Need and Factors Driving

Change

Prepared by Mr Rabeel Sabar

 The illiterate of the 21st century will not be

those who cannot read or write, but those
who cannot learn, unlearn, and relearn.
(Alvin Toffler)

What is he saying to us? We must learn how

to change to increase our knowledge.

What is Change?
It is the method by which an organisation can
stabilise itself and control the inevitable
changes it faces. It is a method of moving from
one situation to another, in a systematic and
planned way.
Its a process of moving from a unsatisfactory
present state to a desired state.

Types of Change
Incremental Change - change that aims to improve
the existing systems, policies and procedures

Strategic Change - change that aims to establish new

systems, policies or procedures

Transformational Change change from one state to

another that is totally different

Targets for Change

Strategy Develop new visions, missions,
strategic plans
Structure Add a new department or division,
or consolidate two existing ones
People Replace a person or change
knowledge, skills, attitudes, or behaviors

Technology upgrade a data processing system

Importance of Change
Change is the single most important factor in
business today:
every business is an ongoing source of change.

every professional discipline is a process of

change.
Change with times, or get left behind.

What forces to Change?

Every market force creates change that forces
our change in response.
Customers
Competitors
Technology
Regulations
Distribution channels
Suppliers

Why is it Important to Adapt to

Change?
Individuals, teams, or organizations that do
not adapt to change in timely ways are
unlikely to survive.

Change Agents
People who drive change are change agents.
Change-agent skills are as important to our
success as our professional discipline skills.
The purpose of our job is to change what is
possible, as companies and as individuals,
by adding value every day.

Nature of Change
The only certainty is continuing uncertainty
Change is constant in a dynamic environment
Managers must quickly and properly react to
unexpected events
Be alert to problems and opportunities
Become change agents in stimulating,
implementing and supporting change in the
organization

Needs for Change

Economic downturns
Changes in customer expectations
Budget pressures
Mergers & Acquisitions
Restructuring operations
Rightsizing
New programmes such as Total Quality
Management

INTERNAL FORCES DRIVING THE

CHANGE
Profitability

New product & service design

Low performance triggering job redesign
Inadequate skills triggering training programmes
Office & factory relocation closer to suppliers &
markets
Innovations in the manufacturing process
Appointment of a new senior manager

EXTERNAL FORCES DRIVING THE

CHANGE
Developments in technology
Changes in customers requirements
Activities & innovations of competitors

New legislation & Government policies

Changing global trading conditions

Shifts in local, national & international politics

Changes in social & cultural values

EXAMPLE
A travel company is losing money or making lower
profits. Causes may be:
Inefficient management.
More attractive holidays from competitors.
Less competitive prices.
Poor exchange rates.
Bad weather conditions.
Political instability in the region.
Having identified the causes, the solutions can be
planned at company level or branch level.

RESOURCE IMPLICATIONS FOR

CHANGE
Human Resources
Interviewing and Hiring
Training
Physical resources
More equipment
New vehicles
Refurbishment of existing buildings
Financial Resources
Costs of training
Redundancy cost