Managing change Flashcards
Change management
Change management is a systematic approach to dealing with the transition or transformation of an organization’s goals, processes or technologies.
What is the importance to a business of effective change management?
Keeping up to the most relevant trends
Being able to have the most relevant technology leads to the business being efficient
evaluate techniques which can be used to help a business manage change.
Causes of changes
Economic Factors
Technology
Government Policies
World Wide Events
Causes of internal change + Examples
Internal forces of change arise from inside the organization and relate to the internal functioning of the organization
Changing objectives and goals
Growth
Technological advances
Mergers
Government policy change
Economic Factors
Employee Demands
causes of external change
External factors that means the business needs to change
Market Changes
Technological Advances
Economic Changes
Social Changes
Customer trend changes
Natural Disasters
Anticipated change
Anticipated change refers to changes that a business expects to occur in the future based on a range of factors, such as market trends, technological advancements, changes in government policies, and other external and internal factors. Anticipated change is often a result of a business’s long-term planning and can help it prepare for potential challenges or opportunities.
Unanticipated change
Unanticipated change refers to changes that occur unexpectedly and without warning, and which are not part of a business’s plans or expectations. Unanticipated change can be driven by a range of internal and external factors, such as changes in consumer behavior, technological advancements, economic shifts, and natural disasters.
Step fixed cost
are costs that change in “steps” as the level of production or activity increases. In other words, these costs remain constant over a range of production levels and then increase or decrease abruptly when a certain level of production is reached.
Strategic change
Strategic change refers to changes made to the overall direction, strategy, and vision of a business. Strategic change is often driven by long-term goals and is focused on addressing underlying root causes of challenges facing a business, rather than just treating the symptoms.
Tactical change
Tactical change refers to changes that are made at the operational level of a business in order to improve its efficiency, productivity, or competitiveness. Tactical change often involves making small, incremental improvements to existing processes, systems, or practices
Operational change
Operational Change: Refers to changes in the day-to-day operations of a business, such as changes to its products, services, or production processes
Drivers for change
Drivers of change refer to the factors, events, or forces that trigger, initiate, or cause change within a business. These drivers can come from internal or external sources, and can range from technological advancements, shifts in market demand, changes in regulations or policies, to internal reorganizations and restructuring.
Drivers against change
Drivers against change refer to factors that can hinder, resist, or prevent change from taking place within a business. These drivers can come from internal or external sources, and can include fear of the unknown, lack of resources, resistance to change, and conflicting priorities.
For example:
Risk
Lack of resources
Too expensive
Change management
Change management is the process of managing and implementing organizational change. It refers to the systematic approach to managing the transition of individuals, teams, and organizations from a current state to a desired future state. Change management involves planning and executing change in a structured and deliberate manner, taking into account the needs of the organization and its stakeholders, to minimize resistance and maximize adoption.
Why is it important to manage change correctly
To avoid drivers against change
To avoid employee resistance
To avoid wasting resources
To make sure change happens to keep up with competitors
Lewins change management model
Unfreeze - Unlock current communication practices
Change - Make the change (old to new)
Re-freeze - Lock the new practice into the day to day running of the business
Benefits of the Lewis model
Suits any type of change
Short steps and is simple to work
Short term benefits and long term
Drawbacks of the Lewis model
It doesn’t actually say how to complete the change
Doesn’t identify key areas
Its a very broad model
McKinsey 7-s Model
7 areas of the model:
Structure
Strategy
Systems
Style
Skills
These all then link into “Shared Values”
Benefits of McKinsey model
Can be applied to any business
Designed to help implement change
Simple to understand
Step by Step
Shows what areas will be affected
Drawbacks of McKinsey model
Could be considered more complicated
Doesn’t take into account resistance
Need good knowledge to complete the task (Broad Areas)
Kotter 8-step change model
- Increase urgency - encourage people to make changes.
- Build the team for change - build it with people who have commitment to change & a range of skills.
- Have a vision - establish a vision of what is to be achieved.
- Communicate - use communication to get everyone to accept the change, involving as many people as possible in the changes.
- Empower action - remove anything that will stop the change happening. Make sure that any progress is recognised and rewarded.
- Create short term wins - don’t expect to be able to do everything immediately.
- Don’t let up - keep up the momentum.
- Make the changes stick: don’t let things go back to what they were because of lack of management of the change or control.
