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The Value of Change Management | Extraordinary Business

The Value of Change Management

change management
Change is inevitable. It’s going to happen. Managing change enables businesses to transform profits by transforming the mindset of business owners and employees from that of victimization to one of empowerment. Quite simply, managing the change that happens to a business is the simplest strategic step to take. Change can be “managed” by being strategic, deciding what changes to make and how to make them within the existing organizational structure. What is special about taking a proactive, empowered approach to managing change is that change is done successfully. A successful change can be defined by the value it creates for the organization. Change management creates value by “addressing the people side of change” as businesses adjust to new organizational norms created by making decisions (Creasy, 2017).

The Benefit

There are several established benefits provided by change management. Making a change usually results in a new project to be completed which requires a corresponding change in employee behaviors (Powers & Bean, 2014). The following are several ways that successfully managing change helps to bridge the gap between employee behavior and project results.
Improved project ROI: It allows for quicker employee adoption to change which increases the number of employees making changes – resulting in making them effectively, ultimately leading to a better ROI on projects (Creasy, 2017).
Avoids project failure costs: It helps to avoid the sunk costs of failed or ineffective projects brought on by poorly managing the people aspect of change (Creasy, 2017; Prosci, 2017).
Manages risks: It helps reduce the risks linked to the people side of change such as low performance, sabotage, and missed project objectives (Creasy, 2017; Prosci, 2017).
Achievement of organizational objectives: It helps meet overall project objectives which directly impact how successful the change was throughout the whole organization. Research supports that good change management strategies result in projects being 80% to 95% likely to meet objectives. Conversely, poor change management strategies likely result in projects being only 16% likely to meet objectives (Powers & Bean, 2014).

Change Management for Small Businesses

Small businesses are faced with unprecedented amounts of data, options, and resource structures. They no longer have the luxury of relying on the predictability of routine and basic operations (Zekan). Small businesses can’t afford to be static or unresponsive to their environments. The survival and prosperity of small businesses rests on the ability of their leaders to adopt a new perspective regarding change and that is a perspective of continuity. Change is continuous, it is not an occasional or random occurrence. Business owners who consider and implement change management strategies solidify a competitive place in the market.

Sources:

Creasy, T. (2017) The Bottom Line of Change Management: Results and Outcomes. Prosci. Retrieved from: http://blog.prosci.com/the-bottom-line-of-change-management
Powers, L. & Bean, K. (2014). The Value of Organizational Change Management. The Boxley Group. Retrieved from: http://boxleygroup.com/wp-content/uploads/2014/05/The-Value-of-Organizational-Change-Management.pdf
Prosci. (2017). Cost-Benefit Analysis of Change Management. Retrieved from: https://www.prosci.com/change-management/thought-leadership-library/cost-benefit-analysis-of-change-management
Zekan, S. The role of change management in small firm growth. Retrieved from: http://www.academia.edu/1238741/THE_ROLE_OF_CHANGE_MANAGEMENT_IN_SMALL_FIRM_GROWTH_FULL_PAPER
Megan Miller is a business writer at Aepiphanni, specializing in the fields of marketing, organizational development, and entrepreneurial strategy development. She has an MBA and a Doctorate of Business with a focus on International Business from Liberty University. Megan is currently active in article publications focusing on knowledge management in small and medium-sized businesses. She researches the topics of entrepreneurial cognition, international entrepreneurship, environmental scanning and knowledge acquisition processes of business leaders.
Megan’s professional goals are to help small and medium-sized businesses become established and increase their competitive ability as a means for improving local and regional economies on a global scale. Megan has a passion for teaching and training young women to become successful in achieving their career goals. She currently works with the Wellspring Living Organization as a volunteer in their Women’s Academy to help educate women coming out of human trafficking and domestic violence lifestyles. She also enjoys traveling and experiencing other cultures with a particular affinity for Ireland and Italy.
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