CMI 514 - LO 1.1 Presentation PDF

Level 5 Change Management Learning Outcome 1.1 Analyse the environmental factors which influence change in organisations LO 1.1 Environmental factors that influence change What external factors can influence change? External factors can significantly influence cha...

Level 5 Change Management Learning Outcome 1.1 Analyse the environmental factors which influence change in organisations LO 1.1 Environmental factors that influence change What external factors can influence change? External factors can significantly influence change within an organisation, often shaping its strategies, operations and overall direction. As a manager, it is important for you to understand these external factors so you can anticipate challenges and adapt accordingly. Political decisions and changes in government policies can directly impact the operations of an organisation. Changes in political leadership, policies, or trade agreements may influence taxation, tariffs, or public sector spending, all of which can require organisations to adjust their plans. For example, a change in government policy on renewable energy may affect the energy sector, prompting companies to adopt more sustainable practices. What external factors can influence change? The legal environment within which an organisation operates can drive change, particularly when new laws or regulations are introduced. This could include changes in employment law, health and safety regulations, data protection rules, intellectual property laws etc. Organisations must adapt to remain compliant, which may lead to restructuring, training or changes in processes to meet requirements. Social changes can also drive organisational change. Shifts in cultural norms, behaviour or demographic trends can create pressure for change to products, services or policies. For example, the growing demand for diversity and inclusion or the increased preference for eco- friendly products may require changes in practices. As expectations evolve, organisations must adjust to align with these changes or risk losing their customer base or workforce. What external factors can influence change? Economic conditions, such as inflation, unemployment rates or fluctuations in currency, can have a significant impact on an organisation’s strategy. During times of economic downturn, organisations may need to reduce costs, streamline operations or reassess their growth strategies. Conversely, in periods of growth, companies might pursue expansion or increase investment in new products or markets. Understanding economic cycles and conditions is vital for organisations to remain agile and responsive. Technology is a significant driver of change in modern organisations. Advances in technology can alter business models, improve efficiency and create new market opportunities. What external factors can influence change? Environmental factors, such as climate change, natural disasters or the growing focus on sustainability, can also influence change. Organisations are increasingly required to adopt environmentally friendly practices, whether it’s reducing carbon emissions, adopting renewable energy sources or addressing waste management. External environmental challenges may push organisations to innovate in order to mitigate risks or align with sustainability goals, impacting both their operational practices and product offerings. The level of competition can force change. If competitors introduce new products, services or pricing strategies, organisations may need to adjust their offerings to maintain their market position. Competition can also push organisations to improve efficiency, enhance customer service or invest in innovation to remain competitive. What external factors can influence change? Finally, ethical considerations and regulation can shape the way organisations operate. Public opinion and ethical standards can influence business practices, such as fair trade, labour rights or environmental responsibility. Adapting to these ethical expectations may require changes in organisational policies, supplier relationships, or product development. In conclusion, external factors such as political, legal, regulatory, social, economic, technological, environmental, competition and ethics all play crucial roles in influencing change within an organisation. Understanding these factors enables you, as a manager, to anticipate and respond to changes in the external environment effectively, ensuring your organisation remains agile and competitive. Developing the aim, objectives and scope of a management project iThe process of developing the aim, objectives and scope of a management project is crucial for ensuring clarity, direction, and successful outcomes. This involves setting specific goals, defining the rationale behind the project, outlining the research proposal, formulating a research question and hypothesis, and determining both tangible and intangible deliverables. Over the following pages, you will consider each of these elements in turn. Introduction This learning outcome will focus on analysing the environmental factors which influence change in organisations. Environmental factors are the external elements that organisations cannot directly control but must consider in order to remain competitive and effective. Understanding how these factors influence organisational change is crucial for managers like you, as it allows you to anticipate external pressures, adapt strategies, and make informed decisions that align with both external and internal goals. The factors influencing change range from political decisions to technological advancements and can have a significant impact on how an organisation operates, grows or even survives in a constantly evolving landscape. In this section, we will explore these key environmental factors, examining their influence on change in organisations and the challenges they present. SMART objectives Relevant Align with broader organisational goals and the project's purpose. The objective should contribute meaningfully to the organisation's success. Time-bound Set a deadline or timeframe for achieving the objective, such as "by the end of Q4." Using SMART objectives helps in focusing efforts, allocating resources effectively, and measuring progress accurately. CMI has produced a checklist on Setting SMART Objectives. Follow the link below to download and read it. >>> Checklist - Setting SMART Objectives