Understanding Change

Planning for the future always involves change — and managing change well protects relationships and business performance. Handled poorly, change can harm relationships and hurt current and future performance. Four steps help change succeed.

  1. Pressure for change — recognise that the current situation needs to change, with commitment and ongoing motivation from the key people. Without a driving force, change stalls. 

  2. A clear shared goal — involve the people who will be affected, and develop a shared goal for the business and for each individual. Change is a major cause of stress — it is the fear of the unknown that raises stress levels — and a clear goal focus reduces stress and builds motivation.

  3. Capacity for change — the resources to develop and implement the plan: human resources (skills, information, creativity, ideas and instincts) and enough financial resources. A 'fresh pair of eyes' from outside — an accountant, consultant, solicitor or financial planner — adds capacity (see Getting Help with Planning)

  4. Implementing change — with the first three steps in place, document and implement the decisions. Keep up momentum with a plan-do-check-act approach, monitor data to make sure the change is working, and keep everyone informed of progress. 

Watch out

If any of the four — pressure, a shared goal, capacity, or disciplined implementation — is missing, change is likely to stall. Check all four are in place before starting.

Common questions

Why is managing change important when planning ahead?

Handled poorly, change can damage relationships and hurt performance. Handled well, it delivers the plan for the future. 

What are the four steps to implement change?

Pressure for change, a clear shared goal, the capacity (people and money) to do it, and disciplined implementation using a plan-do-check-act approach. 

How can the stress of change be reduced?

By involving the people affected and keeping a clear, shared goal focus, which counters the fear of the unknown that drives change-related stress.