subject: BEFORE YOU FLY: Managing Change [print this page] BEFORE YOU FLY: Managing Change BEFORE YOU FLY: Managing Change
Companiesusually act in response to the challenges of today's new technologies, new competitors, new markets, and demands for greater performance with various change programs, each designed to overcome obstacles and enhance business performance. In general, such programs fall into one of the following groups:
1.Structural change:These programs treat the business as a set of functional parts just like a "machine." For the duration of structural change, top managers would need to challenge and reconfigure these parts to achieve greater overall performance. Mergers, acquisitions, consolidations are all examples of attempts at structural change.
2.Cost cutting:Programs such as these focus on the elimination of additional activities and other methods for cutting down costs. Business operations that undergo some sort of inspection during profitable years may need to draw the attention of cost cutters in the future.
3.Process change:Such programs would focus on altering how things get done. Examples include redesigning the organisations approach to handling the rewards system, or the way in which the recruitment or selection decisions are made. Process change typically aims to make processes quicker, more effective and more reliable.
4.Cultural change:These programs would involve the "human" side of the organisation, such as the company's usual approach to doing business or the building relationship between managers and employees. Shifting from top to bottom management to a participative management is an example of cultural change. (Bottom Top approach)
5.Leadership change:Such programs aim to build up the organisations leadership for example, by promoting former individual contributors into managerial positions, creating succession programs that create a pipeline of qualified leaders who can step in.
If your organisation is considering a change program, think about which of the groups described above the initiative falls into. Also ask yourself how the initiative is likely to affect the business overall.
