stanna på arbetsplatsen.
74% av de som upplever att de har en låg nivå av förändringströtthet vill stanna på arbetsplatsen.
Change fatigue is about perceived value
When talking about change fatigue, it is easy to think that employees simply lack the energy for more initiatives. But according to Forrester, the problem is rather that changes are not perceived as meaningful. Your employees are not tired of change itself, they get tired of changes that do not provide perceived value.
Those who are tired of change are also more likely to want to leave the workplace. 43% of those who experience a high level of change fatigue want to stay in the workplace, compared to 74% of those who feel they have a low level of change fatigue.
Tip!
For Swedish organizations, this means that change management must be linked directly to clear improvements in everyday life. If employees see how a new process or a new system actually facilitates their work, engagement increases dramatically. What hurts in your organization?
How do you create understanding? GAP, efficiency analysis, and process mapping
Long before a change is implemented, it needs to be defined and concretized. This means clarifying what you want to achieve, what the new situation should look like and function like, and whether the goal is, for example, to save time or reduce costs.
GAP
When the purpose is clear, the next step is to answer what needs to be done to get there. This is called a GAP, where the difference between the current situation and the desired situation is identified and the necessary change efforts are defined, for example in the event of a system change.
Efficiency analysis
To get a clear picture of the development opportunities, an efficiency analysis can be a good first step. It helps to find time thieves and problems, and provides a basis for making the business more efficient. Start from the organization's goals and needs.
Process mapping
Then a process mapping of the current situation can show which steps can be automated or changed. What efforts are required depends on what the organization looks like, what level of maturity it has and what type of change is planned. Each transformation project is unique, but to estimate the need for efforts, the gap between the current situation and the desired situation must always be defined.
Answer important questions
In that work, it is important to ask questions such as: What does the organization look like today? Is there the will, competence and ability to change? What does a system change mean – do some tasks disappear, are new skills required or are completely new roles added? By answering these questions, it becomes possible to design the right change efforts that lead to the desired result.
The change curve: Understand the individual
When a major change is implemented, the entire organization will move through different phases, something that is often described using a change curve. It is important to understand that different individuals, depending on role and personality, may be in completely different phases at the same time. Managers are generally further ahead in the curve than other employees.
The change curve applies to each individual and each change effort, regardless of whether it is a matter of new ways of working or a major system change. When the majority of the organization has embraced the change, one can speak of a real transformation having taken place. At that stage, a new culture begins to take shape, and it needs time to establish itself and become a natural part of everyday life.
How should a manager create change?
To succeed, a vision, clear goals, analysis, mandate, budget, resources, time, competence, motivation and that all the stars are aligned just then are usually needed. But how should you act as a manager?
It is of course about managing and communicating correctly, but behind this hide more concrete proven tips such as acting as a role model, creating understanding and showing a willingness to contribute.
When employees see that technology, processes and routines support them, and that the change is in line with the company's goals, it becomes easier to develop the organization. To succeed, you also need to take in input from the employees, strengthen what already works and clarify the purpose of the change. Tell them why the change is needed, and why it is important to them.
Swedish companies need effective change management
It is not only individual organizations that are facing change, but the entire business community. Boston Consulting Group (BCG) shows that almost a quarter of Swedish companies (24%) are under high transformation pressure. The report emphasizes the importance of programmatic change: building a continuous change capability rather than driving point efforts.
The evidence for effective change management
Working in a structured way with change management is not just a soft issue, it has a clear impact on results. Organizations with strong change management are seven times more likely to achieve their goals than those that lack this focus.
This becomes particularly relevant when linking change management to digitization that the business sees as a need. A new business system, AI, an automation platform or a low-code tool can technically work excellently, but if users do not adopt the new way of working, the benefit will be absent.
Effective change management not only leads to higher goal fulfillment, but also to measurable effects in the business. Organizations that work in a structured way with change management report faster ROI because new systems and ways of working are put into use earlier.
It also contributes to higher engagement levels, for example measured through NMI or eNPS, as employees feel involved and understand the value of the change. Companies with strong change management reduce staff turnover, as employees are more likely to want to stay in an organization where changes are perceived as meaningful.
Continuous change as an ability
See change as a constant state. In an era where AI, automation and new business models are developing at a rapid pace, it is not sustainable to think of change as a series of limited projects. Instead, it is about building resilience and creating a culture where continuous development is the norm.
