Introducing changes in a company: key aspects of effective management of organizational transformation
Introducing changes in a company is an integral part of today’s highly dynamic business world. Enterprises that want to grow and succeed need to adapt to changing market realities, new technologies, and the evolving expectations of customers and partners. Nowadays, there is increasing talk about the urgent need for digitalization or the creation of hybrid and remote workplaces. Employees are a crucial link in the company’s transformation. Unfortunately, as a study conducted by Gartner shows, employees’ readiness to support changes in the organization has drastically dropped in recent years (from 74% in 2016 to 43% in 2022). This makes implementing changes even more challenging. Today, we’ll discuss how to effectively manage organizational transformation.
What is change management in a company?
Change in an organization or company transformation is the transition from one state to another within a specific timeframe. It encompasses all modifications and transformations that can affect various sectors of the enterprise – from organizational policy to human resources. Change management is a process that consists of planning, implementing changes, and their continuous monitoring. The idea of the process is to ensure that the implemented changes will bring the expected results and have a positive impact on the enterprise. Change management in a company requires proper preparation, understanding the mechanisms governing all transformations, and a certain level of assertiveness.
It’s important to remember that changes in a company affect all employees to a lesser or greater extent. Every transformation involves moving away from what is known and safe, which can cause uncertainty, stress, and concern about employment and salary stability.
Benefits of changes in a company
Changes can bring many benefits. Above all, they allow adaptation to the evolving market – new conditions, trends, and challenges. This enhances market survival and increases the chances of success. It’s also an opportunity to enhance the organization’s competitiveness by swiftly responding to the changing needs of customers and partners.
A company that is not afraid to implement changes guarantees itself the highest efficiency in operation. This is possible through the elimination of unnecessary and outdated processes and adapting the organizational structure and individual areas of operation to new needs.
Being open to changes also offers the opportunity to better manage risk by identifying potential problems and analyzing their impact on the organization’s functioning.
Changes open the doors to innovation and development, promote new ideas, products, and services, prevent stagnation, and can guarantee long-term success. So why do we still fear them?
Why do we fear change?
Einstein once declared that doing the same thing over and over again and expecting different results is madness. Heraclitus of Ephesus stated that “the only constant in the universe is change.” Changes are an integral part of the operation of any developing company. So why do we still fear them? Because they come with certain risks. Sometimes, even a minor mistake can lead to the loss of valuable employees, a significant decrease in company revenues, poorer team efficiency, and in extreme cases – to the total collapse of the company. Does this mean we should not implement changes? Far from it. A lack of changes blocks the opportunity for development, which can bring spectacular results in the form of attractive profits, new business opportunities, and a significant advantage over the competition. All this outweighs the risk associated with transformation. However, it is essential to proceed with caution and precision, considering market variables and the specific features of the enterprise.
Effective change management in an organization step by step
How to manage change effectively? The first stage should be the precise definition of the change objectives. They should comply with the SMART principle, i.e., be specific, measurable, achievable, realistic, and time-bound.
The next stage is a thorough analysis of the transformation’s impact on the enterprise, which will help determine what will change in various areas of the organization’s operation and allow for the identification of potential problems and risk assessment. This way, the company can prepare for any eventuality and minimize risk, adjusting the change plan to specific conditions.
In change management, it is crucial to create dedicated task teams (with leaders at the forefront), responsible for planning, implementing, and monitoring changes. Prepare a plan and establish success indicators that will evaluate whether the change has brought the expected results. Before implementing the change, conduct pilot tests that will help identify potential issues and adjust solutions.
All higher-level employees, including directors, managers, and leaders, must be involved in the change management process. They set an example for other employees – they initiate changes, motivate, and help in adaptation.
A key element of change management is communication, understood as regularly informing employees about the goals, progress of the transformation, and any changes in the previously adopted plan. The messages sent should be understandable to everyone. At the same time, employees should be given space to express their opinions and concerns. Organizing training, workshops, and development programs will help employees understand the changes and adjust to the new reality better.
Change management does not end with its implementation. To fully utilize the potential of the transformation, it is necessary to monitor its long-term results – i.e., regularly assess the effects and, if necessary, modify the strategy.
