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"All is flux, nothing is stationary" (Heraclitus, Greek philosopher).
Introduction
We live in a world of change with much uncertainty and a loss of business confidence caused by the recent collapse of the banking system and the resulting credit crunch. To continue to operate in this increasingly complex, diverse and global environment, international business must be prepared to accept the challenge of change. New market opportunities and technologies will arise and these will involve the need to adapt and adjust to change in strategic thinking in order to compete and survive.
The author's interest in the subject developed when he was recently involved with a group of young male and female management trainees of a large global oil company. The group were tasked to consider by means of a simulation exercise how their company might have to change its focus in ten years' time in order to cope with the commercial challenges of the increased cost of oil production, diminishing reserves and the strong environmental and regulatory pressures. The last included the Copenhagen Agreement on the reduction of carbon emissions, the June 2011 The Energy Forum: Energy for All, and the target to produce 30 per cent of the world's energy from renewable energy sources by 2030.
The trainees were expected at the end of the simulation to present their proposals for change. Before they began the simulation exercise they were given a presentation on The Management of Change, followed by much discussion in groups. The following paragraphs include the main points arising from these discussions.
Definition
Management of Change can be defined as a planned objective to change a company's direction from the current to a desired future position in the business environment in response to new challenges and opportunities. It involves the projection of a new vision, together with wide consultation with employees at all levels to overcome resistance and gain acceptance. It is, furthermore, essential that the requisite leadership skills, commitment at all levels and both human and financial resources are available to implement the desired change.
Forces of change
Uncertain economic conditions compounded by the continuation of threats to international security and social unrest as witnessed in North Africa and the Middle East, as well as the conflict in Afghanistan, are...