Change Management: 8 Reasons Why It’s Important

The role of change management in modern organizations is becoming increasingly important. Unlike project management, change management focuses on the ‘people side’ of change, while project management focuses on delivering the ‘product side’ of change. Project management implements technologies and systems within organizations. Change management makes sure employees make use of these technologies.

There are several reasons why change management is important:


  1. External factors

Organizational change is heavily influenced by external factors. Due to globalization and the rapid development of new digital solutions, organizations are forced to respond. You may end up jeopardizing your organization’s success if you ignore such external factors.

Until a few years ago, Nokia was the biggest mobile phone company in the world. That’s because it wasn’t able to keep up with developments in mobile technology. Nokia has suffered from declining market share as a result of its products being unappealing to consumers.


  1. Making ideas succeed

To enable ideas to succeed, many organizations use change management methods. Change agents, change managers, and project managers work together to ensure that new capabilities are fully utilized by staff.


  1. Enabling cross-functional changes

In a modern organization, almost every functional unit relies on change management to:

  • Ensure the change plan is aligned with the business’s overall strategy;
  • Improve the quality of services and requests both internally and externally;
  • Resolve issues as they arise.


  1. Getting people involved in the change management process

Engaging those affected by a change initiative is a crucial part of managing change in an organization. A change plan must be communicated and engaged with the staff early to lay the groundwork for success later on.


  1. Transitioning an organization

To make organizational change easier, change managers are often appointed. These managers use change management models to implement changes such as:

  • Roles are being restructured;
  • Streamlining business processes;
  • Introducing new technologies.


  1. Reducing resistance to a change initiative

A change initiative is bound to face resistance since people often find it unsettling to be asked to do things differently. As a result, change managers should expect their staff to respond in denial.

Overcoming those reactions takes time. The more transparent change managers are from the beginning, the less resistance they are likely to face.


  1. Increasing productivity and performance

Productivity tends to increase when an organization adapts improved ways of working. This also encourages innovation. This leads to improved performance and a healthier working environment, making an organization more successful.


  1. Reducing costs

The correct application of positive change reduces waste and therefore costs. Successful change management allows organizations to make informed decisions. Productivity is increased, risks are reduced, and profitability is improved.




Securities offered through Securities America, Inc., member FINRA (, a separate entity. Lee Michael Murphy is licensed with the California Department of Insurance, License 0H18660. Lee Michael Murphy is an Investment Advisor Representative with Securities America Advisors, a registered investment advisor The Free Retiree, Securities America Advisors, and Securities America Incorporated are separate entities. Career advisor Sergio Patterson, attorney Matt McElroy are not affiliated with Securities America Advisors or Securities America Incorporated. Securities America Advisors, Securities America Incorporated, and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation.

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