Due to limited resources and the work environment in Small and Medium-sized Enterprises (SMEs), the nature of change management there is relatively different compared to larger organizations. Based on the nature of the challenges faced by the SMEs, they can adopt various change management strategies.
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Introduction
As the famous saying goes, “Change is the only constant”, it is important to remember that businesses are a part of a dynamic system. For small and medium-sized enterprises, navigating through changes in technologies, market structures and customer demands, determines their chances of survival in the business market and the scope of their growth. However, managing change in SMEs is often challenging and certain strategies can be adopted for better change management.
Why is change management important in SMEs?
Irrespective of what kind of change SMEs face, there are quite a few reasons why managing those changes is vital.
- SMEs that efficiently adapt to changes and adjust themselves according to the changing market demands can embrace newer opportunities, faster than larger companies.
- The greater the flexibility of SMEs to successfully deal with changes, the greater their rate of sustainability because companies who resist change, risk stagnation.
- Effective change management ensures that all the employees of the SME are involved in the decision-making processes regarding the upcoming change, which in turn boosts their morale and productivity.
- Customer satisfaction and loyalty also depend on proper change management strategies as positive changes enhance client satisfaction whereas poorly implemented changes lead to customer dissatisfaction.
There are some basic challenges that SMEs face while implementing changes. These include constraints of resources in terms of both manpower and finances. It is often seen that not only the employees but also senior management resist changes due to fear of the unknown and constantly fluctuating market dynamics. However, by implementing strategies for change management, SMEs can overcome these challenges.
Strategies for better change management in SMEs
1. Definite goals – By setting up definite goals and having a clear vision of the future after adopting changes, SMEs should communicate transparently with their employees. This will help them understand the necessity of the particular change, making the whole team aim for that definite goal.
2. Involvement of employees – Seeking out the views and inputs of employees before implementing any change will not only enhance employee satisfaction and empower them to provide solutions but also reduce any kind of internal resistance to changes. Employee Assurance about the fact that they will not lose their jobs, will help in mitigating their fear of the unknown relating to adopting any new change.
3. Provide training – Any kind of training required for the implementation of a technical change should be provided by the company. This will ensure that the team has the required set of skills and manpower necessary for a successful implementation of that change.
4. Planning and monitoring change – Before adopting a certain change, SMEs should lay out a proper and thorough plan outlining various steps and timelines so that they can anticipate any future roadblocks and already have an estimated solution plan ready. Even after the implementation of changes, it is very important to regularly assess the progress of the plan.
5. Small Incremental Changes – Businesses need to prioritize their task according to the company’s need for change. They should understand which segment of theirs needs change implementation immediately. Constraints in finances can be mitigated by planning changes in small increments.
6. Feedback and Support for Change – Open feedback from stakeholders can provide valuable insight into the current changes implemented and show the areas where adjustments need to be made. SMEs should also be open to working with consultants who provide expertise in dealing with changes in such companies.
Conclusion
There’s a famous quote by Azim Premji that says “To remain in one place you still have to run”. Therefore, change is inevitable. Small and Medium-sized Enterprises can implement change, and not resist or ignore it, by proper planning and adopting the above-mentioned approach.
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