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Change

management

Adrian Hrehorowicz

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Before starting the transformation of an enterprise, it is worth getting acquainted with two basic theories of change management: hard (E) and soft (O). The hard theory is based on economic value and aims to quickly improve financial results thanks to deep restructuring. Here, change usually takes place through a top-down order from the supervisory board, the board or the owner. The soft theory, on the other hand, describes the approach to change aimed at changing the organizational culture based on trust and building a learning organization. The effects of applying this theory should be the employee's emotional involvement in the company and the process of change as well as the desire to improve one's qualifications.

 

During transformation - regardless of whether the hard, soft or mixed theory will be practiced - there are always aspects that require thought and planning. Particular attention is required: the purpose of transformation, the type of leadership in the organization, the orientation of the entire change process, the way the processes are implemented (agile, linear), motivational systems and the help of consultants in the whole process. Applying the "hard" theory, we are able through predetermined measures (eg: estimated duration of transformation, the right choice of team members for change ambassadors, commitment, effort) and analysis to verify whether the chosen transformation course is maintained. In the case of using the "soft" theory, our emotional intelligence plays a large role, including sensing the mood of employees, customers, and suppliers - but it must be remembered that these values are very difficult to measure and express numerically.

 

Hard and soft theories at first glance seem contradictory, but in enterprises, they are carried out simultaneously. And the greatest art in the change management process is the skillful use of both theories. In other words, the difficulty of managing change involves reconciling the worlds of numbers and emotions.

Enterprises running a business for many years can perceive a change in two ways - either as a great threat or as a great opportunity. As the old Chinese proverb says: "When the wind of change blows, some build walls, and others - windmills."

New business models and new competition

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