Change management is the umbrella term for all methods and measures within change processes. A change project refers to a change with a start and end point. This can be, for example, the introduction of new software or a new product that is incorporated into day-to-day business after the roll-out of training or sales measures. However, necessary restructuring, e.g. due to changes in location policy, budget cuts, redundancies or the effects of a pandemic, can also be self-contained projects, but can also be measures of a major transformation. The significance and serious impact on day-to-day business and employees should not be underestimated. Inadequately or unprofessionally planned and implemented change activities can cause lasting damage to a company. Those involved are often overwhelmed and inadequately informed. The result is a change process with resistance and even an increase in sick leave or even resignations.
Don’t cut corners and leave change management to a professional, as this task is complex and time-consuming and an external change manager is usually more trusted than a direct superior.
A transformation, on the other hand, is a continuous process and consists of many different, far-reaching and forward-looking changes. It is planned on the basis of a gap analysis between today and tomorrow, the company’s internal and external opportunities and risks and taking into account the market, the customer target groups as well as the company’s own potential and that of the competition. The process must constantly face up to new challenges and anticipate future developments in the long term in order to remain competitive. And this process will never end.
Our working world is increasingly and rapidly characterised by new technological changes that make lifelong learning a basic requirement. How and when which position in the company can be suitably filled is now a process that is critical to success. And are we sufficiently prepared and protected for the next health crisis or the next hacker attack on our IT or energy supply? Crisis and emergency plans are important, but they do not replace a company’s ability to act flexibly and its potential for change; they merely supplement them.
Consequently, the organisational design cannot remain unchanged for decades. Neither a purely top-down nor a democratic bottom-up approach will help to meet the needs of freedom-loving creatives and protect the organisation from protracted coordination loops that obsessively aim for a consensus that is not always the best solution. Different attitudes towards working from home and the obligation to be present in the office do not always facilitate collaboration either.
Standing still means going backwards. International markets and political and legal frameworks are changing, environmental regulations and energy costs are influencing costing more than ever before, and companies have to grow or shrink flexibly. Demographic change is also changing customer behaviour and their needs. Every company must constantly scrutinise itself in all areas and put itself to the test from within:
- Does the organisation with its structures, processes and people still support the company’s goals? Or do we also need to adjust our goals and reinvent ourselves while minimising risks at the same time?
- To what extent can the existing business be managed efficiently with this organisation without simultaneously losing innovative strength for new markets and products?
This area of tension requires constant transformation, which in turn requires energy, time and budget, but also offers the potential for something big.