Top Organizational Change Risks

 Because of constantly evolving market and economic circumstances, businesses need to adapt. Management of change is a mixture of principles and techniques for successful change preparation and execution. The process of basic change management involves defining the need for change, introducing new processes and policies, and tracking the outcomes.

The main risk factor of any change process is that the new systems and procedures will not work and leave the company worse off than before.

Resistance

A common risk factor is resistance to change. Typically, people are set in their ways and are hesitant to consider new methods. Furthermore, workers may recall previous failed proposals for organizational change. There is also the fear of losing jobs, especially if process automation and information systems are involved in the transition.

Leadership

Management of organizational change demands leadership. Managers in the divisions impacted should have expertise or be sufficiently qualified to meet the demands with prior change management exercises. Fuchs indicates that dedication and conviction are important characteristics of leadership.

Management must maintain focus through the inevitable schedule slippages and unanticipated events during the implementation process.

Disruption

Another risk factor for organizational change is operational disturbances. One way to mitigate the effect is to assess the correct speed of execution, which may vary based on the company's size and the project's complexity.

A small consulting partnership, for example, might execute a software update without significant disruptions in a few hours. Nevertheless, a medium or large business that is implementing a software solution for enterprise resource planning should expect major disruptions.

Other methods to reduce the financial effect of disruptions include preparing the implementation of the transition in stages, making improvements in hardware and software only during nights and weekends, and educating workers to use the new systems and processes.

 

Forcing Change

Cautions by Fuchs against forcing transition. Instead, organizations at every stage should establish a need for it, with senior management enhancing the message internally and externally. Employees and mid-level managers should understand why the change is important, since the change process will never work without their buy-in.

At every step, Fuchs recommends seeking champions. The process can be pushed forward by these team leaders and product managers, who support the change effort and appreciate the technical specifics.

 

References:

Chron.com. (2011). Reasons for Poor Communication in the Workplace. [online] Available at: https://smallbusiness.chron.com/reasons-poor-communication-workplace-10137.html. [Accessed  on 20th January 2021].

Chron.com. (2018). Technology’s Impact on Organizational Changes. [online] Available at: https://smallbusiness.chron.com/technologys-impact-organizational-changes-20377.html. [Accessed  on 20th January 2021].





Comments

  1. Janaka Ishara28 January 2021 at 23:30

    Are there ways in which the risk of these institutional changes can be put to more practical use?

    ReplyDelete
  2. Roshan Wijendra29 January 2021 at 22:21

    When making changes in an organization it has to face various risk. If it is not understood and adapted to it The organization had to face severe losses.

    ReplyDelete
  3. Ganga Pathiraja30 January 2021 at 18:03

    To adopt according to the situations, commitment & Passion, Confidence on the decisions and capability of making correct decisions at correct time, delegation and empowerment, capacity to inspire co-workers and other stakeholders will be the major characteristics which should be given a prior place as leaders.

    ReplyDelete

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