In 2008, Dominos Pizza was not only struggling to compete against its competitor – Pizza Hut, but also, they were having a hard time sustaining their business after their stock value hit an all time low. However, after successfully implementing change management, Dominos was back in business in 2012. By investing in new technologies and adapting to their consumers’ needs through digital efforts, they were able to compete in the market again. They adapted to the changing environment by innovating their delivery infrastructures and methodologies and they still continue to do so.
Change management is a systematic transition or transformation of an organization’s objectives, process, core values, and technologies in accordance with its changing environment. There is no absolute procedure to the development of any project or system. But it seeks to create a culture where change can happen with easy transition and with minimal disruption. Change management is important because the process helps organization to:
- Understand the magnitude of the change and its impact on the organization
- Prepare and plan for change
- Execute the changes; monitor and control the changes
- Measures the success or failure of changes
Principles of Change Management
There is no absolute guiding principle to change management. Managing change is a very subjective approach as the needs for change can be different. The following are some principles on change management which are widely discussed.
Change is inevitable.
People are resistant to change. This can be seen in their behavior. This can be seen in the way people still drive cars despite the fact that they could use public transportation or have a car delivered to their door via services like Uber or Lyft. On a larger scale, people still have not moved away from fossil fuels despite the potential risks posed by climate change.
Change is managed with a sense of urgency and care.
Change management cannot happen without urgency because it would not be effective otherwise. However, this does not mean that it should be rushed either because this can lead to mistakes being made which could cause more issues than what was originally create.
Change management should be centered around the people.
This means that those people must be involved in the process of deciding. One way to do this is by making a plan or map which outlines what changes will happen, when they are going to happen and how they will be implemented with a goal that the related people are satisfied with.
Stages of Change Management
Change is an inevitable process and organizations likewise should be able to cope up with these changes in order to grow. However, implementing change within an organization is not an easy process. According to Jeff Hiatt’s ADKAR model, there are 5 stages of change management that are as follows;
- Awareness of the need to change
- Desire to support change
- Knowledge of how to change
- Ability to demonstrate skills and behavior
- Reinforcement to make the change stick
Objectives of Change Management
Many studies have proved that adapting to a changing environment, when done in a proper way, will yield good results. Through change management, any organization seeks to achieve these following objectives;
Easing Pressure by Simplifying Process
Over the years, many companies have tried implementing new technologies in their workplace. But as many people have this notion that technology will overtake humans in the workplace, they often hesitate or cause resistance towards this change. By creating an environment where employees are encouraged to understand the change, organizations are able to develop more open mindedness towards change in their employees.
Maintaining Time and Resources of the Organization
Change management involves proper communication with employees, where they will be aware about why the change is happening and what kind of impact it will have on them. When employees are well informed and encouraged, they get more interested in the subject. This in turn will lead to quicker execution of change management strategies leading to the maintenance of the organization’s time and resources.
Creation of a Versatile and Innovative Workplace
Having an open and progressive environment, where there is low resistance to change, change management helps companies set standards for accepting change as a growth process. Over time, this will develop a faith among the employees towards the decisions made by the top management. When this is done consistently, you will have a versatile and an innovative workplace.