In this paper, different approaches implemented for effective change and business planning were introduced. Each method reflects special techniques to introduces changes, effectively influence people, and provide a good ground for further innovations (Unit 3. Power and influence in organizational change). Covering specifications associated with personal and professional skills, given units highlight the importance of understanding each method in detail ( Unit 1. Change management and change agents). The presented techniques could be applied individually as well as in combination with other methods. In this paper, I will consider two approaches that are directed to create change and innovation in the business organizational environment. The eight-stage process for creating major change and Kahneman’s System 1 would be evaluated. Moreover, I will propose possible improvements in the provided method to make methods more productive.
The eight-step approach was introduced by John Kotler, highlighting critical steps necessary for effective change. The first step that is required for this procedure is to establish a sense of urgency ( Unit 1. Change management and change agents). During this process, it is needed to examine the competitive realities of the market and identify the demand for the product. This allows predicting future crises and major opportunities that influence business. The second step in this system is to create the guiding coalition ( Unit 1. Change management and change agents). The group of experts known as the guiding coalition will regulate and lead the business process( Unit 1. Change management and change agents). At this point, it is crucial to select people with enough power and administrative skills to lead the company. Developing a vision and strategy is the following step in effective modeling change. This step is extremely important, as it designs the organization’s view toward the problem that navigates employees’ efforts. Additionally, the vision is required to develop strategies based on this vision.
The fourth step is to communicate the changed vision for consistent performance. Here, it is needed to highlight that effective communication between workers is a key principle of change policy. All organization departments should be constantly updated regarding the new vision and strategies ( Unit 1. Change management and change agents). Moreover, organizations should develop a vehicle that will distribute information. The next step required is empowering broad-based action ( Unit 1. Change management and change agents). In this stage, organizations could eliminate obstacles, modify the system or structure that undermines vision, and review risky and non-traditional ideas, activities, and actions. In the sixth step of the change implementation, organizations should generate short-term wins ( Unit 1. Change management and change agents). This refers to the possibility to improve performance by planning “wins.” In addition, this stage requires encouraging and rewarding people for their achievements in creating and providing “wins.”
The seventh step requires consolidating gains and producing more change for the organization. This stage does not significantly affect the vision and strategy implemented to introduce the change; however, operational processes such as hiring, promotion, and employee development are covered. The last step in creating the change is to anchor new approaches in the culture ( Unit 1. Change management and change agents). In this final step, creating productivity- and customer-orientated environment is required based on new, more effective management. Here, it is possible to maintain the balance between a new behavioral approach and organizational success.
The provided change strategy is a complex representation required for successful development. Nevertheless, the plan is not perfect and requires some modifications. In my view, the process should be more client-orientated, so this area needs more profound and careful investigation. Furthermore, the implementation of the new approach should be discussed and approved by the central working units of the organization. The training and resources for employees to understand the system and the company’s vision should always be available.
Another method covered in the given units is Kahneman’s System 1 and System 2 theory. In his book Thinking Fast and Slow, Daniel Kahneman represents the theory that includes two systems: System 1, which is the intuitive, automatic mind, and System 2, which is our conscious, controlled, and analytical mind (Unit 2. Theories of human behavior). The idea behind this distribution is that one system creates impression and idea, and the second directs the power and resources for its realization (Unit 2. Theories of human behavior). System 1 includes “cognitive ease” that operates automatically without any effort. The main characteristic of this system is that it applies skilled response and generates skilled intuitions; infers cause and invents intentions; exaggerates emotional consistency; facilitates strong response to losses than to gains and is biased to be confirmed.
On the other hand, System 2 is a critical approach to System 1’s assumptions. In this system, ideas go through careful analysis and investigation. All actions, hypotheses, and other products of System 1 are consistently analyzed (Unit 2. Theories of human behavior). This system represents significant importance for change implementation, as it provides the final verdict regarding the idea and other applications. Moreover, it filters unrealistic and unreliable material from the previous system generating a sustainable result. Here, personal objections and prejudices are eliminated, allowing one to observe a comprehensive vision of the idea or method.
Identifying the change agent, it is critical to understand the basic needs needed to be satisfied. Moreover, it is important to produce ideas and methods that are not influenced by personal emotions, feelings, and other psychological factors. Kahneman’s System 1 and 2 is an efficient tool that allows diminishing unnecessary or biased ideas relying on the objectivity of the issue (Unit 2. Theories of human behavior). This structure avoids the irrational and defensive responses of the change agents that delay the progress. Moreover, it includes critical analysis that increases self-awareness and understanding of personal abilities and skills. The cooperation of the two systems is the factor that indicates the reliability of the strategy without any interruption.
The contribution of these factors to change management is highlighted by various means.
System 1 and 2 is a good filter for approaching and scheming ideas; however, it presents an only limited range of possibilities (Unit 3. Power and influence in organizational change). The first obstacle related to this change management method relies on the limited scope of information. Moreover, the change implementation could be a comprehensive process requiring more intellectual and practical effort than brainstorming and idea production (Unit 3. Power and influence in organizational change). This method reflects only the initial stages of the change development recognizing the ideas behind this trade. Comparing two ways, the eight-step approach is more practical, as it covers more steps and approaches related to the change policy.
Anon, Unit 1. Change management and change agents.
Anon, Unit 2. Theories of human behavior.
Anon, Unit 3. Power and influence in organizational change.