Change management: what it is and its importance for companies

Transformation Guide

In summary
  • Change management is a structured approach that manages change by simultaneously intervening on people, organizational models, processes, and technologies, especially in VUCA environments.
  • The real engine of change are the people: without changes in behavior, habits, and mindset, organizational transformation cannot be achieved.
  • An effective strategy integrates the Soft levers (culture, leadership, motivation) with the Hard levers (timetables, allocation of resources, financial objectives).
  • The approach of Bonfiglioli Consulting consists of four phases: Awareness, Preparation, Transformation and Sustainability, using tools such as Hoshin Kanri, RACI and widespread auditing.
  • Change management is not a temporary intervention but a continuous process, supported by training, mentoring, coaching and rewarding systems.
Index

We often hear about Change Management, but what does it really mean? Let's get it clear.

Change Management, or the ability to manage change, has become an essential element for organizations operating in a context characterized by volatility, uncertainty, complexity, and ambiguity, known as the VUCA environment. In this scenario, the speed at which the market and technologies evolve forces companies to continuously review their operating model, adopting innovative and transformative methodologies to remain competitive.

Change management encompasses a set of activities and tools aimed at introducing a structured approach to change by simultaneously intervening on people, organizational models, processes, and technologies. The main objective is to achieve successful transformations, based on the premise that the true driver of change is not corporate structures but the individuals involved. Only by changing the behaviors, habits, and mindsets of individuals is it possible to translate change at the organizational level.

Change Management: a structured approach to business transformation

In corporate contexts, change projects often involve:

  • Reorganization of the corporate structure following mergers or acquisitions
  • Introduction of new management software
  • Redesigning processes in a Lean perspective
  • Launch of digital transformations in the context of Industry 4.0

In all these cases, the success of change depends on the organization’s ability to step out of its “comfort zone” and embrace new opportunities, even if this involves venturing into uncharted territory, often perceived as threatening or challenging.

One of the central aspects of change management is the balance between soft levers and hard levers. Soft levers include intangible factors such as:

  • Corporate culture: a shared environment that promotes openness to change.
  • Leadership: the ability of leaders to inspire and guide staff through the change process.
  • Motivation: the commitment and willingness of employees to adapt and contribute to change.

These elements, although difficult to measure, are crucial for creating a climate conducive to change.
Without a shared culture and effective leadership, even the best strategies risk failure. On the other hand, Hard levers represent measurable and tangible aspects, including:

  • Timelines: precise indications on the time required to complete the change.
  • Resource allocation: planning and distribution of the resources necessary for the initiative.
  • Financial objectives: defining clear and measurable business objectives related to change.

Only the integration of these two aspects – the emotional and the rational – allows for the development of a truly effective Change Management strategy.

Change management should be a structured process to guide the company towards change. Based on our experience, we have developed a four-phase approach to achieve sustainable transformation.

The first two phases of organizational change: from awareness to preparation

The first phase, called "Awareness,“ represents the moment when the organization recognizes the need for change. This awareness can arise from a current problem, such as a drop in sales, or from future forecasts, for example the entry of a new competitor into the market. In this phase, the recognition of the problem generates tension and a sense of urgency, essential elements for mobilizing the entire corporate structure. Methods such as the Best Practice Tour, also known as Kaikaku, are applied, which allows managers to observe on the field the results achieved by other companies already engaged in transformation processes. In addition, Hoshin Kanri is used, an approach that translates strategic objectives into operational actions at different hierarchical levels.

The second phase, "Preparation“, focuses on defining the roadmap for change and implementing an effective communication process. At this stage, it is essential to develop a clear project vision and a detailed transformation plan, which includes defining a ”to be“ scenario – i.e., a desired future vision – and creating a Roadmap that sets out specific milestones and objectives.

Furthermore, the identification of key roles and the selection of Change Agents, crucial figures who will guide and support the process, takes place. Communication becomes a strategic tool: a well-defined plan and the creation of a "Transformation Diary“ allow the commitment to be transferred to all the involved actors, strengthening motivation and dispelling doubts and resistance. It is also important to train and prepare managers and Change Agents, ensuring that they possess the necessary skills to manage the process effectively.

The subsequent stages of organizational change: from transformation to sustainability

The third phase, "Transformation“, represents the operational heart of the change and is divided into two distinct steps: organization and action. During the organization phase, the mechanisms of coordination and the necessary structures are defined to connect the different company levels. The goal is to create collective involvement towards the new objectives and establish clear procedures for escalation and resolution of problems that may arise during the process.

Once the organization has been fully organized, the next step is the action phase, characterized by the principles of Lean. In this phase, the Lean approach manifests itself in the continuous search for inefficiencies and waste to be eliminated. This is achieved through the adoption of new organizational and management routines, the implementation of control systems such as the Job and RACI, and the activation of training activities such as mentoring, coaching, and team coaching. These actions, aimed at solving problems, are essential to ensure that the change translates into concrete and measurable improvements.

The fourth and final phase, "Sustainability“, aims to consolidate the change and ensure that the achieved results are maintained over time. In this phase, the focus is on the continuous development of skills through a structured plan of education and training, which, together with rewarding mechanisms, strengthens individuals” confidence in the path they are taking.

Another key tool is the widespread auditing at every level of the organization, which allows for the constant monitoring of transformation processes and their continuous improvement. Among the activities implemented to ensure sustainability are extending training to other departments or company locations, adopting Leader Standard Work, selecting and implementing digital solutions, and activating celebration and rewarding mechanisms. The Best Practice Tour and the Study Tour also fall within this framework, fostering the sharing of positive experiences and mutual learning among different corporate entities.

The success of change management

The true success of a change management process is based on a systemic and integrated approach, which combines the “soft” aspects – related to relationships, culture, and motivation – with the “hard” aspects, which concern the measurable and operational aspects of change. In a constantly evolving context, only companies capable of adopting methodologies that consider both these aspects can maintain their competitiveness and adapt to the new dynamics of the market.

Another crucial element is the importance of training and continuous updating. Change Management should not be seen as a temporary intervention to solve a critical issue, but as a deep transformation process that requires constant commitment over time. The implementation of training, mentoring, and coaching programs, along with auditing and rewarding systems, represents the key to ensuring that the newly acquired skills are consolidated and that change becomes an integral part of the corporate culture.

In this context, corporate consulting plays a crucial role, as it provides the necessary expertise and strategies to guide organizations through the change process. Investing in continuous training and support for employees not only facilitates the adoption of new practices but also fosters a positive and motivating work environment, where staff feel valued and involved in the change process. In this way, companies can face future challenges with greater resilience and determination.

Change Management as a driver for growth and continuous improvement

The approach, structured into four phases – Awareness, Preparation, Transformation, and Sustainability – allows for addressing change in a structured manner, involving all components of the organization and creating an environment conducive to innovation. Through the use of specific tools, proven methodologies, and the support of industry experts, Change Management transforms not only into a response to market challenges but into a true engine for growth and continuous improvement.

Only through shared commitment and a willingness to constantly renew themselves can organizations address the challenges of the VUCA era and transform uncertainties into opportunities for development. In this context, management consulting plays a crucial role, providing the necessary skills to lead change effectively.


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To further explore these topics, we invite you to view the in-depth paper prepared by Bonfiglioli Consulting.

Frequently asked questions

What is change management and why is it important for companies in a VUCA environment?

Change management is the ability to manage change with a structured approach based on people, organizational models, processes, and technologies. It is important because in a VUCA environment, characterized by volatility, uncertainty, complexity, and ambiguity, markets and technologies evolve rapidly, and companies must continuously review their operating model to remain competitive.

What are the four phases of a change management process in a company?

The phases are Awareness, Preparation, Transformation and Sustainability. In the first phase, the company recognizes the need to change; in the second, it defines a roadmap, communication and Agents of Change; in the third, it organizes and implements the actions with Lean principles; in the fourth, it consolidates the results through training, auditing and rewarding to maintain them over time.

What is the difference between Soft levers and Hard levers in Change Management?

Soft levers are intangible factors such as corporate culture, leadership, and motivation, while Hard levers are measurable aspects such as timelines, resource allocation, and financial goals. Only by integrating the emotional and rational aspects can an effective strategy be developed: without shared culture and leadership, even the best strategies risk failure.

Which business projects require a Change Management intervention?

Change management is useful in projects that profoundly change the way a company operates: reorganizations following mergers or acquisitions, the introduction of new management software, the redesign of processes in a Lean perspective, and digital transformations of Industry 4.0. In all these cases, success depends on the ability to step out of one’s comfort zone.

What tools are used in the phases of Awareness and Preparation of an organizational change?

In Consciousness, the Best Practice Tour (Kaikaku) is used to show managers the results of other companies, and Hoshin Kanri translates strategic objectives into operational actions. In Preparation, the vision, roadmap, Change Agents, and Transformation Diary are defined to communicate the commitment.

How can organizational change be made sustainable over time, and what role does corporate consulting play?

Sustainability is achieved through an education and training plan, rewarding mechanisms, widespread auditing at every level, the Leader Standard Work, and the extension of training to other departments or locations. Corporate consulting supports the process by providing expertise and strategies to guide the organization and promote a motivating work environment.