Change management is an essential part of ensuring the success of your business in the current economy. Relevant to companies of varying sizes, change management is the systematic approach to coping with the transition or transformation of a company’s goals, processes, or technology.
The reasoning behind the adoption of change management processes will vary from company to company as they embark on different transformation paths. The core purpose of change management is to implement strategies for effecting change, mitigating the impacts caused by change, and, most importantly, allow people to adapt and develop to the change imposed.
This article looks to explore what the process of change management can involve and the subsequent benefits it can provide a business.
What does the process of change management include?
While change management and project management are often interlinked, it is vital to recognize that there are distinct differences between the two.
From the viewpoint of a process outlook, the change management process can simply be described as a set of steps that can be followed by a team or business. The change management processes can be broken up into three main phases:
- Preparation – This is usually where an assessment is undertaken to formulate the strategy.
- Management – This is where the core of the change management strategies takes place.
- Reinforcement – This is the element where the business or team continues to emphasize the message or strategies implemented throughout the management phase.
In essence, the core of the change management process must take into account how an adjustment or replacement of a system will impact the business’s broader process, staff, and ethos. Due to the comprehensive nature of change management and the reasoning for implementing it, it can take shape in three distinct formats:
- Developmental – This is the change that looks to improve or build on existing processes, systems, and methods.
- Transitional – This is the change that promotes or allows a business to move away from its existing operating methods to a new optimized or different approach. This is commonplace in mergers and acquisitions.
- Transformational or cultural – This is the change that dramatically alters the culture of the business and operations.
The process of change management will naturally differ from business to business. If you recognize that change is needed but are not sure on what path to take, your best option is to utilize the services and opinions provided by change management consultants.
What are the benefits it provides businesses?
For a business to adapt to an ever-changing economic landscape, change management will have to be utilized somewhere along the journey. The practical implementation of repeatable processes that are associated with change management will bring a distinct set of benefits to a business, which are discussed below.
Reduces risk
The effective implementation of change management naturally promotes the reduction in risk for failed or below-par projects, ensuring the optimization of projects for your business or clients. The effective implementation of processes, across relatable projects, can impact a business’s level of success in achieving their broader goals.
Promotes the on-time delivery of projects
In the economic landscape we are witnessing today, clients and businesses are not only expecting the delivery of successful projects that have gone over and beyond the expected task; they are expecting these to be delivered by a specific deadline or before. In addition, it is widely accepted that the company who can implement changes and processes quicker than their competitors are far more likely to receive higher profits year on year.
Delivering within budget
Today’s businesses are more and more constrained by the limited resources or funds available to them. Therefore, keeping projects within budget is arguably one of the most important driving forces for change.
It is widely accepted that change, in some format or another, consumes a considerable amount of resources available to a business. Change management promotes the quick application and acceptance of change throughout a business. The more quickly and effectively you can implement change and introduce new programs or software, the more funds an organization will have available for more strategic initiatives and programs that benefit the business. With the limited resources available to organizations of all sizes, it is vital that companies utilize all available funds with greater efficiency to continue to grow.
Helps you achieve your business goals
Change management allows a business to actively pursue their annual and broader goals in a more effective and optimal manner. Business change management allows a company to change the human, cultural, and systematic approach to the way the business operates. In an ideal world, this reduces the failure rates or improves the performances of system and everyday dealings. Also, this reduces the reliance on specific systems or technologies and increases the ability to adapt when these do not work to their optimal capacity.
