Mergers are organizational change
One of the most fundamental reasons for starting change initiatives in an organization is a merger.
Amazing but true: 50% of mergers fail – just ask Daimler about their adventures with Chrysler if you want to get confirmation.
In a merger, one set of staff has to change the way they work to match that of the other organization. It’s not enough to simply send out a few Powerpoint slides – people want an answer to the questions ‘What does this mean for me?’
And this needs to take place not only in the ‘losing’ firm, because the kind of change that a merger involves also affects staff in the ‘winning’ firm.
So this means that the management of the relevant change processes has
to take account of the fact that when a merger takes place, there are
always (perceived and actual) winners and losers. It means that the
change has to be managed and the level of the individual and the group,
as well as at the the level of the whole organization.
Managing change in the business environment
Is there an economic downturn? Either way, a change in the business environment is one of the prime causes of organizational change. At Turris Consulting, we say that the business environment is part of the external context of change. (Click here to read more.)
Of course, smart organizations are very aware of what is going on in their business world. In this Wall Street Journal article – In Chaos Lies Opportunity – the authors argue that companies can do well even in difficult times if they understand the environment.
For most industries, the optimal time to hit the brakes and downshift was months ago. The questions to be asking now are: Where is the apex of the curve, and how hard should we accelerate to take advantage of competitor mistakes? Who is in trouble and dumping valuable assets in order to survive? Can we add great people who are now available?
What does this mean in terms of organizational change management? It means that good managers scan the outer context of change, and then work out what they need to change within their company so that the company can do well even in in difficult times.
The Contexts of Organizational Change
Organizations do not exist in a vacuum. The model of organizational change that I developed specifically takes account of what I call the external context. This includes – but is not limited to – developments that directly affect the financial aspects of business.
As the outer context changes, my model suggests that this then has an affect on any change processes that are taking place in an organization. The Euro is now losingvalue against the dollar.
Let’s assume that your organization is going through some change initiatives that require money (and they all do). How are you going to manage that? Will you change the scope of the change? Carry on anyway? One thing is certain – the change you began with will not be the same change that you end with.
Copenhagen: The Real Organizational Change Environment
The Copenhagen Climate Change Conference is coming up.
Organizational change takes place within a change context, which includes what is happening in the broader economic, political and social context. This is the outer context, and is the environment in which the organization operates. This is what people usually think about when they talk about organizational change.
But part of the business environment is the real environment – the air we breathe, the water we drink.
Responsible organizations should already be undergoing organizational changes to improve their environmental record. One of their challenges is to go through these changes without weakening their competitive position. Careful change management is obviously essential.
Some organizations view EU and national government plans as being too radical and as a threat to competitiveness. These companies need to get their priorities straight, though. The concept of stakeholders should help these companies to understand that their organizational changes should include changes to help the environment: we are all stakeholders in the environment.
Corporate Blogging
An interesting article in manager-magazin (in German) about corporate blogging – Corporate Blogging: Kommunikation 2.0
During all kinds of change initiative it is important to keep staff members informed at all times. They should be told before the change starts why the change is happening at that particular time. Then while the change process is unfolding, they ought to be kept up to date with the progress of the change. Tell them what challenges are being encountered, and how these are being addressed.
Then when the change process is over, let them know how the goals of the change are being met. And if they are not being met, say what you’re going to do about it.
