Why is Change Management Important for Your Business?

In Business Skills, Management Skills
Change Management is important to keep your business survive.

One popular saying remarks that the thing that remains unchanged in life is the change itself. It means that “change” will always happen sooner or later whether we like it or not. And therefore, Change Management is significantly necessary for every business. Especially with the increasing technology domination in our lives, change feels faster and faster.

Changes happen everywhere in our lives, it could be in our business, prices, work environment, work system, work culture, government system, and so on. But in general, there are two kinds of changes, namely a deliberate change (by design) and unintentional or unexpected change (by accident). Changes by design must have a purpose and be carried out systematically, whereas changes by accident are usually uncontrollable so that the impact may not be as what we expected.

What is Change Management?

Change Management (CM) makes a transition easier for your business. This makes it easier for your employees to understand, commit and accept changes in their corporate environment. In other words, Change Management definition is a structured and systematic process to help the transition of individuals, work teams, or organizations from a certain condition toward the desired goal.

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Why is Change Management Important?

In recent years, businesses have seen that Change Management plays an important role in the implementation process to new technologies. In which, an example of major change is that recently four industries are becoming more intensively depending on machine learning technology. Such change may have a big impact on many entities that are worried about the ever-expanding technology that can take over their jobs.

That’s what makes many businesses afraid to change, especially towards newer technology. By helping your employees to understand a change, you can make your business becomes more open and ready to change. Change Management is used to provide an easy process and reduce the tension that arises from changes.

Change Management is a formal way of communication to all employees. CM tells us why the change took place, what its impact on our business, and how CM can ultimately be useful. Providing up-to-date information to employees simplifies and speeds up the transition process of your business. Plus, if your employees are more prepared and open to change, they will be much easier to interact with the ongoing processes.

When employees are involved, the transition process can be run faster and saves a lot of time in your business.

How does Change Management Help Your Business?

According to Google, those who consider qualified change management see an increase of ROI at 135% compared to only 105% for businesses and companies that don’t use a change management program.

Change management will increase user adoption, utilization, and skills such as a training for employees to better understand the changes in their work environment.

Ultimately, this will have an impact such as lowering business costs which are related to unwanted problems in business operations. When everyone has gained a clear role after a deployment process, your business can run seamlessly without any hindrance. The end result, each individual can receive changes more quickly and effectively, so that your business is ready to respond to a change that occurs in the market, set the strategy, and certainly adopt new technology quickly without disrupting by productivity problems.

Change Management Case Study

Shell was dealing with a serious crisis of oil reserves in 2004 that smacked its share price. And the most compounding situation was its chief, Sir Philip, Watts was leaving. But the new chief, Jeroen van der Veer, be confident that with an eye to withstand, their company had to change its organizational structure and processes.

The key idea of the changes which led by van der Veer was an unassuming normative process in almost all countries that steaded Shell globally worldwide beating out local, individual needs. All of general invoicing and financial systems were getting more centralized distribution networks. By recognizing and quickly pointing major emerging resistance areas, the adoption was accelerated.

They informed the employees who would have an effect on the change to discuss potential problem areas and were discussed and alleviated in advance of a real change was even held.

In any key change plans, it could be there’s a risk that a change management gets handed over. It’s why many managers keep themselves far away from the challenge of carrying out the duties which that should prove they’re capable. Such initiative can lead to a big fail. But in Shell’s case, yet, the change management applied and led with the new chief, Jeroen van der Veer, who kept affirming how important the enforcement of Downstream-One would be.

Shell is now in a remarkably wholesome situation than when the change started, and by that gauge, the change led by van der Veer has been seen an achievement. As a result, of Downstream-One keep resulting in a ceaseless change.

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