Change is necessary in all organizations. But, the way change is initiated can vary. It can be forced upon companies by outside forces or just come from a realization that the company may be falling behind the times. In this way, change management can be quite beneficial to an organization.
For more information on change management, read Defining Change Management.
Change allows companies to better compete with their rivals and develop new skills or products that will bring in a higher profit. What makes change management methodology advantageous to most organizations is that it allows change management teams or managers to effectively deal with any proposed new direction.
Change management also helps individuals realize why the change was necessary so that they will embrace it and move forward. Change can be good for an employee since it will bring them the opportunity to try something new and gain new skills.
With the open communication and discussions that change management methodology promotes, individuals (employees, stakeholders and customers) will have a greater stake in the outcome since they have helped implement the plan. People generally do not put up resistance to things that they have suggested.
There are, however, some disadvantages to the change management methodology that has more to do with not properly following its processes. If resistance from employees is not effectively dealt with through communication, it can derail any project.
Not understanding the culture of your company can allow the rumor mill leaders to circulate incorrect or corrupting information about the change. Also, stakeholders and customers need to be kept informed and brought in on the change. If not, they make also resist the change, and clients may choose to go through another company.
A bad change management plan can also negatively affect an organization. Change management is just that managing change. And, without a plan to deal with every step of the change (before, during and after), the strategy could fail at any point in time, possibly bringing down the entire company.
While change can be risky, the benefits far outweigh the potential pitfalls. Change allows organizations to progress and stay on top of their industry in an uncertain market.
To learn more about change management approaches, read Approaches to Change Management.
This post is part of the series: Change Management
This series explains what change management is and how it can be used within a project manager’s organization.
- What is Change Management Methodology?
- Using Change Management Methodology to Deal with the Risks of Change
- Communication in Change Management
- Approaches to Change Management
- Change Management Strategies
- Dealing with the Issues of Change in Project Management
- Defining Change Management
- Tools for Successful Change Management
- Negotiating the Advantages and Disadvantages of Change Management
- Correct Processes for Change Management