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Change Management in Supply Chain
Adaptability and strategic vision are non-negotiable in global supply chain management.
The COVID-19 era revealed that supply chains needed revamping to keep up with demand-related changes. Today, we're seeing senior supply-chain executives recognizing the need to prioritize flexibility, agility and resilience. This highlights change management's role in changing industry standards and focusing on continuous growth.
Effective change management addresses the different impacts of change on people and teams and allows organizations to thrive in an ever-changing world.
We share strategic insights and practical steps to redefine your supply chain and elevate your growth to become more adaptable, innovative and competitive.
What Is Change Management in Supply Chain?
Change management has become pivotal in modern supply chains, driven by various challenges and opportunities. With the rapid evolution of market demands and technological advancements, supply chains must be agile and responsive.
The significance of change management is demonstrated by how it directly influences business outcomes . Change management fosters adaptability and innovation, enabling supply chain-driven organizations to adjust swiftly. This necessity highlights the importance of a strategic approach to change, emphasizing proactive measures to adapt and innovate in response to evolving market dynamics.
By understanding change management’s impact, you can better appreciate the need for strategic change. These efforts are a proactive approach to thriving in a changing business.
Change management also drives optimization by increasing the speed of adopting new changes and increasing the overall utilization and efficiency of new and existing processes. However, if the people impacted don’t get involved, no changes can actually happen.
The Rising Importance of Change Management
Market dynamics and technological advancements underscore the rising importance of change management. Recognizing this, organizations must swiftly adapt to changes in demand and technological innovations to maintain their competitive edge.
Change management is crucial in ensuring agility and readiness in the face of these challenges. For example, Crowley and DSV , two prominent companies in the logistics and transportation sector, have demonstrated the effectiveness of change management in improving business outcomes.
Supply chain organizations today deploy emerging technologies to help navigate market fluctuations and streamline their operations. Implementing these technologies and enabling user adoption is critical for their success and further underscores the need for change management.
Adapting to market changes
Adapting to market changes is not optional in supply chain management. Organizations must exhibit agility and flexibility to respond effectively to market fluctuations and evolving customer demands.
Change management provides the framework and tools to navigate these changes successfully, ensuring supply chains remain resilient and responsive in constantly shifting markets.
Successfully integrating these technologies requires a comprehensive change management strategy. It ensures technological adoption aligns with organizational goals and that employees can work effectively with new tools and systems.
Technological evolution
Digital transformation is reshaping supply chain management—particularly advancements in areas like AI and automation.
These technologies can transform operations, increase efficiency and drive innovation.
It’s beneficial because it helps organizations create new opportunities for growth and development and enables employees to spend less time on manual or redundant tasks.
The Unique Prosci Approach
The Prosci Methodology is flexible and repeatable, helping people smoothly adapt to change. At the heart of the methodology, the Prosci ADKAR® Model enhances understanding and engagement with change, which is key for achieving results and outcomes from projects and initiatives.
Key features:
- Research-based – The Prosci Methodology is grounded in extensive research, ensuring that it is effective and relevant to modern organizational needs.
- The Prosci ADKAR Model – This model focuses on the individual journey through change, emphasizing Awareness, Desire, Knowledge, Ability and Reinforcement.
- Structured and repeatable – The Prosci approach provides a clear framework that organizations can use repeatedly to manage change effectively.
- Tailored solutions – Prosci offers solutions specifically designed to meet the unique challenges of different industries, including supply chain management.
This unique approach from Prosci offers tailored solutions for supply chain challenges. By leveraging the Prosci Methodology and tools, organizations can navigate the complexities of change more effectively, ensuring that their supply chain operations remain resilient and competitive.
Implementing Effective Change
Implementing effective change in supply chains requires a comprehensive strategy that addresses processes, technology and people. The Prosci tools and techniques focus on building commitment and capability among staff, ensuring that changes are embraced and effectively implemented throughout the organization.
Process optimization
Understanding vital supply chain processes impacted by the change and how the change impacts multiple aspects of the stakeholder groups' daily job duties.
Prosci supports employees throughout their change journey, and drives and increases the speed of adoption, utilization of the solution (e.g., new software or processes), and proficiency with the change.
Prosci enhances the visibility of change with success metrics around how employees manage and drive the supply chain changes and processes they want to change.
Leveraging technology
Integrating advanced technology is a key driver in revolutionizing supply chain operations. The Prosci approach is to help people adopt change by using data analytics and AI to support our work. Prosci ensures that individuals can successfully gain the knowledge and ability to use the new technology, which in turn drives the success needed to meet organizational goals and enhance overall employee and organizational effectiveness.
People and leadership
Effective leadership and employee engagement are critical for successfully implementing change. Prosci emphasizes the importance of engaging all stakeholders, from top management to front-line employees, to ensure a smooth transition and better change.
Leadership plays a crucial role in setting the vision, communicating the need for change, and motivating employees.
Prosci creates comprehensive change management plans that address each aspect of the change and successfully. This includes applying the Prosci ADKAR Model to help all impacted individuals transition effectively.
Prosci tools and techniques focus on building commitment and capability among staff, ensuring that changes are embraced and effectively implemented throughout the organization. Building this culture of commitment and capability among staff enables successful changes in supply chain management—leading to improved efficiency, resilience, and ultimately a more successful organization.
Addressing Common Challenges
Change management in supply chains often encounters several challenges. The Prosci approach offers solutions to these typical pain points:
- Resistance to change – Prosci delivers strategies to overcome resistance by addressing concerns and motivating stakeholders, ensuring a smoother transition.
- Supply chain disruptions – The Prosci Methodology and tools enable you to better manage and mitigate disruptions from market changes or external factors, enhancing operational resilience.
- Technological integration – The Prosci Methodology enables supply chain organizations to prepare and equip people to use new technologies as they are integrated with existing systems, minimizing resistance.
- Communication gaps – Prosci approaches promote more effective communication from the right people at the right time during change, enabling clarity and consistency.
- Measuring success – With Prosci, you measure the impact of change management strategies effectively using key performance indicators (KPIs) for success assessment.
The Prosci Change Management Solutions for Supply Chain Excellence
Effective change management in the supply chain is vital to stay ahead in today's dynamic market. The Prosci Methodology and tools help organizations successfully navigate these challenges and promote resilience and operational efficiency.
For a deeper understanding and to explore tailored solutions for your supply chain needs, contact us for specialized support. Embrace change management as your strategic ally in the journey toward supply chain excellence.
Become a Force for Change in Your Firm
The Prosci Change Management Certification Program gives you the tools and skills to apply frameworks like the Prosci ADKAR Model to active projects in your company.
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The Change Diaries
by Nicholas Marsicano, September 15, 2021
The Prosci Methodology Refresh: Everything you need to know about how, why and what has changed
In this video, we will do a high-level review of the 2021 program and resource enhancements. Why Prosci undertook this initiative, and where the changes are.
Here is a small excerpt from the video where we discuss the refreshed Prosci Methodology as of 2021. We look at the enhancements made to processes and tools with the explicit goal in mind of helping our practitioners succeed.
You do not need to change what you are doing today. The Prosci Method, tools and processes have stood the test of time in their application by tens of thousands of practitioners worldwide. It has delivered outstanding results and can continue to provide excellent results to you. However, if you would like to update to the latest version, contact us, and we will be happy to help you.
There have been several enhancements to the Prosci Methodology. This video discusses them individually, touching on what was adapted and why it was adapted.
Prosci is a research company at heart and is committed to continually searching for better ways to manage the people side of change. The methodology refresh was initiated in a structured, repeatable way. It is designed to enable change management practitioners to be more successful with an easy to use, responsive, and elegantly simple change management methodology.
The key adaptions can be seen in the Prosci 3-Phase Process, the PCT model and assessment, the Risk assessment, the ADKAR blueprint, the core change management plans, and the role roster.
Prosci’s target for the methodology refresh was improving the entire Prosci solution Portfolio and, most importantly, practitioner success. If you are interested in learning more about the Prosci Methodology refresh, then check out our 1-Day workshop for more information.
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Home » Change Management » The 3 fundamental change management methodologies you need to know
The 3 fundamental change management methodologies you need to know
Change management methodologies provide a framework to efficiently implement organizational change . Experienced change practitioners produce change management methodologies based on common patterns in change projects.
A change management methodology helps you deliver several bottom-line benefits of change projects. That could mean better project outcomes, decreased employee resistance, and shortened project timelines. So there are many good reasons for understanding these models before starting a change project.
This article will introduce the major components of change management models and examine three particular models in detail. We will:
- Carefully define the meaning of a change management methodologies;
- Introduce the ProSci, Kotter, and ACMP models;
- Suggest some key questions for how to choose your methodology.
Along the way, we will signpost further research and reading that can help you achieve a complete understanding.
What Are Change Management Methodologies?
Change management is the discipline dedicated to designing, managing, and leading organizational change. A change management methodology helps leaders prepare, implement, and evaluate a change’s impact on a company’s performance. The methodology provides a practical framework, or roadmap, which outlines a set of actions to follow.
The goals of these frameworks are often very similar:
- Define a vision, strategy, and plan
- Develop a communication strategy
- Allocate resources and create change teams
- Ensure that employees have the necessary knowledge and training
- Implement, manage, and lead the change program
- Reinforce change to ensure that the changes remain permanent
However, the biggest challenges in a change project will differ for every company. The challenges of change can depend on organizational structure; the industry; geographic location; culture; and much more. That’s why many change management methodologies have been created. Fortunately, this choice of methods based on change management research helps change leaders decide the best approach for their company.
Some change management models are based on strong leadership, others prioritize consensus among organizational staff, and some have special relevance for technologies.
- Kotter’s 8-Step Process for Leading Change
- Lewin’s Change Management Model
- The Lippit-Knoster model for complex change
- Bridges’ Transition Model
- McKinsey 7 Ss Model for organizational transformation
- ITIL change management methods
- Satir Change Model
- Agile change management
We won’t discuss these change management models in this article – after all, we’ve got special posts on many of them (just click the links in the list!). But to get some insight into how different models shape up, we will compare three prominent methods in the next section.
A Comparison of 3 Change Management Methodologies
This section will dive deeper into the important change management models. From all the valuable models on our list, we will look at:
- Prosci’s model for the “human element” of change;
- Kotter’s 8-step model;
- ACMP’s Standard for change management.
You might find that one of these models is perfect for your current organizational challenges, But even if they don’t fit, you can learn a great deal by studying them. A good change practitioner will always adapt their models to achieve successful change.
Prosci’s Methodology
Prosci’s change method takes two approaches: individual change and organizational change.
The ADKAR framework, their roadmap for implementing change at the individual level, consists of five stages:
- Create awareness of the need for change
- Cultivate a desire to support the change
- Provide teams with the knowledge of how to change
- Ensure employees can demonstrate the ability to implement required skills and behaviors
- Reinforce the change to ensure that it sticks
This model is used in conjunction with a three-phase process for organizational change:
- Prepare for change by defining the change management strategy, preparing the change management team, and developing the sponsorship model
- Manage change by developing change management plans, then taking action and implementing those plans
- Reinforce change by collecting and analyzing feedback, identifying gaps, managing resistance, implementing corrective actions, and celebrating successes.
For Prosci, linking individual and organizational change management distinguishes their method from other methodologies.
Kotter’s 8-Step Model
Dr. John Kotter’s 8-step model for change presents a straightforward process that managers and business leaders can follow when pursuing a new change initiative.
These steps include:
- Create a sense of urgency
- Build a guiding coalition
- Form a strategic vision and initiatives
- Enlist a volunteer army
- Enable action by removing barriers
- Generate short-term wins
- Sustain acceleration
- Institute change
This model aligns with Prosci’s ADKAR model in many respects since it emphasizes the need for guiding and engaging employees.
However, it also includes elements that focus on the organizational side of change, such as forming a strategy.
ACMP’s Standard for Change Management
ACMP’s Standard for Change Management is a comprehensive and detailed methodology developed by the Association of Change Management Professionals.
Their process includes five steps:
- Evaluate change impact and organizational readiness
- Formulate the change management strategy
- Develop the change management plan
- Execute the change management plan
- Complete the change management effort
These five steps, in turn, consist of many other smaller steps and activities that overlap with many of the activities covered in the two methods outlined above.
Professionals wishing to learn and apply this system can obtain training through qualified providers or certification from the ACMP directly.
Choosing the Right Change Management Methodology
Selecting the right change management methodology is a pivotal decision with profound implications for an organization. The methods chosen shape how successfully and smoothly the change initiative is embraced by stakeholders. It directly influences whether goals are met or missed, resources are optimally utilized or wasted, and resistance is minimized or amplified.
To help you in your journey for a change methodology, here’s a long list of key questions you can explore:
- What is the nature of the change?
- What are the organizational goals and objectives?
- What is the corporate culture?
- What is the level of stakeholder involvement?
- What is the timeline for implementation?
- What resources are available?
- What is the level of risk tolerance?
- What communication and engagement strategies are needed?
- Is agile or iterative implementation desired?
- Is individual behavior change important?
- What does success look like?
- Is external expertise required?
More deeply, you will need to think about who will manage the change, what those managers’ preferences are, and how much experience they have in change management. Likewise, you’ll need to consider the preferences of staff and leaders and the alignment between a change methodology and the organization’s culture.
Although the popular change models have a track record of success, positive outcomes will often depend on the capabilities of a change leader. For instance, a change practitioner who has experience in one method will be better prepared to use that method in a new environment. They can understand the strengths of the model (and its weaknesses) and better prepare for organizational success.
At the start of their change journey, companies should allow some time to dig deeper into the various methodologies. Building an enterprise change management function is no mean feat – so listen to the guidance of people who’ve gone before.
Change Management Methodologies: What Next?
To wrap up this article, let’s finish with a simple thought.
A change management method is a “must-have” for organizational change. Organizations use a comprehensive change management process – because they know it is a very useful and effective way to get change right. It helps you to avoid poor planning and to get a positive response from stakeholders.
Of course, it’s hard to make decisions about the right method. There are many examples from the history of change management (as we have seen).
Remember that change management, like any organizational discipline, is always developing. For example, even though McKinsey has a very popular change management model (the 7 Ss), they continually show that successful transformations must adapt to the present moment.
To learn more, keep up with the latest research, read our change management articles , and think carefully about your strategic vision.
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Refresh your Change Management tool kit (1/6)! New PROSCI’s 3-Phase Process, an intro.
02 December 2021 What’s new on the Change Management front? Keep on reading to catch up with the latest updates on PROSCI’s methodology. In this post, we go back to the basics, with a twist! Article written by Renaud de Lombaert
Familiar with PROSCI’s methods? Here is an opportunity to dust off your knowledge and incorporate developments into your daily practice. New to the discipline of Change Management? Here is everything you need to know about the global leader in CM solutions. Get off to a great start or refresh your tool kit with our brand-new series of posts. This is the closest thing to a refresher course , and it’s packed with infographics you don’t want to miss!
In this first instalment, we give you a taste of what’s to come before we go back to the basics … with a twist.
Why the update and what to expect.
If change wasn’t hard enough, crisis-led changes pose massive human challenges. Those are unprecedented times. In a world marked by escalating levels of uncertainty, we need flexible and easy-to-use tools to deal with the people side of change. That is exactly what PROSCI is striving for with this 2021 update. So, what’s new in this release?
Backed by 20 years of research into what makes change successful (or less so), the core methodological assumptions remain. PROSCI brings you “ structured, adaptable, repeatable strategies and plans aimed at driving adoption and usage”. But they have been expanded and repackaged in a format that makes them more actionable, hence more effective.
Beyond the PROSCI’s 3 Phase-process described in this post, expect revisions on 5 related aspects and tools:
- The Prosci Change Triangle Model (PCT) has been augmented with a success assessment test.
- For the sake of completeness, the Risk Assessment now integrates and reflects a broader range of risks.
- The foundational ADKAR model that describes individual transitions through a sequence of 5 steps ( A wareness, D esire, K nowledge, A bility, R einforcement) becomes ADKAR Blueprint to power and guide Change Management plans.
- Change Management plans designed by PROSCI are more flexible to use and combine (number, depth, type).
- Change Management roles can be quickly identified and easily activated thanks to the introduction of a role roster.
If you are a Certified Practitioner ready to roll out PROSCI's game-changing new tools, consider attending our one-day Methodology Application Program.
The 3-phase process, simplified.
Any “change” is in fact the result of a 3-step process. You go from a current state to a future state, through a transition phase. Driving the change also occurs in 3 stages:
- prepare approach , defining the gap between the present state and the future you envision
- manage change , implementing CM plans to help people go through their own individual transitions
- sustain outcomes , to avoid slipping back into old habits and mitigate late-stage resistance
Change doesn’t rest exclusively on CM experts’ shoulders, and it happens one person at a time. Lacklustre communication is the enemy. PROSCI’s revised 3 phase-process (Infographics © PROSCI) involves asking plain language questions accessible to non-practitioners to help set and break down goals into activities. Each of the 3 phases is attached to a single deliverable.
Keep in mind that what follows is an intro designed to help you get the big picture – change process and rationale – before we dive into each part and detailed plans in later instalments.
Phase 1. Prepare approach.
The overarching goal of phase 1 is to “position the change for success” by “developing a customised and comprehensive approach to it”. What you should end up with is a robust Change Management strategy . Let’s do a walk-through of the questions and tasks involved.
- Define Success: What are we trying to achieve?
In short, what are we talking about? Is the change about implementing a new ERP, or perhaps new hybrid working routines? Name it first, then define what success should like. How do operational processes or the workplace look after the change? Describe the future state in vivid terms to help people align with your vision and own the change.
- Define Impact : Who has to do their jobs differently and how?
Identify all impacted groups , the ones expected to be using the new software or working remotely. Evaluate how much of an impact the change will have on the way they perform their daily tasks. How and in which ways are each of these groups specific ? Define adoption and usage (proficiency).
- Define Approach : What will it take to achieve success?
What are the risks associated with the change? Addressing this aspect is every bit as important and should help you craft a customised change management approach. Expect resistance to emerge, so list tactics to deal with them upfront. Identify CM resources / structures (CM team as a stand-alone unit or merged with PM, HR, …) and key roles to be activated (sponsors, managers, …). Once this is done, align the roadmap with the time line of the project.
Phase 2. Manage change.
Prepare for action and execute. The purpose of Phase 2 is to drive “adoption and usage by creating, implementing and adapting plans that will help people operate their individual transition”. The aggregation of these plans and actions is your Master Change Management Plan .
- Plan and Act : What will we do to prepare, equip and support people?
Structure the change process with the ADKAR Blueprint and produce Change Management plans accordingly to ensure steady progress and people ownership. Most important plans include the Sponsor Plan and Communications Plan. Check out our ADKAR Blueprint intro for a heads-up. Make sure that CM keyplayers are well-equipped and ready to step into their role , either to promote the change (sponsors and influencers), cascade the change (managers) or implement new working routines or processes on the frontline (employees).
- Track Performance : How are we doing?
You cannot course-correct, adapt or address resistance if you have no solid monitoring structure. This is core to any Change Management system. Establish a tracking calendar to measure progress and how far along the ADKAR journey people really are. This is also a great time to take stock of what goes well , understand why, what opportunities this creates and how to keep improving .
- Adapt Actions : What adjustments do we have to make?
Be ready to pivot as things unfold. This is especially the case when working in an Agile environment. In Phase 2, expect to spend a good amount of time on adjusting your strategy and implementing adaptive actions .
Phase 3. Sustain Outcomes.
Measure outcomes and reinforce. Phase 3 is about “making sure the change is adopted and the organisation is committed to doing what is needed to sustain the change.” This is the key to long-term success.
- Review Performance : Now, where are we? Are we done yet?
Evaluate ADKAR results. Most importantly, get feedback to leverage lessons learned and pass along knowledge. Beware that the closeout of Change Management cannot happen without a plan to reinforce the change.
- Activate Sustainment: What do we need to ensure the change sticks?
Change can be short-lived if nothing is done beyond “formal implementation”. Identify the gaps and goals . Design reinforcement actions , schedule activities and get the right people in the game, always making sure they are prepared for the task ( role activation ). Treat sustainment as an extension of Phase 2.
- Transfer Ownership : Who will assume ownership and sustain outcomes?
Transfer knowledge and assets to whoever is involved in the initiative and impacted in the long run. Last but not least, do celebrate successes. This is a big part of making the change come alive … and stay alive.
Stay tuned to learn more about PROSCI’s updated methodology in upcoming blogs. Eager to dive into it right now? Discover our Methodology Application program for PROSCI Certified Practitioners.
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