Now that we’ve explained the reasons for change as well as what an innovative firm should look
like, it’s time to discuss how to implement change in your own company. Today’s literature is
overflowing with research and practical wisdom regarding successful initiation and management
of organizational change efforts. Much of this research applies specifically to large
organizational settings. Since there are many known differences between large and small
companies, we find it unacceptable to believe that strategies for change management are
identical for small and large firms alike (Gudmundson et al., 2003). Therefore, we draw from
information about both large and small firms, and, where possible, translate large-scale change
practices into a smaller setting more applicable to SMEs.
The change process is often divided into logical steps or phases (Kotter and Cohen, 2002).
These step-wise models provide a useful organizing framework, even if all steps are not
necessary or if the order varies depending on the firm or the change initiative. We have analyzed
many of these stage models and have generated a synthesized five-step change process
applicable to SMEs (Figure 7). This process is a strategy for change, outlining the tasks and
activities required for effective implementation. We have positioned this change process within
the broader organizational context by highlighting two critical elements that influence the change
strategy. First, the approach to change is heavily influenced by the broader strategic goals of the
company. It is important that the approach for implementing change be aligned with, and
contribute to, these broader strategic goals. Second, leadership is critical throughout the change
process. The person who defines the firm's mission and values and articulates the firm's strategy
(usually the CEO or president in an SME) must take ultimate responsibility for endorsing and
communicating the change strategy to the rest of the company and ensuring that the steps in the
process are accomplished.