Currently, many businesses are especially interested in managing change during operations and development. So what is this management activity? What are the principles and effective implementation processes? In the article below, let's learn about this topic in detail with 1C Vietnam.

1. What is change management?

Change Management is the structured process of ensuring that changes within an organization are carried out effectively, safely and with sufficient power to achieve their goals. This process is not only about applying new changes in the organization but also about managing people, organization and culture.

Change management requires careful preparation, meticulous planning and implementation according to set goals. In particular, administrators need to regularly monitor and evaluate to ensure that the change process brings real value to the organization.

Enterprises need to implement management when changes occur in the business environment or within the organization, specifically:

• Strategic change: The business decides to adjust, launch new products or expand the market.
• Operational changes: Businesses want to increase productivity, improve product quality or optimize production processes.
• Organizational change: Ensure integration and optimize efficiency after change.
• Technology change: Businesses want to change work processes or convert to new technology.
• Changing competition: Facing competition, businesses need to create competitive advantages and protect their position in the market.

2. The role of change management in business

In an increasingly volatile business environment, businesses need to proactively change to adapt and develop. Change management activities help organizations identify, implement and manage effectively, including:

• Change in each individual: Change management starts with each individual with the motto that only when each person changes can the organization change. Therefore, businesses need to focus on communication, training and support for employees during the adjustment process.
• Optimize costs: Unoptimized costs can cause serious consequences such as: reduced productivity, lack of support from managers, interruption of operations, loss of talent,... To reduce To minimize these consequences, each business needs to proactively approach the change process by focusing on human factors.
• Adapt to changes in the business environment: The rapid and complex changes in today's business environment require businesses to continuously innovate to adapt. Enterprise change management assists in identifying, implementing and ensuring change works properly.
• Increase the likelihood of success: Change management plays an important role in business success, especially in cases such as introducing new technology into operating processes, changing leadership, Corporate culture change, mergers and acquisitions, economic crisis.

3. Core principles for successful change management

To be successful in change management , in addition to clearly understanding the definition, businesses need to grasp and accurately apply core principles. Here are four basic values that companies should adhere to to achieve effectiveness in the change management process:

3.1. Control progress according to plan

Following the plan is the first principle that businesses need to follow to manage change successfully. In particular, business units need to ensure they can perform specific tasks, including:

• Help people understand change, including its meaning, purpose and impact on them.
• Determine criteria to measure the success of the plan and regularly monitor and evaluate the results achieved.
• Analyze stakeholders, identify those who have a direct impact on the plan and evaluate the importance of each individual.
• Provide the necessary support to help people transition from old habits and methods to new adjustments.
• Ensure that everyone always receives support from leaders, experts, colleagues, etc. throughout the change implementation process.

3.2. Ensure compliance in change plans

Next, businesses need to comply with the second principle of ensuring appropriate changes to the plan. This includes identifying the elements needed to successfully implement change, specifically:

• Support: The change plan needs support from relevant parties, including leaders, employees, customers, partners, etc. Administrators need to identify the necessary sources of support and funding. necessary to support change, such as human, financial, material resources, etc.
• Involvement: Change will be more successful if it involves all parties, including internal and external resources.
• Attention: For change to be accepted, managers need to attract attention and support from the organization's own employees, partners and stakeholders. This can be done through communication activities, training,...
• Impact: Change activities need to bring positive impacts to the organization. Administrators then need to envision the success the business wants, determine the impacts the change will bring and the goals they want to achieve.

3.3. Understand change

Not only concerned about the implementation plan, the company also needs to ensure an understanding of change management. This principle includes understanding the reasons for change, the goals, the value brought to the organization, the impact of change on team members and people's working methods.

The following questions can help businesses discover and better understand this principle:

• What is the reason for the change? What are the goals of these changes?
• What value do these changes bring to the organization?
• What benefits will the adjustments bring to team members?
• How will the change change the way people work?
• For change to be successful, what do people need to do?

3.4. Communicate regularly

Ultimately, regular communication will be key to creating consensus and support for change, helping everyone clearly understand the reasons, goals, and impacts of the activity. Regular communication also allows businesses to address concerns and questions, to reduce resistance and promote acceptance.

4. 6-step process for implementing change management in businesses

In addition to the principles that need to be specifically followed, to manage change in the business, administrators also need to pay attention to correctly implementing the 6-step process below:

4.1. Step 1: Evaluate and analyze

In this first step, business units need to make sure to clearly identify the following 3 issues:

• Identify the need for change: Clearly identify the causes and goals of the change.
• Analyze the current situation: Assess the current state of the organization, including factors such as culture, people, processes, technology,...
• Analyze the impact of change: Review and estimate the impact of change on the organization, including both positive and negative impacts.

4.2. Step 2: Plan to implement changes

In order for the change implementation plan to be complete and minimize errors, the organization needs to carefully prepare elements including:

• Identify the steps needed to implement the change.
• Establish a specific time limit for each implementation step.
• Clearly identify who is responsible for each implementation step.
• Determine the resources needed to implement the change, including human resources, finance, technology,...
• Develop contingency plans for unexpected situations.

4.3. Step 3: Deploy changes

Implementing planned activities is an important step to achieve goals, including implementing changes in processes, technology, systems, culture, etc. This activity also requires Strong leadership and commitment from leadership is demonstrated by managers:

• Provide clear vision and direction for change.
• Create a favorable environment for change.
• Support and encourage organizational members to participate in change.

These factors will likely create support and cooperation from organizational members, thereby helping the change process go smoothly and achieve the desired results.

4.4. Step 4: Monitor and evaluate the implementation process

After the changes have been implemented, the next activity businesses need to do is monitor and evaluate. Specifically, at this stage, administrators need to complete a number of main tasks such as:

• Set up metrics to track the effectiveness of changes.
• Obtain data and information related to the process of implementing changes.
• Process data and information to propose improved solutions.
• Recommend measures to improve the effectiveness of changes.

4.5. Step 5: Continuous improvement

In particular, completing the business inspection and evaluation process can draw out the good and bad aspects of change management activities in the organization. At this time, the company needs to acknowledge, learn from experience as well as find ways to improve, overcome weaknesses as well as further promote achievements. Specific tasks of this step include:

• Regularly monitor and evaluate the effectiveness of changes.
• Research ways to improve the changes.
• Apply new innovations in a timely manner.

4.6. Step 6: Prevent risks

This is an important task to minimize the negative impacts of risks on the success of the comprehensive change process in the organization. This step includes activities such as identifying potential risks, assessing potential impacts, and finding and applying contingency solutions. Risk prevention is a process that needs to be carried out throughout and updated regularly to suit the actual situation.

5. Effective change management methods for businesses

Change is an inevitable part of any organization. To manage change successfully, managers need to apply appropriate methods. Below are some specific suggestions that businesses can refer to and choose from:

• Change management focuses on people: Employees are the most important element in any change process. Because, without the consensus and response of employees, the organization's adjustment and adaptation activities will not be successful. Therefore, organizations need to focus on people in their change management plans, through the following activities: Develop a clear communication plan, conduct regular meetings and dialogues, deploy training Personalized creation and support.
• Measure and track change progress: Measuring and tracking change progress helps organizations evaluate the effectiveness of the adjustment process. This will help managers promptly correct plans and strategies if necessary.
• Technology application: This is a useful tool to help organizations manage change effectively. Businesses can apply this factor through solutions such as: using project management software, taking advantage of internal communication tools, and online training tools.

6. 3 Change management models in organizations

Below are 3 change management models in organizations that businesses can refer to and consider applying:

• Kurt Lewin Model: This is one of the simplest and most effective models for managing change in organizations, helping to describe the adjustment process as a transition from an initial state of equilibrium to a state of change. new equilibrium. The Kurt Lewin model will include three main stages: Unfreeze, Change, Refreeze.
• Prosci's ADKAR model: The ADKAR model often focuses on providing employees with the necessary elements to adapt to change. ADKAR will be implemented with 5 elements: Awareness, Desire, Knowledge, Ability, Reinforcement.
• Bridges Transition Model: With this model, when applying, businesses will focus more on identifying the transition stages of employees facing adjustments. This is an important basis for managers to build strategies to support employees during the change management process. Normally, the Bridges Transition model is implemented with three main stages: Endings, Neutral Zone, New Beginnings.

Thus, change management is an important process for the development of organizations and businesses. Mastering the principles and effective implementation processes will help the company overcome difficulties and challenges during the change process and achieve the desired goals. Don't forget to follow other articles on the 1C Vietnam website to update useful information about corporate governance!