Wednesday, March 21, 2007

Organizing for successful change management

Organizing for successful change management: Why change?

The most successful transformations of business performance occur when executives mobilize and sustain energy within their organizations and communicate their objectives clearly and creatively.

Executives further improve their chances for success if they significantly raise employee expectations, actively change people's behavior, and engage the attention of individuals at all levels of the organization, from top management to the front line.

The change-management process emerge as a coordinated program, in companies or business units, that typically involves fundamental changes to the organization's strategy, structures, operating systems, capabilities, and culture.

Transformations come in various shapes. Cost cutting, not surprisingly, is a consistent theme. Company's main objective is moving from good performance to great performance, observing that their company's transformation as a result of a restructuring: merging, splitting up, or divesting a part of the organization.

Executives mobilize and sustain energy, they strongly emphasize the impact of clear, comprehensive, and compelling communication. Again, the top performers are markedly more enthusiastic about some of the factors that underpin these themes:
1. Setting of clear goals as a part of the program.
2.Company integrate the goals of the transformation program into processes such as budgeting, performance management, and recruiting.
3. That successes were acknowledged regularly and publicly with the most successful transformations reckon that the company was conspicuously more effective than the others at raising expectations about future performance, addressing short-term performance, engaging people at all levels of the organization, including a clear and coordinated program design, and making the change visible—through, say, new IT tools or physical surroundings. These results reinforce the conviction that confronting these challenges significantly increases the odds for successful change.

Ref:**July 2006, Web Exclusive - The Mckinsey Quarterly

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