Why Change is Critical for Business Survival
Change isn’t just inevitable—it’s essential for SMEs. Yet, for many organisations, effective change management is one of the hardest things to do. The challenge isn’t about strategy or systems; it’s about people. Businesses don’t make decisions—people do. And people, by nature, resist change.
Our 2024 white paper Kicking the Status Quo – Locking in Change highlights a critical truth: maintaining the status quo is a risky business. Our recent study of 910 Australasian businesses found that 1 in 5 businesses constantly struggle with implementing change, and 1 in 4 constantly battle with employees’ willingness to adapt to change. While change is imperative for a business, creating and embedding it is fundamentally a people issue.
Why Businesses Struggle with Change
Resistance to change stems from psychological, social, and practical factors:
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Psychological barriers: Fear of the unknown, job security concerns, and anxiety about adapting to new systems can create a deep-seated reluctance to embrace change.
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Social disruptions: Changes in processes or structures can disrupt workplace relationships and hierarchies, causing discomfort and pushback from employees.
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Practical challenges: Learning new skills and adapting to new workflows takes time and effort, which many employees may see as an added burden rather than an opportunity.
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Even though these barriers are real, high-performing businesses manage change 29% more effectively than their low-performing counterparts. They achieve this by focusing on structured, continuous improvement rather than one-off transformations.
The High-Performance Advantage: How Leading Businesses Drive Change
What separates businesses that successfully embed change from those that don’t? The research identifies key differentiators:
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Effective Communication & Transparency
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High performers actively communicate their business’s performance and future direction, fostering a sense of trust and alignment.
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Companies that fail at change often lack clear messaging, leading to uncertainty and resistance among employees.
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Strategic Planning and Decision-Making
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High-performing organisations have efficient planning and decision-making processes, allowing them to navigate change effectively.
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Without structured plans, change efforts often lose momentum and dissolve into disorganised initiatives.
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Employee Engagement and Trust
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Employees in high-performing companies are more likely to volunteer ideas and improvements, fostering a culture of continuous innovation.
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Trust is crucial in change management—employees who trust leadership are more willing to embrace change.
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Kotters 8-Step Process to Locking in Change:
1. Establish a Sense of Urgency
More than 50% of change initiatives fail in the first phase because organisations fail to create a compelling case for change.
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Key Action: Examine market and competitive realities, identify crises or opportunities, and communicate why maintaining the status quo is more dangerous than the unknown.
2. Build a Powerful Stakeholder Group
Change can’t be driven by one person alone. Successful transformation requires a coalition of influential leaders.
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Key Action: Assemble a group with the authority and expertise to drive change, ensuring representation across different business functions.
3. Develop a Clear and Compelling Vision
A strong vision provides direction and motivation. Without it, change efforts become fragmented.
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Key Action: Create a concise vision that outlines the desired future state and the strategy to achieve it.
4. Communicate the Vision Effectively
People won’t commit to change unless they believe in its benefits. Communication must go beyond emails and presentations.
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Key Action: Use multiple communication channels to share the vision and lead by example.
5. Empower Employees to Act
Employees need the autonomy to contribute to change without unnecessary barriers.
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Key Action: Remove obstacles that undermine the vision and encourage innovative ideas.
6. Create Short-Term Wins
Change takes time, but people need to see progress quickly.
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Key Action: Identify early success metrics and celebrate small wins to build momentum.
7. Consolidate Gains and Drive More Change
Declaring victory too soon can stall progress.
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Key Action: Use early successes to implement further changes and address deeper structural issues.
8. Embed Change into Organisational Culture
True transformation happens when new behaviours become the norm.
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Key Action: Align leadership development and succession planning with the new approach to ensure lasting change.
Is Your Business Ready for Change?
The data is clear—high-performing businesses don’t just react to change; they lead it. They create a culture where change is expected, embraced, and sustained. The question isn’t whether your business needs to change but whether it is prepared to do so effectively.
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Download the complete white paper Kicking the Status Quo- Locking in Change to explore these strategies in greater depth and unlock the full roadmap to successful change.
By committing to structured change, you position your business to survive and thrive in an ever-evolving marketplace. Will you take the first step?
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Is HR consultancy a viable career choice?A study in 2016 by the Australian Human Resources Institute said that out of 437 HR professionals, about 85% were satisfied or happy with their work. It is true that HR is often at the core of frustrating conflicts in a business and there are a number of challenges- like with all other businesses and departments. ​ However, with the increasing number of small to medium-sized businesses in Australia and a growing number of people who prefer to use outsourced consultancy services as opposed to hiring full-time staff, HR consultancy is a very promising career choice.
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Can you open a consulting firm without HR experience?Getting into HR without prior experience or education is common and many people discover that they particularly enjoy it once they are in the field. However, opening a consulting firm without prior experience may be a bit tricky and risky. ​ First of all, your clients may want to see some certifications or endorsements of your experience before they hire your firm. ​ Additionally, it is important to know how to grow a network and manage different aspects of a business before opening one. Since many issues in HR can get technical and frustrating, it is advisable for you to have some sort of training before you start working as a consultant and providing services.
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Is a strong online presence essential to running an HR consulting business?A strong online presence is highly advisable when running an HR consulting business because it is the fastest and most effective way of growing and leveraging your network. You can have thousands of contacts and educate your network about the services you offer via social media. ​ Social media plays an important role in presenting your message, disseminating it to a large audience, and helping you connect with an extended network. ​ Moreover, if an HR business is not on social media, clients may have a hard time trusting the business and communicating with the business. It is sometimes said that if you aren't on social media, you simply don't exist. ​ Therefore all HR consulting companies should work hard to develop a strong and engaging online presence and continue to interact with their target audience virtually.