The purpose of writing this article is to take a look at the well-know companies and see how they and change management. I choose Target Corporation for a couple of reasons. First of all they are very visible and recognizable. Most people know each Target and visiting their stores. Second, I know the organization and business philosophy that lead to the way they deal with change.
I must point out that I have no connection to Target but has worked for the company in the past. From those experiences as well as my experience as a customer and business observer I have come to know how Target performing in comparison with other similar companies and why. Target is not a perfect company, but to be recognized for what they do well. I call it just like I see it. I have no incentive to give credit where credit is not due.
Businesses succeed or fail for a reason. No matter what the company is selling, if there is a market for what they are selling, and they stay true to the company philosophy that they have good prospects in the long term. The challenge, however, is to begin. I can not be sure of the number but I bet that every successful company are not 100 but had just as good an idea.
I would like to focus on the issue of change management and how this company deals with the fast pace of change in the retail world. The product sales environment is the most visible and obvious way for vendors to keep up. By offering the latest technology and advanced products is only the beginning of a change response. All retailers have procurement and purchasing strategies to give them the right products to sell.
Target takes sales and merchandising to the next level of design philosophy. They sell not only good design but they also actively involved in the design of the products they sell. This is not new and will be common with the large retailers. Target is just a little better at it. They take a more active role in design than most retailers. After all, this is their niche. Target’s design philosophy and creative environment permeates the company in all aspects of procurement of goods, development of financial assets. It is fast, fun and friendly company.
Property Development and how they deal with change management is what I use as an example here. Retail product and design change moves much faster than property development, building design and construction is moving. This creates a problem. Because you’re going to build a space to support a retail trend, the trend has passed. This is why retail businesses must plan for constant change. They have to build stores that allow for flexible use and modification. The difficulty here is that you need to have a plan to get it done and move on. You need to land on the policy and move ahead knowing that the direction may change.
In-house design and construction of the world changes cost money. Depending on the timing of the changes may cost you a whole lot of money. Just in the construction phase, change orders cost up to 150% of the original cost. This is not to mention the cost of redesign for architects and design professionals.
There is a bit of a catch 22. You might think that you should settle on the design and build it. This would save you a lot of money. Or would it? Indeed, it could cost you more money because you would be reconstructed in a shorter cycle because the space was outdated by the time it was constructed. I’m sure there are parallels in just about every company.
solution is a change management process to account for the dynamics of changes specific to your business. This has been oversimplified for brevity but basically succeed in managing change you must plan for change, have extensive process changes and a well-developed process integration
Planning for Change :.
effective CM system requires a plan that includes diligent identification of change potential a structured CP (Change Process) and proficient use of technology. Knowing what lies ahead for your business is the key. The ability to anticipate the next trend is a definite advantage. And if your business can be a trend setter or can drive this change makes planning a whole lot easier.
Target’s fall in the second category a certain extent. They are on the cutting edge design of the rent for the discount store design. They have figured out what level design can reach the masses. In any case, they have been pretty good at staying out front and dictating sales trends for mass production. This prepares them, to some extent, to cope with the changes in the store construction
Change Method :.
When you feel you can see what’s ahead putting together a process to deal with it will be possible, albeit not necessarily easy. Changing the process involves a lot of people and be responsive to the working elements of all roles.
As far as property development goes, Target is a system to deal with the physical changes resulting from changes in business strategy. This is pretty obvious when you look around the shops. They still look good relative.
general area with great potential for change are areas that are exposed to the greatest changes in technology, changes in the target company, the retail industry competition etc.
Efficient integration is a key factor in the success of CP. Integration is accelerated through effective communication. For real estate, BIM (Building Information Modeling) technology enables the rapid development and dissemination of change initiatives.
Integration is where you want to maximize the potential of technology to help change the practice. BIM is
Integration is really about how does the change process meet its goal
Effective data and measurement CM directives can been an important part of a successful CP and can have a major impact on the cost of the changes.
Documentation methodologies can have a major impact on how fast the system works. In business, time is money, as we all know.
CM is a fact of doing business. Change is a constant in the current business environment and companies need to develop an action plan to deal with the changes to be competitive.
Target Corporation has long been a great company with a business model. It has a creative environment, top marketing department and click the right niche in this time of abundance and design sensibility. This is a company with morals and standards that resonate with family values. I’d be willing to bet they make it through this downturn in the economy. Creativity is a prized asset in this ever-changing business world.
Have a plan. Make a plan. It will save you time and money.