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In Command of Change
January 01, 2005

Whether it’s new technology, new competition, or new regulatory conditions, change is a constant for many companies. It’s practically a daily part of conducting business, and yet few organizations have adequate processes or programs in place to facilitate successful change. Is it possible to actively harness the power of change?

The answer is, yes. Products and markets continually transform, therefore organizations should likewise master the art of continuous change. Whether it’s changes in organization, processes, or technology (or likely a combination of all three), rigorous planning and prudent programs, can drive successful change at every level in your organization.

Change happens

You can’t prevent change, but you can avoid many of the operational disruptions change inevitably causes. Most turmoil can be averted with diligent change management—management that occurs in advance of change, not just in response to it.

On a broad scale, this means promoting a steady conditioning of your organization to handle constant change. Companies that remain in a state of readiness hone their operation’s ability to maneuver quickly and foster an environment that primes quick responses to fast changes in direction.

Change is most often customer-driven. Because customers are virtually in control, successful internal change is accomplished through greater customer focus and by aligning your operation behind that focus, an effort that depends on universal involvement. Whether it’s a major transformation, or a minor business change, several, if not all departments can be affected, and operational changes will likely happen simultaneously. With a strong communication plan firmly in place, both leaders and employees must contribute to planning and implementing efforts to drive effective change. This will likely require involvement from a cross-section of your operation, including finance, human resources, marketing, and IT.

In fact, many operational changes are technology-enabled or can evolve around new systems or enhancements. Therefore change management mustn’t overlook proper training and education.

An intelligent change-management program also includes communication to, or involvement with, business partners. Suppliers, distributors, and any vendors with which you conduct transactions can be affected by your operation’s changes, however big or small. Getting them involved can go a long way in addressing issues upfront and avoiding havoc or costly problems you’ll only have to fix later down the line.

Calculated moves

Change management, like any other business initiative, should include an ROI analysis. Many companies underestimate the costs required and their change efforts are impeded by fiscal constraints. Allocation of proper funding should be paramount.

What’s more, performance measurements must be established. This sometimes requires new metrics or different kinds of scorecards in the face of a new change agenda. Ultimately, however, changes must still contribute to your operation’s overall success.

The plan for how quickly your operation changes will depend on the scope of the change and the size of your organization. But most experts agree that because time is money, every effort should be made to ensure rapid change implementation—the longer the disruption, the greater the cost. Breaking your attack down into small incremental changes will help spur momentum.

Additionally, your operation should regularly evaluate its change-management efforts. Taking the time to determine what’s working and what isn’t will help you refine your decisions, actions, and programs. 

Be ever ready

Managing operational change as an afterthought is a strategy for failure. With persistent planning, programs, and training, you can facilitate a rapid pace for change and ensure a high degree of operational success.