Navigating change management for contractor-heavy businesses

Explore strategies for smoothly implementing change in contractor-driven industries

Digital transformation is a hot topic in nearly every industry, especially in the industrial construction, mining, and oil & gas sectors. 

That’s not just because of the potential of these efforts, though. It’s because this transformation represents a dramatic shift and change in the way businesses in these sectors operate. 

No matter how you slice it, change is hard—and because these businesses work so closely with contractors, that complexity multiplies.

The good news is that change management is designed to help these businesses develop a strong strategy for undertakings like digital transformation. 

But where do you start with change management? How do you coordinate stakeholders, partners, technologies, policies, and operations to effect digital transformation?

In this blog, we’ll explore the unique challenges of implementing change management in contractor-heavy environments and discuss strategies that can help you ensure a smooth transition.

Getting internal and external buy-in

Securing buy-in is easily one of the most critical components in any change management undertaking. It’s not just internal team members that need to buy-in, though—you need participation from the external contractors and partners you work with. 

Without full buy-in from these stakeholders, even the best-laid plans have a risk of failure. Studies have shown that change of any sort in a workplace has a tendency to increase stress (at best) and distrust (at worst).

Change can be unsettling, and employees may worry about the learning curve or disruption to their routine. Reassure them that training and support will be provided. Let them know that the changes are designed to enhance—not complicate—their day-to-day responsibilities. 

As a result, all buy-in efforts begin with clear communications. At the outset of your change management efforts, take the time to articulate the reasons your business is making these changes. Whether it’s for new software, new compliance protocols, or a revamped approach to project management, your team must understand the “why” behind your efforts and share that reason within your team. 

Note that change isn’t inherently something dictated from on high by the C-suite. It’s equally likely that change will be spearheaded by individual contributors or teams that recognize areas of improvement. 

In these cases, communication must be tailored to the executive level first to help them understand the return-on-investment these efforts will deliver. Executives and managers need to see how the changes align with the company’s strategic goals and contribute to growth.

Now for the external side.

Your contractors are trusted third parties you work with on major projects, and chances are you’re used to working a certain way with them, just as they are with you. It’s extremely likely that your contractors are far less invested in your internal processes. 

To them, they’re focused on completing their tasks on time and within budget. New systems or processes may be yet another hurdle for them to clear. 

You need to help them understand the benefits of the changes you’re introducing—or, to put it bluntly, you need to tell your contractors what’s in it for them. 

For example, if you’re looking at introducing a new system for managing contractor invoices and payments, you’ll need to get your existing contractors onboarded with this system. That’s another task for them to complete on top of their primary responsibilities. Focus on the benefits they’ll experience—”Once you’re onboarded, payment processing will take 50% less time than it does in our current system” will speak volumes. 

Regardless of what your goals are, take some time to identify who the change influencers are in your organization and among your contractors. Getting these people on board can have a dramatic effect on the success of your strategies because they act as champions for these efforts and sway others.

Building a communication strategy

Communication is key when rolling out your change management efforts. To that end, even the most basic communication strategy will go a long way, letting you keep internal and external stakeholders up-to-date with what’s happening, along with an estimated timeline. This helps foster trust, in turn reducing resistance to change. 

Your communication strategy can be a simple sequence of emails sent to your teams. Think of how you’d go about pitching a new project—when you highlight the value, your audience is more likely to invest their time and energy into making it work.

Accountability and transparency

We’ve already touched on this tangentially, but accountability and transparency are crucial elements of any change management process. Communication is just one facet of accountability—it’s also about fostering a sense of shared responsibility and an understanding of what the key goals are for contributors.  

Building accountability starts before you take a single step along your change management journey. You need to map out a variety of information to help you with this project, as you would any major business undertaking. Think of it like doing your homework. 

Take the time to:

• Establish clear roles and responsibilities—who is leading, who are the core team members, who are the process owners, and who are the users closest to the new processes?
• Define your goals, KPIs, and the benchmarks you’ll use to measure them—this will let you report on the effectiveness of your efforts.
• Establish a timeline for your efforts—even if you need to change it, ensure you’ve got a target completion date in mind to give you a goal.

Internally, each team member should know their role in the transition, whether it’s adopting new software, managing contractor relationships, or overseeing compliance with new contract terms. Clearly defined roles prevent confusion and ensure that everyone is contributing to the success of the change.

For contractors, meanwhile, accountability means clearly communicating what’s expected of them during the transition.

Using regular check-ins and tracking your progress will help maintain accountability. For greater transparency, share this information amongst your company to give everyone involved a better sense of how the project is moving along.

Providing training and support 

Ongoing training and support will be crucial to the lasting success of your change management initiatives. You’re functionally introducing new ways of working, so it stands to reason that you can’t expect everyone to immediately grasp new ways of operating. 

To that end, you need targeted, specific training. Focus on the specific tools, systems, processes, or procedures that you’re introducing. Your internal teams will likely have to learn new dashboards or procedures—and if you’ve introduced new automated workflows, that’ll represent a significant shift in how they go about their day-to-day. 

Contractor training needs to be even more specific. Chances are your contractors won’t want to bother with every intricacy of your new system—and they shouldn’t be expected to. Focus on delivering training and guided walkthroughs of the key features they’ll interact with:

• Invoicing and time tracking. 
• Compliance and safety reporting. 
• Project communications. 

Beyond formal training, you can also foster a company-wide culture of learning and sharing information. Encourage team members who grasp the new systems quickly to help others, creating a collaborative learning environment. Don’t discount the power of peer support. 

Effective training and support build confidence, reduce resistance, and increase the likelihood that all stakeholders will adopt the changes you’re introducing.

The long-term benefits of effective change management 

Now that you have a better sense of some of the basics of implementing a change management strategy let’s look at the long-term benefits businesses like yours can access. 

Improved contractor relationships

Contractors who feel involved and supported during the change process are more likely to stay engaged, in turn delivering high-quality work. By providing them with the tools and training they need, you build stronger relationships while reducing contractor churn. Change management helps ensure that contractors get up-to-speed with the systems you’re introducing, in turn making sure their jobs are that much easier. 

Greater efficiency and productivity

One of the primary benefits of the transformative potential of change management is the boost in efficiency and productivity. With streamlined processes, employees and contractors can focus on the actual work rather than getting bogged down by paperwork or outdated systems. 

As an example, automation can dramatically reduce the amount of time spent on administrative tasks, freeing up resources for higher-priority activities.

Sustainable, scalable growth

Organizations that manage change effectively are better positioned for long-term success. 

That’s because, by embracing change, they’re more likely to adopt the tools and technologies needed to develop a proactive approach to their work. Instead of constantly reacting to external factors, you’re in a better position to anticipate them—think of new regulations, contract requirements, or project demands.

When you’re in that anticipatory state, you’re able to rapidly assess the needs of new production. This is especially important in contractor-heavy industries, where being able to scale up for large projects easily is a major differentiator.

Reduced risk

The tasks involved in change management help reduce the risks your business faces. In the context of contractor-heavy industries like oil & gas, heavy engineering, and large-scale construction, the potential of digital transformation to streamline risk management cannot be overstated. 

Effective change management ensures your business is in a strong position and can hit the ground running after this transformation. The technologies and processes you introduce can streamline how you approach and handle risks. This leads to fewer disruptions and a smoother way of doing business. 

Navigating change

Change management represents a significant undertaking, especially when you’re trying to get a handle on digital transformation. Yet the right strategies can help ensure this process unfolds smoothly and successfully. 

If there’s one thing you leave this blog with, it’s that effective communication and deliberate effort are key elements of change management undertakings. 

By embracing change, you set your organization up for sustainable growth, stronger contractor relationships, and a more efficient, competitive operation. It may take time, but the long-term benefits are well worth the effort.

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