Organizations are in a constant state of development. The reasons for this are diverse and in most cases interconnected. Market requirements, customer demands, changes in personnel, parts of the business being sold, company acquisitions, regulatory standards, pressure from the competition, or even price developments all provide an impetus for transformation processes both large and small. They force the business to re-align and adapt its processes and structures. The term change management refers to planning and organizing a company’s transformation and putting it into practice, along with all the considerations and activities involved along the way.
Faster innovation, shorter innovation cycles
It has always been important to adopt a cautious and targeted approach to change management. However, in times of digitalization and globalization in all areas of the working world, change management has become more significant than ever. The challenges are more complex, innovation cycles are becoming shorter, and business processes faster. How companies deal with these changes is therefore becoming increasingly critical to their success. Management has a very special role in this process: they need to understand that managing progressive change in every organization is now a permanent part of their work.
Numerous change concepts can be introduced to respond to this challenge. The aim of these concepts is to help manage the issue of change. Change management is taught in MBA courses at business schools, and is based on the theories of Kurt Lewin and John Kotter. In Lewin’s three-phase model, the steps required for successfully managing a change process are called unfreezing, moving, and refreezing. Kotter developed his eight-step process at Harvard Business School. According to this model, profound change can become ingrained in the company culture only when management takes on the active role of change agent – because change agents are the ones who initiate the change process and steer it in the right direction.
Conflict management and culture change
Ultimately, this kind of change process or change in company culture isn’t just about guaranteeing success with short-term objectives. It is also significant for establishing appropriate conflict management measures should any obstacles arise. Given the increase in pace caused by digital transformation and more rapid corporate change as a result, this is becoming an increasingly significant component of personnel management. That’s why staff development is one of the most important factors for management to successfully introduce
Change management on transformationbeats.com
When changes are on the agenda, companies end up following completely different paths. Transformation Beats features interviews, reports, and opinion pieces on what can be done, looks at who spearheads change management, and examines how it can be implemented.