Managing Organizational Change for Financial Services

by EZDynamic |
Dec 8, 2021 |
Organizational Change

Managing Organizational Change for Financial Services

by | Dec 8, 2021

Up until recently, Change Management wasn’t a very oft used initiative undertaken by organisations, unless it became an urgent need. However, in recent times, Consultants are being called upon more frequently to manage organizational change. The widespread disruptions brought on by the Covid-19 pandemic in 2020 has, forever, reshaped the financial sector and forced companies to demonstrate agility in their adoption of change management processes. The way the world works has seen a dramatic shift with WFH/remote work requirements and limited in-person customer interactions. In turn, this has led organizations to rapidly shift to digitization and embrace ESG* considerations, as also mandated regulatory, public policy and security systems changes. This has been most felt in the Financial Sector, given the rapid move to work & transact online.

Understandably, in 2021, the financial sector has prioritised Change Management over significant operational changes and the evolving areas of focus are:

  • Managing new technology innovation and implementation, including cloud computing and artificial intelligence.
  • New Products & Services for an altered marketplace
  • Changes in Organization or Functional Strategy
  • Deploying Emergency Stimulus initiatives
  • Operating conditions in a Covid-19 & post Covid-19 world

The Kinds of Organizational Change

Organizational Change refers to actions that a business takes to change or adjust a significant component of its organization. This may include company culture, internal processes, underlying technology or infrastructure, corporate hierarchy, or other critical aspects. Change management is the process of guiding organizational change, from the earliest stages of conception and preparation, through implementation and, finally, to resolution.

Change can be:

  • Adaptive changes – gradual and iterative changes that an organization undertakes to evolve its products, processes, workflows, and strategies over time.
  • Transformational changes – larger in scale and scope and signify a dramatic shift and sometimes, a departure from the status quo.
  • Pendulum changes – swings from one extreme to the other extreme. For example, moving from a 100% in-office work environment to a 100% remote team.

Change Management Principles

Before putting in place a Change Management Plan, our experience has revealed 5 key change management principles to prepare a workplace for change:

  1. Create a sense of urgency: Rally support for a change initiative and present the change as an urgent and exciting opportunity.
  2. Plan a roll-out in phases: Breaking a change initiative into phases helps to avoid overwhelming the organization & makes implementation more manageable.
  3. Address resistance, and communicate the “what’s in it for me?” (WIIFM): By explaining the WIIFM for each stakeholder, an organization can manage resistance and may actually build support.
  4. Plan a variety of training methods: Not everyone learns in the same way and it may be useful to provide guidance through a variety of training formats.
  5. Establish change leaders: Without internal buy-in, a change initiative is over before it even begins. Change leaders help motivate teams to push forward with the transformation.

Putting together a well thought through change management plan is the next step and ensures an effective rollout, a smooth transition and support through the change journey. Approximately 70% of change initiatives fail due to improper implementation, lack of communication & managing stakeholder expectations. Partnering with a Consultancy that specializes in Change Management could ensure an organization is in the winning 30%.

EZDynamic is a boutique management consulting firm, with an entrepreneurial spirit that is driven by results. We provide client-centric solutions for Financial Services firms, helping them achieve their business, strategic, and technology goals. We specialize in Change Management – we can guide you in planning, leading, and managing business transformation, be it firm-wide or at a functional level that results in lasting transformation.

* ESG = Environment, Social and Governance

Schedule a call to learn how we can support your organization

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