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Nearly every establishment must undergo dramatic transformation at some point in its existence in order to survive and stay relevant in a business environment that is always changing and developing.
Change Management, also known as Organizational Change or Organizational Change Management, is the implementation of new organizational policies, procedures, or structures in an establishment.
Organizational Change Management is the practice of keeping Change under control in order to attain the intended corporate goals. Change Management is often required as a result of changes in the corporate environment, such as fluctuations in market demand, the introduction of new technology, adjustments in leadership or management, variations in client preferences, and modifications in government legislation.
Managing Change is essential because it helps businesses adjust to changing circumstances. Thus, it allows businesses to stay competitive and responsive to the needs of their consumers, key stakeholders, and the market environment in general.
Many professionals have offered their Change Management Strategies during this time. These methodologies differ depending on their basic assumptions and selection criteria.
Change Management Strategies may be classified into 4 broad categories:
- Empirical-Rational.
- Normative-Re educative.
- Power-Coercive.
- Environmental-Adaptive.
The first 3 of these 4 Change Strategies are condensed versions of typical Change Management Methodologies derived from the work of Kenneth Benne and Robert Chin. Fred Nickols is the originator of the 4th Change Strategy, often known as Environmental-Adaptive.
Let's go a little more into the specifics of these strategies.
Empirical-Rational
The presumption behind this strategy is that individuals are rational beings who will look out for their own interests when presented to them. Effective Change, according to this strategy, depends on the efficient dissemination of knowledge and the provision of incentives.
Normative-Reeducative
The presumption behind this strategy is that humans are social beings who adhere to societal norms and ideals. Successful Transformation, according to this approach, depends on defining and deciphering current norms and beliefs and forming commitments to them.
Power-Coercive
This Change Strategy presupposes that individuals are essentially compliant and will generally comply with requests or may be coerced into doing so. According to this approach, effective Change is founded on the use of authority and sanctions.
Environmental-Adaptive
The presumption behind this strategy is that while individuals dislike loss and disruption, they adapt to changing circumstances. The strategy for Change entails constructing a new organization and gradually relocating personnel from the old to the new.
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"The only constant in life is change." – Heraclitus
Such is true for life, as it is for business. The entire ecosystem our organization operates in—our customers, competitors, suppliers, partners, the company itself, etc.—is constantly changing and evolving. Change can be driven by emerging technology, regulation, leadership change, crisis, changing consumer behavior, new business entrants, M&A activity, organizational restructuring, and so forth.
Thus, the understanding of, dealing with, and mastery of the Change Management process is one of the most critical capabilities for our organization to develop. Excellence in Change Management should be viewed as a source of Competitive Advantage.
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