6.1: The concept of business change

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Change: An alteration in the internal or external environment

Business Change: The adoption of a new idea or behaviour by a business

Proactive: Initiate Change

Reactive: To wait for change

Skills in managing change

Communication: Managers must communicate with stakeholders the need and progress of change. Without clear communication, there could be resistance to change.

Delegation: Managers can't oversee all aspects of a change, passing authority for specific tasks or appointing a change agent will allow managers to focus on other tasks whilst the change is managed effectively

Planning: Chance can be long-term or short-term and so managers must develop a 'plan of action' for dealing with change

Leading: Leading involves influencing others to achieve objectives. Managers must influence staff to accept any change and work towards implementing change

Decision-Making: During a change process a manager must be able to select the best course of action, from a range of options which, allow the change process to be completed effectively

Interpersonal: Change can have a negative impact. Managers need to relate and empathise with any employee and stakeholder impacted by change

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Efficiency: How well a business uses resources to achieve objectives.

Effectiveness: The degree to which a business has achieved its objectives

Key performance indicators: Specific criteria used to measure the efficiency and effectiveness of the business's performance

Key Performance Indicators

Percentage of market share : The business's share of the total industry sale for a particular good or service, expressed as a percentage

Net Profit: What remains when expenses are deducted from revenue earned

Productivity: A measure of performance that indicates how many inputs(resources) it takes to produce an output

Rate of productivity growth: The change in productivity in one year compared to the last

Number of sales : A measure of the number of goods or services sold

Rate of staff absenteeism : The number of workers who neglect to turn up for work, when they are scheduled to

Staff turnover : The number of staff leaving the business

Level of wastage : The amount of waste created by the production process

Customer complaints : Indication of whether or not customers are satisfied with the performance of the business

Number of workplace accidents : How safe the workplace is for employees

Benchmarking : A business measures its performance agents that of other leading businesses known for their excellence.

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Force Field Analysis : Outlines the process of determining which forces drive and which resist a proposed change

Driving forces : Forces that support a change

Restraining forces : Forces that work against a change

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Internal Environment : Factors inside the business

External Environment : Includes those things over which the business has little control.

Operating Environment: Outside factors which with which business directly interacts in the course of conducting its business

Macro Environment : Broad factors in the economy and society within which the business operates

Driving forces for change in a business

Managers: