Recent times have seen the world in constant disruption forcing people and organizations to adapt to change. The rise of the internet, social media, world policies on trade and governance and the recent Covid-19 pandemic has seen organizations bracing themselves for uncertainties. Most organizations have set up independent teams to research and assess the impact of changes occurring in society to advise the organization on the best steps to take in preparation for these changes. Below are reasons why organizations need to pay attention to change.
1. Maintain market relevance
Case studies have proven that risk-averse organizations that were reluctant to take up change ended up extinct or taken over by proactive enterprises. Kodak was once a market giant in the video and film industry. Its failure to analyze the impact of cell phones on the sale of their cameras and reluctance in upgrading their equipment led to their final fall off from the market. When disruptions occur, the size of an organization does not matter. The ability of the organization to transform the changes to its advantage determines whether it survives for the next economic phase.
2. Retain customers
Modern-day consumers are highly informed and have choices. Customer retention requires constant research on the changing needs of customers. Organizations that fail to understand their customers’ needs are sooner or later driven out of the market. Yahoo failed to identify the need for user-friendly interfaces when on the web and the importance of fast loading speed when on the internet. It was overtaken by google which developed better landing pages and whose servers were easily accessible. This saw Yahoo eventually being bought out.
3. Increase efficiency
Organizations should take advantage of change to revolutionize their processes. When changes are incorporated, better ways of handling operations are designed which results in more efficient processes and better quality products. Innovations enable organizations to protect and retain their market segments. Companies such as Tesla are making use of changing technologies to design hybrid electric vehicles which are slowly gaining popularity in the market. Their proactiveness in incorporating technology has seen their market presence rise within a few years.
4. Improve employee retention morale
Employees are the greatest assets of an organization. Employee retention ensures business continuity as organizations will focus more on developing better products as opposed to training new employees. Organizations that embrace change give their employees a sense of security as they know their jobs are protected.
5. Acquire market leadership
Organizations that continuously develop their products and services to meet changing world trends become pacesetters in their industry. They will always be the first to make adjustments making other companies follow in their footsteps. This has the overall effect of making them dominant in their sectors.
Change is an inevitable event for every organization and the only way any organization will survive is by incorporating it into its systems.