Change management is a structured approach for ensuring that changes are thoroughly and smoothly implemented, and that the lasting benefits of change are achieved. It requires businesses to define and adopt strategies, structures, procedures, and technologies to cope with changes. It is important to recognise that the different kinds of change require different strategies and plans to gain buy-in, commitment, and employee engagement.
There are three types of change which commonly occur in businesses, these are: developmental, transitional, and transformational;
- In its simplest form, developmental change occurs when you recognise a need to make improvements to an existing situation due to business growth or development. Developmental change is about continuous improvement for business, and is a type of change all businesses face, and must handle correctly.
- Transitional change happens when you recognise the need to implement a completely new course of action.
- Transformational change isn’t necessarily something that you control, its more about businesses recognising the need for change and adapting in order to survive. These changes are generally in response to extreme or unexpected market change. And as a result, the business strategy needs to be completely reshaped for the business to survive.
Organisational change is a constant in many businesses, driven by a number of different forces including:
- growth opportunities, especially new markets;
- economic downturns and challenging trading conditions;
- shifts in strategic objectives;
- technological developments;
- competitive pressures, including new entrants, mergers and acquisitions;
- customer or supplier pressure, particularly shifting markets;
- learning new organisation behaviours and skills; or
- government legislation/initiatives.
So why is it important for a business to manage change?
A lot of time and effort goes into any change initiative and requires input from numerous people across the business. Not allowing the change to take shape in the business or failure to complete a change programme can result in;
- loss of market position;
- removal of senior management;
- loss of stakeholder credibility;
- loss of key employees; and
- reduction in employee engagement and motivation.
‘According to Gartner a typical business will have undertaken five major changes in the past three years — and nearly 75% expect to multiply the types of major change initiatives they will undertake in the next three years. Yet half of change initiatives fail, and only 34% are a clear success’.
Developing a change plan
While each change situation is unique, there are still some common themes that will help give the change process the best chance of success. As part of a change plan you should be covering off the following elements:
- What will change – this should be a brief explanation of the proposed change. Make sure to address not only what will change but also who will be affected and when it will take place.
- The reason for change – when explaining the reason for the change, try to be specific. Explain exactly why the change is necessary and remember to fully justify the need for the change. The business should also address anticipated concerns and resistance to drive home the ‘why’ for this change.
- Intended outcomes – consider results such as reduced labour costs, improved employee experience, and increased productivity, depending on the change situation.
- Estimated duration – provide an estimate of how much time will be required to implement and complete the proposed change.
- Estimated costs – here you are looking to calculate the estimated total costs associated with the change. Some costs to consider include; labour, additional staffing, technology, and outside consultation.
- Consider any additional factors and other areas of the business which may be affected by the change – an example would be, if the proposed change involves hiring new talent, the organisational chart may need to be updated.
If you would like further guidance or support on this matter or require advice on other people management matters please contact Clover HR on 0121 516 0299 or email us at info@cloverhr.co.uk
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