Demand change management is very popular among businesses today. Timely and accurate changes will help businesses go further on their development path. The following article by Viindoo will help businesses learn more about this administrative need. Check it out now!
1. What is change management?
Change management predicts and limits passive/active changes from inside or outside that affect the business activities and development of the enterprise. In general, every change, no matter how big or small, has different consequences for the business such as employee working mentality, and operation method. Therefore, if businesses can anticipate these changes, it will limit incidents and interruptions in the business process.
Usually, there are 3 forms change management:
- Change to develop and adapt: Before the development of modern technology, enterprises need to change their operating processes, personnel structure, etc. to adapt to the times and new markets. In this type of management, changes often occur on a small scale such as: adding personnel, expanding the working scope, changing the operating structure, etc.
- Change to Transition: This is a type of change that takes place on a larger scale to help the business transition to a state like a merger, automation, and acquisition.
- Change to Transform: This is the type of change that occurs on a large scale and in scope, making a significant difference from the previous two. This type of change is usually applied in the case of moving to a new business, adjacent to or different from the original one.
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Managing change in the business
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2. Levels of change management
2.1 Personal level
Normally, people will tend to react in the opposite direction to change. However, when there are sensible changes, individuals can learn to adapt and be more successful.
On a personal level, business leaders must understand each employee's transition as well as the necessary catalysts. Specifically, businesses need to answer questions such as:
- What messages do employees need to hear, time, and person to convey?
- The right time to train employees in new skills
- How to train, and change the behavior of employees, and the cause of that change.
Managing corporate change on a personal level
2.2 Organizational/initiative level
Change management at the organization/initiative level is an important requirement, necessary when implementing project management. This form of governance will begin with determining which employees need to change and how to achieve the desired business performance. From there, businesses can build detailed plans for employees to define their tasks and responsibilities.
Managing change at the organizational level2.3 Enterprise level
Managing business change is the ability that leaders need to create a competitive advantage and adapt to market fluctuations. This work includes the process of perfecting the roles, structure, processes, projects, and capabilities of the business.
In general, the ultimate goal of the units is to help employees quickly catch up with changes and work more efficiently. Besides, businesses also can promptly adapt to market changes, apply new technologies, and create appropriate strategies.
Managing change at the enterprise level
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3. Change the management process in the business
Procedure change management is understood as the set of steps that employees need to take to complete a project or strategy to get the business through the upheaval. This process consists of 3 stages:
- Preparation phase: Assess the preparation for change and orientation for the development strategy of the enterprise
- Administration phase: Implement the plan change management into projects
- Consolidation phase: Develop regulations to assess compliance with the change
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Change management process4. Current popular change management models
4.1 ADKAR model
Change management model ADKAR was created by Prosci expert Jeff Hiatt. The model includes 5 elements such as:
- Awareness of the need for change: Awareness of the importance of change
- Desire to participate in and support the change: The need to make the change
- Knowledge about how to change: Prepare knowledge and how to implement change;`
- Ability to implement change and behaviors: Analyze the ability to implement changes
- Reinforcement to sustain the change: Evaluation to reinforce and maintain the change made
ADKAR model
4.2 Kotter Model
John Kotter is a professor at the famous university Harvard. Procedure change management Kotter's work consists of eight stages:
- Realize the need for change
- Build strong support for change
- Define change vision and strategy
- Communicate the vision of change
- Eliminate difficulties and barriers in the process of change
- Set short-term change goals
- Build and analyze growth strategy based on changes
- Apply those changes to the business process
Kotter's model
4.3 McKinsey Change Management Model 7S
Change management model McKinsey 7S was created by two business experts Robert H. Waterman Jr. and Tom Peters. 7 factors in this model are divided into 2 groups, including:
- Group of hard factors: These elements include strategies, structures, and systems.
- Group of soft factors: These factors include the values brought, skills, working style, and human resources.
In the McKinsey 7S model, the hard and soft elements come together. While hard factors define the jobs that businesses can directly impact, soft factors will address abstract issues such as company culture. The relationship between the two factors hard and soft will be scientifically built to orient the development roadmap of the enterprise on the way of change management.
Model McKinsey 7S
4.4 PDCA Cycle
PDCA cycle is a management model created by W. Edwards Deming to improve business methods, improve product quality. This cycle consists of 4 stages:
- Planning: Setting goals and how to implement them
- Implement: Implement the plan according to the established steps to create a product or change in the business
- Check: Evaluate the results obtained and compare them with the initial set goals
- Action: Develop new standards, and improve items that are no longer relevant
PDCA cycle
Learning more about change management will help businesses have a more detailed and comprehensive view of their development process. Viindoo hope this article will help businesses have more useful business knowledge.
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