An integral part of a business’s survival is change. The recent pandemic has proven how easy it is to get left behind if your business does not evolve with the times. Nearly 100,000 companies that claimed to be temporarily shut down during the height of the pandemic are now permanently out of business. Failure to change isn’t the cause for every closure but it can be attributed to a large percentage of them.
Organizational restructuring is key to keeping your establishment up to date. There are many different transition models to choose from when you decide to mold your business to fit the changing market. No matter what model you choose, though, there are a few best practices to keep in mind to help make your restructuring as successful as possible.
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What is a Change Model?
Generally, change management is how companies implement organizational transitions. While change itself is an ever-evolving process, there are a few change models that are heavily relied on by most companies. These models are concepts and methodologies that provide an in-depth approach to restructuring. They serve as a give to help navigate through the complicated process of transforming your business. No matter how big or little the changes you plan to make, the models are a useful framework to make these updates easier to implement.
Most Popular Types of Models:
1. Lewin’s Management Model
This is a three-step process that breaks down big projects into smaller steps that are easier to manage. A brief summary of each step is: Prepare for, implement, and solidify the change.
2. The McKinsey 7-S Model
The multiple working parts of this strategy make it one of the most complicated but so is reorganizing a whole organization, so it might be necessary. The steps don’t come in a specific order but are meant to be analyzed by how they affect each other to identify weaknesses. The seven S’s of the model are:
- Strategy
- Structure
- Systems
- Shared Values
- Style
- Staff
- Skills
3. Nudge Theory
This theory is all about making indirect but evidence-based suggestions that will nudge employees in the desired direction. The idea is that making it feel like a suggestion and a choice is more effective than strict enforcement.
4. Kübler-Ross Change Curve
This model is actually based on the five stages of grief: denial, anger, bargaining, depression, and acceptance. The concept acknowledges that change is difficult and is more likely to elicit an emotional reaction than a logical one. Understanding this concept assists with being ready for employee reactions and pushback.
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5. Kotter’s Theory
This method is divided into eight different stages and is designed to build enthusiasm for the new implementations. The stages are:
- Create a sense of urgency
- Build the team
- Form a strategic vision
- Communicate the vision
- Remove barriers
- Focus on short-term wins
- Maintain momentum
- Institute change
Visit https://www.lucidchart.com to learn more about different business transition models. It is important to understand that not every strategy will work for every situation. Each method has its merits and is a great place to start. Remember though, that change is a fluid thing and can’t always be boxed in by a specific set of rules.
Best Practices to Consider During the Change Process
No matter what method you use to transform your company into something new, there are some tips that should be implemented, even from the beginning.
- Present the change in a positive light– As some of the models acknowledge, reorganization and reconstruction are often met with an emotional response first and foremost. Making the process seem desirable will help sway employees and encourage their support in the process. Start discussions about the current problems and ask for their input on a successful transformation. Help your staff be just as enthusiastic about the adjustments as you are. It also helps to recruit more charismatic staff members to help implement adjustments and train fellow employees. If the coworker is excited about the new systems, the transition will seem less daunting.
- Make it seem relevant– Coming hand in hand with the first point, help your teams understand why this remodeling is important. How does this adjustment align with the business’s overall goals? How will it benefit employees? Click here to learn more about helping employees embrace the transition period.
- Make communication about the change both widespread and personal– The CEO should alert all employees of upcoming restructuring and then have immediate supervisors communicate with their teams in more detail. This way everyone is on the same page and employees feel like they can go to their supervisor to ask questions about the new implementations.
- Proper timing and testing– Allow your team time to adjust to the idea of reorganization. Sudden upheavals are met with more resistance. Also, make sure that all the bugs and kinks are worked out of a system before the launch date. No one wants to work with a process that is only half thought out.
- Give it time to integrate– Your team members are not going to adapt to the new systems right away. Be patient with their learning curve and keep checking in to see how you can help them adjust faster. Encourage them to give feedback and be willing to make necessary changes if issues arise.