Change Management in IT: Why Is It So Important

Businesses need to remain competitive to stay in demand. IT change management helps organizations respond quickly to external changes while ensuring the stability and reliability of their information systems. This article explains how IT change management can be beneficial throughout the change lifecycle.

What Is IT Change Management?

IT change management is the process of planning, organizing implements and controlling changes to information systems and services. The aim is to ensure the effective and secure operation of the organization’s IT infrastructure. The process involves assessing the potential impact of changes on business processes, managing risks and ensuring consistency between the initial and final state of the system or service. 

The main objective of IT change management is to minimize risk and ensure that changes are implemented with the least possible disruption to the business.

Example of IT change management. Let’s consider a company that is migrating to a new CRM system. This requires transferring data from the old CRM to the new one, training employees on the new system, and implementing new processes for managing customer requests. 

The change management process involves the IT team working with the business to:

• identify the requirements for the new CRM and assess the impact on current business processes.
• test the new system to ensure that it meets the requirements and functions correctly.
• develop a training plan for employees to use the new CRM effectively.
• implement the system in stages or all at once, depending on the size and complexity of the system and business requirements.
• test the performance of the system and gather feedback from employees to improve the process and address potential issues.

In this way, the IT change management process helps the organization to implement the new system effectively and minimize the risks to the business.  

Why Is IT Change Management Important?

To illustrate the importance of IT change management, consider a monthly software update in an office. This is usually a standard procedure, but sometimes it can cause system failures. The IT team is faced with a dilemma: continue to update the software regularly and risk potential problems, or risk the security and stability of the system by not updating. 

To remain competitive, the company’s IT team must ensure that the system is reliable and stable. Updating software is therefore essential to adapt to new requirements and security vulnerabilities. These two aspects can be at odds, as stability and updates are generally incompatible. 

A thorough risk assessment helps to balance the need for updates with the need to maintain system stability.

Testing the System Before Implementation

The change management process is based on thorough planning and testing of all changes to IT systems before implementation. This helps to identify and address potential problems before they affect users. For example, an organization planning a server software update will: 

• test the update on a test server to ensure it does not cause problems.
• plan for a rollback to the previous version in case of failure.
• notify users about the upcoming update and what to expect.

Monitoring the System after Implementation

Even after changes have been successfully implemented, the IT team needs to monitor all changes and their impact on system performance. This helps to quickly identify and resolve problems that may arise after the changes have been implemented. 

For example, after a successful server software update, the company will: 

• monitor the performance of the server to detect any early problems.
• gather user feedback on the new software.
• make any necessary adjustments to the software.

Types of Changes

Changes can be of different types and require different levels of preparation. 

There are four types of change: standard change, major change, normal change and emergency change.

Standard Changes

These are routine, low risk and often repetitive operations that follow a well-defined process. For example, adding extra memory to a server or replacing a hard drive in workstations. There are usually standards for such changes that must be followed to avoid problems.

Major Changes

A major change has significant financial implications and a high level of risk. Detailed action plans, cost justification and senior management approval are required to implement them. 

For example, the marketing department decides it needs a new CRM system. They analyze the existing business processes, explain why the company needs a new CRM system, select the appropriate system and pass all the information on to the IT department. The IT staff, in turn, prepares the IT infrastructure, develops a plan and implements the new CRM system.

Normal Changes

These changes are planned and approved. In general, normal changes are low risk and do not require immediate implementation. For example, changing the network configuration and updating employee software.

Normal changes are typically low risk and follow a predefined change process. These changes are routine and often involve updates or minor changes that do not pose a significant threat to the system.

Emergency Changes

These changes are required in the event of unexpected problems or threats. They need to be implemented immediately to minimize any potential negative impact. For example, applying a security patch to fix a vulnerability or responding to a cyber attack to prevent a data leak.

When making emergency changes, it is critical to conduct a quick and accurate risk assessment to ensure minimal disruption to business operations.

What Is a Change Advisory Board?

Some companies set up a Change Advisory Board (CAB) — a group of experts who assess the risks and approve or reject each change. The Change Advisory Board usually holds regular meetings to discuss all proposed changes, bring in experts if necessary, and protect or evaluate the changes. 

For example, a company may decide to update its customer database to improve service efficiency. The change request is presented to the Change Advisory Board for evaluation. 

The Change Advisory Board (CAB) consists of internal and external experts who analyze the potential risks, business benefits and potential issues associated with the database update. After discussion and evaluation, the Change Advisory Board decides whether to approve the change. 

If the Change Advisory Board approves the change, it is forwarded for implementation. If the change is rejected, further analysis or adjustments to the proposal may be required.

What Does the IT Change Management Process Look Like?

A typical IT change management process includes the following actions:

What are the Benefits of IT Change Management?

The IT change management process offers several benefits to organizations:

1. Implementing changes without negatively impacting other processes. For example, a company may want to upgrade its ERP system. The IT change management process allows the company to carefully plan the implementation process, identify potential risks and develop a data migration plan to avoid data loss.
2. Fewer failed changes due to clear algorithms that protect against negative consequences. At each stage, people explain their actions and the change advisory board (CAB) reviews them.
3. Improved transparency of planned changes by reducing the bureaucracy and number of stakeholders involved in the IT change management process.
4. Standardized changes across the organization. This is important because, for example, in organizations where different departments use different change management processes, this approach can lead to confusion.
5. Increased change automation and process optimisation. For example, an organization can automate change implementation processes, speeding up the process and reducing errors.

The use of change management software is essential for managing the entire change lifecycle. This software helps track and document every step of the change process, from initial request to post implementation review.

Drawbacks of IT Change Management Processes

Despite its benefits, the IT change management process has some drawbacks:

1. The human factor. Even with well-developed processes, there is always the risk of human error or negligence. For example, an IT employee may not follow the change management process and inadvertently introduce incorrect settings into the system, causing an outage.
2. Bureaucratic barriers. For some departments or managers focused on rapid growth, strict change approval processes may seem like unnecessary bureaucracy.
3. Balancing speed and risk. The desire for quick change implementation is good, but it can come with an increased risk of failure and problems. For example, the CEO wants to quickly update the e-commerce system before the holiday season, but risks new features not working properly, resulting in data loss.

What are IT Change Management Best Practices?

Classification of Changes and Approval Process

Not all changes are the same. Some are low risk and can be implemented quickly, while others require more thorough planning and testing. It is therefore essential to classify changes by type, priority and potential impact on the business. 

For each category, special processes should be developed to ensure effective and controlled implementation throughout the entire life cycle. For example, updating office software may be classified as a low risk change that requires a simple approval process and user notification. 

In contrast, the implementation of a new CRM system might be considered a high-risk change, requiring a detailed process of careful planning, testing and user training. Understanding risk tolerance is critical to this classification process.

Understanding Risks and Regulatory Requirements

When implementing any change, it’s important to consider potential risks such as system failure, data loss, security breaches or negative user reaction. Organizations must also consider any applicable regulatory requirements relating to data protection, financial reporting or security. 

For example, a company implementing a new e-commerce system will need to consider the risk of system failure during peak sales periods and ensure compliance with data protection regulations. 

Documenting Proposed Changes

Thorough documentation of all proposed changes is critical from the «problem identification» stage onwards. This helps to better prioritize changes, analyze their potential impact on the business and allocate resources more effectively. 

For example, a member of the marketing department may propose a change to the design of the company’s website. The change request should describe the proposed changes, their objectives and expected results. The IT change manager needs to analyze this request, understand its importance and prioritize it against other proposed changes.

Conducting Risk and Impact Analysis

Not all changes are safe or deliver the expected results. Before implementing any change, a thorough risk and impact analysis is essential. This helps to identify potential problems such as system failures, data loss, security breaches or negative user reactions.

Automating Possible Stages of The Process

The change management process can be labor-intensive, so automating as many steps as possible can greatly improve its efficiency and speed. For example, an organization can use change management software to automate tasks such as:

• submitting and approving change requests.
• notifying users.
• tracking the progress of changes.

Automating tasks allows people to focus on more important tasks and reduces errors.

Informing Stakeholders about The Schedule

Timely and clear communication of planned changes to all stakeholders is essential. This allows employees to prepare, ask questions and raise concerns that IT staff may not be aware of. 

For example, if a company is planning to update its email system, it should send an email to all employees a week before the change, describing what is changing, when it will happen, and how to prepare. A second reminder email a day or two before the change is also recommended. 

Setting and Measuring Key Metrics and KPIs

In order to evaluate the effectiveness of change management processes, it is essential to define key performance indicators (KPIs). These KPIs may include:

• time spent implementing changes.
• number of change-related incidents.
• user satisfaction levels. 

Regular KPI measurement helps to identify areas for improvement and increase the efficiency of change management processes.

Creating Contingency Plans

Not all change goes smoothly. It is important to be prepared for the unexpected and to have contingency plans in place in the event of a change failure. Contingency plans can include rolling back to the previous version of the system, restoring data from backups, or redirecting users to alternative resources. 

For example, when implementing a new CRM system, the organization should back up the existing CRM system and ensure the ability to revert to it if the new system doesn’t work properly. The organizational change management process involves a structured approach to moving individuals, IT teams and organizations from the current state to a desired future state.