Ensuring Sustainable Change through Monitoring and Measurement

Suggested learning outcomes

  • Identify the factors that contribute to measuring and monitoring organizational change and transformation
  • Apply techniques for sustaining change
  • Describe the pitfalls that can be encountered when seeking to sustain change
  • Identify the benefits and risks of change
  • Measure the impact of change

Overview of chapter

  • Successful change initiatives can be undermined because too little attention is paid to holding on to the gains once the change objectives appear to be achieved. Change may therefore fail to be sustained. When this happens the benefits from it evaporate and the organization will be left to suffer the costs.
  • Building into the initial planning ways of sustaining the change rather than leaving it as an afterthought is vital. This should include the measuring, monitoring and reviewing of key objectives, benefits and risks.
  • It is vital to monitor and review the implementation of the change in order to identify areas which need to be adjusted and adapted to ensure that the change is effectively implemented and that the intended benefits are achieved.
  • Declaring victory too soon can encourage leaders and managers to switch their attention and resources to other change projects without sustaining the current change they are working on. So it is important that leaders and managers do not declare the change finished and a success too early.
  • When transformation fails there are a number of strategies leaders and managers can consider for turning the situation around including: ensuring that there is clarity about the aim and outcome of the change initiative; providing sufficient support and readiness for the change; ensuring that key players are performing; reviewing the implementation plan; focusing on the emotional commitment to the change; reviewing the communication strategy; and recognizing failure and mistakes and using them as opportunities for learning, improvement and development.

Case example: Training and development for sustainable change in Amey[46]

Government cuts had a dramatic impact on the public services supplier, Amey. The company had to change quickly and drastically, to become leaner, more effective, constantly improving and performance-driven. Amey set itself the task of increasing its revenues by 7.2% and, in order to do this, realized its staff had to be ready to perform more efficiently and effectively.

After carrying out employee research with a sample of staff, the company concluded that processes could be reduced to save time and money, overheads were not proportionate, and, with up to 11 levels of management between the CEO and the front line, it had too many managers. To bring in the changes the company needed as part of its strategy, the first step was to engage staff with the need for readiness for change. Using its employee engagement programme, Amey asked staff if they felt the company was as effective and efficient as it should be. Staff answered the call for change and their suggestions were used to compile action plans.

Amey launched staff training on how to make their working practices leaner. Managers were briefed in order to cascade change communications down to their reports. The company also launched a collection of DVD communications with messages from Group HR Director and from the Chief Executive and these were put on the staff website. The communications were effective, with staff hits online increasing from 4,000 to 11,000. Amey also appointed 'change champions' across its business to lead their colleagues through the change process. And an Employee Assistance Programme (EAP) was implemented to lend an ear to staff confused by the upheaval in the company.

Only seven months on, the company had changed for the better. HR costs had been cut by 20% per employee through changes to the department's own systems, while management approval levels were reduced from 11 to 4. The decision to involve staff feedback in changes also proved a success for Amey, with one employee saving £2,500 every year by having a cheaper soap in washrooms and another devising a way to recycle tar onsite – saving a massive £1.3 million. In total, the company saved £20 million and, while such deep change can disillusion and disengage employees, Amey's staff satisfaction jumped from 56% to 68% – not least because of the employer's exhaustive training, communication and management development.


Case study: Sustaining change in Thames Water[47]

Faced with the tough financial challenge set by its regulator Ofwat to save £300 million through efficiencies, Thames Water was forced to implement widespread strategic changes to provide a platform for its future security and success. The company, which employed 1,600 staff, used the change programme to make a commitment to job security, make financial savings, enable technical innovations, increase operational cover, reduce overtime and improve customer experience.

It did this by aligning staff availability to customer demand, saving £10 million in overtime and excessive working hours, reviewing terms and conditions to support new working conditions that were flexible, but being competitive as an employer of choice and engaging its staff in cultural change. Operating in a unionized environment, Thames Water also had to obtain buy-in from the trade unions. The company worked to extremely tight project timescales, incorporating workshops and roadshows to communicate efficiency savings to all employees and comprehensive training for HR teams to ensure they were ready to talk to staff and amend working conditions accordingly.

Two years on and staff had a better holiday allowance, a standardized working week and a reduction in working patterns from 122 to 23. It allowed more flexibility for employees, with greater cover for shifts if needed. The training initiatives throughout the change programme ensured maximum buy-in from the workforce and a positive outcome for the business. 


Exercises/activities

Consider an organizational change you are familiar with:

  • What benefits were expected?
  • Were the benefits realized?
  • If not, why not?

Suggested exam or assignment questions

  • Carry out a critical analysis of how change can be sustained within an organization. Identify and justify your conclusions and recommendations based on your own experience.
  • Critically evaluate the proposition that all too often change, in a business context, is not sustainable

 

Ensuring Sustainable Change through Monitoring and Measurement

 

© Julie Hodges and Roger Gill 2015