What Is Change Management?

At its core, change management is about ensuring there is a structured approach to how organizations handle transitions, transformations, and even unexpected disruptions. This is a critical component of modern business operations, in which companies of all sizes are subject to frequently evolving environments, industries, and risks. Solid change management frameworks ensure companies can adapt to shifts, stay competitive, and minimize unnecessary disruption.

We’ve put together this article to explore the concept further. It defines what change management is, the processes and strategies involved, and the common challenges that must be addressed. Importantly, it takes a global perspective, rather than limiting information to single regions or local services.

Defining Change Management

Change management is the practice of guiding an organization, its processes, and its staff through transitional periods in a highly structured way.

This definition encompasses a range of areas and types of change, guiding something as simple as incremental updates of internal processes, or more complex restructuring transformations.

It’s important to recognize that there are different types of change management, too. 

• Organizational change management – Focused on company-wide adjustments, like those related to merger execution or cultural shifts. 
• Information technology (IT) change management – Supports companies in handling system upgrades or adoption of new technologies.
• Business change management – Relates to transitions involving overall business goals and external influences. Often, this is in response to regulatory evolution or market demands.

Regardless of the type of change management, one unifying factor is alignment. These frameworks provide formal guidance to keep an organization’s people, its processes, and its technological tools moving in lock-step with one another during the transitional period.

Why Change Management Matters in Business

Change management directly influences a company’s stability at a time of uncertainty and potential disruption. Indeed, poor change management can leave organizations vulnerable to various risks.

For instance, employee resistance is a common outcome of mismanaged change. When workers feel they’re uninformed or unsupported by their leaders during transitions, they tend to be less engaged and even push back against change.

Even on a project level, initiatives that don’t effectively provide guidance on shifts can see those projects suffer significant delays. In some instances, this same lack of strong frameworks may see the budget for projects being overrun or perhaps teams falling short of the intended goals altogether.

On the other hand, effective change management often results in smoother transitions to new processes and structures. The high level of support and guidance these systems offer also tends to provide employees with greater confidence, boosting their adoption. Change management is also a highly strategic approach to transformation, providing the clarity and structure that improves the likelihood of positive outcomes.

Key Elements of Change Management

There are several key components of effective change management, including:

• Leadership and vision – Executive support is fundamental to change management. Leaders must drive transition and provide the resources to execute effectively.
• Communication – Ensuring clear, consistent, and transparent communication throughout internal hierarchies, with employees, and with external stakeholders helps to manage expectations.
• Employee engagement – Employees are the key influencers of how change is executed and maintained. Therefore, involving them in the process and providing guidance throughout helps to keep them meaningfully engaged.
• Training and support – All key internal stakeholders need resources and knowledge to implement change. This includes providing comprehensive training alongside any tools and leadership support required to xxx effectively. 
• Monitoring and feedback – Change isn’t always immediately successful. Ongoing monitoring practices, milestone reviews, and open feedback platforms provide opportunities to adjust the approach to change where necessary.

Change Management Models and Approaches

There are various models and approaches to change management. The common models used globally include the following.

Kotter’s 8-Step Model

This model focuses on creating a sense of urgency during change, while building coalitions to guide change and embed changes in the wider corporate culture. It’s a common approach among large organizations in which cultural transformation significantly underpins the success of organizational or technical shifts.

ADKAR Model

The Awareness, Desire, Knowledge, Ability and Reinforcement (ADKAR) model is more focused on individuals’ response to and needs during change. Each of the components in the acronym is incorporated into the approach to transition. It tends to be most appropriate for situations prioritizing employee adoption, such as implementing new technology.

Lewin’s Change Management Model

This model arranges the change process into three stages: unfreeze, change, and refreeze. The first phase is about preparing the organization for change, while the second focuses on structured implementation of adjustments, with the final refreeze phase aimed at stabilizing changes to become the new normal. This simplified approach can be appropriate for large-scale organizational changes.

The Change Management Process

Whether or not organizations adopt one of the aforementioned models, the change management process typically follows the following course:

• Planning – The most important step, in which the scope, goals, and key stakeholders of the transition are identified. This phase typically includes risk assessments and the formal documentation of protocols.  
• Implementation – New processes, structures, and systems are rolled out. This usually features significant guidance and may occur in phases to minimize disruption, which also may form part of the business continuity plan.
• Adoption – Employees begin integrating change into their day-to-day work and as part of the company culture. Training, coaching, and management support are essential here.
• Sustainability – Leaders take steps to ensure that the changes are reinforced and maintained in the long term. They’ll identify successes, address concerns, and make relevant updates.  

Challenges in Implementing Change Management

Change is not without challenges. One common issue is employee resistance. It is vital to approach the management process from an empathetic and supportive perspective; communicating with, involving, and guiding workers.

Additionally, when leaders fail to buy into change or don’t communicate effectively, this can risk execution. Their attitudes and approaches significantly influence consistency and stakeholder engagement that are essential to success.

Resource and training limitations are common hurdles, too. Effective change is underpinned by investments of time and capital, with shortfalls here potentially disrupting progress. Failing to provide workers with the skills and knowledge needed to adapt to change is also likely to impact outcomes.

Organizations managing global rather than localized changes are also likely to experience greater complexities. This may involve maintaining consistency across borders and perhaps ensuring that widespread adjustments align with jurisdictional or international regulations.

Finally, some organizations find balancing the short-term disruption of change with the long-term gains difficult. It’s always important to remember that change requires patience and persistence, and to factor this into planning.

Role of Leadership and Advisors in Change Management

Leaders and advisors are essential influencers of effective change management. Executives have to be the champions of change, clearly communicating the motivations behind it, ensuring there are sufficient resources available, and driving momentum throughout. This has a knock-on effect on employees’ and other stakeholders’ responses to the process.

Wherever possible, large organizations should assign a chief restructuring officer. These executives are tasked with aligning processes with goals, managing the complexities of change, and are accountable for outcomes.

External experts are also vital contributors. Consultants with experience in change within the industry or corporate restructure consultants can provide invaluable support and guidance, particularly in areas such as regulatory compliance or cross-border transitions.

FAQs

What is change management in business?

It is a structured approach to managing organizational transitions, ensuring alignment and support throughout.

What is IT change management?

It focuses on changes related to new technologies, system upgrades, and other digital tools.

Why is change management important for companies?

Its structured approach helps to encourage confident employee adoption, ongoing operational efficiency, and greater competitiveness in rapidly evolving industries.

What are the most common change management models?

These are Kotter’s 8-Step model, which is focused on urgency and coalitions; ADKAR, which prioritizes supporting employee adoption; and Lewin’s model, which simplifies change into three phases.

What is the difference between change management and project management?

Project management focuses on tasks and timelines within a project, while change management focuses on people and adoption in a broader context.

Who is responsible for change management in an organization?

Typically, responsibility lies with executives, managers, and dedicated change management teams.

References

Carreno, A. (2024, September). An Analytical Review of John Kotter’s Change Leadership Framework: A Modern Approach to Sustainable Organizational Transformation. ResearchGate. https://www.researchgate.net/publication/384065104_An_Analytical_Review_of_John_Kotter’s_Change_Leadership_Framework_A_Modern_Approach_to_Sustainable_Organizational_Transformation 

Majka, M. (2024, June). Facilitating Successful Change: A Comprehensive Guide to the ADKAR Model. ResearchGate. https://www.researchgate.net/publication/381280701_Facilitating_Successful_Change_A_Comprehensive_Guide_to_the_ADKAR_Model