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      HomeProductsCRM-LeadsThe Importance of Change of Management for Increasing Business Success!

      The Importance of Change of Management for Increasing Business Success!

      Change of management is an effort or approach that aims to prepare, equip, and support individuals, teams, or organizations through the application of tools, resources, and knowledge to realize change. Change here refers to moving a condition to a better condition efficiently and effectively to minimize the impact of the change process.

      In essence, change management is the process of using a management approach, specifically planning, organizing, implementing, and controlling, to effect change in a business. Change management is useful in creating business solutions that increase success in a more organized way by utilizing methods to manage the impact of change on those involved.


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        Change of Management Approach

        The presence of cultural differences in an organization will have an impact on the preparation of the right change plan. Companies can choose one of four change of management approaches rational-empirical, normative-reeducative, power-coercive, or environmental-adaptive approach. The following is an explanation of the four approaches:

        Rational-Empirical Approach

        The rational-empirical approach is based on the assumption that people’s behavior is predictable and they will prioritize their own interests. Understanding the behavior will give the change manager a useful strategy to move on.

        Some elements of this approach think that even logical targets of change are cloaked in myths, ignorance, and pseudo-truths. All change targets will follow their own heart if it tells them meaningfully, and they often don’t understand what’s best for them.

        They will change on their own as they receive more informative and effective communication and when there is an incentive for change that they judge to be more appropriate.

        Normative-Reeducative Approach

        This approach will concentrate on how the change manager can influence or behave in a certain way so that members of the manager can make changes. Basically, people will change if any company believes that change is in the best interest of the people.

        They will change on their own as they receive more informative and effective communication and when there is an incentive for change that they judge to be more appropriate.

        Also read: What is CRM Software? The Definition, Purposes, Features, and The Benefits for Your Business!

        Power-Coercive Approach

        This approach forces a change of management to act arbitrarily on some and naively on others and is often the standard form of change of management. The main premise of this approach is that those who are essentially obedient will do as their superiors tell them to with little or no encouragement.

        In this case, people persuade others to change through the use of authority, threats, or sanctions for poor performance. Usually many know it as an approach to oppressive power. This strategy carries significant risks, but the potential rewards are enormous.

        Environmental-Adaptive Approach

        The main premise of this management approach is that, while they change instinctively. They seek to avoid all forms of loss, which allows them to adapt to new conditions and situations.

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        Types of Change of Management

        There are three types of change in an organization based on their nature, namely:

        • Smooth incremental change occurs gradually, systematically, and predictably, and includes the entire series of changes at a relatively constant rate.
        • Bumpy incremental change is a type of change that has a period of relative calm and is sometimes interrupted by the acceleration of the change movement. External variables, such as enhanced efficiency and improved work procedures, can induce this acceleration.
        • Discontinuous change is a rapid change in structure, culture, or strategy, or all three at the same time. This is a more revolutionary and rapid change.

        Change of Management Phases and Stages

        There are several phases that can be taken in carrying out change management, namely:

        Phase A: Positioning Value (determining strategic position). This is the stage in systems thinking where you can clearly articulate your company’s goals or strategic position. You will get this position through changes to the company or organization.

        Phase B: Measures Goals. This phase will describe the metrics and processes used to assess whether the goals were met or exceeded.

        Phase C: Assessment Strategy. This phase will determine the gap between the current state and the state you want. So that you can develop policies to improve all situations and conditions.

        Phase D: Actions Levels (change activities). This phase demands the strategy to be implemented and explained. Then integrated with all activities, processes, relationships, and changes required to close gaps or fulfill phase A objectives.

        Phase E: Environment Scan (identification of the external environment). This phase will identify all external environments that have the potential to influence change. The results of the identification process will provide direction and influence future changes.


        Change of management is an organized and systematic effort and method used to assist individuals, teams, or organizations in inefficient and successful change. From their current state to a better state in order to minimize the impact of the change procedure.

        In essence, change of management is a management method that involves planning, organizing, implementing, and monitoring. Every company certainly wants to achieve success, therefore it is necessary to organize good change management.


        HashMicro’s CRM-Leads software offers complete visibility into your lead management. So that the identification of potential prospects becomes easier with the most complete and integrated CRM application. To know more, you can apply for a free demo here.

        Chandra Natsir
        Chandra Natsir
        A content writer with a strong interest in writing and technology. Chandra is dedicated to writing useful, entertaining, and relevant information for readers, and he continues to develop content that connects and inspires them.

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