Understanding organizational change management

Whether it's a digital transformation, a strategic initiative or an attempt to keep up with evolving market demands, companies must manage change effectively to stay competitive. Understanding the difference between change management and organizational change management (OCM) is crucial in ensuring that these transitions are smooth and successful.

A key distinction

While change management has been part of project management for many years, OCM is a relatively new field, gaining global recognition only in the past decade. What is change management? Traditionally, change management was about sending communications, training people and keeping them informed about organizational changes. For instance, in a digital transformation, the project manager would inform staff members about upgrades and guide the project through various stages.

OCM, on the other hand, takes a more holistic approach. It’s not just about the project—it’s about the people and processes that the change affects. OCM spans the entire organization and covers the complete transition period, focusing not only on the beginning of a new approach but also on the end of an old system.

One of the most important aspects of OCM is that it humanizes projects. An effective OCM practitioner focuses on the human element, ensuring that people are aligned, engaged and ready to embrace change, while remaining the stewards of a project's success measures.

Organizational change management isn't just about managing change—it's about leveraging. It is a catalyst for growth, innovation and competitive advantage. By effectively implementing these principles, organizations can align their people, process and technology to not only survive but thrive in an ever-changing landscape.

The benefits of OCM

In the short term, OCM helps with alignment and engagement. All key stakeholders should be on the same page about the reasons behind a change and agree on the expected outcomes. A strong OCM practitioner works to build engagement while also finding pockets of resistance and mitigating them. This is crucial because one of the most common reasons for the failure of change initiatives is a lack of alignment at the leadership level.

In the long term, the most significant benefit OCM brings is value realization. For example, after implementing a new digital tool, a company might expect an increase in productivity. If that increase hasn’t materialized post-implementation, an OCM professional can review the process, identify flaws in the system and create a plan for the company to realize the promised value of the tool. An OCM practitioner works with company leaders to position any spending associated with an initiative for speedy value realization.

Overcoming challenges

Poor communication can hamper major projects. Many company leaders think they do a good job of communicating, but often their efforts are outdated or insufficient.

A knowledgeable OCM practitioner addresses these gaps by ensuring consistent and clear communication, engaging with all levels of the organization, and answering the essential question, "What's in it for me?" at each stage of the project. To maintain momentum and overcome resistance, organizational change management strategies align expectations with stakeholders, so they know what their role is and what they are accountable for during the transition.