What Is Change Management Model? What Are Its Causes & Process?

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

1. Ensure the optimal, balanced and sustainable performance of the company
2. Develop a comprehensive, systematic, integrated and flexible approach to identifying, evaluating, analyzing and managing change
3. Develop better change management practices
4. Make informed decisions
5. Better manage changes

Conditions for Change Management

1. Change management must be aligned with the company’s strategy
2. Change management must support performance management
3. Change management should focus on management activities, performance tools, performance conditions, management skills, stakeholder satisfaction
4. The change management system must focus on the most important changes
5. 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

1. Political changes: new laws, new regulations, changes in laws and regulations, new government.
2. Economic changes: from a slowdown to an economic crisis.
3. Technological changes: new technologies.
4. Sociological changes: changes in the demographic structure.
5. Changes in the markets: new markets.
6. Customer changes: new customers; loss of customers.
7. Changes in competitors: new competitors; new strategies of competitors.
8. Changes in suppliers: new suppliers; losses of suppliers.
9. 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

1. 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

• High
• Low

Probability of a positive or negative effect

• High
• Low

2. Evaluate the Changes

Evaluate changes according to their importance and likelihood of positive or negative effects.

3. 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?

4. Develop Action Plans

Possible actions:

• 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

1. Enhance change management across the enterprise.
2. Develop an ongoing process of evaluating changes in the business.
3. Integrate the change management process into business processes.
4. Evaluate the changes in relation to the strategic objectives of the company.
5. Extend change management to all aspects and levels of the business.
6. Revalue and regularly improve methods and tools for identification, evaluation, analysis and change management.
7. Perform extreme situation simulations to measure the consequences of changes.
8. Involve managers in the process of identifying, evaluating, analyzing and managing change.
9. Organize training courses to master the concepts and tools of change management.
10. Form a change management committee to approve the change management policy and tools and to regularly evaluate changes.
11. Develop information systems to provide all the information needed to manage change.
12. Regularly evaluate the performance of the change management process.
13. Communicate results to managers.