Change management
Change management is the process, tools and techniques to manage the people side of business transformation.
The change management process
- Establish a sense of urgency.
- Create a powerful guiding coalition to drive change and see it through.
- Create a compelling vision of the future and a strategy to achieve it.
- Communicate the change vision for buy-in and mobilising stakeholders for change.
- Empower employees for broad-based action.
- Generate short-term wins.
- Consolidate gains and produce more change.
- Make change stick by anchoring new approaches in the corporation's culture.
Source: Kotter, J. (2002) The heart of change
Why some business transformation projects fail
Uncoordinated, localised or piece-meal change:
- No clear roadmap.
- Changing the one without achieving internal consistency with the others, causing misalignment:
- Between strategy, organisation and operations.
- Between innovation, operations management and customer management processes, and support functions in the value chain.
- Disjointed projects and initiatives competing for resources and management attention.
Lack of competencies
Competencies are required to execute the revitalising process and/or to manage the revitalised business thereafter.
Resistance to change
Resistance to change is exacerbated by:
- Leadership not really committed to objectives.
- Management and employees not involved in designing change and not really understanding or caring for the programme and objectives.
- Lack of support by other stakeholders - be it shareholders, financiers, suppliers, customers, unions, government or the community.
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