An organization must adapt towards environmental demands through modification and expansion this can be classified as planned change. Change must be planned and managed (managing planned change) if change is intended as tool to improve the company and as the medium for adaption.


WHY MANAGING PLANNED CHANGE?

Change may be caused by external factors (external change drivers) or by internal factors (internal change drivers). Every change is a threat to the organization because it changes habit, presents new materials, and also creates uncertainties. This can lead to resistance. It must be realized that conducting change (change awareness) has to be implemented into all layers of the organization through a change awareness program.

Change is a mastering process, a transition from an existing equilibrium to a new equilibrium. Without this awareness, the change program will become stagnant, because the commitment to change is fragile. High commitment to change is needed, especially to manage the anxiety.

A visioning program must be followed in the beginning of change management, which opens the windows to the future by creating a clear and focused vision to guide change into the right direction.

THE LAW OF CHANGE

In executing change, there are rules that must be followed. The first rule is the Law of Native. Change must involve the whole organization. The entire targets are packaged into the vision of the organization, absorbed into the very inner member of the organization to create commitment. The second rule is the Law of Chaos. It must be realized that every change produces some degree of chaos. The organization must accept this fact and possess the right strategy to manage the situation. The last rule is the Law of Eden. Because change is not common, therefore positive promises and dreams are needed as a driving motivation.


PHASES TO CHANGE MANAGEMENT

Change involves three main phases. The first phase is the preparation to change, when the company evaluates the internal and external conditions thoroughly. A consultant is needed as a change strategist who can pinpoint problems objectively in order to determine necessary adjustments, to improve change strategy, as well as to organize the framework in conducting change activity. The established strategy should include a contingency plan and leave some leeway for flexibility.

The second phase is the implementation that must be accompanied by stability and speed to stimulate the start of change activity. The change activity takes place in a changing situation and condition hence speed and flexibility are needed in some degrees. The implementation of change requires high commitment because uncertainties may often occur. Corporate culture also has an important role in standardizing the change process, and temporary artificial pseudo-change that only touches the surface must be prevented.

The last phase is the management of change results. The biggest challenge that the company must face is how to prepare the entire company resource to utilize the change results. This phase also requires a trust-building program to improve the efficacy during post-change period.


FORMING COMPETITIVE EXCELLENCE THROUGH CHANGE

Improvement is a process of planned change. But change has two sides, which means that it will lead to an improvement when it is well-controlled but it will create damages when it isnt. Therefore, each organization must be capable of managing the planned change through the change awareness, the vision of change, the resistance management, as well as executing change from the planning phase, the implementation phases to the change management phase. Change will be carried out if it is compatible with the corporate cultures, and will have a strong foundation if it is accompanied by the transformation of the organizational cultures.