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Firms 'should know when to apply change management or leadership'

24 August 2011

Companies have been reminded of the importance of making a distinction between a change management strategy and a more expansive change leadership policy.

John Kotter, chief innovation officer at change advisory firm Kotter International, told Forbes that it is vital that companies know when they are transitioning from one type of change to another.

Change management involves supervising those elements of a company that will be affected by a business change, but when this starts to approach around 20 per cent of a firm's workforce, it may be appropriate to adopt a wider perspective.

Mr Kotter warned that taking the wrong approach to managing change could lead to companies spending more money on tools and expertise without any additional benefit.

"People underestimate the stakes involved in a rapidly changing world," the business expert stated.

Last month, Jayne Carrington of consultancy firm Right Management highlighted the key role played by human resources engagement in successful change management.

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Categories: Functional Practices

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