2024: The year of change management in accounting

As we work through the 2024 busy season, the buzz around change management is becoming louder within the accounting profession. Firms are undergoing a transformation in the services they provide, the clients they serve, and the technologies and processes they use to get it all done. Change management and project management are critical for firms that want to stay ahead in the game.

So let’s delve into why change management is so essential and how effectively manage change within your firm.

To start, change management and project management each play a vital role in successfully implementing new processes and technologies.

Project management focuses on the technical execution and the “how” of change, while change management addresses the human aspect, the “why” behind the change.

If project management were all that was required, we could implement new technologies and process changes as quickly as a skilled project manager could push them through. But we need to take a structured approach to managing the human side of change. It’s about ensuring that people within the organization are ready, willing and able to adopt new ways of working.

The crucial questions  

For change to be successful, it’s imperative to answer several key questions:

• Why are we changing? Understanding and communicating the purpose behind the change is crucial for buy-in and support.
• Who has to do their job differently, and how will it impact their work? Identifying the individuals or groups affected by the change and outlining the expected adjustments in their roles are essential steps.
• How much of the outcome depends on adoption and usage? Some changes require little support from the staff and/or clients, and some require a lot. For instance, rolling out an employee-facing solution to automate the collection of 1040 data hinges on individual changes aggregating to achieve organizational outcomes. In this case, the focus should be on strategies to support adoption and usage, as these are critical drivers of success.

Inclusive change management  

Incorporating clients and all levels of staff in the change management process is vital.

The cornerstone of an effective change management strategy involves four roles:

• Change practitioner. Change practitioners apply a structured change management strategy and create a plan to move the project and people forward.
• Project manager. The project manager focuses on the project’s design, development and delivery — the technical side of change. They ensure the project has appropriate resources, including time, budget and people.
• People manager. People managers lead the people who must alter how they do their jobs to make the change successful. Research from Prosci found that business leaders (CEOs/presidents/executive managers) are the preferred senders of organizational messages by 37% of employees. At the same time, supervisors are favored for personal impact messages, preferred by 58% of employees. The people managers have developed trust and personal relationships with their team members.
• Sponsors. Sponsors are a group of leaders and influencers who give credibility to change and prioritize it within their departments or teams. According to Prosci, active and visible sponsorship is one of the top contributors to success in change management.

Identify who in your firm will fill each role in any change initiative. It is essential to select individuals who will actively engage with the role and understand how they contribute to a successful outcome.

By focusing on the crucial questions of why, who, and how, and engaging key roles, your firm can navigate the complexities of change more effectively. This year, let’s embrace change management not just as a concept but as a strategic imperative that drives adoption, usage, and, ultimately, the success of our projects and our firms.