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Changes in the Business Environment: Why change management is important


Change is an inevitable part of life. Change is also an important part of any business life; it allows an enterprise to adapt to its environment and also to improve its market position. Change indicates the determination of the damaged parties to adopt and function in a recently established order and their commitment to impact and put into practice the changes (Armstrong, 2004). The common description of change as described by Hughes (2006) is "any alteration in the position quo. " Changes within an organisation may take place for most reasons. It really is sometimes done to be able to introduce a fresh more efficient way of working or creating a product. It is sometimes done to re-organise the organizations employees. Organisations will advance and change within the span of their lives. Change management is known as the process of which change is executed and developed within the organization. Change is something that affects all business and for that reason all business managers must make their personnel and procedures for change.

Theories of Change Management

Changes available environment are occurring constantly and organisations must change the way they operate to remain competitive effectively in their market. In order to change organisations must adopt change theories and techniques however with so many different methods available an organisation must choose a strategy that best suits its needs. Different professionals will have different theories as to how change should be implemented and carried out. Kurt Lewin is considered the forefather of designed approaches to change.

Kurt Lewin's Freeze Phases

[Source: Higgs & Rowland, 2005]

Lewins model shows that change will involve a move from one static state with a status of activity to some other static express.

Beer's Model

Change is more technical than the Lewin model and takes a more detailed look at the procedure for change. Beer's model targets a six-step process to accomplish effective change, these steps focus on 'activity alignment 'whereby employees' roles, responsibilities, and relationships are seen as the main component to causing effective change. The phases are:

Mobilise commitment to improve through joint prognosis.

Develop a distributed eye-sight of how to organise.

Foster consensus, competence and commitment to shared vision.

Spread the word about the change.

Institutionalise the change through formal policies

Kotter Model

Kotter developed what he thought to be the eight critical steps to the successful execution of change these steps are:

Establish a feeling of urgency - Examining market and competitive realities and determining and speaking about crises, potential crises and opportunities.

Form a powerful, guiding coalition - Assembling enough people who have the enough power to lead the change.

Create a perspective - Create a perspective to help direct the change and develop approaches for attaining the vision

Communicate the vision - Use every medium possible to talk the eyesight and strategies to be implemented

Empower others to do something on the vision - Remove obstacles to change and encourage risk taking and non-traditional ideas.

Plan and create short term wins - Plan for visible performance results and recognise and reward employees who are involved in the improvements

Consolidate advancements and produce still more change - Hiring, promoting and expanding employees who can implement the vision.

Institutionalising New Methods - Develop the methods to ensure command development and succession.

Impact and Barriers

If change is not executed in the correct manner, the impact after the business can be destructive. Some of the workforce should leave as they do not agree with what is be implemented and this leaves managers endeavoring to fulfil requests or provide services with half of a workforce which puts pressure on the rest of the workforce. Communication is paramount to help reduce obstacles, for any change strategy to achieve its goal every member of staff within the company must be constantly connecting with executive managers. If staff members ask, "Why do we have to do this?" a supervisor must be able to give them a valid answer. Change normally affects both a business's inside and external environments. Internally personnel may feel that they are overlooked of the loop and are just being informed that they need to acknowledge the change or the reverse may happen the personnel may be contributing closely to the change and helping to steer the new eyesight. Externally an company may make a direct effect on the market by promoting a fresh goods and services.

There are lots of barriers to successful change - both in conditions of actually employing the change and sustaining it. Employees must have the ability to flourish in a every changing environment so they can contribute to an organisations success. Lisette Howlett, (2009) declares the 10 main obstacles to successful change these are listed below:

Not enough understanding about the change itself

Lack of leadership

Lack of concentrate and strong project management of the change

No engagement and/or buy-in of key stakeholders

No clear process for handling endings and origins, and co-ordinating the change process

Successes are not recognised, communicated

Progress is not measured and the learning is not reviewed

Change is very tiring and it is often something that will require extra effort - people need to see that effort is paying down and their contribution is valued

All of the obstacles can be get over if the correct procedures are placed set up and communication is continuous throughout the procedure. Employees need to feel that these are major contributors to a company's success and can sometimes feel undervalued if they're not involved in the procedure for change this may lead to hostility amidst the employees and emotions of anger into the management therefore leads to obstacles being erected due to the concern with change.


Change must be been able, implemented, and performed in such a way that there is always communication between staff and managers. This enables for equilibrium and promotes growth and invention inside a company. Each change management theory has its strengths and weaknesses and each can be modified for an organisations needs but I believe that managers must ask all staff to offer ideas on a creating a fresh vision for the business and thus driving a car the company ahead all together.


Hughes, M. (2006). Change Management: A CRUCIAL Point of view. Chartered Institute of Personnel and Development. ISBN: 1-84398-070-3.

Armstrong, M (2004). Controlling Organizational Change in Nigeria Manufacturing Companies: Lessons from the Unilever Nigeria Plc. AC Associated Content. Retrieved from http://www. medwelljournals. com/fulltext/?doi=ibm. 2009. 15. 21

Syque. (2007). Lewin's Freeze Phases. Changing Thoughts. Retrieved from

Higgs, Malcolm, and John Wren. The Authority of Change: a Study of Change Command within the united kingdom Royal Air Force. Henley-on-Thames: Henley Management College or university, 2005. Print

Howlett, Lisette. "10 Common Obstacles to Successful Change. " MLH Consulting. 15 Sept. 2009. Web. .

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