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Reorganisation will fail unless employers interact with staff to communicate the change

7 March 2005 - Research indicates that organisations undergo major change approximately once every three years, whilst smaller changes occur almost continually. Yet over 40% of reorganisations fail to meet their objectives, according to a new report from the Chartered Institute of Personnel and Development (CIPD). HR: Making Change Happen has been designed to provide practical ideas, tools and tips for employers on how to influence and implement restructuring and change effectively.

The report uses the practical experiences of 11 large organisations that have undergone change and been involved in the research over a 3-year period. It uses these case studies to provide guidance on the tailoring approaches to suit the goals of the organisation.

Vanessa Robinson, CIPD Organisation and Resourcing Adviser, says, "Employers tend to focus on the end rather than the means when approaching change. But this will only lead to failure. Employers must look at the whole process when approaching reorganisation, from the communication and development of change to the end result. It is far safer to create a small change that can be implemented successfully over time.

"People management and development professionals have a major contribution to make in improving the communication of change. The effective introduction and management of change also relies on the involvement of line managers. Line managers need to be informed of the overall business objectives and then communicate these to their staff. It is important to interact with staff and involve them as much as possible in order to help gain their trust and commitment, both during and after implementation."

Whilst every reorganisation or change situation is unique there are some common areas that will help ensure that the change process stands the greatest chance of success. HR: Making Change Happen highlights the importance of these areas when making changes within an organisation and covers the following areas:

* Choosing a team
Managing change requires different skills at different phases. It is important to take this into account the skills required when thinking about who manages the different stages of the change project.

* Project management
Research shows project management skills were lacking in almost half of all change initiatives - a key contributor to the failure to achieve objectives.

* Consulting
Employers must consult with employees, unions and other stakeholders so that they understand how change is likely to affect them. This is essential in order to manage the project successfully and to ensure all issues are raised and dealt with.

* Communicating
It is important to keep employees informed of changes that may take place throughout the organisation. Only then will management gain their trust and understand why structures are changing.

This report is part of a 3-year research project on Organising for Success in the Twenty First Century. The final report is due out in May and will summarise the common lessons learned to date from the research with particular focus on the 11 organisations involved as case study participants


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