Global Business Services (GBS) organizations are at the forefront of driving transformation and efficiency across enterprises. However, they often fall short in one critical aspect: change management. Learn why GBS leaders must begin implementing change management strategies today, starting with a comprehensive 12-step program.
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Change is inherent in GBS, affecting processes, technology, relationships, and many other aspects. To succeed, GBS organizations must focus on helping stakeholders understand and embrace the change that the GBS model continually creates.
Everest Group research reveals that GBS leaders recognize the pivotal role of change management, with 75% of GBS organizations viewing change management as critical. Unfortunately, many struggle to manage change effectively or just don’t know how to do it well, leading to significant, long-term challenges.
To get to the bottom of why GBS organizations struggle to master change management, Everest Group surveyed 58 prominent GBS organizations worldwide. This important research reveals key insights into the strategic and operational aspects of current GBS change management practices. The findings also unlock a 12-step guide that will help GBS leaders through the pitfalls and roadblocks many currently face. Let’s explore this further.
The 12-step program covers vital aspects as change management adoption, work scope, internal alignment, organizational models, staffing and talent strategies, measurement approaches, and resource allocation to enhance change management competency within GBS. Below are the highlights of the key steps:
Step 1: Make systemic change management part of everything GBS does
Recognize that change is not a one-off event but a continuous process in GBS. Every team member should be trained in change management. Change must become a core capability that is integrated from the outset of every initiative.
Step 2: Communicate the importance of change management from the top
Emphasize the significance of change management by sending a GBS directive from high leadership levels. This ensures that change is recognized as a critical driver of GBS success and not treated as a temporary solution for individual projects that lack methodologies or measurements to take its ongoing pulse.
Step 3: Rethink the scope of change management
Expand change management to encompass communication, branding, business engagement, and stakeholder management as well as user and business support. A comprehensive approach can create a more significant impact for the enterprise.
Step 4: Understand change management is more than communication alone
While communication is essential, it should complement a well-thought-out change management strategy. By combining effective communication and change management, organizations can achieve maximum impact from their efforts.
Step 5: Align the GBS team with the imperative
Aligning the internal team with the need for change management is crucial. Emphasize that successful GBS change management is a team effort. Cross-training and rotating team members through the change function can help organizations develop a change-ready workforce and resolve resource challenges.
Step 6: Establish the right organizational structure for change management
Design a suitable organizational structure with fixed and variable staffing, dedicated full-time equivalents (FTEs) for methodology development, and ongoing change monitoring within the enterprise. Organization models that utilize interim workers, consultants, and gig employees may be beneficial in certain situations, but they don’t result in a sustainable, valuable change management organization in the long run.
Step 7: Acquire the right talent for change management
Ensure the right talent for change management. Avoid hiring resources who lack strong change management capabilities. While junior program managers may be suitable for getting the job done with strong direction from the top, they rarely have solid change management capability or the experience to provide leadership or best practice guidance. Consider GBS rotations or cross-training to build an effective change management team and to break down internal change management resistance.
Step 8: Promote staff development and retention by putting GBS career paths in place
Establish clear career paths for change managers within GBS and across the enterprise. This will encourage talented individuals to stay with the organization and contribute to the long-term change management success.
Step 9: Compensate GBS leaders appropriately
Recognize the value of experienced change managers and pay them competitively. Acknowledge that attracting and retaining top talent is critical for effective change management.
Step 10: Develop a deployable methodology
Create and consistently deploy an actionable methodology for change management. Focus on creating frameworks and playbooks tailored to the enterprise’s context and ensure the entire GBS team is appropriately trained on the approach.
Step 11: Establish measurable change management metrics
Move beyond measuring happiness and focus on metrics that reflect the true impact of change management, such as scope expansion, avoiding rework, and meeting milestones. This will provide a deeper understanding of the benefits derived from change management.
Step 12: Rethink funding strategies
Invest strategically in change management, considering its direct impact on the return on investment (ROI). Avoid relying solely on communications and inexperienced resources due to budget constraints. Recognize that skilled change management leaders are worth their cost.
To learn more and access the complete comprehensive steps, download our report, State of Play in GBS Change Management.
Adopt these change management strategies starting today
GBS organizations play a pivotal role in bringing value to modern enterprises – this part has been mastered – but success hinges on effective change management. Our study found that a significant number, one-third of respondents, do not have an organizational change management capability.
Neglecting change management can lead to attrition, rework, lost opportunities, and a cycle that can be difficult to break. Therefore, we recommend GBS leaders reflect on and potentially change the way they introduce, carry out, and measure enterprise change.
To better understand how successful change management is implemented, we recently hosted a webinar with Victoria Roehrich, Senior Director of Strategy, Transformation, and Change Management at PepsiCo. In the webinar, we discuss change management challenges and share best practices and examples of impactful initiatives. Hear PepsiCo’s change management evolution story here: Why GBS Change Management is the Key to Added Value and ROI.
To learn more about effective GBS change management strategies, reach out to Rohitashwa Aggarwal, [email protected], or Arushi Gupta, [email protected]
