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Why change management is crucial for good business practice
If businesses stop evolving, they stop moving forward.
All change in business needs to be managed. Change is usually required to drive value, but change comes with risks. The controls which were effective under the original structure or process may not be effective after the change has been implemented.
Change management and the management of change require a structured focus on what is changing and what needs to be done to ensure any inherent or introduced risks are managed effectively.
What is change management?
Change management or management of change processes is essential to all types of businesses – small, growing or established. Change management is the process of documenting a considered approach that identifies and manages actions, risks and opportunities in making a change.
When change occurs within a business, whether it is permanent, temporary, a replacement or something entirely new, it should be accompanied by proceduralised change management.
This is also required for when a change occurs under an emergency. An emergency change occurs under pressure where time and resources are constrained. It is just as important to identify risk, assess those risks and assess suitable controls and to then implement those controls as in any other scenario. Controls in an emergency management of change need to manage all unacceptable risks to an acceptable level. The key difference is control efficiency in an emergency scenario, where simple to apply but often excessive controls are put in place. It is important to document the process and ensure the controls and their evaluation process are recorded.
This can include the modification of existing equipment and procedures or the introduction of something new. Effective change management is a means of meeting WHS requirements where the introduced risks can be identified and managed by appointed risk accountable and responsible persons, as well as an appropriate stakeholder group.
Effective change management means understanding the total impact, both positive and negative and ensuring sufficient controls are in place. Change management provides an objective review of the effects of the proposed change, with an informed, participative and experienced cross-section of people – before it is implemented.
What does change management entail?
Effective change management incorporates the greater effect of the change – including but not limited to physical, social, environmental, commercial, legal and any other risk category important to the business. Structured change management processes ensure a procedural approach is applied to the identification, assessment, approval, management and review of the changes.
Understanding the benefit and being aware of the risks involved are crucial. This record is useful to later review risks, identify opportunities for improvement and understand the history of change.
There are many benefits to effective change management with the key being that an informed stakeholder group can review, assess and approve the risks presented by the change as well as the benefits the change provides.
Stakeholder groups consist of risk accountable and responsible people, subject matter experts, persons working in the area, those affected by the change and anyone else for whom the change may hold significance. This can include environmental groups, community representatives and other motivated parties.
The importance of a representative cross section
Stakeholder review requires a cross section of qualified, competent and affected persons. This can include people who are subject matter experts, work in the area where the change is occurring, are affected by the change or hold risk accountability.
In each case, the more representative the cross section, the better the review process will be. Having review team members who are experienced or can effectively interpret the effects of the change will better identify mitigations.
Management of change and change management are complex processes. Change management requires a skilled professional to build the change requirements and help facilitate the process. Ensuring stakeholders remain aligned with the process to the desired outcomes is essential to its success.
Also, having the risk acceptor as part of the review process will ensure that they are satisfied with the approach, considerations and mitigations and that the overall risk has been managed appropriately. In any case, a structured process for managing change that is well followed will provide better results. Where a Management of Change process is only applied on occasion, or excludes key functions, then the result is less likely to be beneficial.
In summary: Change management is the considered, objective and detailed review of the outcomes and consequences of a change – a crucial element for any business as part of the asset management function.
Partner with the change management professionals
AMREP has developed and facilitated change management processes for organisations large and small. The outcome is a structured, proportionate, and measured approach that manages change effectively, controls introduced risk and maximises value.
We deliver a superior level of expertise and a full suite of competencies in asset management, risk engineering and project consultancy. Our bespoke approach to change management ensures consistent business growth.
Contact our team today and experience the AMREP difference.