How do you mitigate risks during organizational change? (2024)

To effectively mitigate risks during organizational change, begin by pinpointing potential hazards. Thorough risk identification allows for the strategic development of action plans that address these challenges head-on, ensuring a smoother transition and bolstering the organization’s resilience.

Identifying risks is essential; however, it is equally imperative to maintain a balance when implementing changes. Achieving equilibrium in planned changes results in what is termed "Managed Risk," wherein you are, to a certain extent, shielded from potential risks. This equilibrium allows for proactive responses to emerging risks, as the planned changes are well-balanced, mitigating risks in one aspect while maintaining stability in another. For instance, a comprehensive organizational restructuring can significantly impact business operations, affecting management, customers, products, and more. Yet, by aligning these changes with a strategic short/long-term transformation outlook, the risk factor becomes more manageable.

Mitigating risk during organizational change is a multi-pronged approach. You need to factor in stakeholders and buy-in and map out the more significant potential issues at the beginning with an action plan of how to circumvent or prevent those issues, which can go a long way in engaging the stakeholders and achieving that buy-in. Change managers can identify and communicate the potential larger problems within the context that additional minor (or completely different) issues may arise. When that happens, feedback will be needed to be agile. It lessens resistance if everyone feels they are working toward a common goal.

Part of both identification and mitigation is also prevention. Being able to think three steps ahead is essential here. How does the project scale? What are the areas to look out for? How to make sure everything is rock solid and fool proof? What are the unknown unknowns?

As a professional who has experienced many organizational changes during my career due to sales and company mergers, I can say that one of the most important things is to maintain communication with the team. There is nothing worse than uncertainty and hearing from people outside the company about the changes that are coming.It is advisable to communicate from time to time about progress, even when there is no progress (that is also appreciated). It is also important to listen to them and know what worries them.Maintaining communication with the team will help them calm anxiety and focus on their work and achieving objectives.

Managing risks in a company is akin to tightrope walking. Recognize the risks, but don't let them deter you. Instead, prepare a safety net. Smart planning is key.Like planning a road trip, you don't impulsively start; you plan your route and prepare for contingencies. This preparation allows you to enjoy the journey with less worry.Open discussions about risks are crucial. Sharing your concerns with friends can lead to new solutions or support in tough times.Ultimately, it's about balancing excitement with stability. It's not about avoiding risks, but about understanding and managing them wisely. Like a tightrope walker, move forward with a plan, keeping aware of potential pitfalls.

When implementing change, I don't just rely on the leadership team. I also involve key influencers within the organization who may not have formal leadership titles but significantly impact company culture. Their power lies in their ability to shape change acceptance through their influence, intelligence, networking abilities, and respect within the company. Involving these informal influencers early in the change process builds confidence across the organization through trusted voices and lays a solid foundation for the change initiative.

Resistance is usually a form of asking what is in it for me? Change is painful for individuals and so they want something in return. If you can clearly communicate what that is, in a way that addresses their individual needs, then resistance will usually melt away. Continued resistance is usually met only when leaders have not been able to identify or address the individual needs or viewpoints by the stakeholder concerned. Some of these may be personal and have nothing to do with the workplace. An honest conversation with probing questions and an open attitude will often bring them to light.

Resiliently managing resistance to change requires proactive and constructive approaches. Acknowledge the emotions of reluctant, fearful, or hostile individuals or groups and address their concerns. Involve them in the change process to foster ownership and buy-in. Recognise and reward early adopters and change champions to encourage positive momentum. Cultivate a collaborative culture built on trust and commitment, where diverse perspectives are valued. By embracing resistance as an opportunity for growth and innovation, leaders can navigate change effectively and drive sustainable organisational transformation.

Mitigating risks during organizational change demands readiness to pivot despite meticulous planning. Plans seldom unfold flawlessly, requiring agile responses to unforeseen challenges. Embrace adaptability—constantly learning and adjusting strategies to navigate change effectively.

Eisenhower said, "Planning is invaluable, but plans are worthless." And that's the guy who pulled off D-Day.Keep a limber mind and remember that nothing is sacred. Expect to be wrong about some of your assumptions and be willing to own that in front of the team.Your job as a leader is to see as far and clearly as possible. If something isn't working, make a change. Then make another. Unabashedly own your failures and take pressure off the team whenever you can. Finally, share your thinking every step of the way.

Creativity is also useful here when discussing flexibility and adaptability. What is needed in this instance? How does this solution look in the long run? What are the ripple effects of different outcomes? Where can further risk be prevented? What is the resistance right now and how can we overcome it?

Pro Tip: Make sure you have very detailed, hour-by-hour communication plan for the D Day:Who talks to whom, how & where, using what materials, what are expected outcomes. There is no space for improvisation in case of major organizational change. Layer by layer communication is the most common solution but you need to act fast due to corridor gossips and info leakage risks.

Consider introducing a neutral change facilitator. I find that conflicts arise when change is solely led by top executives; especially inter-departmental conflicts as different teams vie for their views to prevail, regardless of the overall benefit. Bringing in an unbiased third party can help mitigate internal office politics and maintain focus on the broader objectives of the change.

In 2008 when I joined Wyeth's Regulatory team, I never thought about all the changes that would happen from that moment on. Barely a year after being there, Pfizer bought the company. While at Pfizer I was in the Nutritional Division, which was later sold to Nestle in 2012, where I worked until 2013 since the Nutritional Division was sold again to another company. Anyway, I accidentally went through four companies in just 5 years. Despite the many moments of uncertainty, each process was a learning experience for me and helped me develop resilience and focus on doing my job.