The Importance Of Change Management

1361 Words6 Pages
1. Introduction 1.1. Background “Change is the law of life and those who look only to the past or present are certain to miss the future” (John F. Kennedy). In today’s increasingly rapid paced and constantly evolving world, marked by continuous economic and societal developments, openness and willingness to change have become vital traits of sustainable organizations and businesses. In order to keep up with this swift pace, organizations are required to embrace change and to adapt to new developments, shaped by numerous factors such as globalization, technological innovations, structural changes, international competition and the occurrence of trends. In this continuously changing business environment, characterized by the prevalence of…show more content…
According to Hayes (2002), managers are responsible for guaranteeing an organization’s effective performance and change management is the tool enabling them to ensure and improve the efficiency of a business. Although change management can guide organizations as well as provide steps and actions that support the implementation of a change process, there is no uniform approach to managing change. The success of an initiative can be influenced by and vary depending on a multitude of external as well as internal factors, such as an organization’s culture and nature. In this context, having a tailored change management approach and strategy is essential for any organization undergoing a major transformation, no matter the size or number of…show more content…
According to a report by the Austrian Federal Ministry of Science, Research and Economy (“Mittelstandsbericht 2016”, 2016), SMEs constituted 99.7% of all Austrian businesses and accounted for 68% of the total employment in Austria. The contribution of SMEs to the Austrian economy, furthermore underlined by the fact that they generate 64% of the total sales volume in the country, is thus undeniable. Despite this significant impact, a substantial turnover in the number of small and medium-sized businesses exists. According to the report by the European Commission, the population of SMEs is constantly changing, with many new businesses emerging every year and many enterprises ceasing to survive, especially when it comes to small and micro enterprises. This suggests that the market for SMEs is very volatile and extremely competitive, particularly for businesses counting less than 50 employees. Furthermore, it highlights the importance of an organization’s capability to continuously adjust to new and altering conditions. Those businesses that are willing to embrace change and see it as a necessity as well as an opportunity are the ones that manage to separate themselves from the
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