In today’s rapidly evolving business environment, organizations must embrace change and effectively manage transformations to remain competitive. Establishing a Change Management Office (CMO) drives transformations, and encourages people-centeredness which minimizes internal resistance, and fosters employee engagement.

 

„Change is the only constant in business. Organizations that embrace change and adapt quickly are the ones that thrive in today’s competitive landscape.“ – John Kotter (Leading Change, 1996).

With this statement, John Kotter establishes how crucial an organization’s ability to change is to its success. Recently, this development has reached a peak where organizations need to be able to constantly adapt, not only to be successful, but also to remain competitive.

Addressing this issue effectively requires a holistic approach, and often goes in hand with the establishment of a Change Management Office (CMO). This can help organizations to minimize resistance, increase employee engagement, and ensure the successful implementation of new initiatives. Ultimately, a well-integrated CMO supports businesses to not only manage their constant internal and external disruptions effectively but also proactively.

 

But what exactly is a CMO?

A CMO is a permanent and unique team that focuses on managing organizational change and preparing the people affected by it for adoption. It oversees an organizational wide scope that goes beyond the remit of a Project Management Office (PMO), which is primarily responsible for delivering projects efficiently, on time and on budget. It is set up to help improve the overall readiness for change by providing the organization with the necessary skills.

 

So how does such a CMO come into being?

A holistic three-step approach can be applied to ensure successful embedding within the organization:

 

1.Setting the Stage:

Initially, it is necessary to find common ground with the organization and define shared objectives for using a CMO. This includes determining the scale of the change or transformation to be made, distinguishing between small-scale incremental or transformational initiatives. It will also be necessary to decide whether the CMO should coordinate information between business units, or whether it should be set up to gather information and provide an overview to the Managing Board. Finally, a common vision must be agreed upon. This vision must be in line with the general corporate strategy and ultimately help to make the defined goals tangible.

Practical Tip: Engage in discussions with key stakeholders, such as business unit leaders and the Managing Board, to understand their expectations and requirements for the CMO’s vision and positioning.

 

2. Assessing the Current State:

In a second step, it is crucial to assess the current status of change in the organization. This includes the general attitude and thus understanding the beliefs and perspectives towards change. In addition, it is necessary to assess the usable infrastructure already in place in order to avoid duplication of effort. This may include existing change initiatives, as well as established functions such as Project Management Offices (PMO), HR teams, or corporate communications that support transformation projects. Companies are advised to leverage existing structures and take advantage of economies of scale, rather than creating a standalone Office that will end up competing for resources. Also, the change maturity within the organization needs to be explored. This takes into account both organizational capacity (resources, skills, and knowledge) and individual’s readiness (level of openness and positive attitude towards change). Finally, it needs to be determined how the new Office will be embedded in the organizational structure. This is important to guarantee clear reporting lines, appropriate cross-functional collaboration, and resource allocation.

Practical Tip: Understand the beliefs, attitudes, and perspectives of organizational members on change. Conduct surveys, interviews or focus groups to gain insights. This assessment will help identify potential resistance or willingness to embrace change and inform the approach taken by the CMO.

 

3. Assembling a Cross-functional Team:

The CMO members play a crucial role in driving change in the organization. To achieve success, the team needs to be committed to its task and embody its initiatives. his can be done by identifying and training existing employees, but also by bringing in new employees or external consulting expertise. A successful integration requires assembling a cross-functional team with diverse skills. Ideally, this starts with ambitious Project Carriers and experienced Communication Drivers:

 

– Project Carriers: Individuals with strong leadership and organizational skills who can manage resources, mitigate risks, and adapt to changing project requirements.

 

– Communication Drivers: Individuals who will develop and implement effective communication strategies to enhance internal and external communication. With an increased demand further skills will be required. At this point, Training Enthusiasts, and Analyst Specialists will be included into the CMO.

 

– Training Enthusiasts: Individuals who are passionate about designing and delivering engaging training programs and facilitating the adoption of new initiatives.

 

– Analyst Specialists: Individuals who play a critical role in interpreting and analyzing data to provide valuable insights and recommendations for informed decision making.

 

Practical Tip: While an organization may not have someone with the title “Change Manager” in-house, it may have potential candidates within its own ranks. It is helpful to look for a dedicated and well-connected employee who is open-minded and willing to engage with people. If these requirements are met, an excellent Change Manager might already be found.

A holistic approach to integrating a CMO helps organizations effectively manage transformations, align with strategic goals, and foster a culture of adaptability. They play a vital role in successfully implementing change, minimizing resistance, and maximizing employee engagement, especially during large-scale transformations. In today’s constantly evolving business landscape, organizations that embrace change by integrating a CMO will position themselves for long-term success and leverage their competitive advantage.

 

Leading Change by John P. Kotter, Harvard Business School Press, 1996.

 

Autorinnen:

Nicole Hackl, Senior Manager
Katharina Puchmüller, Manager
Paula Fröba, Junior Associate

Portfolio- & Programme Management (PPM) and Change Management