Transformation: Building your organisation’s transformation muscle

In our latest transformation forum webinar we discussed what can go wrong in tech-enabled change. Our experts discussed common challenges and how to set up for success, and shared learnings from their own experience of real-world programmes on how to build your organisation’s 'transformation muscle'. 

You can find all the guidance our team shared by catching up on demand.

Watch the recording

What do HR and finance leaders need to know?

The ability to navigate change effectively is crucial for organisational success. As senior HR and finance leaders, you play a pivotal role in steering your organisations through the complexities of transformation. But it doesn’t stop there. 

Understanding the dual role of HR and finance in change management

HR and finance functions leaders face two challenges: modernising themselves while enabling the broader organisation to transform. This dual focus is critical to ensuring that HR and finance functions remain relevant, strategic, and effective. Modernising these functions involves upgrading systems, accelerating the use of AI, building new skills, improving data utilisation, and enhancing compliance and governance. Simultaneously, HR and finance must support and embed wider transformation efforts, such as digital initiatives, cultural change, and employee engagement.    

Key drivers for change in HR and finance    

Both public and private sectors are under pressure to modernise systems, automate processes, and leverage data for better decision making. In parallel, flexibility, purpose, and upskilling are becoming central to the employee value proposition. Coupled with talent shortfalls, especially in areas like digital and data analytics, these pose significant challenges for organisations, driving major transformation needs. Financial pressures, including margin pressure and the need for efficiency and agility, further complicate the landscape. The organisations that will thrive adapt quickly, harness new tools and technology, and place people at the heart of their transformation.    

The importance of effective change management    

This reinforces the need for change management – crucial for minimising resistance, improving employee engagement, and ensuring smooth and effective implementation of change. But change must start with strategy, tethering the future state back to  organisational goals and objectives, ensuring that transformation efforts support the broader objectives. The focus must be on three aspects of change – effective change management involves addressing these key issues.

1. Practical change – e.g. how do I run my new process, how do I use my new systems?
2. Behavioural, e.g. which behaviours do I need to demonstrate, e.g. cross-team collaboration, a growth mindset or a focus on data accuracy?
3. Emotional – how am I supported when my role is at risk or is at significant risk of change?

What are the critical enablers of successful change?

These need to be brought to life through the following actions:

Leadership buy-in 

Change starts at the top. Leaders must advocate for the change and role model the desired behaviours.    

Culture

The organisational culture must support the behavioural shifts required for transformation.

Training and skills

Employees need the right tools and knowledge to adopt the change confidently.

Communication and engagement

Clear, timely communication keeps everyone aligned and motivated.

Data and insights

Use data to guide decisions and measure progress throughout the change journey.

Building resilience and managing change fatigue

Even if all those things are in place change can still be a challenge in organisations undergoing transformation. It's essential to plan the overall transformation strategically, considering the organisation's capacity to absorb change. Prioritising changes, celebrating quick wins, and monitoring sentiment can help maintain momentum and reduce burnout. Building resilience within the organisation involves fostering a growth mindset, encouraging experimentation, and providing support for employees as they navigate change.

What can HR and finance leaders do?

Drawing on real-world examples, several key lessons and practical tips can help senior HR and finance leaders navigate change effectively:

Effective communication and engagement 

Engage all stakeholders, including trade unions, employee network groups, and consultation groups. Tailor communication to different audiences and ensure that messages are clear and consistent.    

Addressing resistance 

Work with people who express doubts to understand their concerns and bring them on board. Really listen to and understand their concerns so they are heard.

Data-driven decision making

Use data to inform decisions, mitigate risks, and measure progress. Data can help build a compelling case for change and demonstrate the impact of transformation efforts.    

Flexible and adaptive approach

Be prepared to adapt your approach as needed. Transformation isn’t a linear process, and flexibility is key to navigating unexpected challenges.      

Continuous improvement

Change is an ongoing process. Continuously hold up the mirror, assess progress, and make adjustments to ensure that transformation efforts are sustained.

Guiding you through transformation

Our change management framework, which is the method through which we manage the architecting and execution of change management, consists of five essential stages.  

Discover    

Assess the starting point, identify what's working and what's not, and determine the gaps in your current readiness for change, and understand what change is going to happen in the organisation.

Determine 

Define the future state, envision success, and identify the gap between the current and desired states to build on the discover phase.   

Design 

Prepare for change by building structures, plans, and resources needed for the transition and beyond – architecting your change journey.

Deliver 

Support individuals and the organisation through the change journey, enabling adoption and maintaining momentum.   

Drive 

Reinforce the change, recognise progress, and address any issues that arise to sustain the transformation.     

Navigating change management strategies requires a holistic approach that addresses the practical, emotional, and behavioural aspects of change. As senior HR and finance leaders, your role is critical in guiding your organisations through transformation. By leveraging effective change management frameworks, engaging stakeholders, and fostering a culture of resilience and adaptability, you can lead your teams to success in a rapidly changing world.    

For more insight and guidance, get in touch with Carolyn Hicks or Zoe Bratton.