Managers and leaders must understand their role in managing change. Organizational change is the process by which a business alters key components of its strategy or operations. This may involve changes to company culture, essential technologies, organizational structure, or major initiatives and goals.
Depending on the objectives you're trying to achieve, organizational change may be either continuous or intermittent. Organizational change is typically categorized into two types: Adaptive and transformational change.
Adaptive changes are small, incremental modifications that an organization undertakes to evolve over time. They can be thought of as the fine-tuning of processes and business strategies. Transformational changes, on the other hand, are larger in scope and scale, and typically involve a radical shift in direction for the business. These changes are often the result of outside forces putting pressure on the company, such as the emergence of a new competitor.
No two change initiatives are the same. But the vast majority of those that are successful follow the steps of the change management process. All change processes have a set of starting conditions Point A and an endpoint Point B.
Frequent communication in the form of one-on-one conversations, team meetings, and email communications not only helps the team understand upcoming changes, but also improves transparency, gives individuals opportunities to ask questions, and helps to open the door for employees to provide feedback.
Two-way feedback that provides individuals with a forum for expressing their concerns gives you the opportunity to add clarity and resolve confusion. Two-way feedback opportunities, such as in-person or virtual brainstorming sessions, team off-sites, and other group sessions, allow individuals to discuss and resolve shared concerns or areas of confusion.
The more people participate in dialogue about the changes that affect them, the more they become personally invested and likely to embrace the changes. In this case, a valuable way to prepare your team for organizational change is to determine what kind of training will help them better cope with change and approach it successfully.
Like many things in the organization, preparing for change is a team effort. Instead of assuming that executive or team leaders are the only ones who can help prepare the team for organizational change, it can be helpful to identify others on the team who can help to drive and champion change.
The group was an essential resource for fellow employees, and served as a channel for two-way feedback for leadership. Another way to engage employees and drive commitment is to recognize those individuals who are embracing the change and demonstrating desired behaviors. For instance, a recent client wanted to drive a culture shift that was more open and transparent, and engage employees around recently launched corporate values.
As part of the rollout, the company introduced a new award that recognized employees who were living their corporate values both inside and outside of work. Employees could nominate their peers, and winners were voted on by the entire organization and revealed at an all-employee town hall.
Not only did this reward those who were role models for change, but it allowed the entire organization to become engaged in the process. Being able to effectively lead change within your organization is crucial — and impacts more your culture and your bottom line.
Companies who are highly effective at change management are three and a half times more likely to significantly outperform industry peers. Assuming employees understand the changes your company is going through will jeopardize your change initiative. You have 1 free article s left this month. You are reading your last free article for this month. Subscribe for unlimited access. Create an account to read 2 more. Change management. For instance, financial services companies had to learn how to survive the most recent recession.
For those that adapted and continued to operate through the economic recovery soon had to weather a new obstacle: the rise of fintech startups. Performance Gaps: The organization's goals and objectives are not being met or other organizational needs are not being satisfied. Changes are required to close these gaps. New Technology: Identification of new technology and more efficient and economical methods to perform work.
Identification of Opportunities: Opportunities are identified in the market place that the organization needs to pursue in order to increase its competitiveness. External pressures come from many areas, including customers, competition, changing government regulations, shareholders, financial markets, and other factors in the organization's external environment.
In order to prove to the board he is doing something, he will make changes just for their own sake. Sounds Good: Another reason organizations may institute certain changes is that other organizations are doing so such as the old quality circles and re-engineering fads.
It sounds good, so the organization tries it. Planned Abandonment : Changes as a result of abandoning declining products, markets, or subsidiaries and allocating resources to innovation and new opportunities. Technology: Organizations can change their technology for example the way they produce whatever they sell in order to increase efficiency and lower costs.
Human-Behavioral Changes: Training can be provided to managers and employees to provide new knowledge and skills, or people can be replaced or downsized.
As result of the recent financial crisis, many organizations downsized creating massive unemployment that continues to this day.
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