Business Transformation and Change Management Process
Business transformation refers to a strategy used by business organizations to align their operations to its strategic objectives. It involves aligning business goals and objectives to the technology, human resource needs, customer demands and processes to the vision of the organization (Van Işik, Viaene, & Helsen, 2016). Business transformation allows the company to implement various innovative methods which are considered as the key drivers to the organizational success. Business transformation involves redefining the objectives and goals of the business enterprise. It begins by assessing the current state of the organization so as to come up with the desired future. Each transformation that a company undergoes requires different change models which are tailored towards the transformation process (Van Işik, Viaene, & Helsen, 2016). It is important for organizations to understand what transformation is before adopting a change model to be utilized. Without this, the change program is bound to fail. A change process should consider all the key performance indicators of the business organization. This would allow it to maintain the customers and outperform the competitors in the long run.
Organizations comprise of process and group of human resources who work collaboratively in a workplace environment with the primary aim of achieving a common goal (Rosemann & Brocke, 2015). Change management in organizations is very complicated since employees would always resist it. This happens when the change affects the standard procedures and processes which are utilized by the employees to perform their duties and responsibilities. Change management does take place when the organization is moving from one state of production to the other (Hayes, 2014). It is a complicated process that requires the commitment of the top leadership and the workforce so as to realize its success. Change occurs at three different levels within an organization. The first change occurs among the employees who work for the organization. Change that takes place in employees is often experienced in their values, skills, attributes, behavior and abilities (Jeston & Nelis, 2014). It is the responsibility of the top management to ensure that such changes that occur among the employees reflect the overall organizational change. Secondly, change takes place in the organizational systems and structures. Such changes may include a shift in the reporting procedures, reward systems, and job design. Variations in the structure and policies of the organization are always implemented so as to improve the overall performance of the company (Van Işik, Viaene, & Helsen, 2016). Lastly, change may occur in the organizational climate. In this case, the organization changes its interpersonal styles and how it handles relationships in the business. Such changes may also affect decision-making process and conflict management processes.
The organizational change is usually driven by different circumstances that occur in the market environment (Hayes, 2014). Such conditions include technology, competition, and the changing legal context. The management is required to consider the various drivers of change to ensure that they are not found unaware of the modification. No matter the circumstances the organization may find itself in; the management should always guide the employees towards the desired state of performance. The scope of the change in an organization always does vary. Some changes affect the entire organization, a department or an individual (Jeston & Nelis, 2014). Despite the framework of the change, the leadership should direct its efforts to manage the workforce towards the desired direction that would improve the performance of the organization. The leadership style adopted in change management should allow the corporation to remain competitive in the market.
Leadership plays a significant role in change management. Leaders are often the initiators of change in most organizations. The changes are directed towards transforming the processes, procedures, and methods of operation of an enterprise (Rosemann & Brocke, 2015). Organizational change is implemented by the employees so as to turn the current functioning of the organization to the desired methods of operation. The leaders should always drive the change by motivating the employees to ensure that the change is implemented effectively (Van Işik, Viaene, & Helsen, 2016). Leaders should be the chief architects of the different change process in the organization. They should have various honed skills that they can use to engage employees at all levels so as to create a new culture that would favor the change process.
There are three fundamental transformational processes that organizations do undergo. These methods require different change management models. This paper describes the various types of transformational processes and the type of change management models needed to implement them.
The business environment has become very competitive and dynamic. As such, change is no longer optional for companies. Organizations must always embrace change so as to stay ahead of their competitors. Developmental change involves moving from the current state of performance to a desired state of performance (Van Işik, Viaene, & Helsen, 2016). During the developmental change, the organization must improve the current skills, performance standards, methods and processes of production. The problems that exist in the current state must be solved so as to achieve the desired performance. While implementing the developmental change, the employees should be informed of the need for change and its effects on their performance (Jeston & Nelis, 2014). The organization should offer appropriate training to allow the employees to implement the required changes. Such changes aim at improving the overall sales and quality improvement. Examples of developmental change may include improving the payroll system, refocusing on the marketing strategies, and improving the advertising processes.
Developmental change is usually the first stage of business transformation. The changes made during this process allow the organization to meet the demands of the customers in the market (Rosemann & Brocke, 2015). An organization which is capable of managing developmental change effectively will make the employees understand the rationale for such changes. To ensure effective implementation of the developmental change, the organization must engage the employees and seek their opinion of the intended change. The employees should be engaged through effective interpersonal communication and training. The management can also use other methods such as team development, problem-solving skills, and performance of simple work processes to ensure that the change is implemented efficiently.
During the developmental change, the management should encourage the employees to utilize the new technology and processes that the business intends to use to transform its operations (Jeston & Nelis, 2014). Besides, the company should show its commitment towards minimizing the effects of the intended change in the activities of the business. Developmental change should never worry employees so long as the organization explains to the current staff the rationale behind the new processes and methods.
Therefore, developmental change is implemented by business organizations to improve their efficiency and address any deficiency that may hinder the success of the organization (Rosemann & Brocke, 2015). A developmental change enhances or improves the already established processes. They are usually not implemented to a large-scale. However, it is the most frequent change that organizations do carry out. Most developmental changes do not interrupt the operations of the company (Jeston & Nelis, 2014). Such changes are expected to produce positive returns for the organization. Failing to implement developmental changes frequently may make the company lose its market share in the long-run.
Transitional change involves applying new methods and process into the business operations processes (Van Işik, Viaene, & Helsen, 2016). Transitional change process entirely changes the existing methods of operation and production. The primary objective of this type of change is to alter the face of the organization by bringing in new processes and methods which do not complement the current methods of production. Some of the types of transitional change may include merger, acquisition, producing new products and services, and implementing new methods of production or technology in the operations of the business (Davenport, 2013). Transitional change is more challenging to implement since it may cause some discomfort to the staff members compared to developmental change (Jeston & Nelis, 2014). It is not easy to tell the future of the business organization while implementing transformational change. This is because it shifts the culture and behavior of the employees in the organization.
Transitional change requires the organization to alter the current leadership and organizational structure (Jeston & Nelis, 2014). Besides, it is more expensive to implement transitional change since the company must invest heavily to meet the demands of the change. The transitional change affects the attitude and performance of the staff members (Hayes, 2014). This is because they are required to display new abilities and skills which are needed to implement the change. Moreover, there are various modifications to the existing organizational structure, systems, and procedures which the employees can not embrace quickly. Transitional change has often been resisted by employees since it causes a lot of discomfort in the way the staff members carry out their roles and responsibilities (Rosemann & Brocke, 2015). Besides, this type of change requires the organization to refine or change its strategic objectives, mission, and vision statements. It may also influence the existing organizational culture.
Implementing transitional change is very challenging. It requires the total commitment of the leadership and the staff members (Van Işik, Viaene, & Helsen, 2016). Other stakeholders such as shareholders, customers, and the existing government legislations should also be considered since it involves an overhaul of the current state of the business to a new state.
The management is required to engage the employees and other stakeholders before undergoing a transitional change (Davenport, 2013). The management may use various methods such as: Collaboration
Implementing change is never a walk in the park in an organizational setup. It requires the efforts of all the stakeholders involved to ensure that the change process becomes a success (Jeston & Nelis, 2014). In the case of transitional change, all the professional staff should consult to ensure that the change becomes effective in the long-run. Collaboration ensures that the opinions of different stakeholders are taken care of to ensure that the business does not lose its position in the market.
It is the responsibility of the top management to give clear guidance to the employees concerning the change process. The administration should mobilize all the stakeholders to ensure that they are moving towards a common direction (Rosemann & Brocke, 2015). The management should also provide the required resources that would ensure that the change process is implemented efficiently. Moreover, the resources provided should suit the situations under which the change is to be implemented and the time constraints.
This method is used when employees are not receptive to the change process (Van Işik, Viaene, & Helsen, 2016). Coercion is also used where human relations never work, and the management requires the change to be implemented quickly. It is used where nobody listens to the instructions of the top management. It becomes very efficient when the change process is bound to fail. However, it is not the best method to be used to implement change. It is only used where the employees are not willing to listen to the instructions.
Therefore, transitional change is useful for business organizations that intend to introduce new products and services in the market (Rosemann & Brocke, 2015). Before implementing a transitional change, the company should understand the needs of the customers. Furthermore, training goals and objectives of the employees should be tailored towards the change process.
Transformational change always follows the transitional change. Transformational change is a combination of both transitional change and developmental change (Van Işik, Viaene, & Helsen, 2016). However, there are instances where transformational and transitional changes do take place concurrently. Transformational change always does occur when the business organization is faced with radical changes in technology, a shift in the demand and supply, and unexpected competition in the market. It is hard to tell the future of business organization which is undergoing a transformational change (Hayes, 2014). This type of change involves the total overhaul of the business processes, procedures, methods, and systems. Transformational change offers the company with the opportunity to remain competitive in the long-run.
This type of change is usually complicated to implement (Jeston & Nelis, 2014). It requires the commitment of the leaders of the organization and massive investment of resources. This change process requires potential and radical modifications in the existing organizational structures, procedures, policies and systems (Hayes, 2014). The employees have an obligation to have new skills and abilities needed for the change process to be effective. The employees are required to think quickly so as to implement the change. Transformational change requires the management to revise the mission, strategy and the culture of the organization (Rosemann & Brocke, 2015). This type of change requires the commitment of all the stakeholders including the political leaders so as to realize its potential. Failure to integrate the thoughts of the entire workforce and to re-engineer the budgets of the organization will jeopardize the change process. The company should select the right leadership and corporate investment to ensure that success is realized.
Business transformation and change management process require organizations to set the right strategic objectives which are realistic (Jeston & Nelis, 2014). The architects of change should use their leadership skills to ensure that the change is implemented effectively. They should always use various motivational strategies to drive the workforce to implement the intended changes. Besides, the leaders should build strong teams and delegate tasks that are aimed at achieving the objectives of the organization. The management should define the scope of the intended change to the employees (Rosemann & Brocke, 2015). This will allow the employees to understand what is expected of them so as to implement the change effectively. The managers should outline whether the change to redesign its internal structures and processes so as to meet the vision of the organization.
Business transformation and change management process is very complicated since different stakeholders feel the impacts (Van Işik, Viaene, & Helsen, 2016). This is because it entails changes in organizational culture and the working conditions of the employees. In this case, when the interest of the employees is not taken into consideration during the change management process they are likely to resist the change because of fear of the unknown. It is, therefore, important for the management to create an atmosphere that allows for the psychological safety of the parties concerned in the change process (Hayes, 2014). This is to ensure that the employees do not resist the intended change. The management should select change management models that cater to the interest of most of the stakeholders involved.
Business transformation and change management process also affects customer’s demands (Van Işik, Viaene, & Helsen, 2016). In this case, the transformation should not change or shift the requirements of the customers from the products offered by the company. The transformation and the management process should ensure that the new products meet the current and future demands of the customers. This would ensure that the organization remains competitive in the market in the long-run.
In conclusion, business transformation and change management process requires able leadership that can orchestrate the change process. Able leaders make the change process simpler for themselves and the entire organization. However, business transformation and change management process is a collaborative process that requires the effort of the leader and the workforce (Rosemann & Brocke, 2015). The leaders should first understand the importance of change before communicating it to the employees. The employees should then be involved and their opinion sought on the intended change. The change process should be implemented simultaneously to ensure that it does not affect the operations of the business organization. The management should not impose the intended change on employees. There should be a proper planning, and the established organizational culture should be considered to ensure a smooth transition from the current performance to the desired future performance (Hayes, 2014). Besides, the change managers should coordinate between various departments so as to successfully plan for the change.
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