The 4 Cs Framework: Effective Change Management in Manufacturing

The potential upside of digital transformation comes with a dirty little secret. It won’t work if no one uses it, no matter how good the technology is. When it comes to enterprise-wide digital transformation initiatives, manufacturing leaders often struggle to secure cross-functional employee buy-in.

 At Northwest Analytics, we have spent decades working with industry-leading organizations on some of their most critical manufacturing-technology initiatives and there’s a commonly-held misconception when it comes to any initiative involving technology: Technology is the limiting success factor.

This misplaced perception is again resurfacing with the skyrocketing popularity of all things artificial intelligence (AI) and, to a slightly lesser extent, machine learning. The expectation is that benefits will flow easily and automatically with little to no involvement from people. AI is too often viewed as the ultimate “easy button” for solving problems without human intervention. This, however, could not be further from the truth. Technology is only as powerful as the people using it. Digital transformation simply does not and will not happen unless people buy into and embrace the need for change. Success is dependent on the willingness of the people involved to consistently utilize and apply the available technologies for the desired outcome.

Most manufacturers have heard the infamous statistics on the likelihood of failure in digital transformation. However, these statistics offer insight into main pressure points of the process. According to Forbes, 70% of digital transformation efforts fail, often due to resistance to change from employees and key stakeholders. While that is obviously a daunting figure, it helps prove the importance of considering the human factor when adopting new technologies.

Understanding this challenge, we can then ask: where should an organization begin to adequately address the human factor when planning the implementation of new digital transformation initiatives?

There are several proven change management models, like the People, Process, Technology (PPT) framework, the ADKAR® change management model, and the Analytical Maturity Model (DELTA) to name a few.

These models and frameworks are a starting place. From our experience, we have noted that whether you’re at the start of manufacturing digital transformation efforts or well down the road in the journey, there are 4 Cs to ensure success when encouraging employee engagement: Communication, Coaching, Collaboration, and Creating Time.

Communication

Regardless of the project type, the project leaders must be able to clearly communicate the benefits, purpose, and uses of the technologies being utilized across every function impacted - not just those directly involved, but those indirectly affected as well. Imagine if you are deploying new software that is going to be used by data scientists or process engineers but is going to be fed by the inputs of operators. While it may not be the operators’ inputs you think would be the most beneficial, getting those operators involved early in the program is critical to your success. As the people who directly interact with your process consistently, they have valuable insights and inputs that those removed from the process will not which will directly impact outputs. In this scenario, it’s the responsibility of the project manager to secure their buy-in by helping them clearly understand why it matters, not only to the organization, but to them personally. 

A great place to start when communicating the importance of individual employee’s engagement with these projects is to ask:

• How does this project impact them specifically?
• What will change in their day-to-day lives for the better?
• Are you simply adding more to their workload or will the new software result in less hassle for them – less rework, less time spent walking to the field to check on a faulty valve, etc.?

Demonstrating how it makes each employee’s work life better is one of the most powerful tools a project manager can leverage in this process. When the people who will use the software understand the impact it will have on them individually, they are more likely to adopt the new technology with less resistance.

One of the most powerful tools to the successful scaling of a digital transformation project is to communicate successes. Everyone wants to succeed and see the company do well. Anytime success can be communicated to stakeholders and users, it highlights the project's transparency, clarity, and credibility. That same communication can also eliminate fear, uncertainty, and doubt. By explicitly stating the parameters, function, purpose, and goals of your digital transformation initiative to all employees, you can help demystify the process and take the fear of the unknown out of the equation.

Coaching

The manufacturing industry continues to face increasing challenges when it comes to talent acquisition and retention. According to the to the Bureau of Labor Statistics, in June of 2024, there were 603,000 open manufacturing jobs. (https://www.bls.gov/news.release/jolts.t01.htm) If you are not training the workers of tomorrow to adapt with the emerging technologies of today, you will struggle to find talent in the coming years. This gap is especially pronounced in what is being called the “middle-skilled” workers – those who are skilled tradespeople who are equally capable of working with technology and automation to drive digital transformation efforts.

Coaching or upskilling employees before and through the digital transition efforts is a key element for user buy-in. Digital transformation means change; and could mean that what they used to do, no longer needs to be done – but that does not make an employee obsolete, especially if they are given the opportunity to learn a new skill or apply their knowledge to a different part of the process. 

Collaboration

Including and giving a voice to the people who will use the tool daily can be the single difference between the success and failure of a digital transformation project. Seek feedback from employees long before any purchase or implementation phase. Use their comments and inputs to prototype and iterate on the best possible system for your organization. The operator who has been working the line for the past 30 years knows a thing or two about the process, things you will never think to consider. Make sure they have a seat at the table and their voice is heard. That type of involvement not only helps to secure their buy-in when a technology is rolled out, but also increases the chances of buy-in from their peers as well.

Creating Time

Forrester’s Business and Technology Services Survey 2022 found that the most common challenge mentioned by digital transformation practitioners was treating information as a side hustle and expecting employees to maintain continuous transformation efforts on top of their other job responsibilities. Depending on the digital maturity of your organization, even a minor digital transformation project can drastically change employees’ day-to-day responsibilities and tasks.

“It’s the old 80/20 rule: you spend 80% of the time gathering information and 20% of it analyzing. Well, we’re switching that. You’re spending very little time gathering information and most of your time analyzing your data so you can make better decisions.” -Ken Froedge, Director of Digital Technology and Innovation at Kaneka North America

Digitally transforming an organization cannot be an add-on part of someone’s full-time job. It requires full-time commitment and effort from the people involved. Make sure your employees have time in their days both to implement current digital transformation initiatives and ideate on new ones that could help optimize their piece of the puzzle.

At the end of the day, it’s important to keep in mind how people tend to respond or react to systemic change.

“What’s really important in thinking about the people side is that their comfort zone, there might as well be barbed wire around them because people want to stay in their current state. You need to create an extreme distaste for the status quo, and you do that by painting a picture of the future state that is so compelling that they drive to get there through the transition state.” - Debbie Rothe, Global Technology Leader and Change Management Expert at Dow.

When beginning or advancing a digital transformation initiative, always remember that your technology is only as powerful as the people using it. By considering our 4 C’s to Successful Change Management when adopting new technology or programs, your organization can deliver a competitive advantage by holistically addressing the human factor that powers digital transformation.