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Three T’s for successful change implementation in the revenue management field

To achieve successful revenue culture change, I have seen successful projects focus on three important facets namely Target, Technology, and Talent as explained below.

Three T’s for successful change implementation in the revenue management field
A great change manager would capture these elements in the action plan along with pre-designed strategies for overcoming anticipated risks and hurdles.

By Aakash Sirohi

“The secret of change is to focus all of your energy not on fighting the old, but on building the new” – Socrates

Change is the daily event that business experience and deal with every day. The impact of this varies in relation to the size and extent of the business, the culture of the organization, and the attitude of the team members. Opportunities that arise during the change process, if managed properly, can be leveraged to improve organizational systems, policies, and procedures directly leading to better revenue capture. Modern breakthroughs in technology, a.k.a. “disruptive technologies”, including 5G, Artificial Intelligence (AI), Internet of Things (IoT), 3D Printing, Hi-Speed Travel, Virtual Reality, Blockchain, and Big Data to name a few have designed a landscape that only allows dynamic and flexible enterprises to survive. Any organization that does not change would be forced into extinction.

In such settings, it is essential to commission a change management process that is comprehensive, integrated, and amalgamates a people-focused approach while ringing in organizational transformation. This assumes a greater degree of importance when we seek to implement changes in revenue management. The safety and comfort of known surroundings are one of the major reasons people resist change. But still every day, people do adjust to accommodate important and even dramatic events or changes such as a new job, new friends, and new house. So why do the same people in their work environment show a reluctance to change? And what are the best ways to overcome this resistance? Here I summarize the best way to prepare an environment that is conducive to change and suggest the best methodology for revenue leaders to initiate and drive successful change efforts.

Research from McKinsey and Company shows that 70% of all transformations fail. As a business advisor, I have firsthand witnessed many attempts at change that were immaculately planned flounder and die due to poor execution and follow-through. I’ve come to find a successful change requires the below ingredients:

A path based on the desired end state should be defined clearly and shared so that people get a sense of where they are going and why. The second step is to create a detailed and execution plan that would help set enterprise-wide transformation. The next step is to motivate people to not only believe in the virtues of change but also to become change elements themselves. Once the commitment of stakeholders is achieved it becomes easier for the change manager to generate and garner support. However, change managers would only taste success if they are wise to acquire timely and continuous feedback. I have seen projects face huge resistance when one or more of the above ingredients is missing.

Effective change can only be implemented by breaking through the compartmentalized mindset and territorial affinities within the organization and by providing the correct dose of motivation and stakeholder support. A great change manager would capture these elements in the action plan along with pre-designed strategies for overcoming anticipated risks and hurdles.

3 T’s for change Implementation in revenue management

To achieve successful revenue culture change, I have seen successful projects focus on three important facets namely Target, Technology, and Talent as explained below.

Target

First, the outcomes must be clearly defined. This would help in acquiring a full and total commitment from influential stakeholders, for example, VP of Marketing, CTO, CFO, etc. Second, clear directions to all team members across different departments help in establishing the commonality of purpose in their efforts. Third, sharing regular and transparent information about the status of activities and milestones achieved will help more people to castaway pre-conceived notions and accept change. This will help instill a positive “can-do” attitude.

Technology

A revenue manager heavily depends on good tools to be able to create good forecasting models that would help the organization generate succinct decisions on pricing, production velocity, inventory rates etc. Rapidly advancing technologies as described earlier have given a new dimension to data operations and we need a certain structure system that allows the replacement of old tech with new with complete backward compatibility. A great change manager would leverage the benefits of newer tech by scheduling demonstrations and pilot projects to entice and motivate people to accept these changes. Technology should be an enabler and not a hurdle.

Talent

The success of the change effort greatly hinges on the skill of the team members. Hence it is essential that before contemplating change we build the required talent in the team. Providing training opportunities, both formally and informally through courses, webinars, guided demonstrations, and workshops to the team members is highly recommended. The development program must not just be limited to a specific time window just prior to change but must be designed to build talent efficiency over a period through experience and exposure. Shadowing experts, cross-functional support, and pairing with mentors are all helpful ways to develop people through exposure.

Lastly, during the change process, make a serious endeavor to regularly review that the changes have occurred and, are in the shape, as planned. The review must include feedback to confirm that the new process and procedures are healthy and suitable to continue advancing organization’s revenue goals in the long term.

(Aakash Sirohi is an expert in the field of change management. In the past twenty years working on various projects, he has gained rich expertise in successful organizational change through people, technology, and process synchronization. He has helped numerous organizations design and implements strategic change management projects helping them transform in sync with market forces. Managing his own venture, he continues to advise and guide businesses to adopt new methods to attain profitability. Views are personal.)

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