Navigating change management in long-term projects - Lessons from the field

In this insightful episode of the NETSOL Podcast, Farooq Ghauri, Regional Director for APAC, shares valuable perspectives on navigating change management within long-term, complex asset finance projects. Hosted by Hassaan Munir, Customer Success Manager for APAC, the episode sheds light on why effective change management is crucial in today’s fast-evolving business landscape.

What is change management and why is it essential?

Change management is not just about implementing new systems or tools; it’s about shaping a company-wide culture that supports and adapts to change. As Farooq explains, change management isn’t just a process but a mindset. It’s about preparing an organization, its partners, and its teams to be flexible and resilient in the face of ongoing transformation. 

"Change management is a culture that's not just your culture but the culture of your employees, your partners, your supporting systems." - Farooq Ghauri, Regional Director APAC, NETSOL Technologies 

Farooq emphasizes that in industries like asset finance, where processes are deeply rooted and the landscape is mature, the challenge of driving change is even more significant. Established systems can create natural resistance to new ways of thinking or working, making it essential to have a robust strategy in place to overcome these barriers. 

The multi-dimensional nature of change management

One of the key takeaways from Farooq’s experience is that change management must be approached from multiple angles. He outlines three critical dimensions:

1. Vendor alignment and support systems

As businesses undergo transformation, it’s vital to ensure that vendors and partners can keep pace with the changes. In fast-moving financial environments, misalignment between partners and support systems can derail projects. For example, Farooq recounts how, during the COVID-19 pandemic, change was forced to slow down in some areas, underscoring the importance of flexibility within vendor relationships.

2. Human resistance to change

One of the most common hurdles in change management is human resistance. People naturally find comfort in their routines, making it difficult to adapt to new ways of working. Farooq shares that even with the best technology and systems, change can’t be fully realized unless there is buy-in from the human side.

3. The accelerating impact of AI

As industries evolve, AI is reshaping the way businesses operate. Farooq draws parallels to the rise and fall of companies like Nokia and Blockbuster, warning that businesses that fail to adapt risk becoming obsolete. Change management is crucial to ensure that teams can embrace the opportunities AI presents rather than fear the disruption it brings.

Best practices for effective change management

Drawing from his experiences, Farooq offers actionable advice on how to effectively manage change within long-term projects. The following strategies have helped NETSOL successfully implement change in various global markets: 

1. Create a sense of urgency

According to Farooq, one of the most essential aspects of driving change is creating a sense of urgency. As part of Kotter’s eight-step change management model, explaining the reasons for change and the consequences of not adapting can help motivate teams.

2. Governance and agility

While governance structures are vital to ensuring that changes are implemented correctly, Farooq stresses the importance of remaining agile. Too much governance can create bottlenecks, hindering progress. The key is to find a balance that supports both structured change and flexibility.

3. Incentivize and motivate teams

Farooq underscores the significance of motivating teams to embrace change. Incentives, whether monetary or otherwise, can be powerful tools to ensure buy-in. However, he also points out that motivation strategies should be tailored to the specific needs of the team. For some, monetary rewards are effective; for others, recognition or career development opportunities may be more impactful.

Overcoming human resistance to change

Human resistance to change is a natural phenomenon, but it can be mitigated with the right strategies. Farooq shares that in cases where teams are resistant to adopting new products or systems, NETSOL turns to Kotter’s model to break down the barriers. By creating urgency and celebrating early wins, the team is able to shift the culture toward embracing change.

Practical example: Managing change in asset finance projects

Farooq recounts an example from a project in Mexico, where a seemingly simple change request, linking the HR system with the leasing system, was met with resistance. While the change seemed straightforward, Farooq and his team advised against it, recognizing the long-term implications. This highlights the importance of guiding clients not just in adopting change, but in understanding the broader impact of their decisions.

The role of leadership in change management

For change management to succeed, it needs to be driven from the top down. Farooq emphasizes that leadership is crucial in setting the tone for change and ensuring that the entire organization is aligned with the vision for transformation. Change must be seen as a shared responsibility across all levels of the organization, not just a top-down directive.

Conclusion

As Farooq concludes, successful change management is about creating a mindset that sees transformation as an opportunity rather than a threat. By implementing effective strategies, addressing human resistance, and ensuring alignment between teams, vendors, and clients, businesses can navigate change successfully.

To dive deeper into these insights and learn how NETSOL approaches change management across complex, multi-year projects, listen to the full podcast with Farooq Ghauri.