Current Change Management
In present business world and globalisation, organisations require updating their plans and procedures frequently to meet industry demands and requirements. Change management is an essential contributor to this process of operation. The current report analyses the fundamentals of change management in modern organisations. It highlights the need for managing change and its benefits. Three theoretical model of change management, namely Kotter’s Eight Step model, Lewin’s Three-Step Model and Ackerman and Anderson’s model is discussed in the report. Applications of these models in organisational change management procedures are analysed. Several challenges are evaluated like communication, management of multiple teams, drawing a roadmap, lack of visibility, employee resistance and arrangement of important documents. The
study, at the end, provides detailed recommendations in order to overcome the above-mentioned challenges.
To understand the role and application of change management process in the present generation of organisations, this reports aims to provide a discussion on its intrinsic aspects and challenges. Change management encompasses all the tools, techniques and processes required to help individuals make successful transition contributing to realisation and adoption of change. Managing strategic, operational and various other changes within a business have emerged to be a core challenge for managerial professionals and employees. This report will analyse the different theories of change management and evaluate the present challenges involved in the process. Suitable recommendations will be provided at the end.
Significance of Change Management
Change management drives adoption and effective usage so that organizational processes deliver expected outcomes and success. It helps an organisation to survive in a changing world through delivery of results on each change more effectively. It is important as it facilitates building of competencies in order to tackle unanticipated changes. As opined by Ionescu et al. (2014), significance of the process also lies in its ability to deliver human-dependent portion of the project ROI. About 80-100% of project success depends how the team is able to change process during the course of the project as per requirements. Change management facilitates this by helping people to develop ways of adapting faster to immediate requirements.
Change management increases the possibility of project success. The return on investment captured through change management is relatively more than projects without change management. It is seen about 94% of projects achieve success with efficient change model while 15% project achieve success without change management. It is highly essential for organisations to gauge and assess the dynamics of its external environment for establishing and envisaging appropriate relationships with its stakeholders (Tudor, 2014). Through comprehending the intrinsic aspects of change management, managers can understand process of meeting changing requirements of the organisation. Change management also brings about a reduction in the gap between results and requirements. It is often seen that organisations meet changes without delivering appropriate results. Change management reduces the gap through providing support and equipping people who may be impacted through the change. Mitigating critical risks of mission is also a significant contribution of change management
Change Management Theoretical models
In the present competitive business environment, organisations regularly face unanticipated requirements in operations. The external conditions impose stringent regulations and specifications that the organisations are forced to implement. Organisations implement various theoretical change management models for achieving sustainability and success.
Lewin’s Three step Model
Kurt Lewin developed a 3-step process for meeting organisational changes. It provides managers with a structured framework for implementing change effort. The process is sensitive and needs to be seamless. As opined by de Andrade et al. (2016), the model helps a manager to make radical changes, minimise disruptions of structural operations and adopt a permanent process of change.
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Management Accounting,The overall aim of this unit is to introduce the fundamentals of management accounting which apply to the wider business environment and the organisations which operate within that environment. Students will explore how management accounting uses financial data to aid planning decisions, and the monitoring and control of finance within organisations.