The Importance of Effective Communication in Organisational Change Management

3 min read

Communication plays a pivotal role in the management of organizational change, particularly within the automotive supply chain industry, where digital technology is increasingly important in overcoming challenges posed by the pandemic and semiconductor shortage. The recent Automotive Logistics and Supply Chain Digital Strategies North America conference in Nashville, Tennessee served as a platform for industry experts to emphasize the impact of technological adoption on driving organizational change.

Logan Lytle, supply chain operations technology lead at Honda Development and Manufacturing, provided insight into the significant structural reorganization that has been undertaken by Honda across the North American region. The establishment of a core nucleus and the implementation of a one-team approach have been instrumental in developing standardized processes and operational responsibilities. According to Lytle, this transformation aimed to achieve interoperability within the organization, necessitating that associates evolve in tandem with the changes.

Alignment among all relevant parties is a fundamental element in organizational change. Alex Murray, senior manager of global supply chain management at American Axle & Manufacturing, stressed the importance of creating a roadmap that can be followed by all. This inclusive approach is critical in preventing a siloed strategy and ensuring that all stakeholders are invested in the solutions being delivered.

Chandan Trehan, digital supply chains and logistics lead at Bosch North America, underscored the importance of a shared definition of organizational change that is mutually agreed upon. According to Trehan, the effective communication of the ‘why’ aspect of the change is crucial for its success as it ensures that employees feel like active participants in the transformation rather than mere subjects of compliance.

In addition, Trehan emphasized the need for constant communication and a clearly defined process and roadmap to avoid burnout and disillusionment among employees. He stressed the importance of maintaining a feedback mechanism that allows employees to express their thoughts and concerns about the change, creating a more inclusive and supportive environment.

Trehan also noted the significance of fostering a mindset that is open to change and is focused on finding better ways of doing things. He highlighted the need to listen to different perspectives and avoid stifling employee feedback, as this can be counterproductive to the overall transformation process.

Murray echoed the importance of feedback, particularly from logistics professionals and manufacturing leads, in shaping the tools and solutions being implemented. He emphasized the need to build trust through open conversations and active engagement, as this is essential for driving innovation within the organization.

In conclusion, the speakers at the conference emphasized the critical role of effective communication in managing organizational change within the automotive supply chain industry. With the rapid advancements in digital technology and the need for resilience, creating alignment, fostering a supportive environment, and maintaining open channels of communication are essential for successful transformation.