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Supply Chain

Understanding the Importance of Change Management

August 3, 2016


In today’s fast-paced business world, being able to adapt to change is a quality any successful organization needs. Within the supply chain industry, conditions and requirements are always changing. As a result, to be successful you must be adaptable. For this reason, change management is an important concept to understand and implement in your organization.

What is Change Management?

Change management is a process that helps ease any organizational transitions. More specifically, it aids on the people side of change. In essence, it helps “employees to understand, commit to, accept, and embrace changes in their current business environment.”

Why is Change Management Important?

Change can occur in an organization in many ways – strategic, leadership, or technological changes. In recent years, companies are seeing change management play an important role during the implementation of new technology. Many people fear that as technology develops, it will take over the workplace. This often causes resistance to change in firms looking to implement new technology. By helping employees better understand change, you create a workplace that is more open-minded and open to change. Change management can help ease this tension and create a smooth process.

Change management is a formal way of communicating with employees. It tells them why change is happening, what it will look like for them, and how it will ultimately benefit them in the end. Keeping employees informed from the start helps smooth the transition and shorten the time. Also, if employees are more open to change, they will be more engaged in the process of making it happen. When employees are more engaged, the transition can happen more quickly and ultimately save your organization time and resources.

By opening this line of communication in your organization, you set a standard. Over time this will increase the trust your employees have in the firm and the decisions top management is making. Ultimately, people fear the unknown. Having a strategy in place can help to lessen if not eliminate that fear. Setting a standard for change early on and maintaining consistency can help create a more adaptable and innovative workplace.

What’s next?

Change management plays an important role in successful organizational transitions. However, many companies find that implementing the right strategy can be challenging. Next, part two of this series will address “How to Implement Change Management in Your Supply Chain.” We will discuss best practices when implementing change management and what has worked for firms in the past. Stay tuned to our Twitter and blog page for more information!


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