Understand the need for change
SPHERE
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A L I G N K E Y S TA K E H O L D E R S
E N G A G E O R G A N I Z AT I O N
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1 UNDERSTAND
ENLIST Enlist a core change team.
ENVISAGE Develop vision and strategy.
MOTIVATE Create a sense of urgency.
COMMUNICATE Communicate the vision.
ACT Take action.
CONSOLIDATE Consolidate gains.
Understand the need for change.
Understand the need for change through continuous environmental scanning and organizational diagnosis.
Anticipate change by keeping a vigilant external-focus. It’s better to be a driver of change than its victim.
The external environment is the constantly changing collection of forces outside the organization that influence business performance. These forces constrain the organization and define key business opportunities. The need for change usually originates in the external environment. Today, for example, there is a general recognition that increased competition and technological change are increasing the power of the customer. Customers now demand more for less. Leading organizations recognize this important environmental change and have adopted customer-focused business strategies. Promote a culture of awareness! All employees should scan continuously for market trends, competitor undertakings, technological innovations and other external factors to avoid the success syndrome and to encourage proactive change management. To identify the need for change and build an effective solution you must have a complete understanding of your organizational environment. Ask yourself, “What about our business is congruent with the demanding, changing external environment?” and “What is incongruent?” Organizations are complex systems, comprised of both informal and formal elements. Throughout this primer, we will refer to “the informal organization” and “the formal organization”. The informal organization refers to organizational values, attitudes and beliefs. The formal organization refers to organizational systems, structures and processes. You can’t change what you don’t understand.
Look to two important sources of information in developing an understanding of your formal and informal organization:
Data sources Examine available data in novel ways to develop novel insights.
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