What is change management
Change management is a company technique for describing, implementing and reporting on change in their working activities and practises. As the change cascades, all concerned personnel must comprehend the progress. This happens through the various stages and through each department, ensuring everyone is informed of the progress of the chain at every stage.
Why is change management important
Change management allows successful acceptance and implementation of change in the workplace. It helps workers to understand the change, commit to it, and perform well during it. Business transitions of ways of working may be hard in terms of both time and resources. Especially if appropriate organizational change management eludes you.
Key principles of change management
Understand change – You must first grasp the benefits of the change to successfully communicate them. So, consider why you need to change and what your main goals are. Consider what the change will bring to the company and how it will affect individuals positively. Another question to consider is how it will impact people’s work habits and what they will need to do to make the change successful.
Plan change – Effective change does not happen by accident, and any strategy you devise must be for your organization’s needs. Change projects may be managed in a variety of ways, depending on the company. Some change techniques are quite rigorous, and others are more open in their approach.
Implement change – There are a variety of techniques you may use to put your change into action. Whatever tools you choose, the actions below can assist you in implementing change:
Ensure that everyone engaged knows what needs to be done. Also explain the success criteria to them so that success can be measured. You’ll also need to map out and identify all the main parties involved. Another thing you should do is determine the training requirements. Lastly, find strategies to modify people’s habits so that new behaviours become the standard, and make sure that everyone is on board.
Communicate change – Change management may be a make-or-break process when it comes to communication. People must comprehend what you are asking them to accomplish and why they must do it. As a result, the change you want to make must be visible and meaningful. You must, however, create the appropriate tone to elicit the desired emotional response.
Examples of change management
Any change management strategy must identify potential issues. Some of those are to meet the requirements of everyone in the organization, and, bridge the gap between leadership goals. Also, they have to bridge the gap between those affected by change.
Netflix
Netflix was able to use change management to suit the needs of their customers. It was previously at a crossroads, where its long-term existence was dependent on how it managed the shift to a digital future. The number of Netflix subscribers grew from 23 million in 2011 to over 137 million in 2018. Despite a drop in subscriptions and stock prices earlier in the year.
Domino’s Pizza
Domino’s Pizza’s modifications resulted in surpassing Pizza Hut in sales. Things were finally looking up in 2010 thanks to shrewd marketing, and inventive ordering systems. Also, they introduced cutting-edge technology. To facilitate the transition, the brand installed new technologies. A new customized delivery vehicle with a heating oven, the DXP. It was created, and despite just 150 being on the road at the time, it served as a form of marketing.
Coca-Cola
No company has faced as many change management issues as the Coca-Cola Company. One example comes from the 1980s, when Pepsi began actively pursuing Coca-Cola. In response, Coca-Cola introduced New Coke, a sweeter variant of their traditional beverage. The launch of New Coke was a fiasco, since it didn’t stand up to the public at large. Coca-Cola quickly replaced it with the previous recipe. The brand was able to adjust to consumer preferences to keep the product’s attraction.
Types of change management
There are three types of change management. These include developmental, transitional, and transformational. It’s critical to understand this because different types of change need distinct techniques and plans. That’s if you want to gain involvement, reducing resistance, and facilitating acceptance.
Developmental change
A directed change might take the shape of developmental change in its simplest form. This is when the company enhances what it is already doing. That is usually developing new skills, processes, methodologies, performance criteria, or working circumstances. Increased sales or quality and interpersonal communication training are just a few examples. Some more examples are basic work process changes, team building, and problem-solving activities. These are classic instances of quality circle-driven adjustments and ‘enhancement’ initiatives.
Transitional change
Another type of intentional change is transitional change. This involves the replacement of what exists with something new to those concerned. Individuals must emotionally let go of the old way of working for change to occur. This will necessitate the organization’s dismantling of the old as the new state is implemented. The eventual destination can be fully seen and described in great detail. This form of change is a good candidate for being implemented through a project and typical change management techniques. Because individuals are influenced at the level of skills and behaviours, it’s much easier to do this change. It’s easier because the deeper-lying cultural values don’t change too much.
Transformational change
This is a considerably more unpredictable and frightening environment than typical projects. Success relies on both emotion and intellect of the parties involved. This is because there is no one-to-one mapping between the current and future states in transformational change. So executives, managers, and front-line workers must all make a change involving mindsets and behaviours. They also need to change their influence and new relationships. Under this sort of change, the future is invented rather than lived. With leaders and employees changing their world-views to create, and operate in the future as they see it. Complex mergers and acquisitions are just a few examples. Another example is the shift of traditional business channels to virtual channels. So is the dramatic rebranding of a company.
Contact us to learn more about change management in your organization
Change management can be challenging to achieve successfully. In fact, any change is quite challenging and having someone back you up and help you is advantageous. Especially if that is a company that has a lot of experience in the field of change management. Another benefit of hiring a professional company is the experience they have of guiding other companies into success. Ensure your change management goes smoothly by contacting us right away.