The business landscape of the 21st century is characterised by rapid change brought about due to technological, economic, political and social changes. It is no longer the case that the managers and employees of firms in this decade can look forward to more of the same every year. In fact, the pace of change is so rapid and the degree of obsolescence if organisations resist change is so brutal that the only way out for many firms is to change or perish. In this context, it becomes critical that organisations develop the capabilities to adapt and steer change in their advantage.
It goes without saying that “he who rejects change is the architect of decay and the only human institution that rejects progress is the cemetery.” With this axiom in mind, it is critical to understand that unless change is actively embraced, organisations in the 21st century risk obsolescence.
A well-defined change management process can help in mitigating risks related with the people side. If this aspect is ignored, it might result in increase in the overall costs, decline in productivity as well as employee motivation and increase in the absenteeism level and employee attrition. Hence, it improves the overall preparedness of the management and the decision-making authorities in understanding the need for managing change, the key processes involved in it and in understanding the operational technicalities connected with it.
Planned change if effectively implemented can be beneficial in terms of controlling costs, minimizing risks, reducing the stress and anxiety by controlling uncertainties. It helps in setting up new milestones, establishing objectives, defining priorities and identifying the limitations for driving excellence in new initiatives.