Implementing and Managing Change

1. Implementing and Managing Change BUSS4 – Change

2. Change management • Change management involves controlling the activities required to move an organisation from its current position to a new one • According to research published by the Chartered Institute of Personnel Development (CIPD) organisations undergo major change once every 3 years on average with smaller changes taking place almost continually • The need for change can result from influences within and outside the business • Change is inevitable with business growth • If a firm is growing organically this change may be relatively slow • Managers will still need to have the skills and expertise required to anticipate and manage the change effectively • Change from merger or takeover will be more sudden and may be followed by painful adjustment unless effective planning has taken place before

3. Change management • Change can be anticipated such as the introduction of a new marketing strategy • Or unanticipated for example the collapse of major supplier or sudden deterioration of customer satisfaction • Changes may be beyond the control of individual businesses such as the introduction of a national minimum wage or a ban on advertising during children’s TV programmes • A successful firm will see change as an opportunity or, better still, anticipate changes before they occur and develop competitive advantage over rivals

4. Organisational barriers to successful change • No matter how much time and how many resources are put into the planning stage a number of organisational issues may arise that have a negative impact on the implementation of change • A lack of effective leadership and project management will lead to missed deadlines and wasted resources • A lack of effective training – all those involved in the project must have the right expertise • Poor communication – effective two way communication must be established between all the individuals and groups affected

5. Resistance to change • Resistance to change can be defined as ‘an individual or group engaging in acts to block or disrupt and attempt to introduce change’ • This can happen for many reasons • People may be concerned about loss of control or status, feel vulnerable to the threat of redundancy or resent the break up of social groups within the workplace • Resistance may be directed at the change itself; perhaps it appears to go against the existing culture e.g. introducing another managerial layer to a business with an entrepreneurial culture • Resistance can come in different forms • Active – opposition is clearly stated (e.g. industrial action) • Passive – hidden e.g. failing to attend meetings, not responding to messages • Can be more successful in block change as it is not expected

6. Resistance to change • To overcome or minimise resistance • Start with clear objectives • Get the majority to understand the need for change • Provide adequate resources – financial, human resources and the right operational and technological back up • Training is paramount – this needs to be good quality and planned and carried out by an important figure within the change process P372 Heathrow

7. Implementing change successfully • There are a number of things that can be done to improve the chances of successful change • Ensure that the objectives and details of any changes are communicated as clearly and as quickly as possible to employees • Leaving staff in the dark can lead to rumours and speculation that can be difficult to challenge • Appointing a project champion • New ideas can be stifled by bureaucracy within middle management • A project champion needs to have power and persuasion to push the change through and persuade staff that the changes will make things better • Involving staff rather than imposing change • Consulting staff regularly or setting up project groups (taking members from different functional departments) to work on particular areas will help to generate ideas, combat anxieties and increase commitment by creating a sense of ownership/belonging • Ensuring appropriate leadership • The most appropriate style will depend on the circumstances • All leaders will need to provide their people with the vision and rationale for change to make it a success • Creating a culture for change • A learning organisation is one that embraces change and sees it as an opportunity rather than a threat • This kind of culture will be much more receptive to change

8. Managing change • Once the process of change has been implemented it needs to be managed effectively • There are two stages • Control and Review • Control involves taking steps to ensure that the final outcome of the change process is as close as possible to the objectives outlined in the planning stage • Regular checks will allow the firm to detect problems and deal with them • Contingency planning encourages firms to attempt to identify what might go wrong and develop strategies to deal with these problems if they happen • The review stage happens once the change is implemented and objectives have been achieved • The organisation then needs to think ‘what next?’ • The business has to keep changing to keep in touch with its market place. • Increased competition, changes in technology and customer requirements mean that no business can afford to stand still for long

9. Radical vs Continuous change • An example of radical change is BPR (Business Process Engineering) • This is when and organisation focuses on changing its processes rather than its structure • The organisation is completely redesigned from scratch • The good thing about BPR is that it looks at the efficiency of the business as a whole rather than looking at certain parts • This kind of radical change is unlikely unless there is some kind of crisis threatening survival because it causes a huge upheaval • Most businesses prefer the Kaizen approach (continuous improvement)

10. Evaluation • All organisations need to accept and face up to the need for change and, in the modern business environment, the pace of change appear to show no signs of slowing down • Any business that is unwilling or unable to adapt to the ever increasing pace of change appears to be doomed to become less and less competitive • There are always exceptions to every rule • For every nine businesses that need to change to survive there will be one that thrives on remaining unchanged • Customers and suppliers must not be neglected during change • Change requires the support of employees • The ability to establish trust between management and workers in the face of change appears to be the way forward in managing the process of change successfully