The need for change usually originates in the external environment Today for

The need for change usually originates in the

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The need for change usually originates in the external environment. Today, for example, there is a general recognition that increased competition and technological change are increasing the power of the customer. Customers now demand more for less. Leading organizations recognize this important environmental change and have adopted customer-focused business strategies. Promote a culture of awareness! All employees should scan continuously for market trends, competitor undertakings, technological innovations and other external factors to avoid the success syndrome and to encourage proactive change management. You can’t change what you don’t understand. To identify the need for change and build an e ff ective solution you must have a complete understanding of your organizational environment. Ask yourself, “What about our business is congruent with the demanding, changing external environment?” and “What is incongruent?” Organizations are complex systems, comprised of both informal and formal elements. Throughout this primer, we will refer to “the informal organization” and “the formal organization”. The informal organization refers to organizational values, attitudes and beliefs. The formal organization refers to organizational systems, structures and processes. Look to two important sources of information in developing an understanding of your formal and informal organization: Data sources Examine available data in novel ways to develop novel insights.
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5 Employees Use a variety of techniques, formal and informal, for collecting information from employees across the organization (interviews, surveys, formal assessments, focus groups). METRICS TO MONITOR OPERATIONS employee productivity, satisfaction, grievance rate, absenteeism, turnover, etc. TECHNOLOGY innovation, technology adoption, reject rates, downtime, etc. FINANCIAL revenues, costs, profits, inventory turns, etc. MARKET market share, customer satisfaction, new product introductions, time-to-market, product or service quality, delivery, etc. In understanding the need for change and in building an e ff ective solution beware of the following traps: Beware of your own biases You are not immune from the success syndrome and other cultural biases. Take extra care to examine the problem objectively. Look for fundamental problems hidden beneath symptoms Increasing costs, for example, may be a symptom of ine ffi ciencies in work fl ow, poor quality or dysfunctional work teams. Although fundamental problems will never be as apparent as symptoms, you must dig to the root of problems in order to generate e ff ective resolutions.
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6 Enlist a core change team 25 25 SPHERE A L I G N K E Y S TA K E H O L D E R S E N G A G E O R G A N I Z AT I O N CONSOLIDATE Consolidate gains.
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