Change is a vital aspect of any business, yet many firms struggle to implement it effectively. Companies often overlook the importance of change capacity, the ability to adapt and evolve in response to shifting circumstances. By assessing their change capacity, businesses can gain a competitive edge, ensuring they are prepared for future disruptions.
Four key areas contribute to a company’s change capacity: leadership, infrastructure, culture, and performance measurement. Leadership must be able to articulate a clear vision and inspire the workforce to embrace change. Infrastructure refers to the systems and processes that support change initiatives, while culture is the shared values and behaviours that encourage adaptability. Lastly, performance measurement is the ability to track progress and identify areas for improvement.
Despite its importance, many companies fail to measure their change capacity, often due to a lack of understanding or resources. To address this, a Change Capacity Index (CCI) can be utilised. This tool enables businesses to assess their change capacity across the four key areas, providing actionable insights to enhance their adaptability. Using the CCI, companies can identify gaps in their change capacity and develop strategies to improve, thereby ensuring they remain competitive in an ever-evolving business landscape.
Go to source article: https://hbr.org/2021/07/how-good-is-your-company-at-change