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Change Management

The business environment is constantly changing and an organization can be successful only if it changes to adapt to it’s environment. That’s where change management plays a very important role. Business organizations do not usually change unless there is a trigger for change. Change management is a useful tool in helping managers monitor their environment and prepare for change.

Change Management – What Triggers Change?

Organizations do not change easily unless there is a significant trigger for change, An organization may change due to new opportunities or threats; changes may also occur due to reasons within the firm. Organization may also undergo change due to changes in government regulations, disinvestments or openings in a previously regulated sector. Changes may also be triggered when customers’ taste change or when there are technological innovations such as the internet. Change can be internal as well. Like change in leadership, union activities or employee initiatives. Whatever may be the reason that may trigger change, businesses should be aware of the need for change and bring about the needed changes successfully. Only businesses that brings changes successfully will survive and thrive in the long run.

Strategic Planning

Strategic planning can act as an effective tool in change management.  Now, It is important to distinguish strategic planning from strategy making.  Strategy making is a creative and often non-conscious, unplanned and chaotic process of strategy formation.  On the other hand, strategic planning is primarily used as a tool for framing the process of strategy making.  Thus, strategy planning acts as a catalyst in the thinking process.  Many tools and techniques like value chain analysis, stakeholder analysis etc. are used in strategic planning.  But a planning tool well suited for unpredictable futures is scenario planning.

Scenario Planning:

Scenario planning is one of the tools of strategic planning that is useful in rapidly changing environment.  Using scenario planning, decision makers might have a better idea of the possible futures.  Scenario analysis is aimed at compensating for two errors: underprediction and overprediction.  Scenario planning involves imagining different future states or scenarios and using these as the basis for formulating strategic plans.

Steps in Scenario Planning:

Step1: Define the scope of the analysis

Step2: Identify major stakeholders

Step3: Identify basic trends

Step4: Identify key uncertainities

Step5: Construct initial scenario themes

Step6: Check for consistency and plausibility

Step7: Develop learning scenarios

Step8: Identify research needs

Step9: Develop quantitative models

Step10: Evolve towards decision scenarios

 

What Stops An Organization From Changing

  • Failure to recognize changes in the environment:Though managers may seem to recognize the dramatic shifts in the environment but many a times slower though important changes are not perceived.
  • Complacency because of existing success:Many successful organizations become complacent because they are so successful. An attitude of overconfidence develops, and they tend to feel they are invincible.
  • Misinterpretation of changes:Even when managers notice changes in their environments, they might misinterpret their changes. Managers may discard the negative changes in the environment as a temporary problem.
  • Organizational forces that prevent changes:Sometimes, managers may be fully aware of the changes in their environment and of the changes they need to make internally, but fail to make the needed changes.

Change Management – Making Changes Happen:

  • Identify whether the organization needs to change.
  • Establish a sense of urgency.
  • Form a powerful guiding coalition.
  • Identify sources of resistance to change.
  • Create a vision.
  • Communicate the vision.
  • Remove obstacle to change.
  • Plan for and create short term wins.
  • Consolidate improvements.
  • Incorporate the changes.

 

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  • Article by Natasha

    avatar Natasha is a full time blogger and an internet marketer. She has a passion for writing and loves writing on topics related to business, technology and online marketing. She currently writes for the site : Valentines Day Gifts for Boyfriend. You may also like reading her latest article: iPhone 5 Review.
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