Types Of Change
Change management is an approach to shifting or transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at helping change stakeholders to accept and embrace changes in their business environment. In some project management contexts, change management refers to a project management process wherein changes to a project are formally introduced and approved.
Kotter defines change management as the utilization of basic structures and tools to control any organizational change effort. Change management's goal is to maximize an organization's benefits and minimize the change impacts on workers and avoid distractions (Figure 1). There are different types of change any organization faces, including:
Business Process Re-engineering
Business process re-engineering (BPR) is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and processes within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. In the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated reengineering efforts, or had plans to do so.
BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. A business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of processes rather than iterative optimization of subprocesses.
Business process re-engineering is also known as business process redesign, business transformation, or business process change management.
Incremental change is a method of working by adding to a project using many small (often unplanned), incremental changes instead of a few (extensively planned) large jumps. Wikipedia, for example, illustrates the concept by building an encyclopedia bit by bit. Logical Incrementalism focuses on "the Power-Behavioral Approach to planning rather than to the Formal Systems Planning Approach." In public policy, incrementalism refers to the method of change by which many small policy changes are enacted over time in order to create a larger broad based policy change. This was the theoretical policy of rationality developed by Lindblom to be seen as a middle way between the rational actor model and bounded rationality, as both long-term goal driven policy rationality and satisficing were not seen as adequate.
Technological change (TC) is a term that is used to describe the overall process of invention, innovation, and diffusion of technology or processes. The term is synonymous with technological development, technological achievement, and technological progress. In essence, TC is the invention of a technology (or a process), the continuous process of improving a technology (in which it often becomes cheaper), and its diffusion throughout industry or society. In short, technological change is based on both better and more technology.
Successful Change Management
Successful change management is more likely to occur if the following are included:
- Benefits management to define measurable stakeholder aims, create a business case for their achievement (which should be continuously updated), and monitor assumptions, risks, dependencies, costs, return on investment, and cultural issues affecting the progress of the associated work
- Effective communications that inform various stakeholders of the reasons for the change, the benefits of successful implementation, as well as the details necessary to implement the change
- Devise an effective education, training or skills upgrading scheme for the organization
- Counter resistance from the employees of companies and align them to overall strategic direction of the organization
- Provide personal counseling (if required) to alleviate any change-related fears
- Monitoring of the implementation and fine-tuning as required