Internal and External Factors That Influence Organisational Change

22 May 2018

When you are considering organisational change for your company, there are several important factors that can throw a wrench into even the most meticulous plan. A lot of employers aren’t aware of internal problems that can affect a change plan, such as ineffective communication, poor morale among employees, staff hierarchy and other factors, and business owners frequently fail to take external influences into account, or refuse to act on them for whatever reason. Some of these internal and external factors include:

Internal Company Politics/Communication

As described above, the politics, relationships and communication between employees within the company will directly affect the change process. Some employees won’t get the memo until the change plan is well in progress, some employees will disagree with the plan for a variety of possible reasons: it could affect their position within the organisation, they could disagree with changing well-established work procedures, or they might simply not be interested in change and won’t change their approach to work until they’re forced to.

Interpersonal relationships between employees can also affect the change plan, as some employees may resist change purely because it comes from an employee or superior that they dislike working with. To combat this, your company should develop a team attitude that defuses these potential risks.

External Communications

The way your company interacts with customers and its public audience impacts your company’s image. If you alienate your external audience, you risk losing your source of income. Ensuring that your staff aren’t alienating a potential or current customer is essential to any long-term plan, and if they are, the faster you can improve it, the better.

Company Structure

The internal structure of your company is an important factor in how quickly change can be implemented throughout the company. Many companies will sort their employees into different teams or departments, or your employees may be working with third parties such as external contractors. As a result, a change plan may disseminate slower as certain departments or contracted employees don’t get the memo quickly enough. Establishing a more centralised system, if your company is more spread out, will help change progress quicker.

Economics

Perhaps the largest external factor in service or product-focused companies is the state of the national and international economy. If your clients or customers can’t afford to buy your products or services, then a quick and effective response is necessary: something that change-focused companies can achieve with minimal downtime. Another avenue to avoid this scenario is branching out and diversifying your offerings: in harder times, it’s better to make useful products than expensive luxury items, as there’s always a market for the former and it can provide a vital lifeline during a recession.

At the Change Consultancy, we’re excited about taking new technology, methods and workplace philosophy to reinvigorate companies and get them running at maximum efficiency in an age where change is fast and confusing.