Page 2: What causes change in a business
Every organisation faces challenges from within the business. For example, the internal environment might be affected by inefficiency, changes in the workforce or high levels of staff absenteeism. Organisations also face many challenges in their external environment. These might include legislation that set new standards, advances in technology or changes in the market or the economy.
Importance of effective leadership
To meet these challenges, managers must anticipate and plan for effective improvements to the organisation’s processes. On the one hand, this may involve change management. This requires leaders who have the tools or structures that keep any change effort under control. The goal with change management is to minimise the impacts of the change. On the other hand, this may involve change leadership. This involves supporting the change process. Leaders need to have the vision to change an organisation. To do this they need to harness the driving forces of change in order to transform an organisation.
Change affects the decisions that an organisation must make in a variety of ways. Human resource planning is an important aspect of the change management process. This helps to ensure that the workforce can meet the required changes. For example, this might involve retraining to develop new skills to meet the changing needs of consumers. Alternatively, a business might have to invest in new production methods designed to improve efficiency.
Every change strategy will involve setting objectives. It is important, therefore, to constantly evaluate change programmes. By doing this it is possible to monitor whether changes have helped an organisation to improve the way it meets its business objectives.
Serco is one of the world’s leading service and outsourcing companies. It employs more than 70,000 people and helps governments to improve services. In 1994 Serco took over management of HMP and YOI Doncaster, a category ‘B’ remand centre in South Yorkshire. The prison had faced many challenges in recent years. For example, the prison inspection report identified a number of areas where improvements could be made. The report rated the prison at Performance Level 2, where Level 4 is the highest and Level 1 the lowest. Staff morale was low, with a high turnover of first-line managers. To address these issues Serco decided to use CMI’s programme of management training and qualifications. CMI training provides managers with the knowledge and skills required to implement changes to improve the centre’s performance.