Change is constant, and leaders are routinely asked to steer transitions that shape the organisation’s future. The 7 R’s provide a framework for making sure a change has been properly thought through before it is committed to – and for knowing afterwards whether it worked.
1. Reason – why is the change being requested?
Whether it is driven by market dynamics, technology or an internal problem, identifying the reason is the first test of whether the change is necessary at all. When Nokia shifted focus from mobile phones to network infrastructure, the reason was unambiguous: intense competition and falling market share made a strategic pivot unavoidable.
Start with a detailed analysis of the underlying need, and engage stakeholders to build the case rather than announce it.
2. Risk – what are the risks involved?
Every change carries risk, and assessing it early is what makes mitigation possible. The Exxon and Mobil merger posed significant operational and cultural risk; proactive assessment was central to a smooth integration.
Assess with cross-functional teams, and build a plan that includes contingency and regular monitoring.
3. Resources – what is required?
Human, financial and technological. When Amazon launched AWS it required substantial investment in both technology and skilled people, planned in detail rather than discovered along the way.
Align resources to the change objectives and allocate enough to avoid the bottleneck you can already see coming.
4. Return – what is the expected benefit?
Evaluating expected outcomes is what justifies the change and makes it measurable afterwards. IBM’s move to a services-oriented model in the early 2000s was driven by an expectation of higher margins and renewed market relevance.
Define the metrics before you start, and make sure they align to strategic goals rather than programme convenience.
5. Responsible – who owns it?
Accountability decides whether anything happens. During General Electric’s digital transformation, named leaders were appointed to specific aspects of the transition, which put ownership somewhere concrete at every level.
Assign clear roles, and make sure those leaders are empowered and supported rather than merely named.
6. Relationship – how does it interact with everything else?
Understanding dependencies avoids conflict and duplicated effort. Microsoft’s integration of LinkedIn required careful coordination with existing projects to capture the synergies and avoid collisions.
Map the related initiatives and establish a mechanism to manage the interdependencies – they will not manage themselves.
7. Review – how is success measured?
Metrics and KPIs that evaluate the effectiveness of the change confirm whether the objective was met, and generate the insight that improves the next one. Starbucks revamped its store formats to improve customer experience, and measured it through satisfaction scores, sales data and market growth.
Build an evaluation framework using both qualitative and quantitative measures. See Measuring Success Beyond KPIs for why the qualitative half matters.
A blueprint, not a checklist
Worked through properly, the 7 R’s make a change initiative strategic and supportable rather than merely approved. The value is not in ticking each one – it is that a change failing any single R is a change worth stopping before it starts.
See also Programme Health Check and Mitigating Risk in Large-Scale Change, or talk to us.
Further reading: Association for Project Management: what is change management