The New Change 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 time-tested methods overboard for something we don't even know yet if it will be successful. We only change our proven methods when new approaches seem convincing and sensible. Otherwise, we stick with them.
The key to sustainable change
What do people need in order to embrace change? What should organizations keep in mind when they want—or even need—to change previously proven models of success? Our CPC 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 time-tested practices overboard for something we don't even know yet if it will be successful. We only change our patterns of success when new approaches are compelling and supported by a clear change story; otherwise, we protect them.
The key to sustainable change
New formula for change
"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 security—defined as the absence of fear. People under stress cannot learn (and cannot develop a growth mindset). This is because cortisol, the stress hormone, has been shown to inhibit the brain’s ability to learn.
The same applies to organizations: Stressed-out companies don’t learn. When the focus is constantly on survival, people cannot develop new behaviors. This contradicts the widespread management theory that all you have to do is put enough pressure on employees to get them to change.
That is why creating a sense of security is the central task of leaders. Only in an environment that offers a sense of security free from fear are people willing to change.
Many managers counter, “That doesn’t work. Without pressure, team performance drops.” But people have spent their entire lives learning to cope with pressure. When applied in the right measure, pressure can even be a positive incentive for change. However, things become critical when the pressure becomes so great that it triggers fear. At that moment, the brain switches to survival mode, releases cortisol, and thereby blocks all learning.
The tricky thing about fear is that it is entirely individual and does not follow any set rules. Leaders must therefore respond sensitively 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. Confidence 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 executives are seriously concerned about their jobs. This lack of security significantly hinders their ability to learn and adapt. At the same time, they are expected to guide their teams through the change process—a nearly impossible task. Therefore, psychological safety is the most important factor for success.
The executives of a corporate group are to adopt a new sales method , but the employees’ reactions vary. Some are enthusiastic, while the majority are resistant or cynical. Nevertheless, the executives remain persistent, motivating employees to try out the new approaches and encouraging them to make mistakes—which gives the employees a sense of security.
In a major change project, management uses war-like language such as “There will be sacrifices” and “We must win this battle,” and is surprised by people’s lack of interest. Only when they stop using fear-based language and instead convey a sense of security through their communication, build momentum, and motivate others do they win employees over to the change.
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.
The executives of a corporation are set to introduce a newsales method, but the employees are reacting in different ways. Some are enthusiastic, while the majority are skeptical or cynical. Nevertheless, the executives remain persistent, motivating employees to try out the new approaches and encouraging them to make mistakes—which gives the employees a sense of security.
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 and foremost, there are the board members and sponsors. They direct the organization's focus toward a specific topic.
Their active participation in the change process and their visible presence at information sessions send a clear message to employees: This issue is important. In this context, we refer to the “Guiding Coalition,” which actively drives the change forward and brings it into the spotlight. It is essential that board members and sponsors remain continuously involved, support the change process, and regularly articulate clear expectations.
Managers also play a key role in directing the necessary focus toward 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 facing a crisis and is planning a comprehensive change initiative to transform the organization through organizational design . However, the employees are overburdened. As a result, the company 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
Furthermore, the goals must offer clear benefits to both the individuals and the organization and be appealing. After all, change can only succeed if all employees are convinced: “This is worth it—I’m committed to this, even if it gets difficult.” Goals that focus solely on increasing efficiency or satisfying shareholders generally do not resonate with the workforce. Successful change management requires defining goals that are appealing and worthwhile for all stakeholders.
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 changes solely based on 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. Therefore, defining goals is the third pillar of the Change Formula.
"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 efforts of those involved in a celebratory town hall meeting. Such recognition strengthens commitment and motivates people to continue driving the transformation forward. It serves as the perfect conclusion to the four-step Change Formula.
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