Organizations engage in change management activities to improve operating mechanisms in the short and long term. Change management involves modifying or improving corporate processes, either in manufacturing activities, operating tasks or human resources policies and guidelines.
Corporate processes refer to steps and procedures that top leadership puts into place to ensure effectiveness in operating activities and prevent losses resulting from fraud, technological malfunction or error. Department chiefs and segment leaders change existing processes to improve them, follow industry practices or comply with regulatory guidelines.
Change management consists of tools and policies that an organization uses to initiate, monitor and implement modifications in corporate processes. Traditional steps in leadership management include preparing for change, managing change and reinforcing change, according to Prosci, a management consulting firm. Top executives ensure that change management procedures are in line with corporate policies and government regulations.
Process change is essential to change management, although both concepts are distinct. For example, a department head overseeing a corporate change management program may ask a segment chief to coordinate process modification activities.