V Decisions for change which are based solely on educated

guess or even past experience ignore the possibility of

hidden influences
V When need for change is considered in a systematic way,
this brings to light potential problems so that they can be
resolved.
V In many companies change Ǯjust happensǯ seemingly
dictated by circumstances or current events. When
managers react their efforts address symptoms and
surface difficulties rather than essential company issues or
problems
V On occasions, managers rush into a project believing
proposed change to be a common sense but later realize
that need for change was misunderstood.
V Identifying what needs to change and why leads to
knowledge about the depth and extent of a problem

rudential Assurance Company Limited
V Change effort begins with some perceived
need to alter some aspect of the company
V Accuracy of correct perception depends upon
the quality leaders perceptions.
V Dependence on the opinions of just a few
individuals limits a companyǯs ability to
change successfully. It is always better to
solicit feedback and suggestions from all
levels.
V ë
 
 refers to the planned and
built into the company procedures change.
These are regular and provide a systematic
aspect to work flow and production. Because
they are periodic employees anticipate them
and actually feel anxiety if they do not occur.
Example: annual equipment upgrade in hi-
tech field, staff rotation amo airline flight
crews, retooling of machinery for seasonal
orders or increasing staff during peak
production periods.
V 2
   
 refers to the change which
adds benefit or value to what the company already
does. Basically these changes build on existing
procedures and activities rather than challenge
them. They enhance or correct previous policies.
Staff are likely to feel threatened by this kind of
change but are readily able to understand the
reasons for it when explained. Examples: the
decision to upgrade equipment, downsizing, quality
programs to address customer complaints.
V 2   
 profoundly alters the way in
which company does business. It requires staff to
rethink the way in which they behave and to alter
long standing work patterns. These changes are
usually designed to address future company needs
and potential problems rather than immediate
ones. Staff therefore may not understand their
purpose and may resist accepting them. Examples:
computerization for paper free environment,
robotics, satellite technology for global
communication
V Each type of change needs a different
strategy
V Managers aiming to innovate should be
aware that resistance to this kind of change is
likely to be much higher than for either
improvement or routine change
V Methods used for communication, leadership
and activity coordination should be adapted
to meet the varying needs of each change
category
V Setting clear goals and deadlines provides a framework
within which change can be achieved.
V Complicated change efforts require careful goal-setting.
Clear goals provide direction and guide decisions about
what must be done.
lanning to achieve specific goals
minimizes wasted time and effort.
V Goals identified at the initial stage are open to revision,
discussion and future fact finding later.
V Change managers are like explorers in an unknown
territory. They must scout terrain without maps and suffer
lack of guarantee against accident or delay.
V A goal for change takes the form of a statement which is
specific and positive.
V
eople
V
roducts and Services
V Finance
V Facilities
V Marketing

Initially any goal seems to have a greater impact on

one area than on the others. In fact the five areas
are so interrelated and dependent upon each other
that it is impossible not to influence them all. These
business areas form a loop of interdependence
V
eople. This refers to human resources in general
as well as to administrative and management
systems, e.g. labor and management relations,
decision making process, hiring and firing, training
etc
V
roducts and Services. This refers to a companyǯs
business. It includes the category of activity within
which company functions like service industry,
manufacturing, education etc and secondly the
actual units of activity which the company
produces: from material goods to contracted
service
V Finance. This refers to the companyǯs financial
position, its assets and liabilities, as well as to the
control system within which these are organized. It
must take into account both short and long term
needs of the company
V Facilities. This refers to the companyǯs geographical
situation, its physical environment as well as its
equipment, electronic networks and machinery
V Marketing. This area refers to efforts which promote
the company: its image and position within the
industry
V Government
V Social values
V Technology
V Consumer need
V Competition

These are the influences which surround the

company and have impact on its business. Whereas,
company has control over five internal areas, it has
little control over these forces.
V   . This area includes all political activity
from legitimate as well as illegitimate authority.
New legislation and terrorist activity can influence
the company.
V    
 . This includes health, education,
morals, ethics and social class issues
V  
. This area offers great risk and great
benefit. Managers must identify current
improvement needs and long term innovative
measures
V O 
. This refers to the companyǯs
customers: who they are, what they want and
where they are located.
V O
 . This area requires managers to
be thoroughly aware of initiatives and
developments within their industry.
Competition provides alternatives to
consumers.