Change management is an essential pillar of organizational structure. Corporate structures always seek new dimensions that can broaden the price tag of their stock value. Some corporate structures undergo a complete transition in their product range as per the technological trends or market requirements. This serves as the basis of continual improvement.
Requirement of Change Management
Throughout history, people have always been resisting change. They tend to continue on their normal routine. Moreover, because they have fixed their mind on a particular thing without planning to change it.
Globalization, the complexity of modern-day systems, and international dynamics play an essential role in determining the strategic decisions of big organizations. The process is, however, not static; but always in motion.
Difference between Project and Change Management
Change management is more related to the changes in the HR side, while project management is more concerned with changes in the corporate structure.
Change Management Case: Nokia vs Samsung
A prominent example of a case study between Nokia and Samsung is a good example of change management. Both companies are well-known brands for mobile production. However, in regards to the introduction of new smartphones, Samsung made a swift shift to the Touchscreen and android technology, while Nokia persisted with older versions.
This shift delay was a big mistake made by Nokia, and eventually, it had to shift to touchscreen technology. Probably, if Nokia had gone through change management, it would have resulted in fewer financial losses.
8 Major Advantages of Change Management
External Factors: External factors play a significant role in change management technologies. Globalization has resulted in substantial changes for strategic aspects of the organization. It can also help to determine the new trends in technology and the corresponding measures that will be used in the future.
Internal Factors: Infernal factors also take a pivotal role in change management. Companies are always looking for new products that can help them to flourish their revenue streams. See tech giants such as “Google’ that have made significant changes in their management circle to cater to new trends of the market.
Project Needs: Projects often require a change in their corporate hierarchy that can help them cater to the project’s needs. Sometimes project execution starts with a different mode of operation and gradually reaches a different level as the project goes by.
Performance Upgrades: Enhancing organizational performance is of prime importance. It sets the tone of enhancements from top to down approach. Corporate structures are always more than willing to make changes in their system to accommodate changes.
Reduces Operational Cost: Change management sets the tone for lowering operational costs. Cutting down unnecessary cost measures on the human resource side serves as an excellent tool for reducing operational costs.
Develops a Platform for Young Enthusiasts: The system establishes a platform that introduces fresh talent in the corporate structure. Energetic people with unique and novel ideas can use these platforms to introduce technological trends that can infuse fresh blood in the corporate network.
Gets New People Involved in the Game: Having people with multiple specialties and a specialized skill set can develop a team that can bring out of box approach. This can be done by mixing people of different age groups and backgrounds.
Opens New Doors For Revenue Streams: People with different mindsets have different ideas. After several years, getting along with a fresh project management team can reveal novel ideas that can introduce modern-day trends in businesses.
Changes Ensure Growth
Changes are the channels of the future that have evolved society in one way or the other. Change management is always a prime candidate for corporate growth and transformation. Consider it as a vital tool for business development.
Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.