Video Transcript: Organizational Change

Hello, welcome. We'll be discussing organizational change. Organizations are  social entities formed to achieve collective goals. Organizations perform tasks  through routine processes, thriving for efficiency. Organizational Change means  permanently altering patterns of organizational behavior. Why do organizations  have to change? There's a strategic drift. The internal and external environment  of organizations change constantly. So there's always new goals and objectives  being implemented, especially if we want to increase growth internally, as well  as revenue growth and increase profit margins, the need to adapt. This poses  threats to survival and opportunities to thrive. Organization. Organizations have  to change. They have to survive. They have to expose their opportunities to  continue that positive growth projection survival that creates the need to change. You have to adapt to your surroundings. You have to know your market and as  the competitive landscape inside the market changes, you've got to be able to  adapt in order to survive. Organizations change to survive shifting environment,  competition changes, customer changes, the behavior changes, politics,  economy, society, technology, they all change, right? So we've got to be able to  adapt and change with the shifting environment, right? So that will bring about  strategic renewal, which will make new products, create new markets and new  business models in order to capitalize on the opportunities of shifting our  strategy. Organizational change is the byproduct of the new markets, new  products and new business models as we create new tasks, structure, internal  political structure and the meaning of who we are. Organizational change is  everywhere. I'm sure you've noticed in the headlines this week is there a merger takeover possibility reported losses from a company. Somebody is doing bad in  business. They're weighing people off, new managers coming in, and new CEO  is in place. What new products are being offered? Right? This shows you that  organizations are always changing, always evolving, always adapting. Organic  Organizational Change is difficult. Only 30% of transformation programs  succeed on average, people get ingrained in their culture, and they get used to  doing things at the status quo level, so whenever things change culturally inside  their organization, they're not prepared for it, and therefore aren't dynamic  enough to shift and be successful. This is why we must remain flexible in our  ideas and being able to shift resources quickly, being able to capitalize on  opportunities in the market and exposing our strengths, only one in three  transformations actually occur. So a lot of people get stuck in a rut in their own  business model, and they know that an overhaul of their entire organizational  concept is going to be very difficult, but they know that if they don't change, that  they're going to be missing out on marginal revenue. So they will stay stagnant  and not change, because it's too hard culturally. But at the same time, they know they're missing out on capturing additional revenue. Average life expectancy for  a company is 13 years, so naturally, at the end of the lifespan, you'll have a  liquidation process, selling off of assets, and the company will no longer be 

around average time companies stay on a fortune 500 list is 40 years. And that  may seem like a long time, but some of these fortune 500 companies are 100  200 years old, 150 years old, 100 years old, right? 75 years old. So this list on  the fortune 500 is always changing. This concludes business management for  every enterprise. I hope that you've enjoyed this class and that you've taken  from this class skills and knowledge that you can implement in a real world  setting as a manager, and that it'll help you become effective and efficient as a  manager to maximize the output from the organization that you work For, or in  your church setting, thank you, God. Bless you.