Change management is an important aspect of management that tries to ensure that a business responds to the environment in which it operates. There are four key features of change management:
Change is the result of dissatisfaction with present strategies
It is essential to develop a vision for a better alternative
Management have to develop strategies to implement change
There will be resistance to change
Many factors drive change in a business. Lewin identified four forces:
In Lewin’s model there are forces driving change and forces restraining it. Where there is equilibrium between the two sets of forces there will be no change. In order for change to occur the driving force must exceed the restraining force
Lewin’s analysis can be used to:
Investigate the balance of power involved in an issue
Identify the key stakeholders on the issue
Identify opponents and allies
Identify how to influence the target groups
Forces for change include:
Internal forces for change
External forces for change
A general sense that the business could “do better”
Desire to increase profitability
Reorganisation to increase efficiency
Natural ageing and decline in a business (e.g. machinery, products)
Conflict between departments
The need for greater flexibility in organisational structures
Concerns about ineffective communication, de-motivation or poor business relationships
Increased demands for higher quality and levels of customer service
Uncertain economic conditions
Greater competition
Higher cost of inputs
Legislation & taxes
Political interests
Ethics & social values
Technological change
Globalisation
Scarcity of natural resources
Changing nature and composition of the workforce
You can see from the lists above that the main pressure for change in a business is usually external. A business has to be prepared to face the demands of a changing external environment.
