Defining change management
It is important to note what change management is and what change management is not, as defined by the majority of research participants.
* Change managementÂ is notÂ a stand-alone process for designing a business solution.
* Change managementÂ isÂ the processes, tools and techniques for managing the people-side of change.
* Change managementÂ is notÂ a process improvement method.
* Change managementÂ isÂ a method for reducing and managing resistance to change when implementing process, technology or organizational change.
* Change managementÂ is notÂ a stand-alone technique for improving organizational performance.
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Customers, competition, the economy, technology, political and social conditions and resources are common external factors that influence the organization. Even though the external environment occurs outside of an organization, it can have a significant influence on its current operations, growth and long-term sustainability. Ignoring external forces can be a
detrimental mistake for managers to make. As such, it is imperative that managers continually monitor and adapt to the external environment, working to make proactive changes earlier on rather than having to take a reactive approach, which can lead to a vastly different outcome.
Environmental Scanning And Change
SWOT analysis is a type of environmental scanning
In order for managers to react to the forces of internal and external environments, they rely onenvironmental scanning. Environmental scanning refers to the monitoring of the
organization's internal and external environments for early signs that a change may be needed, to accommodate potential opportunities or threats and to make adjustments to allow the company's strengths to combat its weaknesses. If you recall, one common type of environmental scan is the SWOT analysis, which looks specifically into the strengths, weaknesses,
opportunities and threats of the internal and external environments. A manager will begin analyzing the internal environment by looking into inefficiencies inside the organization and will then look outside to the external environment and things occurring independent of the organization. Environmental scans allow managers to use the knowledge gained during the scanning process to decide what strategic steps, or changes, the organization needs to take to create or maintain a competitive advantage.
Need to Improve Processes
A business might need to implement new production processes to become more efficient and eliminate waste. In 2003, Cigna Healthcare implemented a leaner production process known as Six Sigma to improve service and reduce operating costs. In 2006, the company was recognized by the J.D. Power independent rating organization for its high level of service and quality.
The Systems and Tools for Managing Change
There is a proven methodology that allows an organizational development initiative to be perceived as organically arising from the organization. This scientifically-founded methodology includes four stages:
1. Set the Bar. Establish an image of the desired end result of the organizational development, including capturing the underlying passion and commitment that makes the change vitally important.
2. Motivate change Present the image of the end result of the organizational development initiative in a way that causes employees to enthusiastically adopt the new attitudes and business processes.
3. Sustain Change. Guide the organization to practice the new attitudes and business processes sufficiently to completely internalize them.
4. Scale the Change. Touch large...