Analysis: Main Forces Driving Changes

Changes are something that is constant for each company regardless of their industry.

Organizational changes do not appear from themselves. For any process of performing something, there is a reason, and the process is the result of that reason. If the reason does not exist for the process or the action, then logically there will not be the need for that process or action. Because of the continuity of these types of actions in the business life cycle, there will always be reasons for these actions. These forces (reasons) are called sources of organizational changes. However, what is the most important forces of changes that are in the central focus for senior managers?

As we know companies are surrounded by two types of change forces: external and internal forces. The results from the research refer to external change forces.

According to a survey conducted by the EIU (Economist Intelligence Unit) sponsored by Celerant Consulting conducted in November 2010 through a survey of 288 executives from North America, Western Europe, and Latin America, the focus of change management has shifted.

Similarly, organisations are increasingly devoting their attention to the sales and marketing functions. This further refl ects the shift in emphasis towards growth and the future and away from cost cutting. Apparently, executives are leaving the preoccupations of surviving the downturn behind.

This means that if the greatest attention until now has been on cutting costs, the changes now have the large focus on sales and marketing functions that allow companies to increase market share and to be more focused on the future of the business.

As you can see the main forces driving changes into the companies are:

  • competitive and cost environment,
  • customer demand,
  • the desire to increase market share and
  • reducing complexity within the company.

Logical results because competition and costs are something that always has a big impact on business processes. On the other side, today’s markets consist with the customers with the constantly changing demand that always will need some alignment within the company.

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan