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A Year of Change

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Published Date: 23rd December 2024

Change and transformation are a growing priority and concern for many organisations here in New Zealand. Both employers and leadership teams are grappling with multiple internal and external pressures, making change management a critical issue for organisations and individuals alike. This challenge was the subject of Beyond Recruitment’s recent breakfast event, featuring guest speaker Megan Jenkins (Organisational Psychologist).

With over 30 senior leaders in attendance, we had an insightful discussion on the forces driving organisational change and the challenges of resistance and fatigue. Led by Megan, we explored practical strategies for implementing successful change in 2025, drawing on current best practices.

What is Driving Change in Organisations?

During the discussion forum, Megan highlighted several key drivers of change that are shaping the future of New Zealand organisations and prompting leaders to reassess their strategic priorities. These include the ongoing wave of digital transformation (particularly the rise of generative artificial intelligence) alongside growing concerns around cybersecurity and privacy to protect organisations’ data. Businesses are also juggling the optimisation of hybrid working models with improving customer and employee experiences. Underlying all of this is the need for greater innovation and adaptability, as organisations need to remain competitive and resilient in today’s economy as well as jobs shaping for the future work environment.

How Organisations are Tackling Change Management

Currently, organisations respond to change in two distinct ways, Megan says. On the one hand, forward-thinking organisations are embedding organisational change management (OCM) as a core practice, with the backing of their senior leadership. They’re also hiring qualified change management professionals to build internal expertise. These organisations are incorporating OCM capabilities into their leadership scorecards and facilitating workshops on change leadership and resilience.

However, during the economic downturn, some organisations have taken the opposite approach – either scaling back or entirely dissolving their OCM functions. Interestingly, Megan notes that many of these organisations find themselves reinvesting in OCM years later once they recognise it as essential for managing successful change in the long run.

Change Resistance and Fatigue Is Rising

Change resistance and fatigue have become significant challenges for organisations, driven by a combination of societal, organisational and individual factors, says Megan.

In the past few years, anxiety stemming from post-pandemic fatigue and the economic downturn has permeated organisations. This unease is further heightened by concerns about job security and increasing workloads – everyone having to “do more with less”. Included in the mix is the rapid rise of generative AI, which is leaving some employees feeling unprepared to adapt their skill sets.

At the organisational level, resistance to change often stems from employees feeling uninformed, unprepared, or even disconnected from their organisation’s rationale for implementing change, Megan says.

These feelings are especially prevalent in organisations that have ‘low change management maturity’, where internal stakeholder engagement and communication are poor and there is insufficient planning or leadership around change initiatives.

Organisational history plays a role, too. When employees have previously experienced organisational change that was poorly executed, misaligned, or had conflicting changes, they’re more likely to be less trusting and more sceptical.

At the individual level, Megan says that the personality traits of employees can also contribute to change resistance. People who are particularly conscientious, prone to worry or anxiety, or who lack confidence can further elevate resistance to organisational change.

Managing Change Successfully

So, how can leaders and organisations successfully implement change without alienating employees or walking into other common pitfalls? Megan says communication is key.

Managing change requires clear communication of the "why" behind the change. Provide regular updates and opportunities for employees to feel involved and prepared.

Without these measures, organisations face multiple risks, including employee dissatisfaction resistance and misaligned strategies.

Improving Change Capabilities & Agility

  • Active, visible sponsorship from leadership

  • Effective role modelling of change

  • Embed robust organisation delivery systems, including transparency of dependencies and risk

  • Regular and relevant communication with employees

  • Involve affected teams early in the process, for feedback and co-design opportunities

  • Help employees build resilience and an adaptive mindset

  • Track, monitor and improve

What Change Management Maturity Looks Like

Communication practices are essential, but behind every successful change management initiative is thoughtful leadership. Megan has provided us with further insight into the best practices of organisations that are managing change effectively.

Organisations with higher levels of change maturity regard change management as a strategic competency, she says. They prioritise enabling leaders to lead through change and helping employees build their change resiliency.

What does that look like in practice? Megan says that organisations doing it successfully have established a formal OCM practice internally. This involves weaving OCM into the delivery function of the organisation and establishing controls to assess change impact, risk and business readiness alongside the delivery rollout of the change.

OCM is made possible with the backing of senior leaders and embedding change managers into cross-functional teams to ensure impacts are carefully considered and well-prepared. Change Managers must be able to operate strategically, with a seat at the leadership table, so they can anticipate challenges and support a smooth rollout which, ultimately, is leader-led.

Defining clear success measures is critical for tracking progress so teams can adjust change activities where necessary, Megan adds.

Looking Ahead

As we look forward to 2025, off the back of a difficult few years (post-pandemic and commercially), businesses are feeling the pressure to perform, build a positive culture and retain talent.

Exhaustion has set in for many, exacerbated by downsizing, and is fuelling reticence about change. There will likely be continued pressure on businesses, along with heightened emotions and fatigue. Meanwhile, customer and employee expectations will increase. AI will continue to reshape work. By the World Economic Forum’s 2023 estimate, almost a quarter of jobs are expected to change within the next five years.

Change capability and maturity will become increasingly critical for leaders in the years ahead, says Megan. On the ground, that means focusing more on transferrable skills and upskilling in new technologies – a priority for both leaders and employees. Further, we can expect a need to change our ways of working, such as processes, mindsets and behaviours.

Organisations that do this well will be more adaptive, operate more strategically, and embed quicker, more successful change, she adds.

New Zealand Recruitment Support and Change Expertise

Preparing your organisation for ongoing change is a necessity. Engaging a New Zealand recruitment partner with proven HR, Change and Transformation expertise can provide you with the resources to fulfil these goals and build a thriving business.

At Beyond Recruitment, we provide employers with the right resources to lead positive change and strengthen their organisation’s change capabilities. If you’re hiring for an HR, Change, or Transformation role or need advice on enhancing your change management strategy, get in touch with Kris Attewell at 021 435712 or by email at kris.attewell@beyond.co.nz or contact the Beyond Recruitment team. We’re here to help you.

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