There are many reasons for organizational change and change management.
In this list of 20 reasons, there is plenty of food for thought.
Understanding the reasons for organizational change helps in many ways. You can:
- Justify an organizational change project
- Better understand the rationale for an organizational change
- Design a better organizational change project
Among other things.
So let’s take a look at some of the biggest reasons to engage in managed organizational change:
20 Reasons for Organizational Change and Change Management
Below are 20 reasons to engage in managed organizational change.
That is, change management.
Unmanaged change doesn’t deliver the results mentioned here.
For this reason, it’s important to engage in change management whenever undertaking a new change project.
Let’s get started:
1. A more fulfilling and attractive workplace
One of the biggest benefits of organizational change, according to a study by Google and Cloudbakers, is a more fulfilling and attractive workplace.
In their study, this objective exceeded expectations more than any of the other data points they measured.
2. A better employee experience
Employees often resist change (see below).
This can cause significant problems if you aren’t prepared.
But a managed change project improves the employee experience, getting better results across a number of resistance.
3. Better project outcomes
One of the biggest reasons to manage organizational change is improved outcomes and better organizational performance.
The better your change management, the better your project results.
4. Lower project costs
Change management decreases project costs in a number of ways – risk mitigation, improved efficiency, better project design, and so on.
More effective management will produce a better cost-benefit ratio.
5. Decreased employee resistance
As mentioned, employee resistance is common.
Change management makes this a primary focal point, which can make a big impact on project results.
Employee resistance, after all, can dramatically increase project costs, negatively affect the employee experience, or even halt a project entirely.
6. Greater employee satisfaction
Effective organizational changes increase employee satisfaction.
This, in turn, improves employee performance, productivity, engagement, and other key employee metrics.
7. More efficient business processes
Business processes are often the target of change projects.
A new software implementation, for instance, will often increase the efficiency of a business process or a business function.
8. Higher profit margins
All of the other reasons mentioned here translate into bottom-line profits.
Not every benefit of change management can be directly tied to profit, at least directly. So it is important to keep a wide field of view and examine every benefit – not just immediately visible ROI.
9. A competitive edge
Another advantage of the benefits covered here is that they deliver a competitive edge.
Improved business processes, greater employee efficiency, better tools, and so on … all of these help an organization move ahead of its competitors.
10. Better customer experiences
Customer experiences are another reason to consider organizational change.
Better processes, employee metrics, products, and tools will improve the end-user’s experience. This, in turn, results in better metrics, ranging from engagement to lifetime value.
11. A track record of successful change
A track record of successful change benefits change managers, organizations, and employees.
Having a history of success boosts confidence, increases agility, and demonstrates the value of change management.
12. A more desirable workplace culture
Another aim of change management is an enhanced organizational culture.
That is, change managers can help align the current workplace culture with the desired workplace culture, whatever that may be.
13. Technology that is more digital and modern
Change projects often involve digital adoption, IT modernization, software implementation, or all three.
More modern technology benefits all stakeholders, from employees to customers.
14. More effective training solutions
Training is an integral part of change management.
And better training, in turn, helps increase employee engagement, learning efficiency, output, and performance.
15. The ability to adapt to change
Change management improves an organization’s ability to adapt.
In today’s market, this is a critical trait – adaptable organizations will better be able to survive disruptive changes.
16. More relevant organizational strategy
Organizational changes are driven by the organization’s overall strategy.
Effective change projects help keep that strategy modern and relevant.
17. A greater alignment between organizational strategy and change projects
The more change projects your organization successfully completes, the more experienced your business will be at change management.
As a result, organizational strategy will gradually become more and more aligned with change management.
This is crucial, because it improves executive support, organizational agility, and executive support, among other things.
Speed is another key benefit of organizational change management.
A faster organization will be able to release products more quickly, react to external circumstances faster, and so on.
19. More advanced enterprise change management
Enterprise change management refers to an organization’s change management function.
More successful project completions will help your business grow that function organically – and, over time, this will produce more successful projects.
20. More modern change management practices and strategies
A company that regularly engages in change management will have more modern change management practices.
From agile change management to lean thinking, these modern approaches will deliver better results. And they will help organizations stay modern, relevant, and adaptable.