The 6 Rs of Change Management

Your change management checklist...

REASON – there can be many reasons for a change being required and the reasons can be generated internally or by a third party such as a bank, finance company, manufacturer etc. The change can vary from the requirement for profit improvement to the need for improved cash flow.

RISKS – with any change there are risks that the plan does not go smoothly. For example a key manager may decide that they do not want to change and then they leave. While recruitment starts there can be delay and disruption to the plan for change.

RESOURCES – it is important to have adequate resources but there are occasions that the reason for the change is that resources have become stretched but there is not enough profit return to justify additional staff or assets such as stock. The change has to start by working within existing resources and then plan to invest some of the results of the improvements in the additional resources.

RETURN – the return is critical to the business or there would be no point in embarking on the change in the first place. There needs to be a definition, from the outset, of what a successful outcome should yield to the business. A financial forecast that incorporates the effect of the improvements is ideal because it can provide an illustration to the business leadership of the targets and objectives. This will also give a better idea of the timescales over which the objectives can, in practice, be achieved.

RESPONSIBILITY – the overall responsibility must lie with the Directors as they have legal obligations in respect of the way the business is run as well as obligations to shareholders and other stakeholders such as a bank. All decisions to move forward have to come from the directors who will take account of the evidence in front of them and then assess the benefits and risks of a particular course of action.

RELATIONSHIP – the single biggest factor in the relationships, both in the business, and with a consultant, is that of trust. Going through business change is stressful and, at times, disruptive. It is important that all the senior management are aligned to the need for change whilst also being allowed to express an alternative opinion as they may have identified an even better, and/or quicker, way of achieving the same objective.

#changemanagement #martinolver #business #management #consultancy