Strategy: Types of change in a business

Change is nothing new.  And in business it is now an established fact of life.  As Drucker pointed out in Management Challenges for the 21st Century:

"Everybody has accepted by now that change is unavoidable. But that still implies that change is like death and taxes — it should be postponed as long as possible and no change would be vastly preferable. But in a period of upheaval, such as the one we are living in, change is the norm."

Many people thrive on new challenges and constant change; others resist change and prefer the security and comfort of the status quo.  However, the problem for business management is that change is rarely optional (as Drucker says – “change is the norm”).  The choice is not whether to change, but:

• Deciding what change is appropriate and necessary
• How quickly it needs to be achieved
• How resistance can be overcome and the organisation mobilised to complete the change

Before looking at how change can be managed, it is worth considering briefly the two main types of change – step and incremental:

Step change

• Dramatic or radical change in one fell swoop
• Radical alteration in the business
• Gets it over with quickly
• May require some coercion

Incremental change

• Ongoing piecemeal change which takes place as part of an organisation’s evolution and development
• Tends to more inclusive