Checking organizational readiness for a new change project is vital to success. By extension, the constant nature of change in most industries requires organizational change capability (OCC). That is the conclusion of two independent reviews of dozens of studies on this trait.
OCC is the “routine ability of an organization… to deliberately move from a present state to the desired future state (change) in the face of continuous environmental change,” the Indonesian research team of Elisabeth Supriharyanti and Badri Munir Sukoco explains. A Canadian scientist, Véra-Line Montreuil, adds an emphasis on actions the organization routinely takes to manage change efficiently.
The Indonesian team decided OCC breaks into four factors (citations removed):
- Human capability—“capacity and commitment of employees to formulate and implement a stratified set of specific change initiatives”
- Organization learning capability—“capability to absorb and transform new knowledge and apply it during the change process”
- Change process capability—“the capability of the organization (organizational leader) to build structure, systems and processes, formal organizational processes, or principles of change, in implementing change effectively”
- Change context capability—“an informal organizational culture… in the form of basic values possessed by organizational members… (that facilitate) organizational change to make it more efficient”
Regarding process capability, the researchers state that leaders play a critical role. Manager traits needed for OCC include, “Experience with change,” “Middle manager capacity,” trust, and resilience.
Montreuil found similar factors and defined how they mature in the organization:
- State 1, Not present—“Change management practices are fragmented or absent. Change is only managed when necessary, as a last resort, and is seen as a sporadic operational response, not a strategic one.”
- Stage 2, Change capacity—“The organization has acquired knowledge in change management and is able to recognize best practices. However, the organization struggles to put in place change strategies that meet the organization’s needs.”
- Stage 3, Change capability—“The organization has change management practices that are responsive, appropriate and introduced in a timely manner. Change is seen as a strategic response that aims not only to react to situations but also to act proactively to shape the environment.”
- Stage 4, Change competency—“The organization adopts change management practices with in-depth expertise. Change is part of the long-term organizational skill set.”
The evidence says developing OCC is worthwhile. Montreuil says, “All studies that looked at the… relationship come to the same conclusion, that is, change capability is positively related to organizational performance.”
The Indonesian team adds, “OCC is a capability that organizations urgently need to survive change.”
Sources:
- Montreuil, Véra-Line, ‘Organizational Change Capability: A Scoping Literature Review and Agenda for Future Research’, Management Decision, 61.5 (2023), pp. 1183–1206, doi:10.1108/MD-01-2022-0051
- Supriharyanti, Elisabeth, and Badri Munir Sukoco, ‘Organizational Change Capability: A Systematic Review and Future Research Directions’, Management Research Review, 46.1 (2023), pp. 46–81, doi:10.1108/MRR-01-2021-0039