Life of an entrepreneur is full of challenges, and the biggest challenge is to address and adapt rapid changes. Over the past few years, business world has changed by leaps and bounds and it is changing even faster. This represents challenge for entrepreneurs across the globe to make the necessary amendments in the technology and business processes. But, why businesses need to adapt change? Or what can organizations do about this? This handy little piece of article will give you all the necessary information to change with the rapidly changing world.
Related :Top 10 Business Schools in India
Why Organizations need to Adapt Change?
To Retain the Competitive Edge
Stiffly competitive is the right word while describing the level of competition in the business world. Throat-cutting competition is no surprise for business owners. They are always busy in looking for new ways to stay competitive. Changing with the business world helps a business to survive and showcase the presence.
What makes the Fortune-500 companies stay ahead of the curve? Doubtlessly, their acceptance to change! Let’s clear it with a very simple example. Your favorite social media platform Facebook makes changes on regular intervals, why? Despite being one of the most visited websites, why Facebook brings something new for you on regular intervals? Now ask yourself, would you keep using “FB” for long if everything remained the same as it was 5 years ago? It’s the impact of change in business!
To Meet Customer Needs
Customers are switchy in nature. Yet another challenge for entrepreneurs, the constantly changing customer needs. Meeting the customer needs while adapting changes is one of the keys to success. This is how businesses retain their existing customers (and keep attracting new ones) for long.
When it comes to sportswear, Adidas is the first thing to come in mind of every individual. The largest manufacturer of sportswear in Europe, second largest in the world, Adidas has its own unique identity. Understanding the needs, changing accordingly and delivering quality, this is what Adidas does the best. Have you ever noticed the continuous changes Adidas has made in its product line?
Because Economy Matters
Ups and downs are common in economic conditions, and businesses must adapt change accordingly. Whether the economic conditions get better or poor, it affects the business of all types.
Better economic conditions increase the demand or products and services. Being a business owner, it is a never-miss opportunity and hence, you need to make changes.
On the other hand, poor economy is sure to send business owners into nail biting mode! Surviving in difficult economic conditions is tough. Well, check out the blog how businesses can survive in difficult economic conditions, it can help!
To Capitalize on Growth Opportunities
Missing an opportunity is a nightmare, not a mistake but a blunder in today’s time.
See what missing an opportunity can do.
Joe Green was the college roommate of Mark Zuckerberg at Harvard when he got proposal from Zuckerberg to help him start Facebook.
Green then got a red flag from his dad to start the project with Zuck, and Green got discouraged.
If Green would have taken this opportunity, he could have 5% stake valuing somewhere around $7 Billion! Isn’t it one of the biggest missed fish?
You can find hundreds of examples where people have resist change that has resulted in a missed opportunity.
“Opportunities are Never Missed ; They are Taken by Your Competitors”
To Improve and Succeed
Every small or big improvement is a step closer to success. Continuous improvements are necessary as it keeps you changing, innovating and moving in the right direction.
Domino’s, the renowned pizza restaurant chain is attracting customers to its establishment since 1960. What Domino’s has done to achieve the success, in every country and region?
This world leading pizza delivery company has prioritized menu innovation to increase awareness and interest across the globe. This is what I can continuous improvement!
These are the conscious efforts to understand the customer and improvise accordingly makes you stand out from the rest.
To Comply with Regulatory Environment
Apart from these important reasons to make change in business, regulatory environment also comes into play.
As a business owner, you must be completely aware of circumstance that can take place if you don’t comply. If there are certain amendments in the rules and regulations, you must follow.
If needed, you may have to make changes in your business process and procedures, regardless of industry type of business.
What can Slowdown the Business’s Response to Change?
Lack of Resources and Coordination
When it comes to rapid changes, you need your team to be an active participant to make things work. Lack of coworkers, proper finance and suitable machinery (technology) can prevent businesses to change. But, it is the responsibility of business owner to understand the resource requirement and implement changes.
In addition, coordination among the team members is a prime necessity. Increase the awareness and feed this in the minds of each member that they are working on a common goal.
Inaccurate or Incomplete Data
Embracing change is important, but it requires great deal of homework. Changes and improvements in business is not a task to accomplish overnight.
Completeness and accuracy of data plays a crucial role. For instance, product based companies can never make a change in their product quality on the go. Such changes, if gone wrong can lead to troublesome situations. Moreover, any lapse in quality control system can lead to loss of customers and more importantly, brand reputation.
Wrongful Decision Making
Entrepreneurial mindset is necessary when it comes to decision making. When do you need to make any change? What are the upcoming challenges after the changes are made? What are the pros and cons once changes are implemented? These are just a few of numerous questions that need to be taken into account prior changing anything.
Once you have collected the answers of all the questions, start the process of change slowly and gradually. Wrongful decisions at such a critical stage of business can make things even worse.
C-suit executives being Resistant to Change
It is a mere fact that, some businesses are reluctant to change.
They are happy with the way things are going. They follow the same outdated trend as they find it safe to work with.
But, change is a risk, and both the risk and change can work wonders for business. If you are not going with the latest ways to work, your processes are living in the past.
Simply, would accounting be more effective if you won’t have the right accounting software? Will you be able to keep track using paper-based processes? This is where the decisions of C-suite executives need to be accurate and helpful for the entire business.
Lack of Leadership and Innovative Capability
Innovation and leadership quality sits in the front row when making changes in business.
Entrepreneurs and managers who are responsible to make business future-ready must be innovative. They must involve themselves in proper research and never be afraid of adapting what helps the business in any way.
The best thing you can do in such situation is to lead by example.
Showcase effectively to your team about the changes and let them know how it will benefit them and the business.
Poor communication is one of the biggest barriers to change. Change and adaptation in any process, strategy or anything is never a small undertaking. You must have proper communication across the company to ensure that every one is well informed.
Most of the change related communication will start from the boardroom, but it must flow in a certain way. Any department or individual who is directly or indirectly connected to that change must be well informed.
Explain the role of individual employee about the change and adaptation. Communicate effectively and make sure it is not limited to a few emails. Find more ways to streamline communications and implement change properly.
Team Takes Time to Get the Grips
Not every team member comes with the same mind and learning capability. Even a minor change can affect the teams work and their roles and responsibility in the workplace. This is where team members can consume more than normal time to understand the change.
Some teams can be against the change as they are more comfortable working on the existing old process. To make this easy, read the above point again and communicate well! Highlight the benefits clearly and try to make it easy for the entire team.
“Change is Inevitable in Business”
What to Avoid while Adapting Change?
Knowing how to change is good, but knowing what not to change is also imperative. Here are few things that you need to avoid in your change management process.
Avoid Making Disconnected Changes
Not every change is for you and your business. It is better to understand the significance, benefits and drawbacks of what you are going to do.
To overcome such challenging situations, take some time for proper research and then make a decision. Don’t be in a rush to make the change!
Don’t Make Single C-suite Executive Responsible
Change is the responsibility of everyone! Especially the changes that are associated with processes and making a major impact on business, everyone must participate. Make people in the organization responsible and allow then to take the accountability.
Sometimes, businesses give the entire responsibility on shoulders of single individual or c-suit executive. This in turn, creates extra burden and the necessary changes many not be implemented properly.
Avoid Digitizing Prior Rethinking on Business Model
As new technology solutions are hitting the market almost every day, business need to adapt technology carefully.
Most of the technologies are expensive and not every technology is meant to be in your business.
Understand your business requirements and if needed, talk to your employees if they are facing any challenge.
More communication will help to make effective technological investments and get higher returns on investment. Technology or process must change; it must advance so that achieving the actual goal becomes easy.
What Businesses do to Adapt Change?
Help Employees to Come out of the Comfort Zone
Are your employees feeling more comfortable working with the old process? Or are they feeling uncomfortable to make the change?
Business owners have a very important role here and that is to take employees out of their comfort zone. Make them realize how important the change is for the betterment of business, create an environment that motivates them to change. Leading form the front is important to make your employees work for change.
What was the last technology solution you have implemented to streamline your business activity?
Does it come with an advance version?
Is there any better alternative that can save time and money?
Adapting technology as the trends change is very beneficial for business and its process. Keep looking for some of the best technology solutions that can make your business more and more effective.
It is one of the common factors among most successful organizations across the globe that they have made wise technology investments.
Increase the Pace
Businesses can’t work in a laid-back environment, pace is crucial.
Pick up the pace and understand how important it is to work effectively in such a fast paced world. Creating a work environment is all up to business owners and managers; they can create a fun-filled work environment. You can find more ways to increase collaboration and gain control over the business activities to increase productivity.
Stay Prepared for Uncertainties
Changes are always to favor your business, the only thing you need is to make right changes. If not, then changes can lead to unwanted situations.
But, true entrepreneurs always have a plan-B. Even if any unwanted situation takes place, they know how to overcome it and bounce back. Entrepreneurs know that not every situation is favorable or not everything will work as they want. Hence, they have an alternative to get the job done.
The Entrepreneurial Attitude
How do entrepreneurs behave when things go wrong? Or how do the business owners motivate their team and promote changes? They never let emotions affect their decisions.
Entrepreneurs are entrepreneurs because they have a completely different mindset and attitude. They have the capability to see the circumstances with a fresh pair of eyes.
Even if there is a need to take a risk, never be afraid of it. Be prepared and ensure that business doesn’t have to suffer any change.
Keep it Honest and Transparent
If you want to make a change, keep it simple. Even if it is hard to implement and use, don’t let this impression go to your employees.
Your employees will feel discouraged if they will see you lacking confidence in making the change.
Try to make crystal clear goals and ensure that every one is on the same page.
Welcome the Failure!
Accepting the failure and welcoming the failure are two completely different things.
When you accept the failure, you give up, you feel lost and you underestimate your own skills and experience.
But, when you welcome failure, you are confident enough to keep the learning and make improvements. This is the quality that every entrepreneur must possess.
Process Focused Changes
Process focused changes are necessary and business owners need to make sure that it does not affect the process.
Any change made must not affect the process and procedures a lot as it will not make sense. In such circumstances, team can take extra time to get used to and it will result in decreased productivity.
Don’t Complain, Find Solution!
One of the key ways to implement change is a better way is to neglect making complaints.
Entrepreneurs and leaders in such situations are supposed to find the best possible solutions. Don’t make any of your team member compliant about the way things are changing, it will affect others as well.
Understand the training requirements of each of your employee. Training needs differ; you need to make sure that people in your organization are well trained. Trained employees can provide training to others if needed.
Once your employees are well trained, they will take less time in adapting the change and start working effectively. If you are implementing a new technology, ensure that your employees have sufficient knowledge about how to use it.
Give responsibilities and track the results, it’s a much better way to make changes work.
As an entrepreneur, you must know which employees are having the capability to take additional responsibility. This is where you need to divide the tasks accordingly and keep tracking the job.
Hope these solutions to adapt the change will help you and your organization in many ways. Consider these essential points and make sure that you plan well before making the changes in your business. Also, pass it on to others who need this valuable information.
Related : Ebanking – Advantages and Disadvantages