The New Hybrid Method of Change Management is Here at Last

The New Hybrid Method of Change Management is Here at Last
By Dr. Mario D. Wallace

Strategy management has long been a challenging process for executives in all industries. According to David Norton of the Kaplan-Norton Balanced Scorecard and the Palladium Group, "95% of typical employees are not aware of a company’s strategic plan, 60% of companies have strategic plans not tied to a budget, and 50% do not effectively review their strategic plan." These statistics are not unique to healthcare, higher education, manufacturing, or even Fortune 500 companies. One of the main reasons why strategy is challenging for executives is the ineffectiveness of creating and managing a change management strategy.  

One of the most popular change management methods for corporate executives is the Kotter-PROSCI method. Dr. John Kotter’s model outlines eight essential steps for change: create urgency, form a change coalition, develop vision and strategy, communicate the change vision, remove obstacles, create short- and long-term goals, keep the momentum, and make the change stick. PROSCI builds on Kotter’s steps by providing an operational framework to execute change.

The goal of change management is to drive continuous change at speed and scale, resulting in a healthy return on investment (ROI). A Change Execution Plan (CEP) helps guide organizations through the change process, ensuring targeted solutions are implemented according to a timeline that delivers powerful results. The three phases of the PROSCI method are:

1. Prepare for Change
2. Manage the Change
3. Sustain the Outcomes

While the Kotter-PROSCI method is effective in managing top-down, hierarchical changes, it often overlooks the input of frontline employees. This method pushes information down from executives to workers in hopes of gaining buy-in but lacks the agility needed to consider the complexity of organizational change.

To enhance the Kotter-PROSCI method, leaders must also understand complexity science, network science, and behavioral economics. Complexity science looks at how systems self-organize and adapt to change. People within organizations naturally self-organize at the local level, often without centralized control. Network science, particularly social network analysis, helps leaders understand how relationships between individuals affect change. Behavioral economics, through nudging strategies, helps influence employee behavior to accelerate change.

Nudging can be particularly effective when combined with agile strategies like sprints, where teams rapidly brainstorm, develop, and test new processes in a short time. The best solutions from these sprints can be refined into standard operating procedures and training programs, led by preceptors who ensure the new processes are successfully adopted across the organization.

To stay competitive in today's rapidly changing market, executives must go beyond the Kotter-PROSCI method and integrate these additional sciences to effectively manage change at all levels, particularly among frontline employees.

To learn more about agile change management, subscribe to my YouTube Channel at https://youtube.com/@allthingsstrategicpodcast?si=s4JZ2Zy7TBHLT7lY and explore more articles on my blog.