Hunter Group CPA LLC, Certified Public Accountants, Fair Lawn, NJ

Change is inevitable: How to handle it

It is not always as simple as it may seem to evaluate whether a change had the expected results or if it needs modification.

Here are some questions to consider to help you review a change made by your company.

How will you measure success?

You can – and should – lay much of the groundwork for a successful evaluation before you even begin to implement the change.

Be very specific upfront about the definition of the intended change and how you will evaluate the outcome.

Changes are almost never successful unless the company’s leader champions the change.

You should have clearly defined criteria to tell you (1) if the change was made completely and (2) if the change in fact achieved the intended goal.

Assessment can be qualitative or quantitative, depending on the change. Assessment tools can include observations, document review, surveys, financial indicators, meetings, interviews, focus groups, memos or even e-mails. The method you use need not be complicated. The important part is that you identify effective tools and then actually use them.

Regardless of the assessment methods you choose, be sure to communicate the need to collect the information so you will have good data about the change for the evaluation. Consider collecting information about conditions that existed before the change, how the change was made and the result.

When should you evaluate?

The planning stage for a change is also the best time to choose when you will measure success. Otherwise, in the midst of other pressing needs, you may forget to evaluate the change at all.

Unless the change is a simple one, it is important to monitor the change process as it happens, instead of waiting until it is complete.

By setting interim milestones for measuring progress, you will quickly be able to identify delays, disruptions and other unexpected difficulties in implementation. In addition, by evaluating ongoing progress, you may discover in the midst of the change process that some aspect of the change itself should be modified.

Monitoring the change process need not be complicated. For example, if a change involves how a team will do their work, you could have a weekly 15-minute meeting in which everyone gives their feedback about what is working, what is not, and what suggestions they have for modifying either the goal or the process. Remember to document this feedback so the ideas are not forgotten.

Who will decide whether the change is successful?

Changes are almost never successful unless the company’s leader champions the change. Sometimes the leader can and should evaluate the change, but other times employees should be part of the evaluation team since often they are the best source of information.

You may want to set up an evaluation team. It should include people who are responsible for implementing the change and those affected by the change.

Are you prepared to consider change an ongoing process?

Before you implement the change, set the date when you will evaluate the completed change. But remember, in today’s business world, changes are more often a process than a one-time event. Will the change you make today still be effective tomorrow? Be sure your evaluation plan includes a periodic assessment of the ongoing effectiveness of the change.

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The technical information here is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS.

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 Copyright 2009 Hunter Group CPA LLC. All rights reserved.