Even under ordinary circumstances, change management represents a unique challenge for business leaders. With the current global economy evolving more rapidly than ever before, the need for strategic and dynamic organizational change takes on a new sense of urgency.
Businesses that adapt swiftly and establish improved processes are more likely to succeed in an increasingly interconnected and tech-dependent world. Professionals who have earned a master’s degree in applied psychology are at the forefront of helping organizations manage the human dimension of organizational adaptability.
What Is Organizational Adaptability?
Organizational adaptability refers to how an organization adjusts its processes to successfully achieve its goals.
An organization’s adaptability depends on the characteristics of its dynamic environment. For example, two-thirds of global companies have struggled to hire qualified workers post-pandemic. This has prompted employers to provide incentives such as greater flexibility, skills development programs and increased wages. Businesses are adaptable when they respond swiftly and appropriately to the situations in which they find themselves.
The Three Challenges of Organizational Adaptability
It’s not easy to change processes in modern, highly complex businesses. In many cases, this perception can lead organizations to be change-averse — clinging to the policies and practices that brought them success in the past. For an organization to remain competitive, however, it must face and overcome the following three challenges.
1. Lack of Humility at the Top
In today’s challenging business climate, it’s critically important that business leaders gather multiple perspectives and extensive metrics on current economic concerns.
The current shift in how employees work and businesses collaborate calls for transformational leadership. Management should work with employees at all levels to enact necessary changes rather than relying on a top-down approach to enforce the status quo.
Humble leaders are more likely to ensure positive group dynamics and find the inspiration to move their companies forward. According to McKinsey & Company, humble leaders often demonstrate “deliberate calm,” which allows them to detach from the immediacy of the situation and think clearly and broadly about how to best navigate it.
2. Lack of Purpose and Transparency in Business Communication
For employees facing uncertainty in their everyday work lives, clear and regular communication is another critical focus for organizational adaptability. The fundamentals of communication still apply, including:
- Defining both short-term and long-term goals
- Listening and actively trying to understand other viewpoints
- Opening the dialogue so communication is a two-way interaction
- To achieve clear and honest communication, many organizations will hire an organizational development consultant to help identify potential communication breakdowns and implement new processes to improve trust and confidence in the workplace.
3. Lack of Stability and Resilience
Stability represents one of the greatest struggles and one of the greatest necessities for a business during periods of change. Already overwhelmed by significant lifestyle changes, employees and consumers require an even greater sense of security from organizations. This is best delivered via a stable and resilient company culture, which can keep businesses grounded even as they take on ambitious initiatives or weather crises.
When employees view their leaders and their employer as stable, it provides them with:
- A sense of confidence and security
- Optimism during times of disruptive change
- Resilience to successfully change their habits
When workers are empowered with the confidence, optimism, and resilience to embrace change, they are likely to remain calm, act rationally, and effectively adapt as situations evolve. Employees are motivated by stability and resilience, making it easier for them to develop and present ideas that can contribute to company's success. This helps relieve the burden on top-level executives to always come up with solutions with little or no team collaboration.
Drive Organizational Adaptability in the Real World
Change management is difficult. However, if organizations embrace the idea that processes and best practices are always evolving, they will be much better positioned for long-term resilience and growth. Many businesses have turned to organizational psychology professionals to help facilitate change management and shift the organizational mindsets of their employees to be more adaptable.
If you’re interested in working with organizations as a consultant or internal human resources professional, consider USC’s online Master of Science in Applied Psychology Program to advance your career.
Explore how USC merges business and psychology education to prepare you for a rewarding future.
Recommended Readings
Why Companies Need an Organizational Development Consultant in 2022
Applied vs. Clinical Psychology: The Power of Real-World Solutions
Sources:
Harvard Business Review, “To Build an Agile Team, Commit to Organizational Stability"
IGI Global, “What Is Organizational Adaptability”
McKinsey & Company, “Future Proof: Solving the “Adaptability Paradox” for the Long Term”
The Hill, “Two-thirds of Businesses Surveyed Say They Are Struggling to Hire Employees”
World Economic Forum, “5 Ways COVID-19 Has Changed Workforce Management"