Tips on Change Management Risk Assessment

Tips on Change Management Risk Assessment

Changes in management within companies are often necessary for development and growth but the manner in which the changes are initiated can be equally as important. Before any changes are made communication with all relevant teams, employees, shareholders and clients or customers is necessary so that they understand the reasons for change and how it can benefit them. Employees may benefit from new training, the opportunity to learn and qualify in new skills. Customers may find advantages in new product ranges and shareholders may achieve higher profits on their investment. All parties involved will be more inclined to embrace change if they are involved in the decision making to effect it.

Without open communication there are some risks to the change management process. There may be resistance from staff members worried that the changes made will affect their position or the way in which they carry out their jobs. Rumors circulate frequently in business and can be blown out of all proportion. Your competitors may see changes that you are making as an opportunity to spread gossip that might adversely affect your business so lack of communication with your customers may seem them changing their allegiance.

Bad changes in management carry a high risk. Often a top salesperson is promoted to a managerial position for which he is not qualified. The company loses the revenue achieved by its excellent salesperson and sales management becomes a disaster.

In assessing changes to management a company needs to ensure that the choices made take into account the qualifications of personnel, any training of staff that may be necessary and that the changes will increase profitability and efficiency. Communication is the key to the success of the change management process so that everyone concerned is involved and feels that they are playing a part in the future success of the company. Changes should be viewed as a positive step rather than negative and that can only be achieved with the full participation of relevant parties.

In the present world economic recession, no one will benefit with a workforce that believes the company is making changes that will cause redundancies or a cutback in working hours; for that reason alone it is essential to promote the positive reasons for change. Investors and shareholders will support management changes when they know why you are making them and will not see risk if they are in possession of all the facts. Customers will continue purchasing goods and services from the company when they have knowledge about why changes have been made, rather than believing that the company is possibly going to close down.

In a competitive world, there is no doubt that the change management process is necessary for the survival of many businesses and it can be done with the minimum of risk by following these simple, basic communication guidelines.

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