Change Management Model: A change is a change from a previous situation. This change can come from different causes (involuntary or voluntary) and can have consequences on performance management, opportunity management and risk management in a company.
Good change management ensures the optimal, balanced and sustainable performance of the company.
Change Management Objectives
- Ensure the optimal, balanced and sustainable performance of the company
- Develop a comprehensive, systematic, integrated and flexible approach to identifying, evaluating, analyzing and managing change
- Develop better change management practices
- Make informed decisions
- Better manage changes
Conditions for Change Management
- Change management must be aligned with the company’s strategy
- Change management must support performance management
- Change management should focus on management activities, performance tools, performance conditions, management skills, stakeholder satisfaction
- The change management system must focus on the most important changes
- The change management process must be simple and remain simple and flexible
Causes of Change Management
Changes can come from two main sources: from outside the company (external changes) and from within the company (internal changes).
- External changes
- Political changes: new laws, new regulations, changes in laws and regulations, new government.
- Economic changes: from a slowdown to an economic crisis.
- Technological changes: new technologies.
- Sociological changes: changes in the demographic structure.
- Changes in the markets: new markets.
- Customer changes: new customers; loss of customers.
- Changes in competitors: new competitors; new strategies of competitors.
- Changes in suppliers: new suppliers; losses of suppliers.
- Changes in products: new products; product modifications; abandonment of products.
- Internal changes
Changes in the strategy
Changes in the processes
Changes in resources
- Changes in human resources
- Changes in information technologies
- Changes in material resources
- Changes in financial resources
Changes in Performance Management
- Changes in management tools
- Changes in performance conditions
- Changes in management skills
- Changes in stakeholder satisfaction
Change Management Process
- Identify the changes
- What are the important changes in the external and internal environment of the company?
- What changes can have a positive or negative effect on the company’s performance?
- Identify the level of importance and likelihood of changes:
Importance of changes
Probability of a positive or negative effect
- Evaluate the Changes
Evaluate changes according to their importance and likelihood of positive or negative effects.
- Analyze the Changes
- Where do the changes that affect the company’s performance come from?
- What are the causes and consequences of the changes?
- What are the uncontrollable changes?
- What level of change is acceptable?
- Can we monitor important changes closely?
- Are the performance indicators adequate?
- Can we abandon the tracking of non-material changes?
- Develop Action Plans
- Identify changes in high importance and probability.
- Identify management activities that require action.
- Develop action plans.
- Evaluate possible problems
- Check for changes of high importance and low probability.
- Analyze changes in low significance and high probability.
- Temporarily ignore changes of low significance and probability.
Change Management Practices
- Enhance change management across the enterprise.
- Develop an ongoing process of evaluating changes in the business.
- Integrate the change management process into business processes.
- Evaluate the changes in relation to the strategic objectives of the company.
- Extend change management to all aspects and levels of the business.
- Revalue and regularly improve methods and tools for identification, evaluation, analysis and change management.
- Perform extreme situation simulations to measure the consequences of changes.
- Involve managers in the process of identifying, evaluating, analyzing and managing change.
- Organize training courses to master the concepts and tools of change management.
- Form a change management committee to approve the change management policy and tools and to regularly evaluate changes.
- Develop information systems to provide all the information needed to manage change.
- Regularly evaluate the performance of the change management process.
- Communicate results to managers.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
Love my efforts? Don't forget to share this blog.