Change Management for GCs: The Key to Digital Transformation

Effective change management is the key to achieving digital transformation in your contracting firm.

Here’s why:

Attaining digital transformation is about more than investing in new technology. It’s about investing in the right technologies for your company, then implementing and using them well.

That’s no easy task. In fact, two-thirds of all change initiatives fail, according to Gartner.

But here’s the good news: Companies that use change management to guide their IT change initiatives not only succeed—they achieve a 75% increase in productivity.

What’s change management? 

The Association of Change Management defines change management as “the practice of applying a structured approach to transition an organization from a current state to a future state to achieve expected benefits.”

Put simply, it’s the way a company manages changes to its operations so it can improve and adapt.

Usually, adapting and improving involves implementing new technologies so your firm can generate efficiencies and stay competitive. But focusing solely on new technologies won’t create an effective, lasting digital transformation in your contracting firm. 

Technologies aren’t isolated. They affect your operating processes, which in turn affect the people who use those processes to do their jobs. That’s why it’s best to guide your IT change initiatives with the People, Processes, Technology (PPT) approach to change management.

The PPT approach to change management

The PPT approach to change management aligns people, processes‌ and technology to create effective, lasting organizational change.

It recognizes that all three pillars—People, Process‌ and Technology—are interconnected and must work in harmony to achieve successful outcomes. Think of a three-legged stool. If one leg is missing, the stool will fall. 

As you initiate change, take a holistic approach that focuses on all three of these pillars. By addressing each, you ensure alignment across your organization, minimize resistance and increase the likelihood of creating effective change.

Here’s a breakdown of each pillar:

The process pillar 

Processes are the workflows, procedures‌ and methods you use to run your company and manage your construction projects. 

For successful change to take place, you have to analyze your current processes. Then, identify pain points and find areas for improvement. 

For example, does your contracting company need to:

• Be better organized on the backend?
• Break down information silos?
• Manage construction projects more efficiently?
• Schedule projects more precisely?
• More accurately forecast financials?

Once you figure out your pain points and identify process improvements, you can define what you want the future state of your operations to look like.

The people pillar

When you have a basic understanding of the processes that need to change, you can explore how upgrading those processes will affect your leadership team, employees and other stakeholders.

Think about these questions as you perform a stakeholder analysis:

• Are all executives truly aligned about the change?
• What departments will be affected by the change? 
• Which roles need to be evaluated and redefined?
• Who are the individual contributors that’ll help drive the change?
• How may this change impact vendors and customers?

Communicate early with the people who’ll be affected by the change. Moreover, emphasize why it’s necessary and involve the workforce in the decision-making process early. This fosters collaboration, increases the likelihood of employee buy-in and speeds up the change process.

The technology pillar

Technology refers to the tools, systems and software you use to support your construction business operations. 

When making a technology change, be careful not to start from the technology pillar. No technology is valuable without the buy-in necessary to make it an integral part of how your company works and operates.

Only once you’ve defined which of your current processes need improvement and you’ve identified how changing those processes will affect the people in your company, can you truly discern which technology solutions will meet your needs.

Ultimately, that’s why the PPT framework should guide every technology change.

Use PPT to choose the right construction management solution

Choosing which software solutions are right for your construction company can be costly and time-consuming.

In our next article, we’ll show you how to choose the right construction management technology by applying PPT change management principles. So you can ensure company-wide adoption and avoid buyer’s remorse.

Do you have a change management success story? Then connect with us today. We’d love to share it with your peers.