Change equals profit

Change is the only way to improve profitability in business!

In business we have never seen an environment where the rate of change and the need to change has been so great and experts predict that this rate of change will increase significantly over the next five to ten years. With this in mind, my phil-osophy is “there are two types of businesses, those that change and those that disappear.”

I strongly believe that many companies struggle with their financial performance simply because they stopped adapting and changing in response to both the internal and external environments in which they operate.

The key drivers for change are factors such as digital disruption, mature markets, increased level of competition, margin squeeze and the changing needs and pressures of your key customers.

Owners and leaders must know how to manage change if they are to guarantee current and future success. To assist business owners and leaders, I have identified what I call the secrets to successful change management;

Secret number 1- Leadership - Leaders must create a high level of dissatisfaction and provide the motivation within the organization to make change. To do this owners and leaders must clearly identify the benefits the changes will make, and be responsible for driving the change.

Secret number 2 - Involve your people – Long term success will be determined by continual change and for this to occur you must build a change culture within the organization where change becomes the norm, it is the way you do business and becomes a core value. When this happens you have a change management culture which becomes very powerful. To build this culture requires engagement with your people so they have ownership of the process and its outcomes.

Secret number 3 - Vision – The business must have a clear vision on how it will work or look after the changes. You need to clarity what you are changing to.

Secret number 4 - Change success model – Is the organization ready and able to make the changes necessary? Change success is a formula made up of the organizations readiness, its capability and its beliefs. Very early in any significant change process, this needs to be evaluated and strategies put in place to ensure barriers to change are addressed.

Secret number 5 - Identify the changes required – Use a tool such as a “magic wand approach” to identify the most important things that need to change. Select the top three and simply start with the number one priority. If you are not sure where to start ask your people, as often they know what needs to change and how to do it.

Secret number 6 - Adopt a proven process – A business must adopt a process that if followed will work and produce desired changes, and if you don't know how, seek advice. There are only two ways a proven process will fail, that is to NOT START or STOP.

Secret number 7 - Develop a plan – A key part of the process must be to develop a plan which includes where you are at now (things that need to change), where you want to be (what you need to change to), the gaps and the strategies and actions on how to bridge the gaps.

Secret number 8 - Embed changes – When you have fixed the gaps in your business, significant changes would have been made, and these changes must be embedded into the way the business now operates or the business will slip back into the way it used to do things. This is done by writing new, or making changes to existing procedures and fully implementing, followed by continual monitoring.

Secret number 9 - Repeat the process – When the process has been completed, start again as this is how you build your change management culture.

A company must develop a process that works for them to make continual changes in the business. A business will not improve its performance and profitability without making changes and often significant changes.

Do you need to make significant changes in your business? Do you believe you can successfully make the changes necessary?

If you are having problems and would like to be shown a simple and proven change management process, please contact us for a no obligation meeting where we can show you how to build a continual change culture in your business and the associated benefits.

 

Simply Business Australia

Philip Coombs “The Profit Coach”

0419 834 678

phil@sbasuccess.com.au

www.sbasuccess.com.au