Sara Sheehan focuses on change management in this episode, stressing that CEOs in today’s fast-paced business world must view change not as an exception but as an expectation. Managing the changes facing an organization, whether it be a digital transformation or a large-scale merger, is the crucial element that makes or breaks the success of the endeavour. Sara outlines why mastering change management is so vital and how to approach prioritizing that management.
Research from McKinsey & Company reveals that approximately 70% of large-scale transformation projects fail to achieve their goals and one of the primary reasons is a lack of focus on the human side of change. Effective internal change management empowers the humans of the organization to lead the change, rather than relying on external consultants. Sara explores the most critical steps in mastering change management by sharing a 9-step approach for every CEO to consider.
Speaking from expertise and knowledge, Sara names the 9 steps: 1) Establish the groundwork. 2) Secure the right resources and build the team. 3) Engage and align stakeholders. 4) Create a robust change network. 5) Assess and prep the ground. 6) Create the vision and plan messaging. 7) Mitigate business impacts. 8) Cultivate behavioral change. 9) Empower talent and execute strategy. Sara explains in detail how each step benefits an organization’s transformation and allows the CEO to build a sustainable change with minimal disruption.
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Transcript:
Sara Sheehan: [00:00:02] Hello, I’m Sara Sheehan and welcome to my podcast, Transformational Thinkers with Sara Sheehan. Today I would like to cover a key topic that is near and dear to my heart, and that is my course which I am pivoting to offer a self-paced option rather than attending a live cohort that is either private for one client or an open enrollment opportunity. I definitely have heard from interested participants that they would prefer a self-paced option, and as luck would have it, ACMP decided to offer the self-paced option to qualified education providers, and they allowed them to submit their course design for approval and submission for offering a self-paced option. I was approved within a week of submitting my application, and I’m in the process of setting up the self-paced option in Kajabi, along with updating my website right now.
Sara Sheehan: [00:01:32] In terms of today’s message, I really want to talk about why mastering change management is so important and why, as a CEO of a leading company, you may be taking your company through a major and challenging project. Whether it’s a digital transformation, a large-scale merger, or a new operating model. There’s always that one crucial element that often makes or breaks the success of your endeavor, which is change management. Today’s message will outline the compelling reasons CEOs need to address adoption early, and the context of a sound plan. Truly, this is a message about a strategic imperative for CEOs that are navigating major projects. In today’s fast-paced business world, change is not an exception, but an expectation. Organizations that can effectively navigate change are the ones that not only survive, but thrive. Yet, as a CEO leading a company through, yes, your next major challenging project, whether it’s a digital transformation, a large-scalelong-term merger or a new operating model, the one crucial element that often makes or breaks the success of the endeavor is change management. When leading a project that requires widespread adoption, the focus is not solely on implementing a solution or process. The real challenge lies in securing buy-in, shifting organizational behaviors, and building internal capabilities that will enable your team to manage change effectively long after the initial project is complete. Change management is no longer a nice-to-have competency. For organizations undergoing significant transformations, it’s a strategic imperative. Today’s message will outline why mastering change management is essential for CEO’s overseeing major projects, and how building this capability across the organization can drive sustained success.
Sara Sheehan: [00:04:20] Why CEOs should prioritize change management. As a leader of your organization, you already understand that projects involving sweeping changes, whether cultural, technological or operational, come with really high stakes. The success or failure of these initiatives can shape your company’s future in profound ways. Here’s why change management needs to be at the forefront of your strategy. First, projects often fail without effective change management. The statistics are staggering from research by McKinsey & Company, that indicates approximately 70% of large-scale transformation projects fail to achieve their intended goals. One of the primary reasons, a lack of focus on the human side of change. When employees don’t understand why a change is happening, resist it, or aren’t equipped to manage the transition, even the best laid plans can unravel. Second, change management is a long term investment. Building change management capability in your organization is not just about the immediate project, it’s about setting up your team for long term success. Effective change management ensures that your people can adapt to future changes, helping your company remain agile in a constantly evolving business landscape. Third, it protects organizational culture. Large projects often disrupt existing processes, hierarchies, and even organizational culture. Without proper management of these changes, you risk alienating employees and creating a culture of resistance. A strong change management approach ensures that transitions are smooth and aligned with your company’s values. Fostering a culture that embraces rather than resists change. Fourth, building organizational capability reduces dependency on consultants. Many organizations lean heavily on external consultants to manage change during large projects. While this can provide temporary relief, it often leads to long term dependency. Instead, by investing in internal change management capabilities, you empower your own people to lead change, reducing reliance on outside support and driving down costs over time.
Sara Sheehan: [00:07:18] The critical steps of mastering change management. To effectively master change management, it’s essential to break it down into manageable steps. A comprehensive approach can be boiled down to 9 key steps. In the first phase of mastering change management, it involves laying a solid foundation for your change initiatives. This is where you align your leadership team, define clear objectives, and ensure that the right resources are in place. First, establish the groundwork. Change management begins long before the first meeting or implementation. As a CEO, it’s vital to create an environment where change is understood and accepted as a part of a company’s DNA. This involves clarifying the strategic importance of the project and setting expectations from the top down. Second, secure the right resources and build the team. Assembling the right change management team is critical. This group should include leaders from across the organization who can champion the change within their respective departments or functions. The team must possess not just technical expertise, but also strong interpersonal and leadership skills. They need to be trusted voices who can rally their teams and communicate the benefits of the change clearly. Third, engage and align stakeholders. Stakeholder buy-in is non-negotiable. It’s essential to engage both internal and external resources early in the process, ensuring that their concerns are heard and addressed. Create a stakeholder map, assess their levels of influence and interest, and ensure that your engagement strategy is built around transparent, consistent communication. Once the foundation is set, the second phase focuses on ensuring the organization is prepared and equipped to manage the changes that lie ahead. Effective communication and readiness assessments are key components of this phase.
Sara Sheehan: [00:09:43] Fourth, create a robust change network. A change network refers to a group of employees within the organization who will help facilitate change on the ground. These change agents are often not formal leaders, but are influential peers who can help ease concerns, answer questions, and foster enthusiasm. A strong change network acts as an internal support system that drives momentum. Fifth, assess and prep the ground. Before executing any major change, it’s critical to assess the organization’s readiness. This includes understanding how prepared your teams are, where resistance might occur, and identifying areas that may require additional support. Readiness assessments help CEOs and change leaders identify roadblocks before they derail the project. Sixth, create the vision and plan messaging. A compelling vision is a cornerstone of any successful change initiative. The key here is crafting a message that resonates with employees at all levels of the organization. The message must be clear. Why is this change happening? How does it benefit the company and the individual? As CEO, your role is not only to craft the vision, but to embody it in all communications and actions. The final phase focuses on the execution of the change management strategy in ensuring that the organizational impacts are managed effectively.
Sara Sheehan: [00:11:30] Seventh, mitigate business impacts. Unexpected business impacts will arise during execution. As CEO, you need to anticipate and address these dynamics, adjusting strategies and resources as necessary. Flexibility during execution is key. Change plans should be adaptable to ensure they remain relevant in evolving business conditions. Eighth, cultivate behavioral change. Changing organizational behaviors is often the most challenging part of the process. This is where leadership development and training come into play. Employees need to not only understand the new processes, but also be motivated to adopt new behaviors. Creating a culture that rewards adaptation and continuous learning is essential. Ninth, empower talent and execute strategy. Finally, your team’s talent is your greatest asset in driving change. Empowering your workforce through training, leadership development and mentoring ensures that they have the skills and confidence to execute the strategy. Remember, change management isn’t about executing a project, it’s about equipping your team to manage future changes with minimal disruption.
Sara Sheehan: [00:13:03] The role of CEOs in leading change. As CEO, your role in mastering change management is not just strategic, it’s deeply personal. Your employees look to you for leadership, guidance and reassurance. By embedding change management as a core capability in your organization, you ensure that your team is prepared for the current project and equipped to tackle future challenges head on. Building an internal capability in change management creates a sustainable competitive advantage. It empowers your leaders and employees to take ownership of change, reduces dependency on external consultants, and fosters a culture of resilience and adaptability. In an ever evolving business world, mastering change management is no longer optional. It’s the key to staying competitive, fostering innovation and ensuring the long term success of your organization. The question is, are you ready to lead your team through the change that will shape your company’s future? As always, please share your thoughts in the comments.
