CHANGE MANAGEMENT STRATEGIES

The Need for Change Management

In the contemporary business environment, organizations fight the battle of competition by building their adaptive capabilities and preparedness for coping against the pressures of change. In the present scenario, top management give a lot of importance to change management process and the need for being flexible as well as adaptable for tackling the growing environmental uncertainties or competitive threats.

Change management is a complex process and requires serious attention as well as involvement from the management and people from all levels, to achieve a meaningful or a progressive transformation across various levels. For being ahead in the competitive race and gaining a winning edge, organizations have been focusing on expansion of business worldwide, achieving excellence in processes and operations, implementing innovations in technology and identifying/developing the right talent. The fast changes which have taken place and the way in which this has affected the strategies, people, policies and processes in an organization, it has become even more imperative that organizations clearly establish a well-defined change management framework for realizing the strategic objectives. Change is inevitable, and it can only be managed, failing which the organizations may cease to exist.

In the era of globalization, organizations function across the cultural boundaries with large investments in human capital as well as physical resources, give utmost importance to technological change and innovative practices for a leadership advantage. Business alliances like mergers, acquisitions, diversifications, takeovers and various other collaborative ventures have become the most preferred strategic best practices for the organizations to survive the fierce forces of competition, through transfer of people, technology, processes and leadership. For successfully handling this transition and converting the threats of change into opportunities, organizations must be flexible and open for Change Management.

By improving the readiness for change, organizations can strengthen their adaptability mechanisms and build their internal competencies for facing future uncertainties or many such multiple change auguring situations. An organization’s readiness for change management influences organizational strategies and policy related decisions, as it involves a comprehensive, well planned approach and implementation of systemic interventions which would have an overall influence on the system, processes, people as well as the organizational structure.

Innovations in technology and research advancements, have created opportunities for working virtually across any part of the globe; changes in the organizational structure and hierarchy; changes in the human resource policies and regulations, has resulted in organizational reengineering and change in the style of working of employees.

For meeting the growing demands of ever changing business operations, more dynamic and flexible organizations have endorsed new methods of working like flexi work hours, work from home, freelancing opportunities, virtual method of working, business operation outsourcing and project driven operations, etc. which provide ample opportunities to the workmen/women to work as per their convenience and flexibility.

Kinds of Change and the Barriers to Change

There are different kinds of change that an organization might undertake or be forced to undertake because of internal and external factors.

The internal factors for change include reorganization and restructuring to meet the challenges of the future and to act proactively to initiate change as a means of staying ahead of the competition.

The external factors include change that is forced upon the organization because of falling revenues, changing market conditions and the need to adapt to the ever-changing business landscape.

Change can be organic which means that it evolves slowly and is like meandering up the gentle slope of a mountain. In this case, the organization and the management have enough time to prepare for change and reorient themselves accordingly. This is the kind of change that is adaptive meaning that firms have the opportunity to adapt themselves to the change.

Change can be radical which is rapid, sudden and uncertain. This is the kind of change that is disruptive and often forces organizations to reorient themselves without adequate notice and warning. It is better for organizations to anticipate change rather than be forced into accepting change that is rapid and sudden.

We have seen how managers at different levels resist change and how this resistance manifests itself. Apart from the ideological and personality issues, there is the very real possibility of change being resisted because the “visibility” of what comes next is not clear. For instance, many managers tend to resist change because the change initiators have not clearly spelt out the outcomes of the changes and the possible impacts that such changes have on the organization. This is the realm of the “known unknowns” and the “unknown unknowns” which arise because of ambiguity, complexity and uncertainty. Hence, the resistance to change can come about due to the lack of coherence in the vision and mission and because the change is not clearly communicated as well.

Finally, the rapidity with which change is introduced can upset the organization structures that are usually rigid and bureaucratic with bean counters at all levels resisting and actively thwarting change. Hence, it needs to be remembered that change initiators consider all these factors when introducing changes. The possible approaches in dealing with these resistances would be discussed in the next section.

Overcoming Barriers to Change

Research has shown that the best way to get the senior managers at all levels interested in the change initiatives is by engaging them and seeking their buy-in for the change management process. Studies have proved that the managers in the upper echelons buy into the change from a strategic perspective where the accent is on performance and hence radical or disruptive change is seen as part and parcel of an organization's development.

Managers at the middle level can be made to see the value inherent in change and hence they can be brought on board. The frontline managers’ views and inputs can be sought and thereby their cooperation and participation in the change obtained. These are the broad outlines and the following detailed sets of approaches can be pursued as well.

Make Them the Hero

By making the managers the change drivers and change initiators is often the best way of securing their buy-in. The point here is that by getting the managers to be the ones who are implementing change and by giving them centre stage, it is possible to secure their participation.

Senior managers are highly capable, motivated and ambitious. By making them the stars of the change process, their innate abilities can be harnessed to the benefit of the organization. It is often better to have a close association with the senior managers to achieve the desired results.

Show them the potential of Change

By selling change and the value of such change to the organizations and themselves the senior managers can be persuaded to accept change. The point to note is that senior managers must be told what their role in the post change scenario would be and by making them see themselves in the future vision, they can be made to play a key part in the change management.

As has been mentioned earlier, if the benefits of the change are explained and by persuading that the change does not involve downsizing or other reduction in roles and responsibilities, the senior managers can be expected to be partners rather than resisters in the change management process.

Painting the Alternatives

This is the stick part of the carrot and stick approach wherein senior managers are told of the urgent need for change and by indicating to them what the consequences for themselves and the organization would be if the change fails. By painting harsh alternative scenarios like declining market share and repercussions of layoffs and downsizing if the change fails would make the senior managers realize the flip side of resistance. In this way, they can be persuaded to accept the business realities behind the change process.

Involving Them in the Change

By adopting a “hands on” approach that would involve “all hands” and including all the stakeholders, senior managers can be brought on board. The point is that by adopting an inclusive approach and giving a sense of ownership to the senior managers and taking their inputs and feedback would ensure that the key aspect of “engagement” is achieved.

The key to senior manager participation in the change initiatives is through engagement and only by communicating clearly the benefits of change and by positing the alternatives would it be possible to engage with senior managers. A suitable narrative of the changes and the impact that they have on the senior managers must be communicated to all levels and there must be a process in place to bring on board as many managers as possible.