Change Management

Satriun has experienced that four basic conditions are needed to change behavior within an organization consistently and successfully.

1. A compelling story

If people believe in the overall purpose of the CPM implementation, they will be happy to change their individual behavior to serve that purpose. But to feel comfortable about change and to carry it out with enthusiasm, people must understand the role of their actions in the implementation project and believe that it is worthwhile for them to play a part. It isn’t enough to tell employees that they will have to do things differently. While leading change programs Satriun consultants take the time to think through the “story”—what makes it worth undertaking—and to explain that story to all of the people involved in making change happen, so that their contributions make sense to them as individuals.

2. Role modeling

In any organization, people model their behavior on “significant others”: those they see in positions of influence. Within a single organization, people in different functions or levels choose different role models—a founding partner, perhaps, or the CFO, or their direct contact at the corporate center. Satriun Group helps changing behavior consistently throughout an organization, because it isn’t enough to ensure that people at the top are in line with the new ways of working; role models at every level must “walk the talk”.

3. Reinforcing mechanisms

Organizational designers broadly agree that reporting structures, management and operational processes, and measurement procedures—setting targets, measuring performance, and granting financial and non-financial rewards—must be consistent with the behavior that people are asked to embrace. We recognize that if a company’s goals for new behavior are not reinforced, employees are less likely to adopt it consistently; if managers are urged to deliver more free cash flow, for instance, but free cash flow doesn’t figure in the performance scorecards of managers, they are not likely to bother.

4. Capability building

Many change programs make the error of exhorting employees to behave differently without teaching them how to adapt general instructions to their individual situation. The company may urge them to be “ROI focused”, for example, but if it paid little attention to return on investment in the past, employees will have no idea how to interpret this principle or won’t know what a successful outcome would look like.

It is essential to understand and recognize the impact organizational psychology has on the success of a CPM implementation project. Satriun helps organizations maximize success by pointing out change management related pitfalls and focus areas.