Sunday, May 21, 2023

What is the Difference Between Organizations/Institutions That Navigate Change Well and Those that Don't?

What  makes one organization or institution willing to change to meet new demands and other organizations won't change until there are serious market/public losses. Successful organizations typically comes down to adaptability but one must wonder what are the differences between those who adapt well to change and those that don't.  

The first point to consider is Albert Einstein's Quote , "Today’s problems cannot be solved with the same level of thinking that created them.”

People change and organizations change to meet new demands. Let us look at quality of leadership, customers focus, environmental pressure and resources. 

1. Quality of Leadership: If the leadership doesn't recognize the change and doesn't have the foresight to change, they will avoid making decisions in the long run and instead focus on short term gains more exclusively. In other words, they are task oriented with limited focus but don't solve the essential problem.

2. Customer Focus: If one has a specific customer in mind they will not change as long as that is their primary customer. Sometimes organizations are not aware their customer are different and they will begin to loose customers. If they are an institution they will have lower trust levels.

3. Environmental Pressure: Environmental pressure can force organizations to change or eventually move into misalignment where decline increases. Analyzing the long term strategy and mission are helpful.

4. Resources: A business or institution may not have the resources to change. In this case they have to borrow, sell, or do other things that put resources when they are needed. Sometimes they wait for a major calamity, competition or bankruptcy to change.

Whether we are talking about business or government institutions there are times when change will put them ahead of the curve or they may wait until after the curve. After the curve, thinking becomes more reactive and often leads to wholesale organizational disruption. Pre curve change have some risks but the rewards are high. The biggest point to be made here is that leadership quality, customer focus, environmental pressure, and available resources determine whether an organization can recognize the need for change and make that change happen. 

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