The definition of change management varies. The easiest and shortest one defines change management as a structured approach to shifting individuals, teams, and an organization from a current state to a chosen future state. This is a pertinent topic for Pakistani businesses considering the rapidly changing requirements of the Pakistani market in the present time.
Where is Change Management Applicable
Change management can be applied to downsizing, growth, or even new software or techniques. It is an administrative process intended to help a business’s resources comprehend, accept, and adopt modifications in their current business environment.
A part of change management is also focused on managing transition, although change and transition are not the same in theory. Business changes usually fail because the organizers of the change did not account for the healthy, genuine, and expected reactions of normal people to the disturbance of their routines.
Effective communication is one of the most important success factors for effective change management. All leaders involved in the process must appreciate the evolution of the change through its various stages and see results as the change cascades.
Why is Change Management Important for Businesses
A business is always going through various forms of changes, like strategic, leadership, technology, and business tactics. However, modern studies show that these changes can have multiple forms of impact on your staff, processes, and business performance. To make sure that these impacts are mainly positive and to avoid unintended adverse consequences, it is essential to follow the various strategies of effective change management.
Implementing all changes through a strategic change management policy will help to reduce the prospective negative consequences and increase positive effects. Change is an ongoing process. Managing, leading, and achieving it is also a process. Approaches should be customized to fit an organization’s unique circumstances.
Stages of the Change Management Process
The change management process has several stages. Having a strategy and clear steps helps in managing transformations. Changes are more successful when all these stages are considered.
For instance, implementing a new sales technology in a business will not just involve the technology change itself. It can impact staffing requirements, require operational changes, new recruitment drives, and even create staff redundancies. It may require a significant need for training and impact business costs initially.
The change management process can be broken down into the following five steps:
1. Prepare for Change.
This step comprises building an understanding of the necessary changes needed and preparing staff members and stakeholders for what is to come. It’s an integral part of the process. It involves ensuring the change manager supports staff through any concerns and manages resistance by communicating the process and getting buy-in from employees. It is the initial groundwork for creating acceptance of the intended change.
Taking our example of a new sales technology further, this step will involve creating awareness of the shortfalls of the existing sales technology and why it needs to be changed.
2. Create a Vision for Change.
This step comprises forming the strategy for transformation once stakeholders are on board for a change. This step involves setting goals, developing key performance indicators (KPIs), and sharing these and allied tasks with the relevant stakeholders. The change management team should plan for possible problems and help everyone understand their role in managing processes at each level.
In our sales technology example, this step will involve creating KPIs for all departments, getting buy-ins, and the immediate requirements like higher training needs, falling clients, and staffing redundancies and requirements.
3. Implement Changes.
This step is about putting the change plans into action. It is essential to have excellent management and communication. This means that change managers need to ensure everyone is doing their duties and that employees are still happy and empowered to ensure everything runs smoothly.
In our example, this step will involve linking KPIs with actual deliverables (revising them if needed), ensuring that actions support the earlier buy-ins and that immediate requirements like training and staffing requirements are catered to. Any fine-tuning necessary will be done here to make sure that the change is effective in practice.
4. Embed and Solidify Changes.
Once the changes have been completed, it is essential to ensure they are kept in place. Staff members should not be allowed to slip back into their previous practices. This step ensures systems are available and effective for training staff and clarifying new structures, workflows, and rewards.
In our example, this step will involve continuing the changed plans, training, operations flows, and monitoring KPIs for long-term impact and effectiveness. The goal is to make sure that the change remains both effective and continues to be practised.
5. Review and Analyze.
The process’s final stage is essential to ensure that changes are sustained and assessed for their benefits. Change managers review what worked and didn’t work to adjust the difference accordingly.
In our example, this step will be about assessing what is effective and what isn’t. The plans will be tweaked for improvements.
Implementing major organizational change can be difficult. It usually requires multiple levels of cooperation and usually involves different independent entities within an organization. Developing a structured approach to change is essential to help ensure a beneficial transition while mitigating disruption.
Sadia Zaheer holds a Masters in Business Administration from IBA, Karachi. After working in several financial institutions in Client Management, Corporate Lending, Islamic Banking and Product Management she jumped careers to pursue a career in writing.
She is a Finance, Business and HR Development writer with four years of experience. She reads a lot and takes care of her multiple cats to remain calm.