By CPA Benard Bwire
Head of Finance,
CoRSU Comprehensive Rehabilitation Services of Uganda
Accountants are faced with change each year. However, some accountants, to a certain extent continue viewing themselves as resistant to change but in reality, they are faced with change and have to manage it to continue being relevant in the environment under which they operate and as well fit in due to the continued technological advancements in society and organisations.
Change management is a systematic process that involves transitioning organisational processes, technologies, accounting processes and as well as goals and strategies.
Change management is normally a structural process. The process of implementing change should be gradual and in stages to ensure it is not shocking the existing systems.
The change management process is illustrated below:
Accountants are normally faced with basically two broad categories of change which include; regulatory change - such as changes in accounting standards and tax laws, and non-regulatory change. The regulatory change is mandatory whereas the non-regulatory is not mandatory and there is no obligation to adapt to such changes. Non-regulatory change management involves taking a certain level of risk which is deemed to be intentional (Intentional Risk) and the benefits are normally amazing if the outcomes of such changes are applied well to the regulatory changes.
The evolution in the accounting world, economies and technologies, means that accountants who resist change management are likely to be left behind. Changes such as cloud computing, blockchain technology, automated accounting systems and software need to be embraced by accountants in this field of practice. It is therefore without a doubt that accountants as well need to evolve with technology and adapt to change, as the industry changes fast. Intelligent accounting and finance systems are developed very fast in the current world and more organisations are following the same direction through which they are moving the majority of their accounting operations to cloud-based systems. Accountants need to manage and adapt to such changes to be able to fit in current trends and become competitive.
Therefore, in the wake of change in economies, and as the demand for accountants grows, acquisition of skills will enable us to perform more managerial, analytical and other administrative roles that technology cannot perform. However, we have also seen a direction towards artificial intelligence in highly developed economies. Therefore, with these changes, how do organisations and accountants manage change, and resistance to change? How can they adapt to change to ensure efficiency in operations and output?
Stages of change management: The Principles
Change management needs to go through certain stages and/principles for it to be successful. Such principles apply to both regulatory and non-regulatory change at organisational level. With effective and careful application of these stages/principles, change management is likely to be successful.
During the change process, it is key to prepare the environment and organisation for such change. This is due to the fact that cultural and logical changes need to be considered to ensure that there is continuity within the organisation as the change is taking place. And it is key as well for the change managers to have in mind that it is the employees that will actually participate and implement such changes.
During the process of change, there should be a clear plan in the process of implementing and effecting the changes. An effective plan for change should normally revolve around; key strategic goals, key performance indicators, the stakeholders, and the scope of the intended change. Once this plan has been well reviewed and is within the organisational goals, then effecting the change can resume.
While implementing change, organisational culture and practices should be considered. Business processes, workflows and practices should be clearly and sensitively handled to avoid the possibility of employees reverting to old processes and ways. Review of the implemented changes and effecting necessary changes is key in the whole process.
Challenges to change management
Change management is prone to challenges if not well implemented. Therefore, the systems, processes and employees who are likely to be affected by change should be accurately accounted for.
The major challenges during the change management process revolve around resource management, resistance of staff and particularly those who have been in the old system for quite a while, communication, technological evolutions and adoptions, and issues surrounding the scheduling of the change process.
The usefulness of change Management
In the current economies, accountants are taking up more positions to manage organisations and change within these organisations.
Change management has an impact on the nature of success within the organisation in its processes, business models, competitive advantage and critical projects run by the organisations. Business process automation as well which forms part of change management enables organisations to adapt quickly to the ever-changing environment.
Where change management is not well handled, it has the capability of causing a strain on an organisation’s resources, inefficiency and even stagnated growth. Change management if well handled will enable employees to adapt to the ever-increasing change in the current and future economies and fit into the ever-changing roles.
