How to Recognize When Change Is Necessary

Last week we introduced a weekly series on Change Management and took a look at its history. But how do you know when these changes are necessary?

Every organization needs to give itself a checkup once or twice a year. To thrive, it must be healthy and balanced. As you assess your business, it’s important to begin with a broad view of what’s happening and where change might be needed. You’ll narrow the path as you find problem areas, but don’t rule anything out right away. It’s imperative that organizations be aware of the first signs of trouble so that they can make changes proactively, before it’s too late.

As you give your business its annual or bi-annual checkup, there are some areas you’ll want to look at:

      Financial Health

      Is the organization making a profit?

      Has the profit decreased over the past few years?

      If there has been a decrease in profit, what is the cause?  Higher costs?  Lower sales?

      The Industry as a Whole - Look at available market research to identify any new trends or changes that you need to address.

      Competitors’ Practices - Have your competitors made any changes that may have affected your profits?

You also need to make sure you choose a well-qualified “doctor” to perform this checkup. It may not necessarily be the business owner - perhaps it’s a knowledgeable employee or an outside consultant who can come in with a fresh perspective.

Keep in mind, there doesn’t necessarily need to be a problem area to stimulate the change process. A Maryville University infographic also suggests some other reasons change may be needed. Examples include:

      Wanting to globalize the company’s reach

      Needing to change or improve current operations

      Needing to adopt better technologies or techniques

      Updating organizational structure, processes, and practices

      Increasing the knowledge and skills of your staff

      Improving policies or changing them to comply with new regulations and laws


Successful companies aren’t necessarily perfect,
but they do the important things well.
Are there important areas
where change is needed in your organization?