Overcoming Resistance to Change

Definition: 

Operations managers must employ ‘change strategies’ to ensure that interventions in operations process create minimum levels of resistance in the firm. 

This is not really an operations strategy in and of itself. 

It is an additional consideration for operations managers as they undertake change - that is, when they implement one of the other Operations Strategies. 

Change is imperative for a firm to maintain or capture sales and market share. 

Operations strategies all require change; and with change comes resistance to change.

Financial resistance:

• Firms needs funds to undertake change (high frequency change reduces a firm’s ability to make steady revenues from capital equipment investments)

• New equipment is very expensive (Finance; Debt? Equity? Leasing?)

• Redundancy payouts: Employee role terminated

• Retraining expenses: Time, financial resources and lost productivity for employee transition and training programs

• Re-organisation of plant layout: lost productivity

Psychological / Emotional:

• Institutional inertia; the habitual patterns / behaviours embedded in a firm

• Human tendency to prefer stability, certainty, predictability

• Discomfort arising from threats to established patterns

‘Change Strategies’ include:

• During all change initiatives: use open communication; incremental change (if possible). 

• Provide internal and external support. 

• Build support from key individuals.

• Consult widely (unions) and provide clear justifications for decisions.