What needs to change in change management as a result of the pandemic?

To keep up with the market changes accelerated by the pandemic, many organisations are re-evaluating their business models in order to differentiate and deliver value. Disruptors have constantly shifted the competitive landscape, but arguably never before at such a pace or to such an extreme. Digital transformation has now fully landed, dictating the way we live and work. Meanwhile companies are increasing their spend on emerging technologies such as cloud, to drive speed and adaptability. It’s not only large corporations that are focusing more investments on technology to survive the disruption: an ASEAN survey found that technology was the top investment priority in 2020 for over three in five small businesses, while nearly half expected to increase their technology spend despite lower revenue. Navigating these new ways of operating requires realignment across the whole company ecosystem: from stakeholder relationships to leadership, skills and culture. 

The people strategy must underpin any organisational transformation; shaping how the human capital is deployed and supported to deliver business outcomes. The implementation of new platforms to enable hybrid working, for example, needs to be accompanied by a revamp of company policies and processes to define aspects such as work hours and rewards. So, what does this mean for change management: should the process be different when it’s crisis-driven? While the fundamental elements of successfully leading business transformation may be the same, in the current context different priorities have become amplified. The primary challenge organisations now face around implementing change is doing so virtually. Maintaining the culture and employee motivation essential for sustainable change requires creative solutions when the workforce is physically dispersed. 

A ‘theory of change’ process is still a good place to start: clarifying objectives, stakeholder goals, and how the human, technology and strategy elements will interact to deliver outcomes. Digitisation is enabling new sophisticated ways of using data to inform decisions and build transparency. Whereas previously the use of data analytics focused on improved efficiency and ‘post-hoc decision-making’, huge quantities of data can now be drawn from multiple sources to generate top-line value for multiple stakeholders. For example, insights from analytics can enhance companies’ understanding of how to optimise processes, supply chain management, and go-to-market strategies. Other new technologies are providing solutions in areas such as recruitment – to review job applications at scale in high levels of detail, while providing greater visibility and reducing unconscious bias. 

Technological advancements are also creating more opportunities for employee empowerment. A fundamental element of leading organisational change is implementing the strategy on the ground, and tackling challenges and opportunities as they arise through bottom-up decision-making. Earlier this year at IBM, a self-organised group of employees collaborated with leaders to facilitate a smooth transition to remote working, by delivering a company-wide pledge. Internal social media and collaboration platforms can be used to help build understanding of the reasons for change, maintain dialogue around the change efforts, and address any resistance. However, if not managed properly, social media comes with risks of creating an echo chamber effect, fuelling grievances and eroding trust. 

Well-being has been drawn into sharp focus as a result of COVID-19, and organisations are increasingly aware of the need to prioritise a healthy workforce to enable performance in the long-term (as well as the moral obligation). A survey by EngageRocket revealed that less than half of employees in Singapore (45%) felt their stress levels were acceptable in 2020. It also highlighted that fostering employee engagement can enhance mental health, confidence in the company’s future, and commitment to working towards the company’s recovery. Meanwhile, companies that were rated highly by employees on their communication practices saw an increase in both employee confidence and loyalty.

Employee listening is imperative not only for fostering well-being, but to create alignment and buy-in for the change vision. People will only share their thoughts and ideas openly if they believe it is safe to do so without risking their reputation, progression opportunities, or relationships with colleagues. Leaders can encourage an environment of psychological safety by sharing their own challenges and demonstrating vulnerability. In the Philippines’ Best Workplaces 2020, staff feel empowered to speak up because management is approachable and genuinely seeks and responds to their input. At Canva Manila, all employees are able to have a virtual chat with the founders, while open information-sharing is prioritised through regular sessions including ‘Alternate Fridays Stand-ups’ and ‘Coffee & Connect’. 

Today’s new ways of working have created an opportunity to renegotiate the employment contract and engage people in a new, meaningful way. The power of technology can be leveraged to focus business change efforts around employee voice and well-being, which in turn will drive sustainable success.