If you want to grow and discover different parts of yourself, then you have to step out of your comfort zone. Change is essential to move forward, sometimes change is inevitable. We aren’t the same person we were 10 years ago; we aren’t even the same person we were 1 year ago. Time and experiences change us, lessons we have learnt.
However, some change is not inevitable but measures need to be taken to have the change happen. This case is true for organisations and companies. If a company wants to be successful or keep being successful after time passes they are expected to change in some way. Change in a company isn’t always easy, especially if it’s a big organisation. They would have to deal with many different departments, stakeholders, and more. As difficult as it could be to change in a company, it is something that can’t be refused. There are businesses, such as BiZZdesign, that specialize in facilitating organizational change for companies.
If a company decides to ignore the need for change, consequences will follow. In this blog post, we will describe a few of those consequences.
Influence in the industry drops
Failure to adapt may result in a company losing influence within its sector, which can harm its reputation among customers and clients as well as among rivals and affiliated businesses. Loss of influence over time may result in a decrease in income and may make it more difficult for the company to recruit top employees and get finance.
Let’s check an example
A well-known vegetarian food manufacturer built its reputation on the back of its soy-based meat substitutes. The company’s founders were pleased with the company’s accomplishments and did not see a need to alter the formulae or broaden the selection of products. However, as time went on, the company’s rivals made research and development investments, producing tastier, more adaptable goods manufactured from non-soy protein sources.
The food firm started to be referred to as an industry dinosaur by rivals and customers alike, and the company’s management and goods were publicly mocked. The business ran into financial difficulties as sales dropped, especially after a major storm wrecked its buildings. It looked for more money but discovered that despite its solid reputation, no lenders or investors were willing to help.
Ownership of the company at last understood that fresh talent was required to turn things around. Unfortunately, it was unable to match the competitive high pay packages. Even worse, skilled professionals in the field expressed indifference in working for an organisation that was seen as being out of date. Potential hires expressly expressed when a headhunter approached them that they were concerned that joining this heritage firm may damage their professional reputations.
The morale of employees starts diminishing
Low employee morale may have a substantial impact on the overall performance and lead some employees to look for employment elsewhere. Stagnant companies can be a major contributor to this problem. Many workers want to grow their skill sets, but they may not be able to do so in a workplace that is resistant to change.
Let’s check an example
An employee with a reputable firm had an excellent performance history and ratings. The business had trouble building a presence online and had little luck using its website to sell things directly to customers. The worker informed management on several occasions that many firms had achieved substantial success in selling via third-party merchant systems, including the one offered by Amazon.
Even though firm leadership bemoaned its lack of online sales, the employee made repeated efforts to convince management to at least explore selling on the third-party website. Eventually, the employee quit the firm out of dissatisfaction and took a lower-paying position with a startup that was keen to sell its goods on third-party merchant websites. The disgruntled worker quadrupled his new employer’s revenues in a year, making the startup a significant threat to the business he had previously worked for.
Gradual inanity of products
Every product or service was once novel, but things like technology, trends, and customer tastes keep changing. Failure to follow up with trends and technical advancements might result in a firm generating items that are no longer wanted or needed.
Let’s check an example
In the closing decades of the twentieth century, the demand for videotapes of movies and television series was at an all-time high. Selling video players, recording devices, and films itself was a lucrative business for many organisations. Other companies were focused on renting videos. However, DVDs and online streaming video eventually gained accepted in the business. Businesses like Blockbuster suffered huge losses or went out of business because they failed to foresee or respond to these developments.
No advancement in technology means inefficiency of the work process
When they initially start operating, a lot of businesses are undercapitalised. It’s common for a start-up to create procedures that reflect the need to reduce costs while maintaining operations. But as time goes on, emerging technology and business norms may provide companies — even those with lean operations — better, more affordable alternatives than those they are now using.
The justifications for a corporation continuing to use wasteful methods might be complicated. The management of a corporation could sometimes distance itself from the sector and be unaware of all the choices. Another, trickier situation is when a long-term employee performs a crucial task for the company but is concerned about becoming obsolete. As a consequence, the employee can reject new technologies and even thwart attempts to alter established procedures.
Let’s check an example
An experienced book-keeper is hired by a startup business to handle its finances. The book-keeper decides to utilise a simple spreadsheet application to manage the business’s finances and issues paychecks internally. The book-keeper continues to do the same, unchanging duties, using the same spreadsheet, and managing all payments to workers, including wages and costs, while the business expands and its revenues rise.
The firm thinks about buying new accounting software and outsourcing payroll administration after many years in operation. The software packages scare the book-keeper, who starts to believe that switching to new software and outsourcing payroll would lead to his or her dismissal.
The employee, as a consequence, rejects every software package being considered and shows mistrust for every payroll provider the business is considering. Management is reluctant to offend a key worker who put in a lot of effort to bring the firm where it is. Employees are grumbling about the length of time it takes to get reimbursement for travel expenditures, and the books are a complete mess.
Some additional consequences to know about
Risks of delays in projects and budget overruns
Your software deployment runs the danger of slowing or failing completely if the change process is neglected. Additionally, low acceptance and involvement might result in budget overruns, difficulty with the project, and missed deadlines. Costs increase and buy-in decreases when opposition is significant and more instruction or time is required for adoption.
Drop in the overall productivity
People experience the effects of a shift physically if a change management approach is not used to support it. Customers and suppliers may suffer if productivity and efficiency drop. As resentment, change weariness, and uncertainty about the new project build, valued workers may depart.
Difficult to shrug of failure legacy
Nobody wants their project to fail, yet statistics show that every year, close to 70% of IT initiatives are unsuccessful. A failure like that might have a significant effect on a company. A project’s legacy may affect a company’s morale and the momentum and feasibility of subsequent ventures. Depending on the severity of the failure, it may take years to shake these repercussions and rewrite the failure narrative, which may have an impact on an organisation’s culture, everyday health, and even viability.
Failure to capitalise on the new opportunities
When your investment is not maximised, your business misses the chance to compete at its best. The intended results of a project are never attained. Efficiency improvements, revenue growth, cost savings, compliance goals, and market share gains are not achieved. One factor is necessary for all of these results: significant user uptake.
For a company that has poured large funds and crafted future plans for their employee management program, their repercussions may be agonising. However, by implementing change management the right way, tackles the friction associated with a new software rollout or update, and the business may avoid most of these damages.