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Additional info for Change Management (Management Extra S.)
Your senior management can also anticipate these external pressures by undertaking programmes that act as internal triggers for change. Finally, there are proactive triggers for change, where an organisation attempts to go out and change the environment in which it operates. Each of these triggers for change is considered in the sections that follow. 2 The conditions for change External triggers for change Changes in the business environment are the most obvious triggers for change. The boom in the telecommunications industry during the 1990s led to the development of a management style in the industry geared towards continuous year-on-year growth.
Increasing the global spread of operations or branching out into different products are examples of companies attempting to counteract the effect of an economic turndown in one region or product by diversifying. ♦ Developing new technologies which change the ground on which companies compete. For instance, Hewlett Packard (HP) actively pursues disruptive innovations, which will create new markets. The role of its research arm ‘is not only to create advances to support HP’s current applications, but to create “disruptive” technologies that establish entirely new businesses’ – for HP its ‘people personify the word invention’.
Your recommendations may have been carefully researched but because the decision concerns the future, it will always be made on the basis of incomplete information and must take into account the risks associated with failure as well as the benefits of success. Implementing a change management programme, particularly if it is an organisation-wide programme or it brings in fundamental changes, is a strategic choice. Senior management must decide whether this is the best strategic choice or whether an alternative, including the option to do nothing, offers a better return/risk prospect.