Change Management – the precursor to innovation

This blog is 1 of 6 in this series of blogs that focuses on developing a change management strategy to help your organisation transition to an Enterprise 2.0 model of operation.

1. INTRODUCTION

In the following blog I will briefly discuss the importance of change management in transitioning from an Enterprise 1.0 model of operation to Enterprise 2.0 model. Supporting evidence is provided to show that change management is critical in incorporating innovative ideas into the organisation.

If you are working as an Enterprise 2.0 consultant i.e. you are trying to implement an Enterprise 2.0 framework within an Enterprise 1.0 organisation you will quickly realise that the social and political obstacles of the organisation are not easy things to overcome. An Enterprise 1.5  world, is one where great ideas are being produced, however, very few of these ideas are being incorporated into the organisations business processes.

COLLABORATION PRODUCES GREAT IDEAS AND SOLUTION SETS, HOWEVER, IT IS NOT INNOVATION UNTIL THAT IDEA IS BEING USED IN A PERVASIVE WAY.

As figure 1.0 suggests below, the change process is the ‘middle agent’ between collaboration and innovation.

Figure 1.0 – Change Management as a precursor to innovation. This diagram models how social media tools are used to produce innovation for the organisation.

2.0 WHY IS CHANGE MANAGEMENT IMPORTANT?

Change initiatives generally fail..

“Of 100 companies that attempted to make fundamental changes in the way they did business only a few were successful. Critical initiatives crucial to the organisational success, failed 70% of the time” (Kotter, 1995).

Major investments in technology were not used effectively and were abandoned within six months 80% of the time (Gartner Group in Miller, 2002, p360).

Corporate Engineers report that the success rate for Fortune 1000 companies is below 50%, possibly as low as 20% (Strebel, 1996).

Why do change programs fail?

Figure 2.0 – This figure shows that the reason for change programs not succeeding can be wide and varied within an organisation. It is necessary that the Enterprise 2.0 consultant be able to identify the barriers to social media adoption, and develop the appropriate targeted change management plan.

Companies that have effective change management programs

Figure 3.0 – shows that companies that have formal change management programs have higher growth across a number of dimensions.

This blog has briefly introduced the concept of change management, and why change management is important in transitioning an organisation to a new organisational state. In my next blog on change management I will introduce the role of the change manager.

Please feel free to make comments adding your snippets of wisdom to this blog.

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About whellmuth

Working with the education software industry to build software with standard arhitectures that allows schools to have extensible and well integrated technologies. Member of Software QLD. Member of Microsoft advisory board on cloud computing. My doctorate specialises in Software Architecture in the Education environment. My Master Research specialised in IT change management.
This entry was posted in Change Management, Enterprise 2.0, Strategic Planning. Bookmark the permalink.

One Response to Change Management – the precursor to innovation

  1. Theron says:

    continuously i used to read smaller articles that also clear their motive, and
    that is also happening with this post which I am reading here.

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