Why a successful regulatory change project needs more than ‘just lawyers’

Change needs to come from within the organisation – in other words, from the people who are actually affected by it. If they don’t ‘walk the talk’, significant investments may end up being spent on legal regulatory change projects – but without any changes actually taking place.

Does this sound familiar to you? In order to avoid falling into this trap, it’s important to understand the four phases of change management – and the strategies that need to be applied in each one. The following tips might therefore help you to manage your next legal regulatory implementation project. 

Phase 1 – Denial

This first phase begins when people ‘hear’ about the change. Typical behaviours and responses include: 

• avoiding the topic of the change as much as possible
• ignoring/failing to respond to information relating to the change
• failing to be curious; having a narrow focus (‘business as usual’)
• blaming others for difficulties; questioning the decisions made.

If you are the leader of a regulatory change project, the following strategies and tips may help:

• Openly share information – early and often – and create opportunities to discuss upcoming or recent changes.
• Provide context (what is happening and why, as well as assessing what the impact could be if we don’t change).
• Focus on maximising face-to-face communication.
• Be clear on the intent and outcomes of the change; explain the benefits.

Phase 2 – Resistance

This phase is best summarised as the experience of being between the comfortable and the unfamiliar. Typical behaviours and responses include: 

• being anxious, confused, overwhelmed and even fearful
• showing anger or bitterness; arguing; bringing up past failures
• refusing to play along; complaining and rallying others
• becoming quiet, withdrawn and passive.

The following strategies and tips may help in this resistance phase:

• Create an environment where it’s okay for people to express their feelings.
• Listen and acknowledge how others feel (don’t dismiss).
• Continue to communicate; share the ‘what’ and ‘why.’
• Welcome questions; give people time to understand the change.
• Focus on what lies ahead; be a positive role model.

Phase 3 – Exploration

This phase signals a shift. People make a choice to focus on moving forward. Typical behaviours and responses include:

• beginning to consider what they can do; contributing ideas
• seeking to learn and discover; being more willing to try new things
• working together and seeking help from each other
• possibly feeling excited, or overwhelmed and tired.

The following strategies and tips may help in this exploration phase:

• Allow total transparency with regard to the project – let people know what needs to be done, what’s working and not working.
• Encourage involvement; acknowledge efforts and people’s willingness to learn.
• Seek input from others; make adjustments if needed.
• Help people to focus on what matters most.
• Set milestones and celebrate.

Phase 4 – Commitment

This phase is when people adopt the new way and become capable of working effectively within the new. Typical behaviours and responses include:

• being more confident and comfortable with the change/‘new way’
• being up to speed on the technical side of the change
• expressing a sense of accomplishment; being proud
• feeling accountable for results
• focusing on continuous improvement.

The following strategies and tips may help in this commitment phase:

• Celebrate successes and acknowledge accomplishments.
• Continue to seek input and feedback; create solid feedback mechanisms.
• Focus on and share what’s been learned, and how we can apply it to future situations or changes.
• Make yourself and others ready for the next change.

It’s true that there is no ‘silver bullet’ on how to run a regulatory change project. What we have seen is that projects, especially those that are embedded in a remote working environment and require work to be carried out across different countries and cultures, may be more difficult to manage. However, the above strategies and tips should help you to look at your projects not only from a legal and regulatory perspective, but also from a holistic point of view.