3.6.2 Key Factors In Change

Question 1

What does effective change management involve?

Answer 1

• Involves the identification, organisation & implementation of new methods of working to a business

Question 2

What are the factors affecting business change?

Answer 2

• Organisational Culture
• Organisation Size
• Pace of Change
• Resistance to Change

Question 3

How can an organisational culture affect business change?

Answer 3

To successfully implement change, leaders must understand culture of organisation & work to align it with desired changes

• The way employees & leaders perceive change & their willingness to embrace it can be heavily influenced by organisational culture within a business
• If the culture is one of routine & predictability, employees may be hesitant to embrace new processes & procedures
• An innovative & flexible culture may mean that employees are more receptive to change

How effectively change is communicated to employees is related to a businesses culture

In an open culture, communication channels are more likely to be clear/frequent/effective

In hierarchical culture communication may be limited & information may not be easily accessible to all employees

When employees feel valued & are part of a supportive culture they are more likely to embrace change and work together to implement it successfully

Organisational culture can affect the adaptability of a business

A culture that values continuous learning & improvement is more likely to adapt quickly to changes in the external environment

A culture that is resistant to change may struggle to adapt to new circumstances

Question 4

How does the size of the organisation affect its ability to implement change?

Answer 4

• Larger organisations usually have complex structures which can make change more difficult to implement
• Communication is often more challenging due to the sheer number of people involved

Larger the organisation, the more difficult it can be to communicate changes effectively & ensure that everyone is on same page

• With more layers of hierarchy, may be more people involved in decision-making which can lead to delays
• Larger businesses often have more resources available to support change initiatives such as financial resources, technology and experienced staff

Question 5

How can the pace of change affect a businesses ability to implement change?

Answer 5

Important to find a pace for change that is appropriate for situation & takes into account the needs & concerns of all stakeholders involved
If the pace of change is too fast:
- Can create resistance from overwhelmed workers who feel unprepared & that they don’t have enough time to adjust
- May not be properly thought through/ planned, resulting in poor execution
- May be difficult to communicate effectively to all stakeholders leading to misunderstandings & confusion

If the pace of change is too slow it can result in:
- A lack of adaptability & innovation
- A loss of momentum leading to delays or even abandonment of the change
- Communication efforts becoming stagnant leading to disinterest & disengagement

Question 6

What resistance to change would there be from stakeholders?

Answer 6

Employees
- Employees may worry about how change will affect their job security/ work environment
- Employees may not understand why the change is needed/ what expected outcomes are

Owners
- Owners may fear changing their current processes may cause disruption to their daily operations & affect productivity
- Owners may be reluctant to agree to these costs especially if they involve a personal financial or time commitment

Customers
- Customers may be hesitant to try something new or unfamiliar
- Changing to something new can be uncomfortable/intimidating
- May fear losing something they value
For example, if a new product or service replaces an existing one, customers may worry that the new one won’t be as good or that they will lose features they like
May not want to make effort to change

Suppliers
- Suppliers may be reluctant to change their processes/ systems
- May be worried that the change will lead to a decrease in quality/additional costs
- May have invested a significant amount of time, money & resources in current systems & are hesitant to abandon them

Question 7

How can a business manage resistance to change?

Answer 7

• Managing resistance to change requires a thoughtful & strategic approach that takes into account concerns of key stakeholders
• Clear communication is essential when introducing change in a business
• The reasons behind the change & the benefits that the change will bring
• Communicated in multiple ways, such as emails meetings presentations & one-on-one conversations
• Involving stakeholders in the change process can help to build buy-in & support for the change
• Employees who are involved in the process are more likely to embrace the change & feel sense of ownership over it
• Providing training and support will help employees adapt to the new changes and learn new skills and technologies

Successes and milestones should be celebrated along the way