Sunday, November 22, 2009Analysis of Change Tools and Techniques in the Current Economic Climate
The Current Economic Climate and its Impact on Change Programmes
Nature of the Change Process during the Current Economic Climate
A Review of Popular Change Models
Application of Various Change Tools & Techniques to Kotter's 8-Step Change Process by Change Leaders
Table of ContentsThe Current Economic Crisis and its Impact on Change ProgrammesWe live in a moment of history where change is so speeded up that we begin to see the present only when it is already disappearing. - R. D. LaingWhile it is a fact that we live in an era where transformation is common and fueled by global competition and a fast-paced business environment, the challenge companies face amidst the current economic crisis are different. Companies all over the world are being forced to examine fault-lines in their business under the pressure of sharply reduced demand, the failure of suppliers and partners, limited access to finance, downward pressure on prices, and other consequences of the downturn - hence leaving them no choice but to attempt fundamental changes in their processes, systems, structures and behaviors not only to prosper but also to merely survive.According to a survey conducted in July-August 2009 by the Economist Intelligence Unit for over 500 companies in the United States and Europe, over 59% of the respondents said that the crisis had revealed shortcomings in their organization that they are attempting to address. (The Economist, 2009) While some firms find this an unfavorable environment to implement changes for the fear of subjecting the organization to greater strain, for most others it is an ideal opportunity to implement change efforts in order to adapt to the shifting market conditions or to improve their competitive positioning. Due to the unique external environmental conditions during an economic downturn, the objectives and nature of the Change Programs in most organizations is largely specific these times. According to the Economist Intelligence Unit Survey, the primary areas of change that have been implemented since the onset of the crisis are Reduction of Spending Budgets, Staff headcount reduction and Changes in Business Processes. (The Economist, 2009)(Respondents selected top three changes) Source: Economist Intelligence Unit Survey, 2009 (The Economist, 2009)The Nature of the Change Process during the current economic climate is unique:Selection of the Change Programmes - Focus on 'Must Dos'When an organization is in crisis, the first change project within the larger change process is often the 'save-the-ship' or turn-around effort. For six to twenty-four months people take decisive actions to stop negative cash flow and keep the organization alive. The second change project might be associated with a new strategy or re-engineering. This could then be...