Businesses must constantly evolve and adapt to meet a variety of challenges—from changes in technology, to the rise of new competitors, to a shift in laws, regulations, or underlying economic trends. Failure to do so could lead to stagnation or, worse, failure. Show
Approximately 50 percent of all organizational change initiatives are unsuccessful, highlighting why knowing how to plan for, coordinate, and carry out change is a valuable skill for managers and business leaders alike. Have you been tasked with managing a significant change initiative for your organization? Would you like to demonstrate that you’re capable of spearheading such an initiative the next time one arises? Here’s an overview of what change management is, the key steps in the process, and actions you can take to develop your managerial skills and become more effective in your role. Free E-Book: How to Become a More Effective Leader Access your free e-book today. DOWNLOAD NOWWhat is Change Management?Organizational change refers broadly to the actions a business takes to change or adjust a significant component of its organization. This may include company culture, internal processes, underlying technology or infrastructure, corporate hierarchy, or another critical aspect. Organizational change can be either adaptive or transformational:
Change management is the process of guiding organizational change to fruition, from the earliest stages of conception and preparation, through implementation and, finally, to resolution. An effective management strategy is crucial to ensure businesses successfully transition and adapt to any changes that may occur. Change processes have a set of starting conditions (point A) and a functional endpoint (point B). The process in between is dynamic and unfolds in stages. Here’s a summary of the key steps in the change management process. Check out our video on the change management process below, and subscribe to our YouTube channel for more explainer content! 5 Steps in the Change Management Process1. Prepare the Organization for ChangeFor an organization to successfully pursue and implement change, it must be prepared both logistically and culturally. Before delving into logistics, cultural preparation must first take place to achieve the best business outcome. In the preparation phase, the manager is focused on helping employees recognize and understand the need for change. They raise awareness of the various challenges or problems facing the organization that are acting as forces of change and generating dissatisfaction with the status quo. Gaining this initial buy-in from employees who will help implement the change can remove friction and resistance later on. 2. Craft a Vision and Plan for ChangeOnce the organization is ready to embrace change, managers must develop a thorough and realistic plan for bringing it about. The plan should detail:
While it’s important to have a structured approach, the plan should also account for any unknowns or roadblocks that could arise during the implementation process and would require agility and flexibility to overcome. 3. Implement the ChangesAfter the plan has been created, all that remains is to follow the steps outlined within it to implement the required change. Whether that involves changes to the company’s structure, strategy, systems, processes, employee behaviors, or other aspects will depend on the specifics of the initiative. During the implementation process, change managers must be focused on empowering their employees to take the necessary steps to achieve the goals of the initiative and celebrate any short-term wins. They should also do their best to anticipate roadblocks and prevent, remove, or mitigate them once identified. Repeated communication of the organization’s vision is critical throughout the implementation process to remind team members why change is being pursued. 4. Embed Changes Within Company Culture and PracticesOnce the change initiative has been completed, change managers must prevent a reversion to the prior state or status quo. This is particularly important for organizational change related to business processes such as workflows, culture, and strategy formulation. Without an adequate plan, employees may backslide into the “old way” of doing things, particularly during the transitory period. By embedding changes within the company’s culture and practices, it becomes more difficult for backsliding to occur. New organizational structures, controls, and reward systems should all be considered as tools to help change stick. 5. Review Progress and Analyze ResultsJust because a change initiative is complete doesn’t mean it was successful. Conducting analysis and review, or a “project post mortem,” can help business leaders understand whether a change initiative was a success, failure, or mixed result. It can also offer valuable insights and lessons that can be leveraged in future change efforts. Ask yourself questions like: Were project goals met? If yes, can this success be replicated elsewhere? If not, what went wrong? How to Manage Change EffectivelyWhile no two change initiatives are the same, they typically follow a similar process. To effectively manage change, managers and business leaders must thoroughly understand the steps involved. Some other tips for managing organizational change include asking yourself questions like:
Developing the Skills You Need for SuccessIf you’ve been asked to lead a change initiative within your organization, or you’d like to position yourself to oversee such projects in the future, it’s critical to begin laying the groundwork for success by developing the skills that can equip you to do the job. Completing an online management course can be an effective way of developing those skills and lead to several other benefits. When evaluating your options for training, seek a program that aligns with your personal and professional goals; for example, one that emphasizes organizational change. Do you want to become a more effective leader and manager? Explore Leadership Principles, Management Essentials, and Organizational Leadership—three of our online leadership and management courses—to learn how you can take charge of your professional development and accelerate your career. Not sure which course is the right fit? Download our free flowchart. Which of the following is referred to as a key to the effective management of change?Effective communication is one of the most important success factors for effective change management. All involved individuals must understand the progress through the various stages and see results as the change cascades.
What does MBO stand for?MBO is an acronym for Management by Objectives. It can be defined as a management system that measures employees' performance against a series of set targets or goals to gauge their overall performance in their role.
Which CEO of Home Depot learned the dangers of attempting to change corporate culture?CHICAGO (MarketWatch) -- Bob Nardelli implemented a number of positive changes in his quest to remake the corporate culture at Home Depot Inc., but it was the mistakes, coupled with an unappealing bout of haughtiness, that left him abruptly out of work after six years as the chairman and chief executive of the nation's ...
Which activity is part of the planning function of management?Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions.
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