BUS643: Leading Organizational Change

3a. Interpret failures of change management to better understand change in the organization

• Why is it important to study change management failures?
• How can understanding failures in change management help an organization?
• How can you determine what failures have occurred in change management implementation?

Researching and studying business failures of the change management process is needed so that they will not be repeated. There are numerous examples of big stores that failed to change, and then their business failed. As a manager, you must understand why failing to change has affected the business overall.

Some examples of famous business failures include Blockbuster Video, Hummer, Sears, and Kodak. But there are thousands of examples of small local stores that have failed as well. Refusing to change will affect the business in some way, and as a result, the business most likely will not survive. Change is inevitable in business today. Understanding the failures will help you better understand why change is so important to your business.

To review, see Why do Organizations Fail to Change?.

 

3b. Examine the reasons organizations fail to change

• How might an organization fail to implement change?
• Why is it important to understand an organization's failure to change?
• How can you use change failure information to help your company now?

Being uncomfortable with change is personal and appears in business today. Some leaders are comfortable with the status quo, so when change is required, they may need to be dragged through it. If a leader is incapable of change and making progress, they may be responsible for the business failure. As a manager, it will be important to be open to change and seek it out when you see that the business may become stagnant.

Great leaders constantly look for ways to improve business or make processes faster. Employees will follow the lead of their leaders. If a leader resists change, the employees will as well. A leader can keep the business running smoothly by remaining open to change and seeking out new, more efficient ways of conducting business. By resisting change, a business will eventually fail.

To review, see Why Do Organizations Fail to Change?.

 

3c. Compare ways to motivate employees through the change process

• Why is it important to motivate employees to want to change?
• How can employees be motivated to change?
• What will occur if employees are not motivated to change?

Employees are the main reason change is either effective or ineffective. If employees do not understand the change or why it is needed, they will resist it, and the intended change process will fail. It is important to motivate employees throughout the entire change process. Checking in with employees throughout the various stages of change is important.

Each change management model has a stage in which the employees are informed of the changes and why they are needed. Once employees understand why the change is needed, they will be more likely to help initiate the change and continue the process until it has been implemented. Motivating employees might include implementing small steps to ensure everyone hears about the success stories, encouraging innovative thinking, and demonstrating visible company growth.

To review, see Lack of Teamwork, Buy-In, and Engagement.

 

3d. Analyze how to avoid change process failures in a given organization

• How can we analyze change process failures?
• Why is it important to analyze change process failures?
• How can leaders or employees make a difference in the change process?

Leaders can make effective changes and help to successfully lead employees through the change process. One of the key reasons the change process will fail is employee buy-in. As we have discussed previously, if employees do not want to make the changes, change will not occur. It will be important to monitor the various stages of change and ensure they are implemented properly.

Another reason change process failures occur is if the implementation is not well suited to the business. It is important to match the change management model with company culture so that the changes, once made, will be effective. But if the change process is improperly implemented, then change will fail. As a leader, it will be important to monitor the change process and employee responses and report any issues immediately to resolve them. If you delay, then the change process may fail.

To review, see How Leadership Can Avoid Change Failures.

 

3e. Differentiate the positive and negative effects leadership has on the change process

• What are some positive effects leadership has on the change process?
• What are some negative effects leadership has on the change process?
• Why is it important to understand the positive and negative effects leadership has on the change process?

Leaders can have both a positive and negative effect on the change process, and understanding and monitoring the differences can lead to success or failure. Positive leadership can help to develop teams, train people effectively, and ensure employee buy-in. These examples will lead the company to success and a positive change process. Negative leadership might create chaos and ineffective change, and this might lead to change process failure.

Having the right people in the right jobs is also important during times of company change. You may have some leaders that effortlessly get people excited about change possibilities in the future. These leaders should oversee much of the change process and how that unfolds. These types of leaders will be able to gain employee buy-in, monitor change, and follow through to ensure the process runs smoothly.

To review, see Obstacles to Organizational Change.

 

Unit 3 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• business failures
• change process failures
• positive leadership
• motivating employees
• negative leadership