Every organization handles change differently – there’s no one-size-fits-all approach. There are many steps involved, and if some of them are not handled correctly, the entire initiative can be undermined. Here are four such steps that are critical to change management.

1. Identify the Need for Change

Before starting the change management process, it is important to figure out what exactly needs to change. Doing this requires a thorough analysis of the organization’s current position and where it needs to be. This will reveal opportunities, allowing you to see if they’ll substantially impact the organization’s goals.

Once you determine that the change needs to happen, then it’s time to start planning the process. At this point, it would be prudent to take a data-driven and structured approach to achieving an effective change management process. One way to accomplish this is to set SMART goals. 

2. Prepare Everyone in the Organization for Change

All teams across the organization need to brace for change. Change brings an operational and cultural shift, and this can be met with heavy resistance if people aren’t prepared for it. A big part of this is ensuring that all employees understand why the change must happen.

Over time, people become accustomed to the status quo: the way things have always been done. Communicating the need for change to them and listening to their feedback will lead to greater buy-in. Everyone needs to feel like their part of the change management process. That way, they will be motivated to contribute rather than resist it.

3. Implement the Change

Change management won’t happen if it is not implemented. After the planning and preparation for the initiative, the real work begins. While it is just a matter of carrying out the steps outlined in the plan, splitting the steps into manageable chunks is much better. Doing this smoothens the transition, allowing employees to adapt to the change gradually. That way, the organization and its employees don’t bite off more than they can chew.

During implementation, it’s upper management’s job to keep morale at an all-time high. Even the best plans can run into roadblocks, and contingencies must be set in place to mitigate their impact on the project’s momentum (this should be handled in the planning stages). Transparency and communication should also be maintained so that everyone doesn’t lose sight of the goal at hand.

4. Sustain the Results

Even if the initial implementation was successful, many change managers don’t realize that the work has only begun. If the conscious effort is not made to standardize the procedures taken to achieve the results, the prior status quo can return. It takes time for change to become established, and standardization cements the change in the organization’s culture, making it hard for people to go back to the way things were.

Conclusion

Being asked to handle change management within an organization is no easy task. But by making sure that these four critical steps aren’t missed can lead to a greater chance of success. The project’s success can lay down the foundation that will ensure that future change management goes smoothly.

For more information on our Lean Six Sigma training classes and services, please visit 6sigma.com. 

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Making organization-wide change is not an easy feat. It is an involving process that requires many individual components within the organization to band together and function as a cohesive unit. That is why change management is often implemented to ensure that organization-wide cooperation is structured. Doing it this way minimizes the chance of failure.

The Biggest Reason Why Change Fails

Change is often disruptive. This means that if leadership does not have a way of handling people’s reactions, change will fail. After all, humans are the biggest reason why change efforts at organizational change fail.

A good way to avoid this is if communication and transparency are prioritized, ensuring that individuals and teams are aware of what is expected of them and how to achieve it. They should also be able to see the results of the change as it is being implemented bit by bit.

How to Implement Change Management

Change management has been proven to be a game-changer for organizations. However, it needs to be implemented the right way. Here is a brief overview of the steps organizations can take to successfully implement change management:

• Define change clearly and concisely
• Determine how the change will impact individuals and teams within the organization
• Develop a strategy for communicating the change
• Teach the necessary skills and knowledge required to implement the change
• Establish a support structure
• Monitor the change process

Importance of Change Management

When an organization recognizes the need to change, it means it wants to be more responsive to its external environment. If change management is implemented successfully, organizations can experience several benefits. With change management, organizations can:

• Increase their chances of implementing successful change
• Allocate the necessary resources required to implement the change
• Reduce the time and money required when implementing change
• Align the change with business strategy and values
• Help and support employees to ensure that they adapt to the change
• Increase morale and productivity
• Minimize any anxiety and stress employees may be experiencing because of the change
• Minimize any disruptions and risks the change might cause to business operations
• Become adept at handling the amount and frequency of change happening within
• Offset the negative impact of poorly managed change in the past
• Handle challenges in an efficient manner
• Implement changes that can make them successful and competitive
• Improve the way employees corporate and collaborate

Conclusion

Any organization that is serious about implementing change should consider change management. Many organizations have tried to handle change without it, only to waste resources and make employees adverse to change. With change management, all this can be avoided and change can be implemented that will put the organization in a stronger position than it was before.

Contact us if you have additional questions.

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Since change is inevitable and we have established that everything changes or must change in order to stay current, we have come up with the most important Six Sigma tools to drive change for the better.

Cause and Effect Diagram: An important reason to drive change is to fix a problem, so this tool will help in brainstorming various causes of problems or issues you might be having. This diagram is some times called the Fishbone diagram because it does resemble a fish skeleton. With this tool, state the problem or issue you want to fix in detail and write down possible causes of why, when and how often it happens. This Cause and Effect diagram can be used in conjunction with brainstorming for prioritizing best possible solutions.

5 Whys: A great tool for fixing a recurring problem or issue. This creative tool combines simplicity along with the innate genius we are given. We simply ask a question about a specific issue that keeps recurring. Ask ‘why’ until a satisfactory reason is achieved. 

Value Stream Process Map: This map gives you a visual of the entire process that is involved in creating your product or service. This is great way to find a glitch or waste in the entire process. The VSM must include the process map, the timeline, and the process flow. 

Plato Chart: A great tool for seeing which part of the business process influences the most output. The Plato chart is a vertical bar graph and very easy to use.

For more information on our Six Sigma training courses and services, please visit 6sigma.com. 

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Using Lean principles, Six Sigma can also help eliminate waste (Muda) in all its forms. When we talk about Six Sigma and waste, it is usually intangible waste, such as over-processing or time-related waste. But environmental waste also tolls heavily on efficiency and profits. Waste results from a high carbon footprint, producing a negative effect on the environment. By reducing yours, you can ensure your business stays efficient, profitable, and green. Today, learn how you can safeguard the environment by calculating your carbon footprint.

The Dangers of High Carbon Emissions

It’s essential that your business is aware of its carbon footprint. Your environmental impact can not only be detrimental to the planet, but to your company’s success. Energy experts concur that excessive carbon emissions indicate inefficiencies in a business’s operations. Therefore, by reducing your carbon emissions, you can increase savings. Studies show that carbon- and water-saving projects are directly related to a strong bottom line. The average household can save more than $2000 per year through reducing emissions by only 20%. Think how much a large business, with many more incomings and outgoings, could save by taking control of their carbon footprint. By reducing waste, you can increase savings and drive profits. Using eco-friendly vehicles, light bulbs, and resources all help. You could also invest in solar power and wind turbines, as well as encourage sustainable / green practices in your employees.

Six Sigma is incredibly useful here as it enables you to make lasting changes to your operations through intensive project work. Create a project team, including Yellow, Green, and Black Belts, targeted at reducing waste and inefficiencies. Techniques like DMAIC and root cause analysis will shed light on issues of waste and why they arise. For example, none-value-adding processes may be contributing to a buildup of waste, sapping cash, and reducing efficiency. If you don’t know what to look for, you may not even notice these issues, which will then go unchecked.

How to Calculate Your Carbon Footprint

Calculating your carbon footprint will give you a better idea of how your business operations affect the planet. It will also show you which of these actions are most damaging, many of which have a negative effect on your success. Our method for calculating carbon emissions focuses on the consumption of several key resources. These include electricity, natural gas, fuel oil, and water, as well as the level of waste produced. For electricity, the calculation is as follows:

(kWh/yr) x EF (kg CO₂e/kWh) = your emissions for the entire year (kg CO₂e/yr).

If you wish to calculate your footprint for other resources, such as natural gas or water, simply alter the above figures appropriately. Kilowatts per hour would become therms per year for natural gas, and liters per day for water. Similarly, you would need to multiply your water figure by 365 before multiplying again by your EF.

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Evolving to meet new demands is important to Six Sigma too. Corporations and enterprises all over the world use Six Sigma methodology to effect change and improve their processes. We dedicate ourselves to delivering the best Six Sigma advice available, and to unifying the disparate bodies of Six Sigma knowledge. Six Sigma can help your company change too. In this article, we examine the question: How do companies keep up with evolving requirements?

Why is Change Necessary?

When thinking about changing anything, it’s necessary to analyze the need itself. There are many factors that influence change, such as the core reasoning behind it. What is prompting the change? Similarly, what are the effects of the proposed changes? Also, how will they be implemented in your specific business environment? These three ideas are the bedrocks of understanding why the need for change arises. The need will differ for each organization, but some of the driving factors behind change include increased profits, corporate expansion and competition, new technologies, and process improvement.

New Technologies

New and more innovative technologies are produced every day. You’ll get left behind if you can’t keep up. When you install a new computer system, ensure your employee training covers how to operate it. Similarly, any new manufacturing equipment is as good as useless if your employees don’t know how to use it. On the other hand, your business has much to benefit from changing technologies, including greater efficiency, better customer service, and minimal customer resistance. Six Sigma and Kaizen are all about continuous improvement, and incorporating new technologies into your company is a great way to achieve such a culture. Technology can be a great advantage to your company, which is why embracing any changes to the market will set you up for success.

Process Improvement

Anyone who knows anything about Six Sigma will know something about process improvement. One of the primary driving factors behind changes to your organization, process improvement can be undertaken for a plethora of reasons. You might be falling behind in the market or suffering from defective products. As such, you might wish to implement new production processes altogether with Six Sigma. Doing so will help to increase efficiency and eliminate none-value-adding process stages. Similarly, process improvement can help identify where waste has accumulated so that you can expunge it.

Corporate Expansion and Competition

Eventually, every organization has to grow to meet evolving requirements from its customers and the market. But expansion is also a tactical change with which to outdo your opponents, so you can take control of the market. As your business increases in size, your operations will have to adapt if you want to succeed. Your interests might also change, branching out into completely disparate areas to gain a foothold in different markets. Moreover, your marketing strategy and company images are essential to your success. If you want to drum up business, your company needs to compete not just with the cost of services but on an aesthetic level too.

Just look at the world’s most famous company McDonald’s. Originally a small, single-restaurant business, they weren’t likely to succeed that way. But ever since they started franchising back in the 50s, their interests and image have expanded, along with their profits, and McDonald’s has taken over the world. A little-known fact: while they’re known for their restaurants, McDonald’s is additionally one of the largest real estate companies in the world.

However, casting your net too wide will also leave your deliverables spread too thin. Focusing on your core competencies, that is your most successful products and services, will see you don’t lose direction. Every company wants to grow so they can reap the benefits that come with expansion. But straying from the heart of what you do will bring you problems rather than gains.

How to Deal with and Manage Change

Talking about change is one thing, but putting ideas into action is another. We’ve already spoken about the reasons for proposed changes, but now let’s look at the effects of and environment for change in greater detail. Understanding organization and process are important if you’re going to keep up with changing demands and evolving requirements. As we know, businesses are constantly overhauling every aspect of their organization. Employee attitudes should be cultivated to view the changes as positive ones. That way, you will minimize employee resistance as you move further along.

Equally, management might propose changes that appear unrelated to the company’s overall aims. This can be confusing for employees, which leads to sluggish production, if not complete paralysis. As such, you should cultivate a positive, compliant work ethic that educates your employees about the benefits of any proposed changes. That way, there’ll be no doubts about the organization’s strategic vision.

Processes

Similarly, your processes also factor into maintaining and driving change. What are your current process stages? How will any changes affect your processes? Remember, your leadership’s decision-making, business strategies and responsiveness all affect the success of change implementation. We recommend looking closely at the proposed change to see if it is consistent with your priorities. Does your management have those priorities in mind? Six Sigma and Lean are powerful agents with which to change your processes for the better. They are far more effective than typical development processes. Instead of being designed for repeatability and standardized flow, change, of course, goes against these ideas. If you want to make strides in your company, if you want to maximize your chances of success, adaptability is important. But responsiveness and openness to change are imperative.

Environment and Resources

Are your company environment and culture compliable? Open and closed environments will affect change differently. Open environments tend to have higher turnovers for employees while striving for continual improvement and knowledge acquisition. Close environments will be more stable with decreased competition, but slower to embrace change. Management styles can have equally great effects on change, as hands-on leadership succeeds in implementing change more often than more passive management. Equally, the team approach to change, as in Six Sigma and Lean, is highly effective. Management, again, is essential to overseeing team-based change implementation as the results will be less than groundbreaking if only a few of you are pulling your weight.

As for resources, it’s important to have more than enough at your disposal. Running a good business demands preparation for any eventuality. If you aren’t ready to act on opportunities or to keep yourself afloat when things get hard, you’re likely to fail. Scalable resources ensure you can keep up with customer demand when things get busy. They can also help keep costs down when demand is low.

Contact us if you have additional questions.

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