Innovation and change management are significant in an economic growth of an enterprise, big or small. Business managers frequently interchange these two words in many executions of the management process. Change management can be considered as the approach taken by an organization in transitioning of individuals, the organization and terms the current state to a more productive future state. Change management in a business will involve the process, techniques and the best tools in order to manage the persons-side of the change in order to achieve the needed or desired outcomes in the business.
Innovation and Change Management
Innovation on the other hand can be defined as the discipline that is employed to manage innovations in the business. This discipline can be used to develop a new line of product or service. It also allows the business or organization to use its efforts in the introduction of new ideas and to respond to an internal or an external opportunity of growth. In simple terms innovation always means change but change does not always mean innovation.
Change management is a process that follows a series of steps. The most commonly applied change involve three phase. These phases include preparation of change where the assessment and strategy development is done. The second phase involves managing the change itself that is the change management implementation and detailed planning of the tasks and functions to be executed. The third phase of change management involves the reinforcement of change through gathering of data and corrective action and recognition.
The tools used in the process of change management involve readiness assessment. Assessment tools are used by the project manager or the leader to determine how ready the organization is to embrace change. Readiness assessments involve the cultural and history assessment, an assessment of the employees, the overall organization assessments, the assessment of supporters and also a change assessment. With these tools, project leaders are able to gather the full insights of the challenges and opportunities that can be faced through the process of change.
Principles of Change Management
In order to engage the entire organization, the senior executives of the organization follow certain principles in the process of management. One of the principles involves starting at the top, since organizations have a chain of levels up to the senior executives. Since the process will involve the unsettling of all people in the organization, the leaders have to approach the change before the other people. This is because when the change is at the horizon, all the eyes directed to the organization, will be directed to the senior most executive. However, before this principle is executed the human side of the organization should be fully looked in to systematically.
Change involves and may affect different levels of management, making of the formal case and the involvement of every layer of the organization are therefore key principles in change management. This is because the transformation process of the company will involve setting of targets to design implementation affecting all levels of the company. When employing formal case in the process, the organization has to face and confront the reality in order to articulate the organization’s need for change. The company has to show faith in the process and also put in place the best leadership to help it reach there.
Communication is very crucial for a smooth flow of any organization. When change is in place, the information has to be given out to all the entities making the organization. These may include the employees, the suppliers, the distributors, customers, operations and the marketing. These are the main entities that form an organization. Other principles of change include the assessment of the cultural landscape, the preparation of the unexpected, addressing of culture simplicity and also the speaking of an individual, since change is both an institutional journey and a personal one Innovation Management
This is the discipline of managing processes involved in innovation. Innovation management like in the case of change management is also completed with the use of special tools. These tools may include brainstorming, where efforts are made by a group of people to find solutions to a specific problem by gathering the ideas given by the individuals.
Another main tool involves the digital prototyping which gives conceptual design in the engineering, manufacturing, sales and also the marketing department. TRIZ is also used to solve, analyze and forecast challenging problems where inventiveness may be needed by providing range of strategies to get the solutions. Project management is another main tool that is focused on motivating, planning, organizing and in controlling of resources.
Offering several related products for sale individually which is commonly referred to as product lining is also crucial in the process. Additionally, the project portfolio management is also employed in place by the project leaders in order to correctively manage the proposed and current projects based on their characteristics and also analyze.
A Phase-gate model or process is also a very useful tool especially when the innovation involves new product development or the process improvement and involves a series of phases. Another major tool that is always applied by the industries is the product lifecycle management and it’s basically the process of managing the entire lifecycle of the product directly from the inception, through the design and engineering, the manufacturing, the service to the final stage of final product disposal.
Lacking the ability of innovation for example the financial ability, lacking of experience for example the modern technology and also the lack of environment are some of factors that lead to many companies failing to innovate. Innovation can greatly help the enterprise to move ahead and develop in all sides from the profit margins to the overall growth of the company even in small managements of SMEs. Lack of innovation management on the other hand will lead to lower returns due to customer less satisfaction which will directly lead to closing of the business or bankruptcy, since it’s the main economic drive of the organization.
Innovation and change management are two crucial qualities that business managers should perceive for maximum growth of the brand.