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Embracing Change in B2B Transformation: From Chaos to Clarity
May 28, 2024 • 4 Minute Read • Mary Brown, Experience Strategy Lead, Commerce
B2B Online Chicago had a power-packed lineup and guest list of industry leaders with their fingers on the pulse of their respective fields. Amidst the exciting event, I found myself surrounded by over 900 attendees with leading B2B manufacturers and distributors from all corners of the digital commerce industry—you name it, they were there: food supply, industrial materials and equipment, electronics, health, medical equipment, automotive, and more.
I was on a mission to dive into this sea of industry leaders and figure out what keeps them tossing and turning at night as they navigate the pace of B2B business needs and skyrocketing customer demands.
Top themes gleaned from listening to attendees' questions, conversations, pain points, and priorities ranged from integrating AI and self-serve tools to steering their way through channel management and data governance.
But from the fervent presentations to the breakout conversations, one common thread was clear: change. But not just any change, the kind that comes with digital transformation.
And that raises the big question: How do these B2B manufacturers and distributors successfully navigate the changes associated with digital transformation efforts?
Here are some of the insights from experts and conversations:
- "Embracing change has become a crucial aspect of successful business operations, and effective change management is key to navigating digital transformation. Navigating that change unmanaged rarely goes smoothly." - Antonio Esperanza, Phillips
- "Change. Is. Hard. 20% of major change efforts fail completely. Only 12% meet their goals" - Bain & Company
- "Our biggest blocker to adopting new technologies are the sales reps. How do we help them adopt the changes so they realize they will make more money and work more efficiently with virtual selling options?"
- "How do I prioritize a multi-year roadmap and gain internal alignment?"
- "In order to have a competitive advantage, we have to learn how to transform faster, how to manage constant change, and stay aligned via a unified management team and shared goals."
- "Change is more than a project. Change does not have a beginning and an end – it's more like waves in the ocean – the key is to learn how to surf the waves to harness ongoing change." - Antonio Esperanza, Phillips
Many struggle to even put words to the need for change management, while others find themselves tied down by legacy business models and analog dynamics and siloes. However, they're still investing heavily in technology while sidelining change management investments that are inherent in transformation. It's often an afterthought, dismissed as the "fluffy stuff."
The reality for today's B2B businesses is that change is going to happen, but there are ways to manage it successfully.
Data shows that transformation programs are three times more likely to succeed with even a moderate level of change management effort and up to six times more likely to succeed when an organization fully embraces change management.
At a time when change isn't optional, the question remains: How can you embrace and manage it in stride? I have four tips for you as you start down your path.
Top 4 Tips for Effective Change Management
1. Budget for it at the Outset
Does your digital transformation include the resources (people/costs) and a plan for addressing the organizational and individual transformation necessary for the adoption of the technology?
2. Structure for it at the Organizational Level
A critical aspect of any successful change effort includes clarity on the initiative's aim or purpose in the form of a mission statement or charter. Next is clear and active sponsorship from leadership, optimally from the top (C-level). The role of this lead sponsor is to provide ongoing strategy and guidance to stakeholders and teams. And lastly, in addition to your technical project management team, have an identified change management lead responsible for enabling people to engage, adopt, and use the solutions to achieve the desired outcomes.
3. Measure and Track it at the Individual Level
"The achievements of an organization are the results of the combined effort of each individual." - Vince Lombardi
Change happens at the individual level and usually involves learning how to do things differently. So, ask yourself: What specific outcomes, at the individual level, need to be achieved, and what indicators (people KPIs) will best reflect progress towards those goals? Typically, these KPIs are sequential and include:
- Being aware of the changes and understanding the “what” and “why” of the changes
- Having the desire to support and engage in change
- Gaining the knowledge and ability to adopt and effect the change
- Sustaining and optimizing ongoing evolution
Managing and evaluating the achievement of these people's KPIs regularly throughout the initiative is critical to unlocking blockers at each step.
4. Continuously Communicate
Deliberate, active, and ongoing communication throughout the initiative, directly with employees and across silos, is essential. Whether in the form of a monthly town hall delivered by the executive sponsor, weekly email or Slack/Teams updates for more directly involved teams, or individual check-ins to track people's KPIs, allow for this essential task in your overall plan.
Embracing a Change Management Process
Are you looking to tackle ways to manage the inevitable change with your digital transformation?
Start with these four tips and know that it's not only about grappling with change; it's about mastering it—prioritizing and rallying the troops to march to the same beat.
At Verndale, our team leverages data-driven customer insights and industry expertise to tailor strategic plans for organizations' digital agendas. We help fuel clarity and internal alignment from the start.
Get in touch to learn how we can help you navigate digital transformation and change management.