Strategic change management is an important step on the way to a successful digital transformation. In addition to the technological set-up, the right mindset and the commitment of employees are decisive success factors.
You can find out more about the steps in which strategic change can take place in this article.
Change management that takes place in connection with technology and software change is often referred to as agile. But what exactly does that mean?
Agile change management vs. classic change management
There are many different methods of approaching change management - from ADKAR and Lewin to Kotter's eight-stage model, parts of which can also be used in the agile implementation of strategic change. Spoiler: We will come back to the Kotter model later. These methods have proven themselves over many years and can be a helpful compass for organisations to achieve their change goals, either in their entirety or in individual elements.
So why should you move away from tried and tested practices and opt for agile change? Especially when the planned change also involves technological change, we recommend an agile approach to change management. Compared to traditional change management methods, which tend to focus on large, long-term plans, the agile approach is more about proceeding flexibly and step by step. Agile change management focuses more on small improvements on the way to the overarching goal - in the best case scenario, these are initiated and implemented by the stakeholders involved themselves. The basis for this is iterative steps and the active involvement of employees.
It can therefore be said that agile change management works according to the Scrum framework, which is based on agile principles and is primarily used in software development and also offers a more dynamic alternative to traditional, rigid transformation processes in strategic change.
Scrum is an agile framework for the iterative and goal-orientated development of products, originally designed for software development. The Scrum principle is based on transparency, feedback and customisation in order to promote continuous improvement and effectiveness.
Main features:
Sprints: Work cycles of two to four weeks in which functional sub-products (called increments in this context) are created.
Roles: Clear allocation of roles.
Artefacts: Use of systems such as the product backlog, sprint backlog and the increment created.
Regular meetings: In Scrum, meetings are deliberately called "events" because they are collaborative sessions - these include Daily Scrum, Sprint Planning, Sprint Review and the Retrospective.
Self-organisation and flexibility: Scrum promotes self-organisation within the team and enables adaptation to changing requirements during the development process.
Agile change management - cherry-picking common project methods
Agile change management actively involves all people and stakeholders affected by the change in the process. In order to ensure transparency, commitment and awareness of the common goals, sufficient space for communication is essential. In this context, communication spaces can be both virtual and physical meeting places where ideas can be exchanged, problems discussed and solutions developed together. The result: faster and higher quality partial results and strong team cohesion.
In addition to "soft" factors such as the creation of communication spaces, agile change management also utilises proven principles such as classic change management, for example Kotter's eight-stage model of change:
The eight-stage model of change according to Kotter
Dr John P. Kotter: Harvard professor and change expert
Objective: A structured guide for the successful implementation of organisational change.
The eight stages at a glance:
1. Create urgency:
Raising awareness of the need for change
Clear communication of the risks of the status quo
2. Build a leadership coalition:
Forming a strong team of change drivers
Integration of managers from different areas
3. Develop a vision and strategy:
Clearly formulated vision for the future
Develop a comprehensive strategy to implement the change
4. Communicate the vision:
Broad communication of the vision to all stakeholders
Convincing presentation of the goal and the benefits of the change
5. Identify obstacles:
Identifying and overcoming barriers and resistance
Creating a supportive environment for change
6. Short-term successes:
Planning and realisation of quick, visible successes
Strengthening the trust and motivation of those involved
7. Use learnings for improvements:
Interim successes as a motivating factor for further changes
Consolidation of successes and obstacles for adapting the strategy
8. Anchoring changes:
Consolidating the new practices and culture
Integrating the changes into the company's DNA
We can see this here: Kotter's classic model also provides for feedback cycles to improve the result - but only at the end of the change process. Agile change management combines classic and strategic planning with methods familiar from the lean start-up world. The big advantage: changes can be managed collaboratively and based on feedback at a very early stage of the project.
What does lean start-up mean?
The lean start-up method is originally an approach to product development and aims to identify and minimise uncertainties or problems at an early stage. This method works according to the "build-measure-learn" principle. In other words, instead of investing a long time and many resources in the development of a complete product, a minimal viable product (MVP) is created first. This reduced but already functional version of a product can be brought to market quickly in order to gather feedback from the target group at an early stage.
By continuously measuring and analysing customer reactions, the company learns which aspects of the product are already successful and which still need to be adapted or changed. In this way, the product is improved iteratively - allowing resources to be utilised much more efficiently.
The basis for agile change: room for error
This principle not only works in the start-up world when launching new products onto the market, but also for the process of strategic transformation: learning from mistakes at an early stage enables initiatives to be adapted quickly.
Agile change management thrives on short feedback loops. Regular feedback from employees and stakeholders is important so that the change team can address specific problems and test initiatives for innovations. A decisive factor for successful agile change is a sense of responsibility, self-organisation and commitment to common goals. The basis for this is trust and an open feedback culture that all project participants are aware of. Only when everyone is heading in the same direction can true collaboration take place. Caution: Dealing with feedback is not always easy - neither for the sender nor for the recipient. It must be clear to all parties that feedback is welcome and serves as a basis for further action.
Find out here how you can increase employee satisfaction and loyalty in the long term.
The three most important steps in agile change management
How exactly the individual steps of an agile change process are successfully implemented is of course individual and differs from organisation to organisation. The following idealised process serves as a guide and a possible sequence of change initiatives:
Step 1: The lift-off meeting
This is where the current situation and the idea for change are defined. These findings serve as the basis for change initiatives, which are developed and selected together. It is important to note that the initiatives should be seen as experiments that may go wrong. In the agile methodology, failures are not recognised as failures, but as learning.
Step 2: Defining change parameters
The selected measures are broken down into task packages and sprints and criteria for measuring success are defined. Regular dialogue, for example in daily stand-up meetings, is essential in order to keep all stakeholders informed and, if necessary, to change course if interim goals are not achieved.
Step 3: A retrospective
No matter what the conclusion of the project is and whether the goals have been achieved or not: for sustainable development in the desired direction, it is essential to reflect on the approach, celebrate successes together or record new findings and opportunities for improvement.
The benefits of agile change management at a glance
Successes are visible more quickly. These quick wins boost the motivation of those involved in the project and create greater commitment.
Processes can be adapted and adjusted based on organisational needs, which often arise unpredictably.
The return on investment becomes visible more quickly
"Seeing is believing" - shared partial successes build trust
Continuous learning during the process promotes a willingness to innovate
Transformation is not a project, but a process
In many companies today, change management is still approached according to the following principle: Changes are planned in detail and implemented according to a predefined plan. The focus is on completing the transformation process as quickly as possible and transferring it to a stable and fixed new state. The mistake is often made of approaching transformation as a project instead of treating it as an ongoing process. This harbours the risk that the opportunities for further development, growth and adaptability to market changes remain unused in the long term, as the set-up is not flexible enough for new requirements - both in terms of technology and the mindset of employees.
The agile approach to change management is particularly helpful for complex corporate structures and major change plans in connection with digitalisation projects. In contrast to traditional change management methods, the agile approach is not aimed at implementing change processes as quickly as possible. Instead, a state of continuous review, trial and error and adaptation is consciously sought. The basis of an agile transformation is therefore the endeavour to continuously improve and to implement improvements gradually and in small stages in order to strengthen competitiveness in the long term and to be able to react quickly to new requirements at any time.
Dorothee Haensch
