Barriers to Survival and Growth in Small Firms - Essay Example

Barriers to Survival and Growth in Small Firms Introduction Creating changes in a planned manner in an organization requires right procedures and strategies that will enable the organization to realize or achieve its goals. Change implementation refers to smooth integration of new methods, systems and practices to an existing organization. Change implementation in an organization is affected by both internal and external factors. Internal factors are issues that can be controlled by the management of the organization whereas external factors are those that impact on change implementation but cannot be controlled internally by the management.

Events occurring internally in the organization can be affected or driven by external factors which the management has little control over (McNamara 2007, 124). According to a report published by The Federation of Small Businesses entitled, 'Barriers to Survival and Growth in Small Firms', implementing change in an organization calls for both in-house skills and competencies in dealing with external pressure. The management should be in a position to counterattack any external pressure. It is imperative for the Board of Directors and top management to understand either internal and external issues that might impact either positively or negatively the successful implementation of change in the organization (Morse, 2006, 150) Internal Issues that might impact successful implementation of change in the organization These are situations or events that occur within the organization and can be control by the organization.

These include: 1) Resources availability - implementation of change in an organization requires resources. Some changes call for substantial resources which might not be available in the organization. Introduction of certain level of technology in an organization calls for lump sum amount of money and technical expert which might be expensive to deploy. Resource shortfall has been the major hindering factor to development process in the organization. Board of directors and top management should have desirable skills in regard to management of resources available to successfully implement change in the organization (Morse 2006,120) 2) Staff resistance - Change process might not be supported fully by all the staff in the organization.

This occurs mainly if the top management does not communicate effectively to both middle and lower level staff. Some workers may sabotage the change process in the expectation that the coming change will affect them negatively. 3) Implementation of change in an organization requires a lot of time. Change in an organization may threaten the position of others. This might then give rise to political process which is characterized by crisis between the parties involved. External Factors These are factors that are beyond the control of the organization's management.

These include: 1) Political-legal environment- Organizations are governed by law from the existing government. Some laws prohibit certain actions of the organization. Political philosophy has a lot of impacts on change process in the organization. It may be democrat, socialist or mixed. Private sectors do not have a role to play in the economy of socialistic society where socialist philosophy is dominant. It is important for the organization to analyze political philosophy dominant in the country. 2) Economic environment - main elements are inflation, interest rate and unemployment.

These elements affect business operations in the organization. Organizations cannot affect these elements but they affect the organization. Unemployment in the economy affects demand for goods. Hence changes involving production of certain product will be influenced by the economic conditions prevailing in the country or the global economy. If in case the rate of unemployment is high in the economy, then the organization should deeply analyze before implementing change (McNamara 2007, 128) 3) Socio-cultural factors - these include population, pressure groups, social classes, religion, lifestyle and language.

Language is a very important element as it works as communication media. If the company or the organization intents to implementation change in a country or region where people are talking different language from the parent one, then the process might proof difficult. Understanding between parties might not be successful hence the operations of the organization are hindered. Other issues include task environment which comprises of suppliers, customers, regulators, strategic allies. Technological environment is another factor that organization should consider (McNamara 2007, 126) Strategic Planning Process Strategic planning is very paramount to organization which intents to implement change.

It is the heart of change happens in the organization. The strategic planning process enable the organization to be economically effective hence realizing its dreams. Some of the keys to strategic planning during implementation of change are: 1) The process should be fully supported by an executive body 2) There should be effective communication between different stakeholders in the organization 3) Employees should be involved so that they can commit themselves to the change process. They should know reasons for the change process in the organization 4) Thorough organizational planning and competitive analysis by the executive body. 5) All the stakeholders should perceive the importance of change in the organization.

As a strategic planning process, the senior leaders in the organization should establish a clear vision of the process. They should paint a picture of the anticipated outcomes and this should be known by the employees (Heathfield 2005, 250). A draft plan of Strategic Planning and Implementation to be adopted by the management during implementation of change Part 1: Strategy and vision statements- the success of the change process depends entirely on how the visions are define. The management should define the values that shape the actions of the organization during the change process.

Goals and actions to be done to achieve the goals should be clearly defined. This should resonate with all members in the organization. Example of vision statement; "To be recognized and respected as one of the premier associations of HR Professionals." (HR Association of Greater Detroit) Part 2: Mission Statements - It is precise description of what the organization does. Change process should be linked with what the organization is there for. Examples of mission statement; '' ABC Company is committed to Consumer-Service-Profit-Philosophy'' Part 3: Value Statements - These are traits that are worthwhile and represent the high priorities of the organization.

It is imperative for the organization to follow the right values to the letter in implementing the change process. A good relation with other parties in the economy is very paramount for the success of the process. Part 4: Strategies, Goals and Action Plans - This is a very crucial stage in change implementation process. The management should define the approaches that will be used to achieve its set goals. Strategies used will define the goals and action plans. Example of a strategy is, ''pursue new markets in America.

'' (Heathfield 2005, 257). Part 5: Implementation - the organization should then implement change following all the relevant process stated above. Part 6: Evaluation- The management should then evaluate the outcomes of the changes that have been implemented. If the desirable results are not achieved, then the organization management can revisit and trace where they went wrong. References Heathfield, S 2005. Change Implementation: Strategies, Goals and Action Plans. Journal of Business Policy. Pp.240-280.

McNamara, C 2007. Organizational Development and Change Process. Authenticity Consulting, LLC. pp. 120-239. Morse, R 2006. Internal Pressures: Supporting Change Process. ThoughtBridge Consultancy Firm, U.S.A. pp.120-190. www.allbusiness.com