Business change management

Reasons for change

Reasons for resistance

Solutions

External factors

Self-interest

Explain the reasoning

Fear of failure

Misinformation

Lack of trust

An employee identifies their own interests above those of the firm

Humans like ORDER and STABILITY

If the reasons for the change are not clearly communicated, employees will feel uncomfortable or untrusted.

Due to past experiences, the employee may not believe the reasons given to them for change or the reassurances from managers

Change entails new methods and strategies = adaptation required

Fearful - instead of being seen as an opportunity for growth it is seen as an unpredictable, dangerous situation = the unknown

They may think there is thus, no good reason for the change and hence act against it

Misunderstandings can arise

Internal factors

Environmental

Technological changes = cause delayering

Political legislations

Development and innovation

Cost-cutting to improve competitiveness

Relocation

Globalisation = Larger markets, growth possibilities, competition

Changes in tastes and preferences = customer needs and wants

Competition = new product, lower price etc.

Keeping employees constantly informed

Involve employees in decision-making processes

Workers could lose status or job security

Change management

"Planning, implementing, controlling and reviewing the movement of an organisation from its current state to a new one"

Questions to ask when evaluating change

Is the change anticipated or unanticipated?

Is the change incremental or dramatic?

What are the best solutions to prevent cultural clashes?

Use project champions

The person will be appointed by senior management to help drive and assist a programme of change within the business

Like 'cheerleaders' they will smooth the path and remove as many obstacles as possible

Plan the timing of the change

Ensure resources are in place to ensure it happening

Check on how individuals are coping and support them

Have managers planned for change?

To what extent can management control the change process?