Business change Flashcards
What is business change?
Business change is where a business adopts a new idea or behaviour. Change can involve moving some aspects of a business from one point to a new one. Change can be planned or unplanned. Change happens because businesses have pressures that they need to adapt to. These pressures can come from inside or outside the business (internal/external).
the concept of business change
- All businesses face change. Some changes are forced on a business, while others are carefully planned. The ability to manage and, in many cases, embrace and adapt to change will increasingly determine a businesses competitive advantage in survival.
- To be constructive, changes must occur at a pace that allows businesses to absorb and integrate them into operations.
- Change entails risk and requires sound leadership skills, and responsive management structures
What is a proactive approach and what does it include?
A proactive approach is a planned change by predicting pressures in the environment and implementing change to take advantage. Including:
• Using results of KPI’s to identify problems before they occur, then ensuring that appropriate policies are put in place.
• Forecasting likely future events, then making changes to ensure the business is prepared to meet the identify challenges
• Meeting with employees or consultants to develop changes that may make the business more efficient and effective, then acting on the advice received
What is a reactive approach and what does it include?
A reactive approach is where the business is impacted by pressures from the business environments and then responds as a result. examples include:
• Observing the actions of competitors, then seeking to implement similar processes to ensure that the business remains competitive
• Dealing with a crisis, then putting measures in place to ensure that similar circumstances do not occur in the future.
• Responding to forces that driver need for change, such as social attitudes, that require out of date policies to be updated.
Proactive or reactive?
Being proactive is preferred as the implementation of change will likely to be very successful within the organisation successful managers are the ones who anticipate and adjust to changing circumstances rather than ones that get swept along passively or, worse, get caught I’m prepared such people are proactive rather than reactive
