Change Management in Industry 4.0

What is Change Management?

The emergence of Industry 4.0 is revolutionising the way companies produce and distribute their products, significantly impacting the business model. It is accompanied by a major digital transformation, with the introduction of new technologies. Implementing these new technologies — such as Big Data, the Internet of Things, and augmented reality — represents a significant competitive advantage but can be challenging to deliver.

Change management refers to the set of operations that enable a company to adapt to the new tools and approaches of Industry 4.0.

The Change Management Strategy

There are different ways to approach change management, depending on the type of company and long-term objectives. These methods do, however, agree on an overall approach, detailed below:

1 – Define precise objectives

Every change management strategy is tied to precise objectives, both long- and short-term. These define the expected benefits based on an analysis of investors, competitors, customers, and the market.

2 – Conduct a diagnosis of the current situation

The aim of this step is to determine the best actions to implement in order to support the company's change, based on its existing operating model and organisation.

3 – Implement an internal and external communication strategy

It is essential to put in place a project communication plan that details all stakeholders, so as to organise effective communication.

4 – Organise a knowledge transfer

Change management is applied by involving all the actors in the transition through effective management methods. These rely on the participation of all employees in training sessions or seminars, enabling them to better understand the challenges of the transformation. These activities make it possible to collectively redefine a company vision suited to new ways of working, covering both technical and organisational aspects.

5 – Monitor the actions taken

Throughout all stages, it is necessary to define appropriate performance indicators to assess the project's scope. This fifth step involves drawing on these indicators to adapt the approach already in place.

Change Management Tools

To follow this change management approach, a number of tools are available. These were developed by theorists to facilitate change management, adapting to the psychological transformation it induces.

Among the most widely used, we find:

This tool is highly effective for evaluating the consequences of a change on the different levels of a company. Developed by American work psychologist Harold J. Leavitt, it helps to understand the interactions between the transformation and the various components of a company: people, tasks, organisation, and technology.

• Lewin's force field diagram:

This tool, which takes the form of a matrix, facilitates decision-making by separating the driving and restraining forces on a given problem or situation.

• The change equation:

This tool also facilitates decision-making through the analysis of a given situation, and can help prevent resistance to change.

The change management strategy, as well as these tools, adapt to the company's structure. A young organisation, for example, will find it easier than an older one to integrate into the digital transformation of businesses, but will need to expend more energy on development and market share acquisition due to the fragility of its financial position.

Implementing change management is sometimes extremely difficult. Indeed, most companies lack a clear implementation strategy. They therefore put in place various isolated projects without coordinating them. Yet it is valuable to leverage the synergies that exist between different technologies, and thus successfully realise the full potential of technology. This lack of coordination within companies may be a sign that the automation of industrial tasks has not yet been optimised.

Furthermore, one of the mistakes to avoid in change management is neglecting the company's investment strategy. Indeed, investments play an important role in change management for companies. It is therefore essential to analyse the return on investment in order to make the best decisions.

Change becomes necessary!

The role of change in corporate strategy is today a necessity. Here are some examples of companies that have successfully implemented a relevant change management approach, guaranteeing their current success.

• Netflix is one such example: originally a DVD postal service, it had to reinvent itself to cope with changes in the way people consume entertainment.

• Scottish independent brewery BrewDog also reinvented itself during the pandemic, dedicating a large part of its operations to the manufacture of hand sanitiser. Their initiative enabled them to supply more than 50,000 associations, medical centres, and hospitals.

• Originally in the paper industry, Nokia had to reinvent itself several times, subsequently moving into telecommunications. Today, Nokia has been selected by NASA to deploy a cellular network on the Moon.

These examples clearly illustrate the importance of change — without it, companies cannot remain competitive or respond effectively to the demands of their customers and employees.