Change Management

Organisations need to change for a wide variety of reasons. Some of them are internal reasons
– things going on within the organisation that need to be addressed. Some of them are external reasons – things happening out in the rest of the world that influence the organisation and prompt a need for change.

Some businesses only exist because they constantly strive to innovate and change, for example: 

• manufacturers of mobile telephones, tablets and electronic games

• television, theatre and film producers

• fashion clothing designers and manufacturers

• space and military engineering companies 

• vehicle designers and manufacturers

Not surprisingly, these businesses can be seen as exciting places to work as they are always looking to innovate and find something new. When managed and supported properly, change leads to growth and success for the individuals, teams and organisations involved. Organisations that fail to innovate and change run the risk of losing out – e.g. on new business, good staff, customers, profit or market share.

Many different situations and events can prompt the need for organisational change, including:

• changes in technology – e.g. telecommunication companies adapting to new generation mobile phones, tablets and other new devices

• competitors’ activities – e.g. airlines changing their routes, prices or level of service to be able to compete with each other successfully

• changes in the marketplace – e.g. customers moving away from the high street and making most of their purchases online or in out-of-town shopping centres

• changing customer expectations – e.g. hotel guests expecting a higher quality of accommodation at low cost

• new legislation, regulations or standards – e.g. scrap metal companies having new regulations about identifying their suppliers of metal (to reduce theft)

• environmental factors – e.g. new waste management procedures to reduce landfill and contamination of the environment

• financial issues – e.g. rising costs making current processes unsustainable

• political factors – e.g. changes in government funding in education

• internal business factors – e.g. following a change in senior managers and other decision-makers; as a business grows and increases its workload

• external business factors – e.g. fluctuations in currency exchange rates