{"id":17425,"date":"2024-06-17T13:11:58","date_gmt":"2024-06-17T13:11:58","guid":{"rendered":"https:\/\/www.walkme.com\/blog\/?p=17425"},"modified":"2024-06-17T13:11:58","modified_gmt":"2024-06-17T13:11:58","slug":"considering-impact-management-of-change","status":"publish","type":"post","link":"https:\/\/www.walkme.com\/blog\/considering-impact-management-of-change\/","title":{"rendered":"Understanding the Impact of Change Management"},"content":{"rendered":"\n<p>The impact of any kind of Organizational Development process can be complex, uncertain, and volatile.<\/p>\n\n\n\n<p>Inexperienced change managers may be surprised by this. They plan their change initiatives well and implement them the best they can, only to find a series of negative consequences they never thought of. They might find that the positive impacts of the change project don\u2019t weigh up against the downsides.<\/p>\n\n\n\n<p>However, experienced change management leaders know better. They understand that moving away from a status quo will always unsettle the entire organization. They know that successful organizational change depends on predicting every implication of their project. In short, they understand that they must undertake an impact analysis early in their planning process.<\/p>\n\n\n\n<p>In this article, we will talk you through the basics of impact in change projects. We\u2019ll give you a good definition of \u201cimpact\u201d and explain why it\u2019s so unpredictable. Finally, we\u2019ll share some top tips on how your project can make the best impact possible.<\/p>\n\n\n\n<p>If you\u2019re new to <a href=\"https:\/\/www.walkme.com\/glossary\/change-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">change management<\/a>, the impact is a topic you must start thinking about!\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Impact in Change Management?&nbsp;&nbsp;<\/strong><\/h2>\n\n\n\n<p>In a change project, the impact is the effect of the change: on the organization, its people, and its processes. Impact includes all the ways that the project will influence working practices. That could consist of workflow, the level of disruption, and the potential outcomes for the organization and its stakeholders.<\/p>\n\n\n\n<p>Of course, leaders of organizational change management try to make the impact purely positive. However, the effect of the change is highly unpredictable. Let\u2019s dig a little deeper into the reasons why.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How Impact is Different from Outcomes&nbsp;<\/strong><\/h3>\n\n\n\n<p>\u201cImpact\u201d overlaps with concepts like outcomes, KPIs, and change management metrics. However, the impact is much bigger than any of these factors.<\/p>\n\n\n\n<p>Leaders define KPIs at the start of a project. In general, they should be narrowly focused. They indicate the most important things you want to achieve from a project. By contrast, the impact is not just about the planned outcomes. It covers the whole experience of the change project \u2013 all the ripples that come from the planned change actions.<\/p>\n\n\n\n<p>Some of those effects will be positive. But some of them will be negative \u2013 and it may be very hard to see them coming.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why is Impact so Difficult to Predict?&nbsp;<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img height=\"474\" width=\"1024\" decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/Why-is-Impact-so-Difficult-to-Predict__03667035.jpg?w=1024&#038;h=474&#038;crop=1\" alt=\"Why is Impact so Difficult to Predict_\" class=\"wp-image-17428\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/Why-is-Impact-so-Difficult-to-Predict__03667035.jpg 1200w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/Why-is-Impact-so-Difficult-to-Predict__03667035.jpg?resize=300,139 300w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/Why-is-Impact-so-Difficult-to-Predict__03667035.jpg?resize=1024,474 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Business organizations are complex and interdependent systems. They are operated by staff whose personal identities are bound up with their work. These are just facts of life \u2013 but they make it difficult to predict the impact of one change project.<\/p>\n\n\n\n<p>Change has a deep effect on people in an organization. Employees often have a strong feeling of personal identity in their work \u2013 at whatever level of their business. Even small changes can create a major hit on employee morale. We can call this \u201cresistance to change.\u201d But the reality is we are dealing with very human emotions. And as we all know, feelings do not always behave rationally or logically.<\/p>\n\n\n\n<p>In terms of the organization itself, the system\u2019s complexity makes it harder to predict impact. For example, implementing a new ERP sounds easy \u2013 until you consider that every department tracks its processes using a completely different set of legacy systems. Alternatively, a cultural change is impossible when different staff groups have widely different values.<\/p>\n\n\n\n<p>Finally, the interdependence of business units makes it difficult to see how impact will work. A change in one small part of the business could have unexpected consequences in another part. If you don\u2019t understand these knock-on effects, they will come as a surprise further down the line.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why You Need to Understand the Impact of Change Management<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><img height=\"474\" width=\"1024\" decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/Why-You-Need-to-Understand-the-Impact-of-Change-Management_60667035.jpg?w=1024&#038;h=474&#038;crop=1\" alt=\"Why You Need to Understand the Impact of Change Management\" class=\"wp-image-17429\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/Why-You-Need-to-Understand-the-Impact-of-Change-Management_60667035.jpg 1200w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/Why-You-Need-to-Understand-the-Impact-of-Change-Management_60667035.jpg?resize=300,139 300w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/Why-You-Need-to-Understand-the-Impact-of-Change-Management_60667035.jpg?resize=1024,474 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>If you fail to adapt to the impacts of change, the outcomes of your initiatives can spell big losses. That might include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Delay in the change project (or even derailing it completely)<\/li>\n\n\n\n<li>Lost profits<\/li>\n\n\n\n<li>Low staff morale<\/li>\n\n\n\n<li>Higher turnover.<\/li>\n<\/ul>\n\n\n\n<p>However, if you plan for the impact of change, you can avoid these negative consequences.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How can Change Projects have such a Negative Impact?&nbsp;&nbsp;<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img height=\"604\" width=\"1024\" decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/How-can-Change-Projects-have-such-a-Negative-Impact__91667035.jpg?w=1024&#038;h=604&#038;crop=1\" alt=\"How can Change Projects have such a Negative Impact_\" class=\"wp-image-17430\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/How-can-Change-Projects-have-such-a-Negative-Impact__91667035.jpg 1200w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/How-can-Change-Projects-have-such-a-Negative-Impact__91667035.jpg?resize=300,177 300w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/How-can-Change-Projects-have-such-a-Negative-Impact__91667035.jpg?resize=1024,604 1024w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/How-can-Change-Projects-have-such-a-Negative-Impact__91667035.jpg?resize=245,145 245w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Let\u2019s take a moment to walk in the shoes of a rank-and-file staff member. Their employee is making some big changes. The leaders believe that those changes will go down well. So why would an individual staff member care?<\/p>\n\n\n\n<p>As we\u2019ve said, when dealing with employees, we cannot think rationally. Researchers have found that responses to change can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Shock<\/li>\n\n\n\n<li>denial<\/li>\n\n\n\n<li>powerlessness<\/li>\n\n\n\n<li>frustration<\/li>\n\n\n\n<li>loss of self-esteem<\/li>\n\n\n\n<li>alienation<\/li>\n\n\n\n<li>emptiness<\/li>\n\n\n\n<li>feelings of insecurity<\/li>\n<\/ul>\n\n\n\n<p>Does this sound extreme? Maybe. But just think of all the time employees spend at work. Then, think about how long they\u2019ve lived in the same routine. Whatever ups and downs they\u2019ve had in their private lives, their workplace has remained certain. And now \u2013 that\u2019s all going to change.<\/p>\n\n\n\n<p>In any situation, human responses are difficult to make plans for. But they are all potential impacts of your project.<\/p>\n\n\n\n<p>And quite aside from the human aspect of change management, every project might have implementation issues and unintended consequences that lead to completely unpredictable outcomes. Technical difficulties, unexpected costs, and problems with training can all send a change initiative spiraling into the abyss.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to Plan for the Impact of Change Projects&nbsp;<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img height=\"532\" width=\"1024\" decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/How-to-Plan-for-the-Impact-of-Change-Projects_81667035.jpg?w=1024&#038;h=532&#038;crop=1\" alt=\"How to Plan for the Impact of Change Projects\" class=\"wp-image-17427\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/How-to-Plan-for-the-Impact-of-Change-Projects_81667035.jpg 1200w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/How-to-Plan-for-the-Impact-of-Change-Projects_81667035.jpg?resize=300,156 300w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2024\/06\/How-to-Plan-for-the-Impact-of-Change-Projects_81667035.jpg?resize=1024,532 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>So, some negative consequences will almost certainly come from your change project. What can you do to mitigate them?<\/p>\n\n\n\n<p>If you\u2019re reading this article, you\u2019ve already made a good start. At the very least, you can ensure you are NOT among the 37% of executives who, <a href=\"https:\/\/assets.kpmg.com\/content\/dam\/kpmg\/pdf\/2016\/05\/global-transformation-study-2016.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">according to KPMG<\/a>, underestimate the significance of change to their operating models.\u00a0<\/p>\n\n\n\n<p>In this section, we\u2019ll discuss a few ways to plan effectively for the best project outcomes. It\u2019s essential to evaluate the full system you\u2019re dealing with. You should anticipate that people will deal badly with the change \u2013 and you should plan your rollout with time to adjust.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Evaluate the Full System<\/strong><\/h3>\n\n\n\n<p>As far as possible, you must do an impact analysis considering every part of the organization. This is much easier said than done.<\/p>\n\n\n\n<p>Fortunately, one of several models can help you achieve this.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.prosci.com\/resources\/articles\/defining-change-impact\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">ProSci\u2019s model<\/a> identifies ten areas that the change can impact. These are processes, systems, tools, job roles, critical behaviors, attitudes\/beliefs, reporting structure, performance reviews, location, and compensation. This wide-ranging checklist will make it much easier to predict problem areas.<\/li>\n\n\n\n<li>A simpler model is Leavitt\u2019s Diamond. In this framework, leaders consider how a change in one business unit can impact people, tasks, structure, and technology.<\/li>\n\n\n\n<li>Alternatively, there are several models for change management that will help to plan for unpredictable events. Guiding your change management project with ProSci\u2019s ADKAR, the McKinsey 7Ss, or Kotter\u2019s 8-step model will help you consider the impact in many different areas of your company.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Plan for suspicion, hope for trust<\/strong><\/h3>\n\n\n\n<p>A <a href=\"https:\/\/www.gartner.com\/smarterwithgartner\/how-to-reduce-the-risk-of-employee-change-fatigue\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">2020 report from Gartner<\/a> showed that \u201cEmployees who report high trust have an average capacity for change that is 2.6 times greater than those with low trust.\u201d The implication is simple. To improve all aspects of your employee\u2019s experience of change, trust is one of your most valuable assets.<\/p>\n\n\n\n<p>Some of the strategies should be obvious to experience leaders. Transparency, clear communication, and involvement of staff will go a long way.<\/p>\n\n\n\n<p>But just remember that the psychological impact of change can run extremely deep. As such, your managers show empathy towards all employees. They must be ready to be understanding and sympathetic, even if they will not compromise.<\/p>\n\n\n\n<p>Building trust will come naturally to some leaders. To others, it will be a major challenge. Make sure your whole leadership hierarchy is fully prepared for this challenge.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Phasing and chunking<\/strong><\/h3>\n\n\n\n<p>In a major change project, you don\u2019t need to implement every change simultaneously. That\u2019s why a phased change program can be a critical strategy for mitigating negative impacts.<\/p>\n\n\n\n<p>From the perspective of organizational change, the incremental approach has several benefits. Minor changes only cause small disruptions \u2013 the unpredictable impacts can be handled one at a time before moving on to the next stage. Each phase can teach valuable lessons about the impact of the change process.<\/p>\n\n\n\n<p>As a result, smaller efforts are easier to achieve and provide a fruitful learning curve.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Make difficult Decisions As Soon as Possible&nbsp;<\/strong><\/h3>\n\n\n\n<p>Let\u2019s face it: not everyone will make the cut in some change projects.<\/p>\n\n\n\n<p>You might be looking to cut a big chunk of staff. Or perhaps your leadership team will need some new faces.<\/p>\n\n\n\n<p>Don\u2019t waste time. Bring the decision-making process forward \u2013 and get the tough choices sorted. That will make it easier to address changes with the remaining staff.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Do You Understand The Impact of Change Management?&nbsp;<\/strong><\/h2>\n\n\n\n<p>In this article, we\u2019ve had a crash course on the impact of change.&nbsp;<\/p>\n\n\n\n<p>We saw that \u201cimpact\u201d is not just the metrics and KPIs of a change process. Impact includes all the difficult things you don\u2019t expect: from people, processes, and implementation. The unpredicted impact can spoil an excellent project \u2013 so it\u2019s worth spending time and effort to improve your expectations. Fortunately, there are several proven ways you can make plans for impact.\u00a0Depending on the nature of your change project, you may find that other tools provide invaluable support to your work. For example, in a <a href=\"https:\/\/www.walkme.com\/glossary\/digital-transformation\/\" target=\"_blank\" rel=\"noreferrer noopener\">digital transformation <\/a>project, you need to gather a lot of information about how users engage with new technology. In this case, a digital adoption platform can provide insights at every step of the journey.<\/p>\n","protected":false},"excerpt":{"rendered":"The impact of any kind of Organizational Development process can be complex, uncertain, and volatile. Inexperienced change managers may be<span class=\"moretag\">&#8230;<\/span>","protected":false},"author":246,"featured_media":17426,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"mobile_image_id":0,"tablet_image_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[359],"tags":[],"class_list":["post-17425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-change-management"],"acf":{"__coauthors":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Understanding the Impact of Change Management<\/title>\n<meta name=\"description\" content=\"Change projects can have unpredictable impacts on your organization. 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