Organizational change is a structured approach in an organization for ensuring that changes are smoothly and successfully implemented to achieve lasting benefits. In the modern business environment, organizations face rapid change like never before. Globalization and the constant innovation of technology result in a constantly evolving business environment. Phenomena such as social media and mobile adaptability have revolutionized business and the effect of this is an ever increasing need for change, and therefore change management. The growth in technology also has a secondary effect of increasing the availability and therefore accountability of knowledge. Easily accessible information has resulted in unprecedented scrutiny from stockholders and the media. Prying eyes and listening ears raise the stakes for failed business endeavors and increase the pressure on struggling executives. With the business environment experiencing so much change, organizations must then learn to become comfortable with change as well. Therefore, the ability to manage and adapt to organizational change is an essential ability required in the workplace today.
Due to the growth of technology, modern organizational change is largely motivated by exterior innovations rather than internal moves. When these developments occur, the organizations that adapt quickest create a competitive advantage for themselves, while the companies that refuse to change get left behind. This can result in drastic profit and/or market share losses.
Organizational change directly affects all departments from the entry level employee to senior management. The entire company must learn how to handle changes to the organization.
When determining which of the latest techniques or innovations to adopt, there are four major factors to be considered:
- Levels, goals, and strategies
- Measurement system
- Sequence of steps
- Implementation and organizational change
Regardless of the many types of organizational change, the critical aspect is a company’s ability to win the buy-in of their organization’s employees on the change. Effectively managing organizational change is a four-step process:
- recognizing the changes in the broader business environment.
- developing the necessary adjustments for their company’s needs.
- training their employees on the appropriate changes.
- winning the support of the employees with the persuasiveness of the appropriate adjustments.
As a multidisciplinary practice that has evolved as a result of scholarly research, Organizational Change Management should begin with a systematic diagnosis of the current situation in order to determine both the need for change and the capability to change. The objectives, content, and process of change should all be specified as part of a Change Management plan.
Change Management processes may include creative marketing to enable communication between changing audiences, as well as deep social understanding about leadership’s styles and group dynamics. As a visible track on transformation projects, Organizational Change Management aligns groups’ expectations, communicates, integrates teams and manages people training. It makes use of performance metrics, such as financial results, operational efficiency, leadership commitment, communication effectiveness, and the perceived need for change to design appropriate strategies, in order to avoid change failures or resolve troubled change projects.
Successful change management is more likely to occur if the following are included:
- Benefits management and realization to define measurable stakeholder aims, create a business case for their achievement (which should be continuously updated), and monitor assumptions, risks, dependencies, costs, return on investment, dis-benefits and cultural issues affecting the progress of the associated work.
- Effective Communications that informs various stakeholders of the reasons for the change (why?), the benefits of successful implementation (what is in it for us, and you) as well as the details of the change (when? where? who is involved? how much will it cost? etc.).
- Devise an effective education, training and/or skills upgrading scheme for the organization.
- Counter resistance from the employees of companies and align them to overall strategic direction of the organization.
- Provide personal counseling (if required) to alleviate any change-related fears.
- Monitoring of the implementation and fine-tuning as required.
Some areas where change managment processs are relevant include:
- Strategic changes,
- Operational changes (including Structural changes),
- Technological changes,
- Changing the attitudes and behaviors of personnel