Change in an uncertain world
I recently did a search of the online journals of the academic publishers Taylor and Francis. This revealed that the phrase “unprecedented change” has been used in reference to many, many topics, including life in rural communities, Italian politics, healthcare, libraries, information technology and education.
It is not surprising, then, that implicit in many management texts, articles on business in newspapers and magazines, and management training courses is the view that the world is changing more quickly than ever. This point is made explicitly equally often. To give but three examples:
- “We are living at a time when the competitive environment has a steep and rapid learning curve. It’s also a time of unprecedented change.”
- “Today, however, companies are in a process of retooling and developing new strategies which will assist them to be competitive at a time of unprecedented change in product and labour markets and technology.”
- “All parts of organizations are going through unprecedented change as a result of the volatile business environment, including such well-known items as exploding technology, globalization, and new work processes.”
In the terms we use at Turris Consulting, this means that the outer context is not stable. This in turn means…. organizational change! So how should managers deal with this instability?
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.
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.
