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Home > QFINANCE Dictionary > Definition of change management

Definition of

change management

General Management

administration of major and minor changes in organization the coordination of a structured period of transition from situation A to situation B in order to achieve lasting change within an organization. Change management can be of varying scope, from continuous improvement, which involves small ongoing changes to existing processes, to radical and substantial change involving organizational strategy. Change management can be reactive or proactive. It can be instigated in reaction to something in an organization's external environment, for example, in the realms of economics, politics, legislation, or competition, or in reaction to something within the processes, structures, people, and events of the organization's internal environment. It may also be instigated as a proactive measure, for example, in anticipation of unfavorable economic conditions in the future. Change management usually follows five steps: recognition of a trigger indicating that change is needed; clarification of the end point, or "where we want to be"; planning how to achieve the change; accomplishment of the transition; and maintenance to ensure the change is lasting. Effective change management involves alterations on a personal level, for example, a shift in attitudes or work routines, and thus personnel management skills such as motivation are vital to successful change. Other important influences on the success of change management include leadership style, communication, and a unified positive attitude to the change among the workforce. Business process reengineering is one type of change management, involving the redesign of processes within an organization to raise performance. With the accelerating pace of change in the business environment in the 1990s and 2000s, change has become accepted as a fact of business life and is the subject of books on management.

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Definitions of ’change management’ and meaning of ’change management’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’change management’ and other financial terms with our online QFINANCE Financial Dictionary.

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