4 Strategies to Manage Change Effectively
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To remain competitive in a constantly evolving corporate environment, most businesses will need to undergo significant changes at some point in their lifecycle.
Change Management, also known as Organizational Change or Organizational Change Management, involves implementing new policies, processes, or structures within an organization.
The objective of Organizational Change Management is to control the changes being made to achieve the desired business objectives. Changes may be necessary due to shifts in the business environment, such as changes in market demand, the introduction of new technology, shifts in leadership or management, changes in consumer preferences, and alterations in government regulation.
Effective Change Management is crucial because it allows organizations to adapt to changing conditions, remain competitive, and meet the needs of their customers, stakeholders, and the market environment in general.
There are several Change Management Strategies, each with their own underlying assumptions and selection criteria. Change Management Strategies can be grouped into 4 major categories:
1. Empirical-Rational.
2. Normative-Re educative.
3. Power-Coercive.
4. Environmental-Adaptive.
The first 3 of these strategies are shortened versions of standard Change Management approaches based on works of by Kenneth Benne and Robert Chin, while Fred Nickols is the creator of the Environmental-Adaptive Change Strategy.
Let’s go a little more into the specifics of these strategies.
Empirical-Rational
Empirical-Rational approach assumes that people are rational and motivated by their own self-interest, and effective change relies on the efficient transmission of information and incentives.
Normative-Reeducative
Normative-Reeducative approach assumes that people are social creatures who conform to cultural norms and standards, and successful change relies on identifying and interpreting these norms and making commitments to them.
Power-Coercive
Power-Coercive approach assumes that people are obedient and can be compelled to comply with demands, and successful change relies on the use of power and sanctions.
Environmental-Adaptive
Finally, the Environmental-Adaptive approach assumes that people adapt to changing circumstances and successful change involves establishing a new organization and gradually moving people from the old to the new.
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“The only constant in life is change.” — Heraclitus
Such is true for life, as it is for business. The entire ecosystem our organization operates in — our customers, competitors, suppliers, partners, the company itself, etc. — is constantly changing and evolving. Change can be driven by emerging technology, regulation, leadership change, crisis, changing consumer behavior, new business entrants, M&A activity, organizational restructuring, and so forth.
Thus, the understanding of, dealing with, and mastery of the Change Management process is one of the most critical capabilities for our organization to develop. Excellence in Change Management should be viewed as a source of Competitive Advantage.
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