What are the two categories of change drivers?

The correct answer highlights the distinction between internal and external drivers of change, which is crucial for understanding how organizations adapt and respond to various pressures and circumstances in their environment.

Internal drivers refer to factors that originate within the organization, such as changes in management, employee performance, operational efficiencies, or organizational culture. These drivers can lead to transformation within the company, influencing policy changes or the implementation of new technologies.

External drivers, on the other hand, encompass elements outside the organization that affect its operations and strategic direction. This can include market trends, regulatory changes, economic conditions, and competitor actions. Understanding these external influences helps organizations anticipate changes in the market and respond proactively.

Together, internal and external drivers provide a comprehensive framework for analyzing why change is necessary and how organizations can effectively manage it. This dual perspective is essential for change management practices, ensuring that both internal capabilities and external market conditions are considered in strategic planning and decision-making processes.