The need for change is ever-present in today’s organisations. Whether it is in response to a crisis, a means to address performance gaps, the introduction of new systems and technologies or the identification of new opportunities, it is imperative that organisations understand the need to adapt. The need for organisational change starts with a clear understanding of the sources of change and the different factors that can hinder the organisation’s efforts for improvement. Only then can a more meaningful plan for organisational change be crafted, implemented, and evaluated.
Internal Sources of Change
Companies do not evolve overnight. They undergo different stages that reflect the approaches that companies implement to address the different crises inherent in each stage. The Greiner Curve was developed to provide modern managers with a very useful approach on how to think and understand the different changes that companies go through as they grow and develop. The following are the main sources of change of any given company.
- Creativity
Every company starts with a very novel idea. People and other resources are needed to turn this idea into something tangible and of value to consumers. As more and more people join the company, the founders must juggle between managing their organisation and leading the people in a more efficient way.
- Direction
The founders of the company should be ready to relinquish some of their privileges and power to professional managers. These managers can help provide a clearer direction for the company. In other words, professional managers can operationalise the vision of the founder to make it more realistic and achievable.
- Delegation
With the growth of a company comes more responsibilities. Top-level executives must delegate some of their tasks to equally-competent middle managers. Unit managers should have the autonomy to make decisions that can contribute to the overall performance of the company. Their decisions should make sense not only in their respective departments, but also for the whole organisation.
- Coordination
One obvious issue about delegation is the loss of control of day-to-day operations by the upper management. They may no longer have a concrete idea of what is going on at the lower levels of the hierarchy. Coordination can help address this issue by improving communication across all levels of the organisation.
- Collaboration
As the company keeps on growing, employees begin to appreciate the importance of collaboration and teamwork. The focus now is on the quick resolution of problems through teamwork. There can be teams from different departments or units handling a specific task. The company also simplifies its control systems. Companies at this stage in their growth are more focused on the behavioural skills of their managers.
Obstacles to Effective Organisational Change
Some organisations are more successful than others because of their willingness to embrace and adapt to change. Two of the most common obstacles that all growing businesses must contend with are the trap of success and overdependence on their organisational path.
- Organisational Path Dependence
Some businesses are more resistant to making any significant changes in their ways of doing things. For them, there is no need to change a winning formula. They believe that history is in their favour. This line of thinking has its roots on positive feedback. If the outcomes of a company’s actions are positive, then they have the reason to keep on doing the same thing. Unfortunately, it can lead to a very inflexible organisation.
- The Trap of Success
This is almost like organisational path dependence. A company that only relies on its historical successes is not bound to change anything. They do not see any need to explore other opportunities that can contribute to their viability in the long term.
Our Favourite Agile Books
We found these books great for finding out more information on Agile Scrum:
Improving the Organisation’s Ability to Sense the Need for Change
Staying updated with current trends can help organisations have a clear idea of where their company currently stands. This gives them an indirect measure of their organisation’s relevance in today’s very competitive environment.
Improving the communication systems within the organisation also helps. Sensing the need for change may not come from the upper management. Even ordinary employees may feel the need for a more realistic and more relevant adaptation. Clear and open lines of communication can promote the generation of ideas that will lead to the planning and execution of well-meaning organisational change.
Attending to Indicators of Effectiveness
Sensing the need for change is one thing. Concretising a plan that will operationalise organisational change is another. Any plans for organisational change should always include the following indicators.
- Purpose
The objectives of the organisational change should be very clear to everyone. If one employee does not understand the need for change, then the plan will be an outright failure. Change managers should be able to convey the purpose of the change in a very clear manner.
- Stakeholder Perspective
It is also important to take into consideration the perspective of the individual stakeholders. If there are some stakeholders who are averse to the idea of change, then it would be difficult to implement and sustain such changes. Everyone must be on-board the idea of changing for the better.
- Level of Assessment
No plan will ever be effective without a very thorough assessment of an organisation’s current situation. All aspects of the organisation should undergo a comprehensive assessment of its strengths and weaknesses. This also includes an assessment of the needs of everyone in the organisation.
- Alignment
It is important for change management planners to align the purpose of the organisational change with the vision and mission of the organisation. These organisational foundations are crucial to the preservation of the company’s identity.
- Time Perspective
One cannot expect an organisation to change overnight. The different phases of organisational change should be reflected in realistic time frames. Each time frame should also have measurable objectives.
- Benchmarks
It is ideal to have a benchmark with which to evaluate the outcomes of the organisational change.
- Constraining and Enabling Factors
Managers should also consider factors that can either facilitate or undermine organisational change. They can address these issues before they implement any of the actions in their plan.
Shaping the agenda for change requires an understanding of the different phases that organisations go through as they grow and evolve. Playmakers, decision-makers and change managers play a crucial role in communicating and facilitating the need for organisational change as well as making a more realistic and comprehensive plan for its implementation.