The companies face leadership traps. The leadership does not guide the people towards a changing paradigm. This causes the people not to consider the direction in which the company is moving forward. This process of the management making decisions for the stakeholders will be perceived as a form of coercion for the companies . They consider these operations to be arrogant rather than confidence. The people start to lose their trust in the management policies. These lead to more issues to convince the people leading to change resistance by the people. The leadership should instill a group think process to ensure that all the people feel included in the change management.
In the operational procedures of a company, certain departments are given more importance than the others. For example, if the marketing department is given more importance than the R&D department, there will be a gap in the functionality of the product . The product will not be innovative and hence the company will face issues in sales at a later stage. This will only lead the departments to seek more importance and respect in the companies. The original objective of meeting consumer demands and increase in sales will be overlooked in this paradigm. Hence, all the departments of a company should be included in the change process. Feasible action plan should be drawn based on the inputs of all the departments. Conflict is a natural organic process that should be managed by the leadership in this process. Some companies adopt extensive decentralization policies. These would again lead to internal power struggles and conflicts. The people will look to maintain the older forms of control and these would only lead to more issues than solutions.