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December 1, 2023

How to Drive Effective Change Management

Tarik Fathallah, an Organization Effectiveness Manager of Global Supply Chain at Esteée Lauder companies, shares why, in order to move companies, you must first move people.

Adopt a People-First Approach

According to Tarik Fathallah, an Organization Effectiveness Manager of Global Supply Chain at Esteé Lauder companies, the most important aspect of change management is people. In his words, "you have to move people to move companies." It is essential to articulate a clear vision that not only lays out the facts but also the aspirations and values of the organization. The call to action must be strong enough to inspire people to take the first step forward and move towards a future that is aligned with their values and ambitions.

"The only conclusion left is to design a people-centric approach if you want your transformation to succeed."

Tarik Fathallah -
Organization Effectiveness Manager of Global
Supply Chain at Esteé Lauder Companies

However, moving people is not sufficient. Keeping them engaged and committed is equally important. Leaders must be able to articulate a clear and compelling vision, bring it to life, and sustain it over time. Fathallah suggests that leaders should design a people-centric approach to ensure that the processes and technologies that are implemented are used and leveraged in the service of the overall transformation mission and goals.

"Transformation is essentially undertaken because either a team, a business unit, or an organization wants to reach a future state. So there is a destination to each store. The main three pillars that you always hear that OME change practitioners are trained on is whenever undertaking a transformation, you have three things to really take into account: people, process, and technology."

Prioritize Projects

With many transformation projects in the pipeline, it is crucial to prioritize the right project to ensure success. Fathallah suggests that leaders keep the following things in mind when selecting the right project to prioritize:

Ensure alignment with the business priorities

When prioritizing transformations, it is essential to look at where the organization is coming from, where it is now, and where it wants to go. Leaders must identify the business priorities that need to be doubled down on.

Manage the transformation pipeline proactively

Leaders must take a landscape view and evaluate the impact of each transformation, both individually and as a whole. They must take a look at the talent skill set, resources, systems, and processes that need to be transformed.

Be prepared to make tough decisions and trade-offs

Leaders must also be willing to make tough decisions and trade-offs to support the vision and bring it to life.

"You can't have it all. You can't take a kid to a candy store and be like: ‘okay, fill in the bag.’ It just doesn't work. So you have to have some tough conversations. You need to have enterprise-wide visibility. Go back to [the basics]: what are the priorities of the organization, what's worth moving forward with, what's worth amplifying, and what's worth cutting?"

Control for Complexity

As organizations grow and innovate, they introduce new complexities into their ecosystem. Complexity is everywhere, and it can never be diminished to zero. Therefore, it is crucial to control for complexity by eliminating or cycling out non-value generating agents before introducing new ones. This requires a cradle-to-grave analysis of the transformation landscape. Leaders must identify tools, processes, governance structures, and entities that must go or get cycled out before introducing new ones.

"Continuous growth requires a level of continued complexity increase. So as you continue to grow and innovate, there is a level of complexity that's just going to be there. It is an evolutionary byproduct of the process. But I think there is a way to cycle it out. And this is what I meant by controlling for complexity."

The Takeaways

  • 1.

    Change management is a crucial part of any supply chain transformation.

  • 2.

    A people-first approach is necessary to articulate a clear vision that not only lays out the facts but also the aspirations and values of the organization.

  • 3.

    Prioritizing the right project is crucial to ensure success. Leaders must ensure alignment with business priorities, manage the transformation pipeline proactively, and be willing to make tough decisions and trade-offs.

  • 4.

    Controlling for complexity requires a cradle-to-grave analysis of the transformation landscape. Leaders must identify tools, processes, governance structures, and entities that must go or get cycled out before introducing new ones.

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