In this article you are going to get an introduction to change management and why implementing change in your organization the right way is so important. So why do we actually need a well thought out plan when we are changing something in our company?
The Greek philosopher Heraclitus, once said “The only thing that is constant is change.” He of course was not just meaning in business but it is still true in relation to business. Change is inevitable if a company wants to survive and prosper.
Think of the companies and brand names that you grew up with when you were a kid. Think about how many of them are not around now. Of course their inability to change with the times may not have been the main reason for their demise. But there are of course many cases where that was the main reason.
Technology is changing the way we do business. Think for a moment how you did certain tasks in your company even five years ago and I am sure that how you do them now is vastly different than how you did them in the past.
Changes can be small or a major shift in how the business operates. What is really important is how you manage changes in your company.
Managed well, it can be healthy for you and your company, leading to improved profit margins, happier and more productive employees, and a stable and growing company.
Managed poorly, it can lead to poor morale, loss in production, and ultimately the possibility of the company going out of business or at least losing profitability.. No wonder so many people are afraid of change!
Hopefully after reading this article about how to manage corporate change you may find yourself looking at the need to change in a completely different way.
Managing change
The first thing you need to determine is what in your company will be changing.
Are you
- Downsizing?
- Outsourcing?
- Changing your IT system?
- Reorganizing the company?
- Selling it to another company outright?
- Or are you expanding the company?
Expansion and profit can be just as stressful as downsizing and bankruptcy.
Once you have a clear idea of that you want to achieve, you can then brainstorm all the different items you’ll need to address. These might include:
- Accounting changes
- Human resources changes
- Laying off or hiring employees
- Changing locations
- Change job description.
Once you have a good grasp on what you expect to see change in your company. Notice the word expect in the last sentence. What you have envisioned may not be the end result, because it is now time to get other people involved in the process.
It is now time to inform your upper-level management staff of the details of the changes being looked at. It is also a good time to get feedback from them about what they think of the changes and how they will affect their departments. Also you may need to contact any unions represent your workers so that you can have then onside before you tell your employees.
Once you have consulted with your managers, unions, consultants etc and taken into consideration any changes or ideas that they have come up with it time inform your employees of the changes.
This may be easy or hard depending on the type and scope of the changes. Your employees may already know that change is coming, whether you tried to keep it secret or not.
Your staff’s introduction to change management
When you change anything about your company, you will need to be able to clearly explain the reasons for the change and how it will affect them, to your employees.
You know the compelling reasons you need to change: Your reasoning may be to increase profit, but the employee will not care about that, but will be more worried how they are going to pay for Christmas if they are downsized.
You of course are thinking in a business manner where most of your employees will be thinking about their own situation.
Change does not come naturally to everyone and giving people bad news may not be very difficult for you.. Because of this, you may want to consider hiring an outside consultant. Sometimes it’s easier to hear the news from someone you don’t work with every day.
Because you are certain to be emotionally vested in your company, you may not be able to clearly explain what you expect from the coming changes. A good consultant can also give you insight into other things you should consider changing that might not have occurred to either you or your management team.
Your consultant should thoroughly educate your managers on handling your company’s changes as well has helping them implement them,
One of the best things you can do during the change process is to listen very carefully to your management team, employees and consultants. They will see problems with, ramifications of, and improvements to your change management plan that would never occur to you.
Hold brainstorming meetings with different groups. This can be managers, employees or a mixture.
Put papers up all around your conference room, and encourage people to list issues. Encourage creative thinking. Talk about how each department will influence the next one.
Think about the company’s shareholders, if you have public stock. And think about the reactions of your employees. Some will embrace change. Others will dig in and do everything they can to keep things the same.
You may have union issues or other special organizational problems. The most important thing you can do with this session to get a handle on how things may need to be addressed.
Once you’ve firmed up your outlined of the change you’re expecting, you should organize a team to implement your company’s changes.
Your smooth transition will only be as smooth as your transitional team can make it. The obvious source for most of your transition team is your human resources department, but don’t limit yourself.
You may have a staff member that is a more capable manager during times of change, and you should have a voice from each department on the team.
Don’t forget your non-management staff, either; they will be able to give you insights into moral and everyday efficiency that will prove invaluable during the stresses involved in introducing change to your company.
The main thing to remember is to keep all employees informed as you go though the change process and ask for their ideas. Many employees will be more willing to embrace the changes if they feel they are part of the process and have had some say in what is happing even if it not good for them.
While this introduction to change management is just an overview of changing something in your company, it is hoped that it has given you something to think about before you start the process of change in your business.
