Change Management (CM) refers to any approach to transitioning individuals, teams, and organisations using methods intended to re-direct the use of resources, business process, budget allocations, or other modes of operation that significantly reshape a company or organisation.
CM focuses on how people and teams are affected by an organisational transition. It deals with many different disciplines, from behavioural and social sciences to information technology and business solutions. In a project management context, change management may refer to the change control process wherein changes to the scope of a project are formally introduced and approved.
Reasons for Change
Globalization and constant innovation of technology result in a constantly evolving business environment. Phenomena such as social media and mobile adaptability have revolutionized business and the effect of this is an ever-increasing need for change, and therefore change management. The growth in technology also has a secondary effect of increasing the availability and therefore accountability of knowledge. Easily accessible information has resulted in unprecedented scrutiny from stockholders and the media and pressure on management.
With the business environment experiencing so much change, organisations must then learn to become comfortable with change as well. Therefore, the ability to manage and adapt to organisational change is an essential ability required in the workplace today. Yet, major and rapid organisational change is profoundly difficult because the structure, culture, and routines of organisations often reflect a persistent and difficult-to-remove "imprint" of past periods, which are resistant to radical change even as the current environment of the organisation changes rapidly.
Due to the growth of technology, modern organisational change is largely motivated by exterior innovations rather than internal factors. When these developments occur, the organisations that adapt quickest create a competitive advantage for themselves, while the companies that refuse to change get left behind. This can result in drastic profit and/or market share losses.
Organisational change directly affects all departments and employees. The entire company must learn how to handle changes to the organisation.