How to Maximize Business Value
Organizations should put in place a plan for how they will handle working from home going forward.
The COVID-19 virus has had a major impact on the way companies conduct business. According to Stanford economist Nicholas Bloom, 42% of the United States labor force is working from home. Even after the virus is eradicated or everyone is vaccinated, companies will still need to utilize what we learned from the virus to make appropriate change management decisions. The way companies interact with employees needs to continue to evolve with the ever-changing work landscape in the United States and globally.
Bloom also writes in his article that 51% of employees report that they can work from home with the same efficiency as when they were working in an office. Allowing employees to work from home increases worker retention, provides for a better life-work balance for employees, and employees are actually more productive working from home than they were when working in the office (Remote Workers Are More Productive). It is no secret that younger generations are attracted to jobs with workplace flexibility. Being able to select from a larger pool of interested applicants will also lead to better employees being hired. With a predominantly work-from-home workforce, employers are able to save on costs by reducing office space and office utilities. Expensive office space is one of the biggest costs that a business will have, and reducing or completely eliminating these expenses can make the difference between a company being profitable or not. Organizations should put in place a plan for how they will handle working from home going forward. This may seem like a big organizational change, but it will have many benefits in the long term. An employer’s company also needs to do away with the old-fashioned way of thinking that you need to have employees sitting at a desk in an office to maximize productivity.
Technology is always a core focus of making an organizational change. It is not simply enough to purchase or upgrade to the latest or best technology – you need the right employees to maximize the benefits of new technology. Retiring legacy systems is also vital in preparing for the future. The more up-to-date your systems are, the less employees you need to specialize in particular areas. As time goes on, less people will be knowledgeable in old technologies and will require higher pay for their expertise. It is a lot more cost efficient to make plans now to retire old systems, than it is to fix a legacy system that is broken.
It is not enough to just enact a company policy change – it needs to be adopted by all employees. Creating a good policy should include a plan on how you will increase the adoption amongst all employees. Asking for feedback from the employees and allowing them to make suggestions will show your willingness to work together to maximize value.
The concept of organizational transformation is focused on a general approach, as opposed to minor changes such as the addition of a new person, system change, etc. Examples of organizational change can include mechanical change, operational change, new technologies, integration, greater collaboration, rights making, new systems such as overall quality management, and renewal.
To truly embrace change in the organization and begin to lead the growing transformation efforts, the transformation agent must at least have a broad understanding of the nature of the transformation effort. This includes considering the basic programs and structures in organizations, as well as their general principles and functions. This obligation also applies to the understanding of the leadership and management of organizations. Therefore, dividing courses in business often involves a particular lesson or discussion about an organizational perspective.
There are several phrases about the transformation and progress of an organization that look and sound very similar, but have different meanings. As a result of the importance of the topic, there seems to be a very different interpretation of some of the phrases, while others are used differently. Without at least some idea of the differences between these phrases, the communication about organizational change and development can become more confusing.
Conversion should not be made as a result of change – it should be treated a policy to achieve a common goal. Often changes in the organization are encouraged by major external forces, significant financial cuts, dealing with large new markets or clients, and the need for significant increases in performance or services in the life cycle. Switching to new manager level individuals is an example that can encourage organizational change, as the new and unique personalities permeate the entire organization. Often, these new hires bring fresh positive energy, and encourage change in the beginning with creativity, persuasion, and harmony. The role of the change agent is usually responsible for translating the idea into a rational plan and executing. Change is often made better as a whole team effort. Communication about change should also be common to all members of the organization. To maintain change, the structure of the institution itself must be customized, including strategies, policies, and procedures. These changes in organizational structures often require a process that does not allow for a template approach.
Many of the changes that people have made as a result of modern management have had far-reaching effects. The hypothesis of direct progress is not always acceptable. Continuity of change is important, and much attention should be paid to the continuation of precious relationships. People should be given the freedom to determine the level and extent of change required in relation to their difficult tasks.
How NMS Can Help
Change management led by experienced NMS consultants provides a uniform approach to enabling the changes mandated by a company’s initiative, mitigating risk, and drastically increasing the success rate of changes. Executives need to analyze and understand the hurdles that make transformation efforts fail, and NMS can guide the way.
Businesses are facing economic unpredictability, disruptive technology, and organizational issues. Traditional methods of establishing a competitive advantage are not sufficient enough. It is more critical than ever that businesses address new realities, evolve with the changing conditions, and deliver effective change to gain a competitive advantage. Without clearly defined milestones and sufficient commitment by management, change initiatives are bound to fail.
A focus on an organization’s people, leadership, execution, and governance is paramount to success. Change management must be executed with transparency with a focus on value for your people.
To satisfy these requirements, your organization can leverage the same technologies that are triggering the transformation. The scalability and reach of digital tools provide your business with opportunities to create innovative and powerful change.
We partner with you to customize the right set of solutions for your change initiatives, ensuring that the internal capabilities needed to manage change now and in the future are established.
Most change management methods are designed to deliver A to B change in a single project. The NMS Change Management Protocol goes beyond the project level, and focuses on building the capacity required for multiple, simultaneous changes now and in the future. Concurrently, change management is treated more than an administrative function, and is viewed as a strategic function. Building the foundation for enterprise-level change requires viewing your people, from leadership to the front line, with an eye on their capacity for implementing change.
Change management is an evolving service with many different methodologies that can be applied to your organization’s situation. This framework needs to provide flexibility, to account for cultural and geographic diversity, and should include tools and templates that are continuously updated by your people. This provides an invaluable database that educates your team on the framework, coaching them through the process, and gathering feedback on its structure.
Building leadership capabilities requires you to ensure your people have the knowledge and skills required to manage ongoing change throughout all levels of the company. This requires a combination of technological and strategic experience and knowledge. Your senior managers need to build on their active listening and communication skills, as well as ensuring they are minimizing resistance during the adoption period.
About the Author
Arthur Mansourian has a 12-year track record as both a management consultant and investment banker, advising clients on valuation, capital markets, structured financing, mergers, acquisitions and divestitures and general corporate strategy.
Mr. Mansourian served as Vice President while at NMS Capital Advisors, when the company achieved cumulative sales growth of over 5,100% with annual compounded sales growth in excess of 120% from 2012 to 2017.