Positive Effects of Change in a Company

Change management is the process of effecting smooth transitions within your organization. While change can cause confusion and fear, there are several positive effects it can have on your employees and business if you handle it properly. Understanding the positive effects of change helps you to better gauge your progress in developing change management policies within the company.

Employee Confidence

When you successfully complete a significant change in your organization, and the employees see that none of the fears they held regarding change are realized, you are paving the way for smoother change in the future. One of the positive effects of efficient change management is that it instills confidence in your staff regarding the management's ability to lead the company and make good business decisions. This not only makes future changes easier, but employee confidence also makes day to day decision-making simpler as well.

Competitive Advantage

The ability for your organization to change helps maintain your competitive advantage in the marketplace. For example, if your competition has implemented a new order-entry system that makes the process of doing business easier on the customers, then your ability to adapt to that change and institute your own order-entry changes helps keep you competitive. The ability to institute change quicker and more efficiently than the competition gives you an advantage that can help you achieve, or maintain, the status of an industry leader.


Your company must experience change to experience growth. You can continue to do things the same way for as long as you like. But, at some point, your infrastructure needs to change to accommodate a growing customer base and industry changes. New manufacturing processes, new marketing concepts and improved ways of reaching your target market all require changes within your organization. Your company's ability to facilitate change enables it to grow.


A corporate culture that embraces change is one that tends to remain dynamic in the marketplace. Because employees are confident that the company can manage change, new ideas flow more freely. Employees do not feel bound by the current organizational structure because they know the company can adapt to meet the challenges of the future. A dynamic atmosphere with an openness to change is a productive and forward-thinking workplace.



About the Author

George N. Root III began writing professionally in 1985. His publishing credits include a weekly column in the "Lockport Union Sun and Journal" along with the "Spectrum," the "Niagara Falls Gazette," "Tonawanda News," "Watertown Daily News" and the "Buffalo News." Root has a Bachelor of Arts in English from the State University of New York, Buffalo.