Business Management Skills

Corporations have few features that are more beneficial than formal structures. Businesses cannot function without them. Formal structures, from manuals and procedures to chains of command, enable business activities. In large part, this happens because formal structures streamline processes and communication. Yet, these formal structures are prone,like most things in business, to be directed at the business at hand. Organizations use them to keep things on the established track.

Business Change, in contrast to daily operations, does not often utilize formal structures. What typically happens is that change initiatives are scattered across and subordinate to the formal structures of running the business. The person who takes on a change effort may have been reporting to the same program manager for some time. If that program manager isn’t involved with the change initiative, to whom does that person give their reports? Were they informed? If not, it’s probably because there aren’t formal structures governing business change.

One formal structure that enables change efforts is a distinct chain of command. There should be no question who is the next step up in the command structure. The creation of lines of communication is a major step in change success. The resolution of problems quickly depends on knowing who to contact. The destination of information should be clear for project managers who carry on both run and change the business duties.

To enhance change efforts, a formal structure that can be used are forums. Forums can be very useful for project managers to get face time with one another. They can exchange ideas, problems, and receive feedback. Program managers can use them to reinforce vision and manage scheduling. It can be helpful in analyzing whether change efforts should be postponed or moved up to coordinate with current business needs.

Creating a change effort scorecard is one way to use a formal structure to promote successful change. By creating scorecards, and developing real consequences and rewards, the business change process begins to resemble the rest of the organizational structure in process and seriousness. To create the best results, change scorecards need to include sections on tasks accomplished, productivity gains (where appropriate) and other formal measures. The value of change scorecards will be greatest when there is specificity on the grading process. At a mental level, this can make the change process seem more like“real” business.

A corporation can use formal structures to facilitate business change. A clear chain of command can streamline the change process. A change forum can be used to assess change initiatives against current business opportunities. Scorecards can legitimize change and bring it closer to the rest of the organizational experience.

For more information, including free access to five extensive online video tutorials, please see our website: business change blog