Adapting to Market Corrections

Change Management During a Correction

Change management is something that every business will experience. In fact, a company will typically experience five major organizational changes every three years. While these changes might be necessary, if leadership does not do them correctly, they can lead to loss of productivity and lower morale among employees.

Most change management falls under the organizational category: "We're doing it to improve and grow the business methodically". However, change management during a correction is also possible. This page will explain how best to execute change management for your company so that you can have the best outcome possible.

What is Change Management?

Typically, businesses pursue Change Management when the company believes that a different strategy or method is needed to get the business to the next level. This could mean the business becomes more profitable, efficient, productive, or innovative.

Change management can be adaptive or transformational. Adaptive is where small modifications occur due to time - from business strategies to processes, this will be more of a fine-tuning method rather than any massive change. Transformational changes are much more significant. They result from external factors, like new competition, different products, and a need to transform to remain relevant.

How Will My Company Manage Change Effectively?

There are various ways that your company can manage any change effectively, whether it be organizational or for corrective purposes. Read on to find out more.

Take Care of the Process

Change management happens over time. To get from point A to point B, you'll go through the change process - and it's here where you need to take care. From the preparation to the implementation and then the follow-through - the change management won't be final until you get to point B. Which might be well after you initially decide that this process is right for your business. Let's go through this here:

  • Preparation, where you will prepare the business and employees for the upcoming change
  • Implementation, where you will make the changes that need to happen
  • Follow through - ensure that the business documents and processes these changes moving forward

Understand Why Your Company Needs Change

Companies must always change for organizational purposes, adaptive, transformational, or corrective reasons. As a business leader, you must understand the need for change and instigate this process with the correct end result in mind.

It might be necessary for several people to consult and help with these changes so that the end mission can always remain the focal point. Create a plan with specific milestones and focus points throughout the process so that you have constant and consistent goals.

Communicate with your Business

Clear, consistent communication will help enormously with any change in your business. It's wise to communicate at all points of this change, so your employees can understand precisely what is happening, why it is needed, and how it affects them. A lack of communication may confuse, lower morale, less productivity, and general dissatisfaction with the company. It is also essential to communicate with those that have invested in the business, like stakeholders and board members, as they will need to understand why these changes need implementation.

Change management is complex for any company to get right, and it would be sensible to prepare for any roadblocks. You can deliver effective change management during a correction by planning, preparing, and communicating.

If you'd like more advice on this topic, contact our friendly business consultants at Belfield Management Solutions. We'd love to help!