The new formula for successful change projects
People and organizations are reluctant to change—even if they often claim otherwise. They usually react to change with resistance. The good news is that resistance is valuable. It helps us to carefully consider whether a change really makes sense. Brain research also confirms that resistance protects proven patterns of success. Only when a change is convincing are we willing to adapt these patterns. And that's a good thing – because they have ensured our survival for thousands of years.
Organizations protect their success—with good reason
Structures, systems, strategies, and values that have made companies strong deserve great respect. Change can only succeed if very specific conditions are met simultaneously.
People protect patterns of success—with resistance
We don't simply throw tried-and-tested methods overboard for something we don't yet know will be successful. Only when new approaches appear convincing and sensible do we change our patterns of success; otherwise, we protect them.
The key to sustainable change
What do people need in order to embrace change? What needs to be considered when organizations want to or even have to change previously proven patterns of success? Our Change Formula provides the answer.
Organizations protect their success—with good reason
Structures, systems, strategies, and values that have made companies strong deserve great respect. Change can only succeed if very specific conditions are met simultaneously.
People protect patterns of success—with resistance
We don't simply throw tried-and-tested methods overboard for something we don't yet know will be successful. Only when new approaches appear convincing and sensible do we change our patterns of success; otherwise, we protect them.
The key to sustainable change
What do people need in order to embrace change? What needs to be considered when organizations want to or even have to change previously proven patterns of success? Our Change Formula provides the answer.
New formula for change
Our "New Formula for Change" answers this question. Only when the four variables "security," "focus," "goals," and "success" are sufficiently present can resistance be overcome. Then even challenging changes can be successful.
"Our new formula for change shows what organizations need to consider if they want to overcome resistance."
Anne Babilon-Teubenbacher, Partner at CPC
Success factor 1: Confidence in change
S stands for safety – as in the absence of fear. People under stress cannot learn, because the stress hormone cortisol has been proven to inhibit the brain's ability to learn.
This also applies to organizations: Stressed-out companies do not learn. When constant survival is the main focus, people cannot develop new behaviors. This contradicts the widespread management theory that you just have to put enough pressure on employees to make them change.
That is why creating security is the central task of managers. Only in an environment that offers fear-free security are people willing to change.
Many managers respond: "That doesn't work. Without pressure, team performance declines." But people have learned to deal with pressure throughout their lives. In the right doses, pressure can even be a positive incentive for change. It becomes critical when the pressure becomes so great that fear arises. At that moment, the brain switches into survival mode, releases cortisol, and blocks all learning.
The tricky thing about fear is that it is entirely individual and does not follow any fixed rules. Managers must be sensitive to the individual situation of each team member .
Only in this way can they effectively guide the entire team and ultimately the entire organization through the change. Security is therefore an indispensable prerequisite for effective change management.
Typical examples and practical experiences:
In a major reorganization project at a DAX 40 company, many managers are seriously concerned about their jobs. The lack of security significantly inhibits their ability to learn and change. At the same time, they are expected to guide their teams through the change process—an almost impossible task.
In a major change project, management uses bellicose language such as "There will be casualties" and "We must win this battle" and is surprised at people's lack of interest. Only when they abandon the language of fear and communicate confidence, build excitement, and motivate do they win over their employees.
A DAX-listed company involves numerous employees in the change process with the help of what it calls an "organizational workshop." In this one-day practical workshop, they test new processes and roles using typical business transactions. This allows them to identify the advantages and openly discuss the disadvantages, which creates a sense of security for everyone involved.
In a major reorganization project at a DAX 40 company, many managers are seriously concerned about their jobs. The lack of security significantly inhibits their ability to learn and change. At the same time, they are expected to guide their teams through the change process—an almost impossible task.
In a major change project, management uses bellicose language such as "There will be casualties" and "We must win this battle" and is surprised at people's lack of interest. Only when they abandon the language of fear and communicate confidence, build excitement, and motivate do they win over their employees.
A DAX-listed company involves numerous employees in the change process with the help of what it calls an "organizational workshop." In this one-day practical workshop, they test new processes and roles using typical business transactions. This allows them to identify the advantages and openly discuss the disadvantages, which creates a sense of security for everyone involved.
Success factor 2: Focus on the change project
Change management cannot be carried out casually and superficially on the side. Successful change requires consistent focus.
For example, if organizations want to transform the way they work together but don't set a clear focus on it, everything will remain the same. The probability of change under these conditions tends toward zero. So what is needed? Companies need to focus as much as possible on change. But who gives a company this focus?
First, it is the board members and sponsors who direct the organization's focus toward a specific topic.
Their active participation in the change process and their visible presence at information events send a clear signal to employees: this is an important issue. In this context, we refer to the "guiding coalition," which actively drives change and brings it to the center of attention. It is essential that board members and sponsors remain continuously involved, accompany the progress of the change process, and regularly formulate clear expectations.
Managers also play a central role when it comes to directing the necessary focus on change .
Only when they themselves clearly recognize the priority of change and lead by example will their teams understand the importance of the issue and act accordingly.
A serious obstacle to successful change processes is that the focus at board level and among managers is lost over time.
Organizations often fall into the trap of easing up too soon and tackling too many issues at once. How likely is it that a change will be successfully implemented to the end if the focus is lost? The risk of failure is considerable. Therefore, a key task of change management is to consistently maintain focus and attention until the project is completed.
Putting together change teams correctly
An important signal from the Executive Board that the focus is on the change project lies in the careful selection of the change team. Successful change requires a strong team of sponsors, managers, and specialists who not only support the change but also actively drive it forward. The composition of this team sends a clear signal to the entire workforce about how seriously the company is pursuing change – and thus determines the success of the change process.
This applies in particular to the selection of project management and change multipliers. Ideally, sponsors should fill the role of project management with a genuine champion, as planning the overall project is crucial to the success of the change. When recruiting change multipliers, the criterion of "who has capacity right now?" should not be the deciding factor. Rather, a committed, high-caliber team of multipliers assembled at an early stage sends the message: "This change has the highest priority."
Typical examples and practical experiences:
A leading German insurance company is planning the most comprehensive transformation in its long history. The change project is being initiated at a time when the company is thriving and its employees have the necessary energy. This creates ideal conditions for successfully driving change forward.
A mechanical engineering company is in crisis and is planning a comprehensive change initiative to stabilize the organization. However, the employees are overworked. The company therefore decides to outsource not only change management, but also project management and training management to CPC.
A leading German insurance company is planning the most comprehensive transformation in its long history. The change project is being initiated at a time when the company is thriving and its employees have the necessary energy. This creates ideal conditions for successfully driving change forward.
A mechanical engineering company is in crisis and is planning a comprehensive change initiative to stabilize the organization. However, the employees are overworked. The company therefore decides to outsource not only change management, but also project management and training management to CPC.
"When board members and executives focus on the change project from start to finish, change is successful."
Michael Babilon-Teubenbacher, Partner at CPC
Success factor 3: Goals of the transformation
Goals are important for measuring progress compared to the initial situation and determining what still needs to be achieved. Employees need clear, tangible goals that show them how far they have come and how many steps still lie ahead. However, if goals are unclear or unrealistic, failure is likely. This is because employees need clear feedback that their efforts are bringing measurable success and are worthwhile.
In addition, the goals must offer clear benefits to both people and the organization and be attractive. After all, change only has a chance of success if all employees are convinced that "it's worth it – I'm committed to it, even if it gets difficult." Goals that focus solely on increasing efficiency or satisfying shareholders do not usually appeal to the workforce. Successful change management requires the definition of goals that are appealing and worthwhile for all stakeholders.
In addition, goals should be formulated in clear and understandable language that appeals to all those involved—not in pure management jargon. Only in this way can employees identify with the change and find concrete points of reference.
Linking transformation goals to corporate values
People are guided by values, and corporate values are attractive to many employees—otherwise, they would have chosen a different company. It therefore makes sense to closely link the transformation goals to the values of the organization. This creates greater acceptance, even in the case of unpleasant changes. For this demanding task, companies need the support of experienced change specialists who have a firm grasp of this transfer work and the methodological tools.
Last but not least, transformation goals should directly benefit the business. It makes no sense to initiate change solely on the basis of current trends. Every change must offer the company clearly measurable added value. Change projects that are not clearly linked to business success will not be sustainable within the organization—and will therefore fail.
"At CPC, we believe in goals that directly contribute to the business."
Gunnar Schultze, Partner at CPC
Success factor 4: Highlighting change successes
What behaviors do employees retain? Those that make them successful. But the problem is that most people take a long time to internalize new behaviors as patterns for success. Until then, they are guided by whether something feels good—and that is precisely where a great opportunity, but also a danger, lies in change management. Change often feels uncomfortable, which creates resistance. In contrast, many people find it easier to simply carry on as before.
Using managers as motivators
Managers play a key role in making changes feel positive for employees by highlighting the successes of the new behaviors.
Using managers as motivators
Their task is to highlight the positive progress that has been made: "Look, it was a small step, but we achieved it together." In this way, employees gradually develop an awareness that the change is successful.
Involve managers in the change process
Changes are often too abstract, and their impact on culture and everyday life remains unclear. Clear information helps managers to fulfill their role as stakeholders and role models in times of change.
Involve managers in the change process
For this to succeed, managers must be actively involved in the change process and supported with targeted communication measures and materials. This will enable them to guide their teams safely through the change process.
Making success visible with key figures
Key figures are also valuable for making successes visible. Every bit of progress, no matter how small, must be recognizable to employees so that they can store the change as a pattern of success.
Making success visible with key figures
Successful change management requires working with program management and the board to plan the change in such a way that regular successes are visible. The chance that people will persevere with a change over two or more years without seeing any interim successes is minimal. The change process should therefore be divided into stages to enable continuous visible and measurable progress.
Discussing team successes
Teaming is also crucial for the perception of success. Within a team, both positive and negative developments can be discussed and successes identified.
Discussing team successes
Since team members experience setbacks at different points in the change curve, it helps if they remind each other of their successes so far and support one another.
Honor and celebrate change
Last but not least, celebrating successes boosts motivation. Even small steps forward deserve recognition—for example, through awards or intranet posts.
Honor and celebrate change
Regular success stories confirm to employees that the change is working. At the end of an important phase and the entire change process, the Executive Board recognizes the commitment of those involved in a festive town hall meeting. Such recognition strengthens commitment and motivates people to continue driving the transformation forward.
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