What Is Change Management And Why Is It Important?

Oct 05, 2021 1 Min Read
change management
Source:Photo by Nick Fewings https://unsplash.com/photos/5RjdYvDRNpA
Change Management is Valuable

Change is constant, and that statement is also applicable to businesses and organisations. The good thing about it is that its implementation allows for the improvement and development of your company. Without it, you may get stuck with traditional, outdated ways of doing business, which could result in bankruptcy if those methods no longer work for your target audience.

However, change isn’t that easy, especially if an entire enterprise has to go through it. It could affect not only employees but also processes, and when done incorrectly, it could fail. Thus, it's advisable for you to turn to change management.

The Definition Of Change Management

This refers to methods and tools to carry out significant alterations in internal processes, infrastructure, culture, or operations that have to do with organisational change. Some of the methods you need may involve bringing successful resolution to the change your company is leveraging.

This type of management includes overseeing the significant phases of change. And most importantly, it guides employees and supervisors to prepare, implement, and follow through with any alterations deemed necessary for the company. You can delegate someone within your team to carry out the duties of a change manager.

The Importance Of Change Management

As mentioned, organisational change affects employees regardless of rank or position, and it may go on for an extended period. Unlike project changes that only involve some individuals and last for a short time, company-wide ones can be far more extensive. It might even last for months, depending on how successful the implementation is.

With that said, change management is valuable because it enables you to do the following:

1. Prepare For External Factors

Various external factors can make or break your business. When it comes to changes such as technological advancement, a company has no choice but to keep up. Should you insist on going against them, they may just end up swallowing or overwhelming your business. But if you adapt and use them to your advantage, you can either be at par with or even surpass your competitors.

With change management, you can get guidance on what changes to prepare for. For instance, your change managers can update you on the trends in your industry. They can also help you analyse if those trends can benefit your company.

Of course, your managers may not be able to accomplish their tasks properly on their own given how complicated it can be to deal with organisational change. That’s why it would do them a world of good to use change management tools to do everything from automating processes to collecting data to formulating plans. Depending on the type of alterations your company needs, your managers can try any of the tools on this list to make any sort of transformation much easier.

2. Avoid Unnecessary Costs

While change is good, costs aren’t. But in order to undergo development or improvement, you have to spend money. From preparation to implementation, such phases don’t come free. And when they’re not managed well, you might waste your finances. Thus, you need change managers to stay away from unnecessary costs.

In addition, the company may not even benefit from the changes it wants if those turn out to be ineffective. And if good changes aren’t implemented at all, the following might happen to your enterprise:

  • Losing on investments when there are no results
  • Incurring penalties or fines when regulations aren’t met
  • Not gaining market share
  • Not increasing revenue
  • Increasing expenses

But with change management, all of those can be minimised if not avoided.

This may interest you: Need To Cut Labour Costs But Avoid Layoffs?

3. Decrease Potential Disruption And Risks

Another importance of change management is decreasing severe wastage and limited results. That’s because the whole organisation will have adequate direction and support to allow for change. Without proper management, key projects and daily tasks will be highly disrupted. And worse, crucial alterations may not be carried out.

Change management will also let all employees understand how certain changes will fit into the company, and it'll enable them to adapt with ease. That can be done by creating a blueprint that’ll make staff members understand the shifts that'll take place. On top of that, the blueprint would help everyone foresee and prepare for potential risks during the implementation of changes. You want to be ready for such possibilities to avoid unnecessary costs should something disrupt the process.

4. Engage Employees

With change management, you can increase employee engagement, which can provide the kind of support that certain developments require. When engaged, your employees can also be advocates for your business whether they’re inside or outside your company. Change managers can engage employees through clear and consistent communication.

When your employees can reach out to managers, they can quickly clarify matters they quite grasp. And when there’s clarity, you can avoid struggles that may happen due to a lack of employee engagement.

Read more: Maintaining Employee Engagement in Times of Crisis

For instance, an employee doesn’t know what steps to take while there are changes happening in the company. Chances are, they’re more likely not to involve themselves with the process. But when you communicate well with them, they can be your partners in making the entire endeavour successful.

If you want to be at par with your competitors, make sure to develop employee engagement first. Not only that, but your organisation can also experience the following if there’s clear communication with employees:

  • Get better results
  • Increase loyalty and trust among clients and employees
  • Strengthen creativity and innovation
  • Find that the momentum of change is consistent and well supported

But of course, you as a leader should also support your change managers. That way, your other employees will recognise how significant those managers’ role is in the company.

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5. Transform Your Company Without Switching Business Strategies

Change management allows changes to be aligned with your business strategy. Your business strategies are essential, but when you have significant changes lined up, those strategies may become useless. That means you may need to find a new business approach that’ll work with the alterations you’ve made.

However, when you have change managers, they can ensure that the changes are compatible with your current business strategies. If they see that there’s bound to be a significant shift, they can adjust the processes and methods involved so your business goals won’t be affected.


Your company needs to change if you want it to expand or grow. However, if you can’t handle them, you’re more likely to fail. Or worse, you may lose your business because the ones you chose to go for aren’t right. That’s why it’s imperative to practice change management and prepare for any significant alterations to certain aspects of your company. In doing so, you can ensure that your business will continue to operate even while changes are ongoing.

This may interest you: 4 Ways To Manage Change Confidently

About Author: Claire Pratt is a seasoned entrepreneur who has been running her own company for over 12 years. She shares her business knowledge by writing guest blogs. During her free time, she often goes snorkelling and diving.

Further info: Happily (or Budaya for those from Indonesia) is an amazing engagement app built for organisation to drive engagement amongst employees. It has amazing analytics and also provides activities for employees to be fully immersed in the organisation's culture and values. To find out more, click here or email info@leaderonomics.com

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This article is published by the editors of Leaderonomics.com with the consent of the guest author. 


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