There are 4 types of change in business. For leaders, it is important that we become aware of these changes in business that would affect our operations in the long run. A change could be negative or positive, its impact varies on how we react to it. A change could mean an opportunity or threat. Failing to adapt to change may result in losing an opportunity or losing the chance to prevent the negative impact it may cause.
Internal Change happens within your organization. It could be the changes in your staffs’ behaviour, organization culture, internal policies, and skill requirements.
External Changes are changes that usually cannot be controlled because they happen outside of the organization. For example, change in technology, customers’ needs and buying behaviour, and new competitors. The best way to take action on this type of change is to adapt and seek solutions to possible issues it may cause.
Reactive Change has something to do with the changes your organization must react to. One of the best examples is the changes in laws and regulations that affect your business.
Proactive Change is the type of change which is initiated by your organization. It could be innovation on products, changes in the business process, and other proactive measures that will help your organization improve and grow.
How to Manage Changes in the Business
There’s a famous quote which perfectly emphasizes the importance of planning, “If you fail to plan, you are planning to fail”. The best way to approach changes in business is by being prepared. Your organization should have short term and long term planning. It would be even better if you have contingency planning. External and reactive changes are the types of changes that you cannot control but you have to deal with. Preventive measures are effective when they are done sooner to lessen or prevent the negative impact these changes may cause to your tech blog and organization.
There are changes that can be pursued because these changes will help the company grow and stay competitive. Proactive changes should be analyzed and executed accordingly. It’s important that these proactive changes have been studied thoroughly prior to execution.