Triggers for Business Change
As we know change is inevitable as market expectations are not static, new technology is constantly being developed, and organizational responses are inevitable to these sequences. It is a simple matter of business evolution. If every manager and every employee could have some understanding of the triggers of change and their relationships with each other, then the acceptance to change would be easier.
When change is being implemented the natural tendency is to feel threatened by what is happening, if you don't think rationally and emotions and feelings take over. Sometimes, it is all seen as some kind of conspiracy by employers and they perceive that the management is concerned only to look after them. There could be elements of truth in this, but a major educational effort to get everyone in the company to expect change, and indeed to create it within their own spheres, would lead to the path of positive change.
Change is expressed through three main areas: the market itself, the technology to meet market demand competitively, the organization of resources, and the enterprise to achieve success. We also consider the tendency of companies to follow a pattern of similar life cycles. The stage in the life cycle could affect the nature of the changes which might be expected. In this article, we are looking at key triggers that necessitate the change.
1. Market Changes
The market is constantly evolving and the only way to survive in the market is to adapt to what market demands. Some examples of market-driven changes are:
- Customers demand – They want more or less of particular goods or services
- Competitors have begun to get ahead in the race due to aggressive advertising
- Government decisions and new regulations have either freed you or constrained you
- World events have changed the nature of people's expectations – Like the COVID-19 pandemic has constrained the movement of people around the world
- Price mechanisms nationally or internationally have got out of range, imports have become costlier and non-affordable
- New technology has superseded what your organization was good at – MP3 has replaced the need for cassette players
- Political changes in other countries open up opportunities or closed entry
- Raw material shortages have arisen or their prices have shot up
All these create specific changes in your business, whatever it is. The changes in the marketplace will impact your company and if the impact is negative, there will be urgency in the organization to search for new products or for the creation of new expectations from old ones. There will be the decision to explore areas of the globe where you are not previously represented; by expanding your customer base by moving to the right place in order to hold in the demand for the moment.
2. Technological Changes
Technology is naturally enough a significant part of the changing scenario. There are constant development and introduction of new technology that brings process optimization and results in reducing the people costs, or to speed up manufacturing and assembly processes or result in innovative ways of fulfilling a particular need. Technology enables meetings of customer needs, anywhere, at any time, in the form it is wanted and with the minimum of physical material and the maximum of accompanying service. Technological change has a knock-on effect so that change in this field in response to need becomes the trigger of further change. Technology can force an organization to re-establish price advantage, quality pre-eminence, or diversification into new products.
3. Organizational Changes
These changes in the market or technology will also affect the organization. If on the negative side it could result in retrenchment, a reduction in the number of employees, and a reduction in the number of levels of management. The technology itself might require new styles of organization, new sills, and the upgrading of old ones. The number of operating sites may be reduced. People may find themselves performing totally new functions, which they may like or perhaps won't like, at least to start with. The only way to stay in business may be a merger or to be the subject of a takeover, friendly or hostile. With such ownership changes, another market, technological and organizational changes may follow. In some industries, it is an endless cycle.
Most CEOs seeking to improve results do something about the organizational structure and culture of their enterprise. The organization is a matter of structuring the way in which resources are brought and kept together in order to achieve objectives. These resources include people, places, money, materials, and machines. Most changes have some implications for the ways in which resources and relationships are organized. Whether corrective action is being taken or opportunities are being seized, the organization's change will make a difference to the immediacy of reaching and speed of decision-making, information-sharing, communications, and policy implementation.
The culture change brought about by reorganizing is the most difficult handle and the ones that take the longest. They have to overcome the inhibitions of whole corporate life history, and they are likely to meet emotional resistance.
The restructuring of organizations will have to be essentially rational and it will move in different directions, depending on need.
Related Links
You May Also Like
-
Team Foundation in Forming Stage
This is the first stage of team development. This is the stage when the foundation of the team is laid. During the Forming stage, team members have a high dependence on their leader for guidance. Learn the practical strategies you can use during this stage to help your team develop into a highly effective performing team.
-
Teams are part of the modern organizational culture. Whether you are a team leader or a team member, having a better understanding of how teams work, and being able to identify where the team is in the process, is a critical part of ensuring the team is ultimately successful. Start with the basics and understand what a team is and what role they play in an organization.
-
Understanding of how individuals of different cultures interact with each other is very important. Not all individuals can adapt to the leadership styles expected in a different culture whether that culture is organizational or national. In a fast-paced business environment, developing a richer understanding and sensitivity to other cultures is a skill that leaders must possess. Learn to be effective in a cross-cultural setting.
-
Technological advancement has brought about radical changes in the methods of work and also in the organizational structure and talent strategies. The future of work is transforming our work, workforce, and workplace. Some important trends observed during recent times are discussed below.
-
Reasons behind Wastage of Time
Under-utilization of time may be due to the faulty system or faults of manager/officer/leader or due to lack of planning. There could be many factors driving the procrastination behavior like system issues, personal work habits, and lack of delegation, personality traits, and bad working habits of the leader, failure to tackle interpersonal conflicts, obstacles, and lack of far-sightedness.
-
Stress is a product of the busyness of modern life. It has assumed grave dimensions ever since the emergence of industrialism. In fact, stress is a natural, ongoing, dynamic, and interactive process that takes place as people adjust to their environment. Stress can be brought about by positive or negative life events. Distress can cause disease and eustress or positive stress can promote wellbeing and increased productivity. Learn to recognize and be responsible for your stress, and learn the ways to manage stress.
-
In its simplest sense, decision-making is the act of choosing between two or more courses of action. Decision making is a key skill in the workplace and is particularly important if you want to be an effective leader. When decisions have to be made, there are several stages that you should go through to reach a practical solution. Understand the meaning and importance of decision making and how to look at it as a process.
-
At different points in your professional career, it is helpful to identify your core values. Values are the qualities considered to be the most important guiding principles that determine the priorities in your life and greatly influence your career choices. Your career brings happiness when it is in agreement with the beliefs you have about what is important and meaningful to you. Awareness of your values will help you develop a clearer sense of what's most important to you in life.
-
In today's innovation-driven economy, understanding how to generate great ideas has become an urgent managerial priority. Managers need to encourage and champion ideas and need to help their organizations incorporate diverse perspectives, which spur creative insights and facilitate creative collaboration by harnessing new technologies. Innovation is the embodiment, combination, and/or synthesis of knowledge in original, relevant, valued new products, processes, or services.
-
Team Development by Building Trust
As your team begins to work together, you need to establish a way each team member can exchange ideas and build mutual trust. Successful groups are built on trust and collaboration. A free exchange of ideas, in an open environment, will allow your team to get to know each other and enable you to check on how they work together. Learn some tips to help build team trust and establish personal bonds.
