Unicorn secrets for effective change management everyone can learn from.

Prospective unicorns focus on rapidly scaling their business to reach the elusive $1B valuation. However, in that rush, their infrastructure typically progresses in a painfully inadequate and often disorganized manner. Systems and processes are continually straining and require updating to respond to the ever-shifting demands created by growth.

Effective change management recognizes that these changes, even positive ones, can be disruptive for employees. Confusion, resistance, and productivity problems can arise, hindering progress and jeopardizing success.

But with effective change management strategies, organizations can respond positively to growth and improve the odds of becoming a unicorn. We’re very proud that more than 70 Airbase customers have achieved unicorn status. Some of these have transitioned to public companies and continue to rely on our spend management platform since it can grow and adapt as their processes change.

What is change management? And why does it matter?

Change management is a systematic approach to navigating transitions for a company. It plays a critical role in how organizations respond to opportunities and setbacks, both internal and external, and typically centers around the successful implementation of new processes, strategies, or technologies. Effective change management aims to navigate issues so that implementations go smoothly with little resistance and friction.

Our experience comes from working with fast-growing companies as they navigate change management arising from a new system implementation. Here are some observations that are helpful practices for any company wherever they are in their journey.

Six keys to effective change management.

Be deliberate and thorough. Clearly identify the change taking place and fully map all of the people, processes, and systems that will be impacted with a plan and schedule to address each one.

Keep the end user’s needs in mind. A new system or process will meet less resistance if employees like using it. Jason Lopez of Lattice says that’s a prime consideration when he’s evaluating new software: “How painless is the implementation? How easy is it to use? If it’s facing the employees in the rest of the company, how easy is it for them to use?”

An easy, intuitive use experience has long been the hallmark of quality consumer technology but was something that seemed willfully disregarded when it came to accounting and procurement software. Newer technology like Airbase has prioritized an intuitive user interface and an enjoyable user experience. We recognize that easy, wide-scale adoption drives ROI and that when employees don’t like using a system, they’ll find workarounds. When it’s intuitive, managing the change is easier for everyone.

When Desene Sterling was at unicorn company Heap, she noticed this playing out when Airbase was introduced. “It’s very intuitive where things need to be clicked, what fields need to be filled out. It was a very fast learning curve for everybody.”

Involve all stakeholders. Engaging key stakeholders from the outset ensures their buy-in and support throughout the process. When implementing a new system, it’s important to consider everyone who will interact with it and to ensure there are no surprises for them down the road.

Communicate. Transparent and consistent communication about any upcoming change helps build trust, clarifies expectations, and addresses concerns. Make a full plan for both internal and external communication and establish two-way communication points to allow any issues to surface.

If customers are to be impacted by your change, err on the side of over-communication and provide plenty of time for them to make adjustments. After all, it’s an opportunity to explain how the changes you are making will improve their lives.

Expand your thinking. Kenny Mendes of Coda says that the best solution to responding to change isn’t always the obvious one. Sometimes the heavyweight solution that is the default choice isn’t the best — and a more flexible approach is often called for.

“You’ll find when most companies need to solve a certain problem, they go figure out the vendor or the tool that solves it. Then they go implement it. A lot of times, finding the right tool isn’t the problem — it’s the philosophy, the decision. You can build a very lightweight, flexible process to handle that.”

Training and support. Equipping employees with the necessary skills and resources fosters a smoother transition. Jason Lopez notes Lattice’s philosophy:

“At Lattice, we have a culture focused around onboarding — we’re not just going to dump all this stuff on you. We’re going to give you the space and time you need to actually be successful, get your arms around everything, and have a proper transition plan — not just throw you to the wolves.”

Building a rocket ship.

Change is hard. It’s a truism but it’s also a frequent theme seen in the unicorns we work with. They recognize the importance of building systems that won’t need to be ripped and replaced down the road, thus avoiding the need for change management. Scalable software that avoids the need for change management is something finance teams are increasingly demanding.

Pedro Monteiro de Barros, VP of Finance at Remote, says his company took a non-traditional approach to building its tech stack, starting with a “rocket ship” in order to avoid change down the road. And the approach worked well when Remote faced hypergrowth in 2020.

“The more I revisit stories of how others set up early-stage systems, the more I understand that an alternative growth mindset was what really enabled me to go to the next level of solutions. For example, moving straight to an ERP instead of going from solution to solution,” he says.

“Exponential growth moves so quickly that by the time you realize you might need something, you’ve probably already passed the point of needing it.”

The road to unicorn status will inevitably be filled with change, which is often unpredictable. Katie Slattery of Fivetran says it’s important to be as focused as possible in implementing change.

“Our accounting organization’s goal is to achieve operational excellence. Creating and sticking to a roadmap that prioritizes critical infrastructure — processes, systems, people — is how we’re going to achieve it. Otherwise, we risk falling into firefighting mode, which gets in the way of achieving any substantial growth.”

By implementing change management strategies, organizations enhance agility, responsiveness, and innovation. A culture that responds to change is equipped for today’s rapidly evolving business landscape.

See how Airbase makes change management easier!  Book a demo or take a self-guided tour.