Today the Companies in the world are struggling to face the Organizational challenges thrown by global trends, organizations that undergoes a change in the business landscape, such as a structural or process change or the introduction of a new technology faces the challenges like growing competition for talent, economic activity shifting and developing business with inter networking organization.
A McKinsey Quarterly survey1 shows. “Although the challenges are manifold, two themes - how to move quickly and how to deal with geographic and regional diversity - emerge most frequently”.
In a survey conducted by McKinsey collected the opinions of lots of executives and two-third of the executives among them have no clarity of the changes needed to up come these and towering social and economic developments. Very interestingly half of the executives involved in the survey admit that their company have not got the right talent, around many confirms that there is no clue about who is accountable for dealing with such issue.
However ninety percent of the executives take a firm stand that Organizational change is mandatory, as a matter of fact very important to build and maintain competitive beneficiaries.
Today’s Global market is highly influenced by the multinational companies/organizations established since centuries. And there were only successful due to the smart organizational moves in appropriate situations, such as
• Business Process Engineering (BPR)
• Restructuring the Organizations
• Integrating the new trends spreading along the new mediums
• Spreading along the new mediums and many more.
On the other side, Companies with a huge budget and history were failing to survive in the new market for not considering the above changes. Lately, all the organizations have been realizing the importance of the above said trends. That introduced the need of new Authorization document for company’s goals and objectives, which would in turn need a readjustment of the business procedures and the team associated with it.
The institutional changes are processed by an executive or the team of personnel involved in it. To achieve an effective improvement, this team/executive should always consider appropriate planning and execute it accordingly. Timely evaluations and executions should be taken utmost care to achieve desired goals, some of which are explained below:
Vision- Vision doesn’t draw a flow chart for achieving organizational goals but it does help one to set the path to achieve it. Hence it plays a significant role in considering changes to an Organization’s structure. It has the ability to comprehend and articulate change beyond the base level. A vision to predict and view the ongoing business direction is always necessary to form new goals and invent new strategies.
Sense of purpose and direction- The business should have clear objectives that match the vision. This forms the guide lines that department heads integrate into their department strategies. The department strategies integrate independently to form the whole.
Knowledge- Knowledge is the skills and experience to create organizational strategies and to implement them accordingly. Creating necessary process improvement and benchmarking progress is part of this.
Rewards and recognition- Companies must reward individuals who excel and overcome organizational change challenges. This will encourage all those who are a part of the organization to reinforce their sense of team spirit and work harder to achieve individual and company goals.
There are also several steps to be followed systematically for change to occur. These are:
1. Discussing and reaching agreement for the ongoing support of the company's direction and initiatives. This is strategic alignment amongst senior management.
2. Linking strategic initiatives to tactful execution through planning and ongoing communication. Open communication helps with iterative refinement.
3. Connecting and aligning performance management, training processes and incentive compensation in order to yield optimal results.
4. Emphasizing hiring, rewarding, developing and retaining the top talent as a key driver of sustained business growth.
Before implementing change initiatives, it is important for companies to understand the 'end effects' of process changes on the workers. This helps companies to better formulate change policy to avoid many of the potential pitfalls and organizational change challenges that can present. Understanding the cognitive change process is part of managing an effective change management framework.
Focusing on Issue
Second only to leadership, strategic planning has been likely more written about than any other management subject. In studying leadership, we seek to learn the emotional characteristics that define a successful entrepreneur. What makes Bill Gates or Jack Welch succeeds when so many CEOs struggle? We often begin with the cult of personality, but soon discover that organizational success is intricately tied to planning and execution. So we look at strategic planning and too often find chaos. Studies have shown that up to nine out of 10 strategic plans fail. An analysis by Fortune magazine found that:
• 60 percent of organizations don’t link strategy to budgeting
• 75 percent don’t link employee incentives to strategy
• 86 percent of business leaders spend less than one hour per month discussing strategy
• 95 percent of workers don’t understand their organization’s strategy
But why do good intentions fall short?
Most discussions about unsuccessful strategic planning dwell on execution. Few experts have explained how to implement plans better than Larry Bossidy and Ram Charan in their book, Execution: The Discipline of Getting Things Done (Crown Business, 2002). While they clearly explain the importance of integrating people and operations with plans; their guide, like so many others, still leaves out a systemic and systematic approach to deploy, learn, and integrate plans for improved organizational results.
Are planning and execution really the startup point?
Something is missing in all the talk about the reasons for failed plans. Planning and leadership are irrelevant to execution, unless they’re part of a broader organizational system. Creating a sustainable organization requires more than just translating strategy into operational terms and more than just making strategic goals part of everyone’s everyday job.
In order to achieve a well-structured Organizational Transformation, we must treat growing/refactoring an Organization as planting a tree. As tree rises, we will have to provide all the required resources to have a healthy growth. Similarly, the head of the Organization should provide respective resources to the departments involved in the organization, like training sessions, accepting the new trends in the market, considering the new implementation concepts and few motivating sessions to enhance the performance of the personnel by making them understand that they are not in a mechanical system, but rather in a responsible position to achieve, to prove and to grow along with the company.
This in turn promises Growth and Development for the company. These two processes are different and are independent of each other. Mostly companies tend to focus on the development of the organization but in reality these efforts are targeted at growth. Development is a conceptual, organization-wide effort to increase an organization's effectiveness and viability. Techno-Scientific developments are reflected in the quality of work produced by the employees, which in turn amplifies the Organization’s strength. It’s a well-known fact that better resources return better results. In conflict to this statement, there are some situations wherein some companies achieved better results with fewer resources, but it cannot be considered as a valid prototype because there is no clear reason as to how this prototype got successful. Such Prototypes growth would always be portrayed in a triangular graph. Hence it cannot be considered as a right growth as a successful growth can always derive its growth scale in a linear fashion.
Organizations are always driven by some or the other significant change, to survive in the competitive environment, as change means to move from one phase to another, which is obscure. In order to achieve higher performance, the management should always adopt efficient and innovative techniques. As a part of accepting the adaptation, they should be willing to accept the new skills and personnel. One should also consider the suggestions of low level employees, as they are the ones who are directly interacting with the work and the situations reflected through it, so they have high chances of finding right solution. When it comes to classifying the management skills, it always remains a puzzle as it can be any of Art or Science or Philosophy. Management is defined as the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.
Management can be characterized as the rational categorization of a state and the regular action of goals and purposes, the tabular development of strategies to attain these goals, the marshaling of the required resources, the coherent organization, orderliness, content, and skillfulness of the activities required to find the designated procedures. Managers typically engage in a wide circumscribe of discrete activities each day, and the calculate signal of activities appears to process at berth levels of management. The activities, withal, are unremarkably rattling brief in length.
To continue out their responsibilities, manager’s need to obtain recent, related info that exists in books, journals, and grouping's heads that are widely scattered within and outside the administration. They consider egesting decisions based on accumulation that is both irresistible and incomplete. In gain, manager’s need to get cooperation from subordinates peers, superiors, and group over whom they may consider no positive dominance. Factors that refer manager’s countenance layer are filling of the organizational unit, operating the organization, passing reciprocality in crisis conditions, and staging the organizational periodic pedal.
Despite all these demands and constraints, managers do have some alternatives. They have a choice in what aspects of the job to emphasize and how to allocate their time. Generally managers are engaged in four types of activities: 1) building and maintaining relationships, (2) getting and giving information, (3) influencing people, and (4) decision making.
The part of Transition Manager is real strategic in the writ of Organizational Transformation. A Manager ensures that the integral noesis of translation is not derailed at any point. In bigger organizations, there may be more than one Changeover Managers. For the successful shift growth, one needs a smooth track place and a neutral legitimate perception. Strategic program management is really determinative for better outcome. In the transform of shift, when the outgrowth gets inattentive, it is not advised to act on an existing methodological system. The desirable way of creating new initiatives is by creating a new construction proposal. This new structure must be fit to appeal the resources and the members from the old system. This way the unity and freedom of both the old and new organizations is maintained.
A McKinsey Global Survey(Dec 2007), The organizational challenges of global trends