6 Signs Your Company Needs to Consider Change Management


Change is a natural and inevitable phenomenon of the modern world.  You can see a large number of signs before the change; which gives us an early warning to take the necessary action.  For example, when experts detect changing trends in seawater temperatures and wind characteristics; they foresee the arrival of a hurricane.

Organisational change is required every now and then

In the same way, organisational experts and managers can foresee the need for a change or observe an already changing atmosphere through the trends and signs exhibited by various stakeholders in the market. In many cases, these signs might not be very prominent; but overlooking them could result in adverse effects for the company. Managers need to be watchful for any sort of upcoming problems leading to instability and implement the necessary change management strategy.

Signs to watch out for

There are various trends and market conditions that may predict the gradual need for change in a company’s future course of action.

Some of the most common signs that ultimately require you to implement a change management strategy in your business are described below:

  1. Change in customer demands:

Companies that are in close contact with their customers are sure to be more successful than those which work in isolation. Wise managers are able to understand the requirements and demands of the customers and work to produce products and services accordingly. When you can see changes in customer demands; you need to bring the required change in your products and services as well. For this purpose, a proper change management system should be in place.

  1. Dropping sales:

The ultimate goal of any business is to increase sales and the number of customers. Profit maximisation is only possible if you keep expenses low and increase overall revenue from sales. A drop in sales is a clear indication of something wrong. You need to assess the reasons for this reduction and try to inculcate the necessary change and improvement wherever required.

  1. Upward trends in sales:

Just like a decrease in sales can be alarming; an increase in sales may also be indicating the requirement for some kind of a change. This change may be in terms of growth opportunities, required enhancement in production, or increasing the number of retailers or distributors. A good manager will understand the short and long term implications of this change and implement the necessary actions effectively.

  1. Employee Turnover:

Human resource capital is one of the most significant assets of a company. The retention of good productive employees can be very challenging. With access to many types of media along with increased competition; employees are always looking for better opportunities outside the company. Competitor companies are working on poaching techniques to fish the best employees from the ever-diminishing pond of highly skilled human resources.

Keeping this in mind, any variations in employee turnover rates should be investigated carefully and dealt with in a professional manner. You will need to assess the reasons behind the turnover increase and bring necessary changes wherever required.

  1. Resistance to Change:

Change is always good, but change also brings with it a break in the current status quo. Whenever any type of change is implemented in an organisation; there is some level of friction between employees and its leaders. This results in a negative overall outcome for the organisation. To avoid such resistance, companies need to be proactive in the implementation of a change management process. Follow a step by step approach and take everyone along during this implementation. Resistance among employees can be predicted through various actions such as:

  • Frequent absences

  • Low levels of productivity

  • Employee strikes

  • Arguments and disagreements on issues

  • Inability to achieve goals

  • Anxious and stressed out employees

  • Changing Market Trends:

In addition to looking inside your own company, managers should also look at the macro environment conditions. Innovations in the industry can be indicative of a required change in the company’s overall goals and objectives. In some cases, it may even require a company to change its product line or production processes. Other important factors that need to be kept under close watch for any change including the following:

  • Changing strategies of competitors in the industry

  • New technologies and technological shifts in existing products

  • Changes in the legal and political conditions of a country or region

  • Change in the supply chain and its effective management

The appropriate way to deal with any kind of change management requirement is through effective research and development, and training your employees for the implemented change. Having change leaders to communicate and share information is necessary in this regard.

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