Change Management - an essential core competence

In yesterdays lecture we heard a lot about change and what it needs to make change happen. That was actually very interesting for me as my bachelor thesis was about the Change- and Project Management for an IT-system at a global German automobile manufacturer (I think I mentioned that earlier) and it was even more funny that Gustaf said “don’t do it like the Germans – Warum einfach machen, wenn es auch kompliziert geht”. I had the same impression. The system was too complicated and especially developed for the company although standard solutions were offered. But the bigger problem was that for the launch of the system no Change Management was done at all. Already in 1958 Kurt Lewin defined the three steps model for change with the steps:

Unfreeze – Transition – Refreeze

Until today almost all models of change are based on Lewins’, even the one presented by Frederik had similar steps. But to walk successfully through all these steps Chang Management is essential. That is the main reason why consultant companies nowadays are that successful. They work as change agents. They are expensive and they bring experience into the company, so no one doubts their changes. Big organizations suffer from the potential to change. That is why often major changes are only achieved by major changes in the company’s direction.

The most recent example is the web site of the “Wall street Journal”. For years www.wsj.com was a charged service and its layout 10 years behind the trend. Until today! The new owner Rupert Murdoch’s goal was to exceed the “New York Times” in the web. And today the WSJ facelift was presented to public. The layout is still kind of conservative, probably not to displease the habits of the readers. Innovative are the self disappearing banner ad, the quick links and the community integration.

As change takes place everyday any organization needs to be able to change. As Gustaf said, “nothing is worse, than a fat company not willing to change”. And for me the experience at the German car company was disappointing and demotivating. If the management is not willing to change, the staff will never be.

Future competitive advantage will be based on the ability to change.

Schinne