Due to dynamic changes and the rapid emergence of new technologies, companies are forced to transform their own strategies, systems and management structures to keep up with the times and maintain market positions. However, one-off initiatives do not always help businesses to improve the situation. Therefore, we need to learn to manage change in order to adapt all processes to new market challenges as effectively as possible.
Why change needs to be managed
Companies, regardless of ownership and industry, are forced to constantly respond to external and internal challenges and threats, because modern business operates in an extremely dynamic environment, often with a high level of uncertainty. This is largely due to globalization, blurring of borders between countries and ever-increasing competition. In addition, customer needs and employee qualifications are changing. However, the main difficulty is that the company does not have time or is unable to adapt to different types of challenges and loses to competitors in the speed of change, and therefore – in the fight for the customer and market leadership.
Accordingly, changes are needed in order not to get lost in the ‘sea’ of business, to respond quickly and efficiently to the challenges of the external environment through continuous improvement of internal, technological, management processes and management structure. The companies’ ability to make timely changes related to the changing environment or, more importantly, the ability to “customize” the environment is the most important property of a modern company that ensures competitiveness and its ability to be successful in the medium and long-term perspective.
Change management is the process of mastering and implementing a new idea, type of behavior or any modification of a certain element of the company’s management system. This can apply to both core and ancillary business processes. Examples of changes may be: improving customer service, creating a new product or service, altering the organizational and functional structure of the business to fit technology, improving corporate culture, and so on.
Types of organizational change
All changes in companies can be identified as two types: operational changes related to the improvement of business processes, and strategic changes aimed at radically renewing the organization, reorienting its mission, goals and objectives.
In practice, there are planned and spontaneous changes. Spontaneous change is a reaction to the adverse effects of random factors. Such changes are not systemic, usually carried out locally and, accordingly, do not change related processes, and therefore ultimately lead to additional losses.
Planned change is a proactive response to a problem, ie thoughtful, considered steps to improve. In other words, it is a system of actions for the implementation of which it is necessary to conduct certain research, identify and localize the problem, identify opportunities and threats, understand the strengths and weaknesses of the company.
Principles of change management
Change management is time consuming and hard work. Mistakes in their implementation can be costly for both the company and its employees. Therefore, when introducing changes in the minds of staff, you must be sure that they will lead to the desired results – improving the quality of work and efficiency. Adherence to basic change management principles can provide such confidence.
- Clear definition of the goals of change
To manage change, you need to understand its purpose. The goals of change at the personal level must be consistent with the goals of organizational change. Otherwise, there is a risk that organizational change will not receive the necessary support at the personal level.
- Understanding the state of affairs
Managing change at the personal level involves organizational change. To make changes in work, it is necessary to know how the tasks are performed at this time, what factors force staff to perform them in this way.
- Planning the change
Without a plan, effective change management is impossible. Change planning makes it possible to determine the impact of personal change on organizational, identify the benefits of change, possible difficulties and alternatives for the implementation of intended organizational innovations.
- Informing staff
Change management cannot occur if staff is left out. When implementing change, people try to get as much information as possible about what changes are being made and what results are expected. Ignorance of the goals of change increases the level of anxiety of staff. Therefore, it is necessary to regularly inform employees about the changes and expected results.
The first and foremost condition for employees to be interested in the implementation of the proposed changes should be their involvement in the study of existing problems. Until team members understand why new rules or procedures are being implemented, they will consider it a waste of time.
The team must be informed of planned changes in the division of responsibilities. Effective communication between subordinates and managers must be ensured. Managers should provide subordinates with information about their tasks to the extent necessary to perform tasks under the new schemes of work.
If managers do not support and encourage new methods of work, people tend to return to the previous ones. Therefore, any, even the most insignificant achievements of employees should be encouraged. Incentives should be not only material but also moral.
Once the procedures and schemes of work take effect, employees do not need orders and instructions. They are already quite well trained in new methods of work. All they need is support from management and involvement in the decision-making process.
