What are the major external and internal drivers of change in your organization?
Drivers of change are factors that bring change to an organization. These factors are divided into external factors, outside the organization’s control, and internal factors, which determine how an organization moves forward (Stobierski, 2020). I work for the property management department of a real estate investment company and just like any other company, organizational change is not always easy to adapt to.
One of the major internal drivers of change in my organization is its mission. A successful organization must have a clear sense of its ultimate purpose and how to fulfill it. Additionally, employees need to be aware of their organization’s mission so that they as a team can achieve it (Gleeson, 2019). Another major internal factor is strategic leadership. Strategic leadership reflects the need to understand how executives respond to fast-paced technological and social change and increasing competition to lead their companies and outperform their competition (UMG, n.d.). Successful organizations thrive on communication practices where there is two-way communication between the team and team leaders. As technological advances lead to fast change, a successful organization must find a way to encourage its employees to experience the opportunity to learn and explore (Gleeson, 2019).
As a real estate investment company, one of its major external drivers of change is demographics. Although often overlooked, demographics affect how real estate is priced and what types of properties are on demand (Nguyen, 2019). Another major external driver is the economy. Usually measured by economic indicators such as GDP, manufacturing activity, prices of goods, or employment data, when the economy is not doing well, real estate is not either. The economy along with government policies can have an impact on property demand and prices. For example, when the economy was sluggish in 2009, the US government introduced first-time homebuyer’s tax credits to homeowners. According to the National Association of Realtors, this tax incentive led 900,000 homebuyers to buy homes (Nguyen, 2019).
To prepare for organizational change, it is important to understand why it’s critical and create a roadman explaining how the business will affect its employees (Stobierski, 2020). Many managers will experience organizational change throughout their careers but learning how to address the challenges that come with the change will ensure they are ready with the skills and knowledge needed to manage it.