"Strategic Transformations" - How to Manage Change in Your Business

What is Change?

Change can be threatening and disruptive. It can also be very hard work because it usually involves adapting to a new environment, working practices or personal circumstances. There are some changes that most of us have been through – such as starting a new job, being retrained or moving to a new workplace. This shared experience of change is an ideal starting point for understanding how change can affect you and your employees – on both a personal and organizational level.

Major change can include mergers, redundancies, re-structuring or new working practices, while minor change can mean anything from the introduction of new training courses or company policies to new canteen facilities or travel arrangements. Change often alters our routine, challenges our perceptions and makes us reflect on how things are done. Change is usually characterized by a desire to improve things – whether it’s cash flow, products or processes

Although every situation is unique, and every organization is different, there are common elements to managing most change.

• Plan for change – although some change comes out of the blue it is better to have to review your plans than to have no plans at all.

• Provide leadership – this is particularly important during times of uncertainty when employees will need reassurance.

• Keep up-to-date with the law – there is a great deal of legislation covering such things as handling redundancies.

How to adapt changes in business?

In order to be successful, organizations must be able to adapt to change. Even small changes experienced within an organization can have a significant impact, so it is important to carefully consider various issues and act in a manner that best suits the organization.

In broad terms, it may be helpful to think of the change process in four simple stages:

• Identify and acknowledge the imminent change(s)

• Assess the organization's current status and ability to make the change(s)

• Prepare for the change(s)

• Implement the change(s)

What are the key traits of business that adapt to change successfully?

While there are no distinct sets that can be discussed without making the mistake of stereotyping there are distinct differences between companies that succeed in the face of change and those that don't.

Key traits of out-performing organization includes:

1. Higher satisfaction by the employees in the areas of rapport with their bosses and recognition at work.

2. A focus by companies during recruiting on specific skills related to the position, as well as an interest in bringing in an outside perspective

3. Offering options like job sharing or part time roles as well as a greater variety of retention programs

4. A particular emphasis on teamwork and diversity as factors driving advancement

5. More opportunities for enrichment as professional marketers through training and education both inside and outside their companies.

Five key questions are helpful in determining the likelihood that a major change will succeed or fail:

1.    How is the vision different, better and more compelling?

2.    Are the leaders personally committed to the change?

3.    Does the organization have the capacity to make the change?

4.    How ingrained is the current culture?

5.    Will the change actually deliver the identified outcomes?

What Are Positive Impacts of Change in Business?

Staying Current

Change can help a business stay current with industry trends, which can make it more attractive to potential customers as well as help maintain current customers.

New Opportunities

The ability to embrace change can help employees in a business by creating new opportunities. A worker who enthusiastically applies herself to learning the new office computer system can also train others who are more hesitant. By assuming this leadership role, the employee may position herself as someone who is capable of assuming additional responsibilities, making her a possible candidate for future promotion.

Encouraging Innovation

Businesses that are adept at handling or even embracing change can foster an environment that encourages innovation. Employees who feel that a manager will consider their ideas or business owner may be more willing to think creatively, which can help a business grow. One good product or marketing idea can make a big difference in the success of a small business.

Increased Efficiency

Change can increase the efficiency of work processes, which can make for more satisfied customers as well as employees. A new delivery process can increase the speed in which a customer receives merchandise. Switching to a computerized payroll process may mean that a salesperson is paid his commissions sooner.

Improved Attitudes

A philosophical or personnel change in an organization can have a positive effect on employee attitudes and morale. Employees may welcome a change in human resources philosophy that allows for a more relaxed work environment, such as implementing a casual dress code. When a close-minded manager is replaced with one who is open to new ideas, employees may feel that they have more input regarding their job functions.

Managing Changes

To manage change effectively you need to:

Communicate and Consult

• Develop an internal communications strategy to put across your key messages.

• Talk to your internal and external customers directly through targeted communications.

• Involve everyone in making decisions through effective and timely consultation to:

 – Improve your employees’ understanding of the need for change and gain their commitment

– identify and address employees’ concerns

– tap into the knowledge and creativity of your staff

Know your legal duties

Particularly around issues such as:

• Contracts of employment

• Redundancies

• Lay-offs

• Flexible working

Demonstrate strong leadership

Especially in a difficult economic climate, by:

• Creating a vision for the future

• Linking individual and teams goals to organizational targets

 • Setting an example

• Walking the floor and being seen

 • Creating an organizational culture based on openness and trust.

Engage with employees to:

• Get the best out of them in terms of performance

• Cement their commitment to the organization

• Help line managers trigger positive discretionary behavior

Use problem-solving techniques such as:

• Force field analysis

• SWOT analysis

 • Cause and effect analysis

• Brainstorming

 • Teambuilding