Editorial | Apr 30,2021
Oct 30 , 2021
By Asegid Getachew
Organisations, like individuals, are not immune to change. External and internal factors such as obsolescence of existing technology, shift in consumer preference, and political and social demands may force them to embark on a different strategy.
The question, therefore, is not whether or not an organisation should change. This is inevitable.
But how should an organisation manage change?
Academic researchers and organisational practitioners have proposed some useful pointers. The most basic relates to the need for anticipating change and changing in the appropriate direction before it is too late. The other is understanding that successful change management requires top managers to pay due attention to the potential and real resistance from a number of stakeholders.
Organisations should have a certain level of foresight about the possible shift in technology related to their current business. Undertaking early investigation is crucial in this regard. The results of such an investigation might inform management when and how to change. Not acting at the right time might turn out to be deadly.
Firm-level cases of change management gone wrong due to failure to act on anticipated future technology are many. One of the most infamous is that of Kodak, founded in 1888 by George Eastman.
It is a company known for revolutionising the technology of photography and videography. Its inventions have made photographs a household item (the Kodak camera and the rolling film are typical examples) worldwide. The company was a leading player in its industry.
However, things started to change when it ignored the disruptive potential of digital photography, invented by an engineer working at the company. Other competitors were able to snatch its market share because they understood the potential of the new alternative. Kodak was finally forced to file bankruptcy in 2012. Saved by bankruptcy protection, it is now operating with a different core business.
“There are few corporate blunders as staggering as Kodak’s missed opportunities in digital photography, a technology that it invented," Chunka Mui, in his Forbes commentary headed “How Kodak Failed,” rightly opines. "This strategic failure was the direct cause of Kodak’s decades-long decline as digital photography destroyed its film-based business model.”
The other important issue related to change management is resistance from those who implement it and those affected by its ramifications. People who are wedded to the status quo do not want to see it change. They will do everything in their power to stop or avert a change that takes away the “as is”. Part of a manager's responsibility is to hammer on the change by bringing on board those who resist it.
The proverbial “boiling frog” is relevant here. If one puts a frog in a pot filled with boiling water, the frog immediately jumps out. But if one puts the frog in tepid water and raises the temperature gradually, the frog boils to death without even noticing it. The moral of the story: understand that change is a gradual process and be ready to deal with resistance systematically.
Mangers at the top may envision a change. But they can not expect others to buy into their idea of change and participate in its implementation immediately. Part of the change process should be to make sure that others understand the sacrifices it entails and the benefits that will eventually come.
Organisations exist in uncertain and unpredictable environments. Several incidents may push them to change. To keep at pace amid such turbulence, they should be anticipatory and proactive in their action. This requires managers to always be open to the possibility of change and commit the necessary resources before it is too late. What should come with this is the ability to effectively manage resistance from those who implement the change.
PUBLISHED ON
Oct 30,2021 [ VOL
22 , NO
1122]
Editorial | Apr 30,2021
Radar | Jul 13,2020
Viewpoints | Oct 19,2019
Commentaries | Sep 06,2020
Fineline | Feb 23,2019
View From Arada | Apr 02,2022
Radar | Jun 14,2020
Viewpoints | Jul 10,2020
Radar | May 27,2023
View From Arada | Nov 09,2019
Photo Gallery | 96853 Views | May 06,2019
Photo Gallery | 89073 Views | Apr 26,2019
My Opinion | 67205 Views | Aug 14,2021
Commentaries | 65772 Views | Oct 02,2021
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
Apr 20 , 2024
In a departure from its traditionally opaque practices, the National Bank of Ethiopia...
Apr 13 , 2024
In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...
Apr 6 , 2024
In a rather unsettling turn of events, the state-owned Commercial Bank of Ethiopia (C...
Mar 30 , 2024
Ethiopian authorities find themselves at a crossroads in the shadow of a global econo...
Apr 20 , 2024
Ethiopia's economic reform negotiations with the International Monetary Fund (IMF) are in their fourth round, taking place in Washington, D...
Apr 20 , 2024 . By BERSABEH GEBRE
An undercurrent of controversy surrounds the appointment of founding members of Amhara Bank after regulat...
An ambitious cooperative housing initiative designed to provide thousands with affordable homes is mired...
Apr 20 , 2024 . By AKSAH ITALO
Ethiopia's juice manufacturers confront formidable economic challenges following the reclassification of...