Change Management: The High Cost of Getting it Wrong

1- Why Change Management?

Change management is like a guide for businesses when things are changing. It helps them adjust, talk well, and use resources smartly. This makes employees happier, keeps customers happy, and makes the business stronger in the market. So, it's really important!

But what happens when change management isn't done right? The consequences can be costly. Let's take a closer look at why getting it wrong can be a big problem

1. Slower Work: Imagine a new system with no training. Confusion slows things down, causing mistakes.
2. Upset Employees: If staff don't get why things are changing, they might get frustrated or unhappy. Happy workers do better.
3. Wasting Stuff: Change needs time and money. If it's not done right, these resources go to waste.
4. Bad Reputation: Customers trust businesses for reliable service. Messing up changes can hurt this trust.
5. Missing Good Stuff: Change is often to keep up with trends. If not handled well, the business might miss out on great opportunities.

Change management is like a safety net. It helps businesses switch smoothly, keeping everyone on track for success. So, doing it right is an investment in a better future for any business.

2- Change management has two sides:

The process of making changes and the people affected by those changes

• Process Side: (Project Management) This involves planning, implementing, and monitoring changes within an organization. It ensures changes are carried out efficiently.
• People Side: (Change Management) Recognizes that individuals are affected by change. It focuses on understanding and supporting employees through the transition, addressing concerns, and facilitating a smooth shift.

Organizational Change Management (OCM): Focuses on the overall process of implementing change within an organization. It involves planning, executing, and monitoring changes at the organizational level.

Individual Change Management (ICM): Focuses on how individual employees and stakeholders are impacted by the change. It addresses their emotions, concerns, and readiness to adapt to the new way of doing things.

3- Types of organizational change:

• Proactive change: involves actively attempting to make alterations to the work place and its practices. Companies that take a proactive approach to change are often trying to avoid a potential future threat or to capitalize on a potential future opportunity.
• Reactive change: occurs when an organization makes changes in its practices after some threat or opportunity has already occurred.

4- Different types of organizational change.

Each type represents a different approach or context for making changes within an organization. Here is a brief explanation of each type:

1. Org-Wide Change:Restructuring, culture shift, "right-sizing," hirings, layoffs.
2. Transformational Change:CEO to lowest-paid worker impacted, e.g., reducing middle managers.
3. Incremental Change:Gradual steps, like introducing a new computer system.
4. Remedial Change:Addressing poor performance, proactive adjustments for distressed companies.
5. Unplanned Change:Sudden events (e.g., economic crises, natural disasters) prompt rapid adaptations for viability, often leading to chaos.
6. Personnel Changes:Added due to high unemployment. Includes layoffs, culture shifts, multi-tasking, furloughs.
7. Disruptive Change:Significant, revolutionary shift in operations, often driven by new tech or business models.
8. Continuous Change:Ongoing, gradual adjustments for steady improvement and adaptability.
9. Episodic Change:

Distinct, infrequent shifts triggered by major events or strategic decisions.

(Porras and Robertson's Model)

Also called the "Change Process Model," is like a roadmap for making big changes in a company. It has four main steps:

• Getting Ready for Change: This is when the company realizes it needs to make a change. It's like knowing you need to change your clothes because it's too hot outside.
• Getting Everyone Ready: This step is about preparing the people in the company for the change. It's like telling your friends you're going to the beach, so they can get their swimsuits too.
• Making the Change Happen: This is when the actual change takes place. It's like going to the beach and having fun in the sun and water.
• Keeping the Change Going: After the change, it's important to make sure things stay that way. It's like making sure you keep having fun at the beach and don't leave too soon.

This model helps companies plan and carry out changes in a smart and organized way. It's like having a good plan for a fun day at the beach!

5- Factors impacting change

INTERNAL Factors

Changes inside the organisation that are generally under

the control of the company

EXTERNAL Factors

Factors that occur outside of the company, that causes

change inside organisations.

6- What is Mckinsey's Seven s Model

McKinsey's Seven S Model is like a checklist that helps companies do better. It looks at seven important things that all work together to make a company successful. Here they are:

Strategy: This is like the company's plan for success. It's like knowing where you want to go.

Structure: This is about how the company is organized. It's like who does what and who reports to who.

Systems: These are the ways things get done in the company. It's like the rules and steps everyone follows.

Shared Values: These are like the company's important beliefs and principles. It's like what everyone in the company thinks is really important.

Skills: This is about the things people in the company are good at. It's like the abilities and talents they have.

Staff: These are the people who work in the company. It's like who does the work.

Style: This is about how the leaders in the company act and make decisions. It's like their way of doing things.

All of these things need to work well together for a company to do its best. If one thing changes, it can affect the others, so it's important to keep them in sync. This model helps companies see where they can improve and do even better.

7- PESTLE analysis is like a tool that helps organizations understand the big picture around them. It looks at six important areas:

Political: This is about how the government and its rules can affect a company.

Economic: This is about how the money and the economy can impact a company.

Social: This is about the people and their culture, which can influence a company.

Technological: This is about how technology and innovation play a role in a company's success.

Environmental: This is about nature and how it can affect a company, like climate changes or resources.

Legal: This is about the laws and rules that a company has to follow.

By looking at all these areas, companies can better understand what's going on around them and make smarter decisions for their business. It's like using a map to know which way to go

8- The "transformation perspective" is like looking at big changes in a company. It means making really important and deep shifts in how the company thinks and works. It's not just about small adjustments, but about completely reimagining how things are done.

This perspective believes that sometimes,

To solve big problems or make a company much better, you need to make really big changes. It involves changing not just what people do, but also how they think and work together.

To do this, everyone in the company needs to work together and be open to new ideas. Leaders also play a big role in making sure these changes happen and stick around for the long run. The focus is on making the company much better in the long term, not just for a short while.

9- Stakeholders:

Stakeholders are like the people or groups who care about something, like a project or a company. They can be inside the company (like workers and bosses) or outside (like customers or people in the community).

Stakeholder Management Process:

Stakeholder management is like taking care of all these people who care about the project or company. It's a step-by-step way of understanding what they want, talking to them, and making sure they're happy.

Here are the steps:

Find Them: First, you need to figure out who all these people are. Some are inside, like the workers and bosses. Others are outside, like customers or people in the community.

Listen to Them: Then, you need to listen to what they have to say. What do they want or worry about? This helps you understand them better.

Talk to Them: You need to talk to them regularly and keep them in the loop. This helps them feel involved and important.

Solve Problems: Sometimes, people might not agree. You have to help find solutions that make everyone happy.

Ask for Feedback: You should ask them how they feel about what's happening. This helps you know if they're happy or if there are things that need to change.

Plan for the Future: You need to think ahead and make sure they'll keep being happy in the long run.

External and Internal Stakeholders:

Some stakeholders are inside the company, like workers, managers, and owners. These are internal stakeholders. Others are outside, like customers, suppliers, and people in the community. These are external stakeholders. Both are important and need to be taken care of.

Knowing how to handle changes in a business is really important. If it's not done right, it can cause big problems. It can slow down work, upset employees, waste resources, harm the business's reputation, and even make the business miss out on good opportunities.

To learn more about how to do change management the right way, it's a good idea to explore the tools and strategies that make it work. In the next article, we'll dig into these helpful techniques. So, stay tuned to discover how to manage changes successfully!

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