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CMI 514 Learning Outcome 1: Understand why change in organisations

Understanding the reasons for which organisational change occurs if any person wants to control it perfectly.

AC 1.1 Analyse external environmental factors that lead to a change.

Organisations are affected in many ways by external factors that can influence the change of organisations. These factors include economic, technological, political, and governmental rules and regulations as well as societal trends.

Economy: The world economy is constantly dynamic and therefore very influential to organisations. For example, just recently, the economic recession made all organisations change to cut costs and also become efficient.

Technology is another change-driving force in organisations. To stay competitive, organisations must adapt to new technologies. Take, for example, social media; it has transformed the way organisations can communicate with their customers.

Politics: Even the political environment contributes to the change in organisations. For example, a change in policy by a government might call for organisations to adopt new ways of their operations.

Government regulation: Organisations also have to adapt and comply with whatever changes might be brought about by regulation from the government. An example of this might include when new environmental laws are introduced into the country, which will force organisations to change the nature in which they carry out their operations so as to achieve the newly stipulated standards.

Societal trends: There are times when societal trends may force changes within organisations. An example of this might include how the trend of health and fitness has become so popular nowadays. Most organisations have made changes to encourage healthy lifestyles.

These factors need to be understood, and their possible impact on the organisation should be forecast to manage the changes effectively.

AC 1.2 Analyse the internal drivers of necessity for change within organisations.

There are even more inner factors that force the need to change in organisations. These include the ones in the organisation’s structure, culture, and strategy.

Organisational structure: The way an organisation is structured is one factor that may affect the need for change. For example, an organisation structured into functional departments may need to change if it adopts a more matrix-based structure.

Culture: Organisational culture can also be an inducer of the need to change. A company that has an innovative culture might be more open to change to be ahead of others in innovation.

Strategy: The organisational strategy may also affect the demand for change. A firm aiming to grow might implement changes to enter a new market.

Therefore, changes due to internal factors along with the potential impact of those changes on an organisation must be heeded to control change successfully.

AC 1.3 Analyse the potential effects of change in organisations.

There are drastic alterations that occur to the organisation and its employees. It is highly imperative to analyse the potential outcomes of change before it gets implemented.

Some of the possible outcomes of change include:

Low morale in employees: Most of the time change leads to a lowering of employee morale. This could be because the employees feel that they are being consulted on various changes or them being ignorant of how the change would affect their work.

Low productivity: Change may also lead to low productivity in an organisation because employees need time to adjust to the new manner of doing things.

Cost: More often than not, change turns out to be quite costly for the organisations themselves, especially if it deals with new training or technology.

Customer satisfaction: It also affects customer satisfaction. For example, if a change in the way products are being manufactured leads to decreased quality, there would be less customer satisfaction.

To understand the impact of change, it is very important to consider the possible implications that could arise when change is intended before bringing it about to reduce some of its impacts.

CMI 514 Learning Outcome 2: Understand approaches to change management.

There are several approaches to change management that need to be understood to effectively manage change.

AC 2.1: Evaluate the use of theoretical models of change management.

Various theoretical models of change management would guide the whole process of change. They include Lewin’s three-stage model, Kotter’s eight-stage model, and Bridges’ transition model.

Lewin’s three-stage model: Lewin’s three-stage model is a three-stage linear method of change that occurs across the three stages, namely unfreezing, change, and refreezing.

Kotter’s eight-stage model: Kotter’s eight-stage model is a more complex approach to change that happens in eight stages: creating a sense of urgency, creating a guiding coalition, developing a vision and strategy, communicating the vision, empowering employees to act on the vision, planning for and making changes, consolidating gains and producing more change, and institutionalising new approaches.

Transition Model According to Bridges, transition models make changes a more psychological process, focusing on the experience of change at the individual level. It has three stages: the ending stage, the neutral zone, and the beginning phase.

Every theoretical model has its strengths and weaknesses. In this regard, one needs to choose an appropriate model for a specific situation.

AC 2.2 Analyse the leadership role in achieving the commitment of others to change.

 Leadership influences commitment to change through the articulation of a clear vision for change as well as inspiring other people to buy into it. It also requires them to efficiently manage the change process.

There are multiple leadership styles during change. These can be categorised into three classes: autocratic, democratic, and transformational.

Autocratic style of leadership: the leaders make decisions without reference to others. This is effective in some situations where a decision has to be made very quickly; however, it may also cause resentment among the employees who feel that their voices aren’t being considered at all.

Democratic leadership: Democratic leaders may consult other stakeholders before arriving at a decision. The advantage is that people may support the change more. However, it might take more time before reaching the point of making a decision.

Transformational leadership: The transformational leader would look at inspiring and motivating others to work towards a common goal. Such leadership can work well in building and sustaining change. Its disadvantage, however, is that the drive may eventually fissle out over time.

A factor related to change management is leadership. It also encompasses other elements, like communication, training, and resistance to change.

AC 2.3 Justify the purposes of engaging with stakeholders during the change management process.

There are several reasons why stakeholders should be engaged in the change management process. These are the ones listed below:

• To acquire buy-in and support for the change
• To let stakeholders know about the changes
• To create awareness of how the change will affect the stakeholders
• To seek input on the change process from the stakeholders
• Addressing concerns and resistance to change

In any successful change management, stakeholder engagement is always of importance.

CMI 514 Learning Outcome 3: Understand how to initiate, plan, and manage change in an organisation.

The ability to initiate, plan, and manage change in an organisation is of utmost importance. Change can be challenging to implement and effectively manage.

AC 3.1 Specify the rationale for initiating change within an organisation.

There are several reasons for the initiation of change within an organisation. These include:

1. To improve performance
2. To respond to shifting customer or client needs
3. To respond to changing environments—for example, new technology, economic conditions
4. To exploit a new opportunity
5. To solve a problem or an issue

Change is most often precipitated in response to a problem or an issue. For example, a company could implement change to better the bottom line.

Change may also be initiated to capitalise on new opportunities. For example, a business may initiate change in its quest to tap into a new market.

AC 3.2 Design an organisational change plan.

A change plan must be developed before organisational change. It should cover the following components:

1. Aims of the change
2. Processes for implementation
3. Who is going to be responsible for each stage?
4. When it will occur

The change plan should be an individualised solution aimed at meeting the needs of the organisation. Moreover, the change plan has to be practical and feasible.

AC 3.3 Review tools for implementing and tracking change.

Change is inevitable for many organisations’ growth and success. However, implementing and tracking changes is pretty tricky. Fortunately, there are numerous tools available for the purpose, and they must be selected according to the specific needs of the organisation.

A change management plan would be an essential tool to implement change because it would outline the steps required in order to effectively bring about the shift and should be used to keep every participant focused on their goals.

Another very useful tool is a change impact assessment. This shall evaluate the impact that any change may have on various aspects of an organisation and identify potential problems in time.

 After having implemented a change, its progress also has to be watched. In this respect, KPIs (Key Performance Indicators) can be used. It may help reflect whether the change is well accepted and if it is impacting as desired.

 Use the right tools so that your changes will be in place effectively and monitored properly.

A3.4: Suggest ways to manage risks and resistance to change.

During the implementation process of change, several risks and barriers occur, including;

• Resistance from employees and other stakeholders
• Lack of buy-in from top-line management
• Poor resources
• Communication breakdown

These risks and barriers pose a problem in the effort to enforce effective change. However, there are various ways to mitigate them.

• Employee engagement can be the way to surmount the resistance towards the change process. Such an engagement would involve giving employees a say or role in the process of the change and how the changes are being made. This would help in the achievement of buy-in and commitment to change.
• Effective communication is also another way in which obstacles to change can be overcome. This will include not only informing others of the changes that are being implemented and why they have been implemented but also explaining the benefits the change will carry for the various stakeholders.
• Lastly, resources must be promised to help implement the change. Training, budget, and time are all involved here. Without these implementations, it could be difficult to successfully implement change.

By following the above steps, you can overcome risks and barriers to change for successful outcomes.

3.5 Develop strategies for communicating planned change to stakeholders.

Changes are essential to any organisation but difficult to manage. With the introduction of new initiatives or changes in already existing ones, effective communication with all stakeholders is highly essential. This will include workers, customers, suppliers, and other partners who will be affected by the organisational change.

 First, craft a clear, concise message that explains why change is needed and why it is good. The plan is to communicate this message early and frequently through multiple channels: emails, updates on the website, newsletters, and FaceTime. This communication plan should be amplified by listening to and addressing the concerns of stakeholders.

With time used in developing and implementing the overall communication strategy, the organisation can be sure that all people are on board with the changes being made.

AC 3.6 Evaluate the practical techniques for supporting individuals in the change process.

There are quite several practical methods that can be used to support the people during the change management process. These include the following:

• Training and development opportunities
• Formulation as well as articulation of clear, comprehensive communication plans
• Listening to feedback as well as concerns
• Supporting the team members during the transition
• Change progress monitoring.

These techniques assist organisations in helping their employees change over. It makes their transition period easier and, thus, easier to be successful.

AC 3.7 Methods of tracking and quantifying the effects of planned change

Tracking and measuring the effects of change can be done in several ways; one must ensure that the adopted is that which one needs; It can be done through various means, such as;

• Reviewing performance indicators
• Surveys and interviews
• Data analysis
• Evaluation based on comparison to objectives

These strategies help track how the change is being made and correct any direction on the way. This leads to the success of the change in question and the realisation of the expected outcome.

AC 3.8 Discuss approaches for embedding and sustaining planned change in an organisation.

There are plenty of considerations that need to be considered for embedding and sustaining planned change within an organisation.

• Among them, some approaches are as follows: building a robust case for change using data and compelling arguments to make your case;
• Another way to embed and sustain planned change is to secure buy-in from key stakeholders, starting with the senior leaders, the managers, and front-line employees.

Then, with that kind of stakeholder support, you can make the change happen.

However, you also need to consider how you are going to sustain it over time as well.

• One way is by having an easy and credible roadmap for the change you are looking to effect. This can include clear milestones and timelines.
• Another way is by ensuring dedicated resources, such as a change management team or office.

Taking a systematic and holistic approach therefore increases the chances of embedding and sustaining planned change in an organisation.