identifying change (s10)

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    Decisions for change which are based solely on educatedguess or even past experience ignore the possibility ofhidden influences

    When need for change is considered in a systematic way,

    this brings to light potential problems so that they can beresolved. In many companies change just happens seemingly

    dictated by circumstances or current events. Whenmanagers react their efforts address symptoms andsurface difficulties rather than essential company issues or

    problems On occasions, managers rush into a project believing

    proposed change to be a common sense but later realizethat need for change was misunderstood.

    Identifying what needs to change and why leads toknowledge about the depth and extent of a problem

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    Prudential Assurance Company Limited

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    Change effort begins with some perceived

    need to alter some aspect of the company

    Accuracy of correct perception depends uponthe quality leaders perceptions.

    Dependence on the opinions of just a few

    individuals limits a companys ability tochange successfully. It is always better tosolicit feedback and suggestions from all

    levels.

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    Routine change refers to the planned andbuilt into the company procedures change.These are regular and provide a systematicaspect to work flow and production. Becausethey are periodic employees anticipate themand actually feel anxiety if they do not occur.Example: annual equipment upgrade in hi-

    tech field, staff rotation amo airline flightcrews, retooling of machinery for seasonalorders or increasing staff during peakproduction periods.

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    Improvement change refers to the change whichadds benefit or value to what the company already

    does. Basically these changes build on existingprocedures and activities rather than challengethem. They enhance or correct previous policies.Staff are likely to feel threatened by this kind of

    change but are readily able to understand thereasons for it when explained. Examples: thedecision to upgrade equipment, downsizing, qualityprograms to address customer complaints.

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    Innovative change profoundly alters the way inwhich company does business. It requires staff torethink the way in which they behave and to alter

    long standing work patterns. These changes areusually designed to address future company needsand potential problems rather than immediateones. Staff therefore may not understand their

    purpose and may resist accepting them. Examples:computerization for paper free environment,robotics, satellite technology for globalcommunication

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    Each type of change needs a differentstrategy

    Managers aiming to innovate should beaware that resistance to this kind of change islikely to be much higher than for eitherimprovement or routine change

    Methods used for communication, leadershipand activity coordination should be adaptedto meet the varying needs of each changecategory

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    Setting clear goals and deadlines provides a frameworkwithin which change can be achieved.

    Complicated change efforts require careful goal-setting.Clear goals provide direction and guide decisions about

    what must be done.Planning to achieve specific goalsminimizes wasted time and effort.

    Goals identified at the initial stage are open to revision,discussion and future fact finding later.

    Change managers are like explorers in an unknown

    territory. They must scout terrain without maps and sufferlack of guarantee against accident or delay.

    A goal for change takes the form of a statement which isspecific and positive.

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    People Products and Services Finance

    Facilities Marketing

    Initially any goal seems to have a greater impact onone area than on the others. In fact the five areasare so interrelated and dependent upon each otherthat it is impossible not to influence them all. Thesebusiness areas form a loop of interdependence

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    People. This refers to human resources in generalas well as to administrative and managementsystems, e.g. labor and management relations,decision making process, hiring and firing, trainingetc

    Products and Services. This refers to a companysbusiness. It includes the category of activity within

    which company functions like service industry,manufacturing, education etc and secondly theactual units of activity which the companyproduces: from material goods to contracted

    service

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    Finance. This refers to the companys financialposition, its assets and liabilities, as well as to thecontrol system within which these are organized. It

    must take into account both short and long termneeds of the company

    Facilities. This refers to the companys geographicalsituation, its physical environment as well as its

    equipment, electronic networks and machinery Marketing. This area refers to efforts which promote

    the company: its image and position within theindustry

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    Government Social values Technology Consumer need Competition

    These are the influences which surround the

    company and have impact on its business. Whereas,company has control over five internal areas, it haslittle control over these forces.

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    Government. This area includes all political activityfrom legitimate as well as illegitimate authority.

    New legislation and terrorist activity can influencethe company. Social values. This includes health, education,

    morals, ethics and social class issues T

    echnology. This area offers great risk and greatbenefit. Managers must identify currentimprovement needs and long term innovativemeasures

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    Consumerneed. This refers to the companys

    customers: who they are, what they want and

    where they are located. Competition. This area requires managers to

    be thoroughly aware of initiatives anddevelopments within their industry.

    Competition provides alternatives toconsumers.

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