Change Management and Organisational Performance in Nigerian Organisations- A Study of Selected Firms in Lagos State, Nigeria
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Statement of the Problem
The fact that Organisations must change is no longer news. The real problem is that, in spite of the consciousness of the inevitability of change, and a virtual explosion of research and managerial practice, successful Organisational change often remains elusive (Kind and Wright, 2007). This is because most Organisations “change and die” instead of “changing to live.” Keller and Aiken (2010) acknowledge that with much research done and information available on managing change, it stands to reason that change programmes today should be more successful than those of more than a decade ago, but the facts suggest otherwise. A review of the relevant literature showed that between 70% and 80% of changes implemented within Organisations fail to achieve the objectives for which they were set (Isern and Pung, 2006; Bokeno, 2008). According to Huy (2002), the poor outcomes of change efforts have posed to management scholars and practitioners alike, the challenge of solving the puzzle of how Organisations can achieve successful changes. For Kotter and Schlesinger (2008), few Organisational change efforts tended to be entirely successful. Most encounter problems; they often take longer than expected and 3 desired; they sometimes kill morale and they often cost a great deal in terms of managerial time or emotional upheaval. The consequences of a transformation failure include: reduced Organisational effectiveness, wasted resources, employee cynicism, dampened employee morale, loss of integrity for those leading the effort and reduced ability to confront and compete in the environment for needed resources and support (Iyayi, 2000). Organisations, failing to introduce change successfully can pay a high price; failure can lead to loss of market position, and the credibility with stakeholders as well as decreased morale among management and staff, resulting in a de-motivated workforce or, worse still, the loss of key employees (Edmonds, 2010). Allen, Jimmieson, Bodia & Irmer (2007) posited that the cost of change failures extend beyond the purely financial impact on the Organisation, as there are also implications for the success of change efforts and the culture of an Organisation. From the economic perspective, the inability to effectively manage Organisational change in Nigeria will result in corporate failures, leading to loss of jobs, massive unemployment, a high crime rate and loss of revenue by government and the resultant reduction in the general standards of living of the citizenry. This will, no doubt, exacerbate the economic woes of the nation. According to Burnes (2004) the poor success rates of change was suggestive of a fundamental lack of a valid framework of how to implement and manage Organisational change as what is currently available to academic, and practitioners is a wide range of contradictory and confusing theories and approaches. These observations are supported by Doyle (2002) who argue that evidence suggest, that, with only few exceptions, existing practice and theory are mostly supported by unchallenged assumptions about the nature of contemporary Organisational change management. The above citations revealed that despite the huge investment of time, efforts and financial resources in the management of Organisational change; the end product was nothing to write home about. The problems of identifying the critical variables that determined the success of Organisational transformations, the interrelationship between and among these variables and how these could be managed to guarantee success had become a puzzle for managers 4 to solve. The challenge, therefore, is how to find better ways of managing change to improve its success rate.
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