The world we live in is not a static place. Change is everywhere and can be brought about by various factors in the internal and external environments in which organisations operate. Change within the business is managed by a process called change management. Successful change management looks at people and processes.
By the end of this chapter, you will understand:
- What is change management and the various elements surrounding it
- A variety of change management models
- The importance of creating a change management plan
Organisations must continually assess how they can improve, and this involves change. It can take the form of reviewing processes, training staff, updating equipment, expanding into new markets and getting out of old markets. Without change, an organisation stagnates and falls behind its competitors.
Introducing any type of change to an organisation will usually impact one or more of the following:
- process
- systems
- organisational structures
- people
Change can result from a specific problem, opportunity or be triggered by changes in the internal or external environment – this is known as reactive change.
Change can also be extensively planned out and future-focused. The review and development of an organisation’s strategic plan can be a catalyst for change – this is known as proactive change.
An organisation’s culture and its change readiness will determine how it handles change and responds to external and internal factors. External factors include changes in the political, economic, social and technological landscape. Most of these external factors are outside the organisation’s control – the internal factors will determine how an organisation responds to these. Internal factors include leadership, communication, organisational structure, innovation and change culture.
There are many examples of companies that have failed to monitor the external environment and became obsolete. Organisations must be ready to change to compete in today’s world.
What is change management?
Change should be focused on improving an organisation.
Change can affect one or all of the following:
- Processes
- Systems
- The structure of an organisation and its people
For change to be successful, it needs to incorporate leadership practice, strategic planning and be underpinned by a change management plan.
Change management ensures that any change within your organisation is systematically planned, implemented and reviewed. Change is not just about the technical aspect – the process or procedure – but also looks at the people-side or behavioural aspects. Any change management plan must cover both technical and behavioural change to be successful.
By having a change management strategy and plan, you can ensure that staff support and embrace the technical aspects of the change. For example, suppose you put in a new online induction process. Here, the change from paper to online is the technical aspect, while getting people to change habits and embrace a new way of doing something is the behavioural side. One cannot work without the other.
Change can be classified as individual, organisational or enterprise. The systems and supports are largely the same across all categories.
How an organisation reacts to change can be influenced by its underlying views on innovation, the change culture and if it is either reactive or proactive in its strategy.
The organisation’s strategic plan is a key instrument in the change management process. A strategic plan aims to outline how the organisation’s vision is reached. A strategic plan usually has objectives. An example of an objective might be implementing a digital communication channel to customers or redesigning a warehouse to improve productivity. Before embarking on any change, it is essential that strategic plans, organisational objectives, and business operational plans are reviewed to determine what needs to change. Once you have identified any change needs, it is important to refer to and review existing policies and practices that might be linked or impacted by the change.
Change Models
As we have outlined, organisations need to change to survive and thrive. Many models can help individuals, and organisations, deal with change.
We will discuss four main models – although there are many more that you may wish to research:
Lewin’s Change Management Model
Lewin (1951) describes the three stages of change management as:
- Unfreeze
- Make changes
- Refreeze
The process is essentially based on creating the need for change, implementing the change, and then solidifying the change within the organisation.
Unfreeze: Determine what needs to change, ensure you have support, and manage any doubts or concerns.
Make the Change: Once you have prepared for the change, it is time to implement it. Communication must be clear and distributed widely, including the benefits of the change, who will be affected, and the vision. Feedback is vital to clarify the needs and benefits of the change.
Stakeholders must be empowered and supported in the change and involve others as widely as possible.
Refreeze: Embedding the change and making it the new status quo. The change must be tied to organisational culture and supported by leaders and managers. Training, support and communication are vital, including feedback. The change also needs to be celebrated.
For a more detailed overview of Lewin’s model, take some time to review the article Lewin’s 3 Stage Model of Change Explained by Muhammad Raza, bmc blogs.
McKinsey 7-S Model
The model looks at the organisation’s internal ability to influence and implement change successfully. It is made up of seven key internal elements that an organisation must align for change to be successful. The key elements are categorised as hard or soft:
| Hard elements | Soft elements |
|---|---|
| Strategy | Shared value |
| Structure | SKills |
| Systems | Style |
| Staff |
All the elements depend on each other, and any change in one has a domino effect on all the others.
- Strategy: Your ability to gain or maintain a competitive advantage.
- Structure: How your organisation is structured, including reporting lines.
- Systems: Your organisational systems and processes – how you operationalise your strategy.
- Shared value: Organisational culture and values.
- Style: What is the predominant style of leadership? For example, is it transactional or transformational?
- Staff: Your people and their general capabilities.
- Skills: Do your people have the skills needed to do their job?
You can use this model to look at where you are now and where you may need to pay attention to focus on gaps and opportunities.
Kotter’s Theory
This model focuses on people and how we get them to come on the change journey. Dr Kotter’s (1990) model is a holistic approach to change that comprises of 8 steps:
- Create the urgency: If there is no sense of urgency, then there is no sense that things need to change. By identifying potential threats or opportunities internally and externally, people can see the need for change and the importance of acting on the change.
- Creating a guiding coalition: change can be challenging, so you need to get people on your change team. Ensure that you have a wide variety of stakeholders on your change team with a mix of power and influence.
- Develop a change vision: a change vision needs to be simple and powerful. Others need to be able to see themselves at the end (future) state. State the values that the change is working towards and define what the change is and the outcome. Keep it simple.
- Communicate the vision: Connect the vision to every aspect of the organisation and spread the word. Make sure that you are open to feedback and be open and transparent.
- Remove any barriers or obstacles: ensure organisational structures are in place and the change aligns with the organisation’s vision. Check for resistance and tackle it early. Reward early adopters.
- Create short-term wins: Change can be a long process – by creating some short-term wins, people can see that the change is positive.
- Consolidate gains: look at continuous improvement and set new goals if needed.
- Make it stick: Ensure you anchor the change into organisational culture and process.
ADKAR Model
This model helps to guide individual and organisational change and is based on five outcomes:
- Awareness: The need for change.
- Desire: To support the change.
- Knowledge: How to change.
- Ability: Skills and knowledge that can be demonstrated.
- Reinforcement: Making the change stick.
Scott and Jaffe’s Change Model (1988)
This model focuses on resistance to change and how people react to the change rather than the change itself. It is based on the Grief Curve developed by Kubler-Ross, which explores the five stages of grief that someone goes through when they suffer loss.
The stages are:
- Denial
- Anger
- Bargaining
- Depression
- Acceptance.
The model focuses on the fact that most change does not happen instantly but rather over time.
Scott and Jaffe’s Model outlines the four stages people go through when faced with organisational change. It involves letting go of the past first before being able to welcome and embrace the future.
Sourced from: Career Professionals MARCR
- Denial: This is when we first find out about the change. Denial involves ignoring, downplaying, or pretending that the change will never be implemented. This stage can be a very stressful time for people, and they can lose focus on their work. People need information and support about what the change will mean to them at this stage.
- Resistance: Eventually, people accept the change will happen, but they fear the change, so they resist it. Change is more about the loss that people fear rather than the change itself. People can feel frustrated, angry, and highly critical of the change. Support is needed to help people deal with their emotions.
- Exploration: Eventually, people begin to accept the change and become open to exploring what it means for them. People tend to start to think more rationally about the change, and productivity tends to increase. As a manager and leader, you can help people at this stage by focusing on the positives of the change and how it could improve their lives.
- Commitment: At this stage, people begin to see the opportunities the change offers and commit to the future state. People begin to feel empowered as they learn new skills and ways of working. This stage is all about engagement.
Think:
How open are you to change? What could you do to support change in your work life?
The models and frameworks outlined will guide your change management strategy of how you will get from an idea to the implementation stage and acceptance of a change initiative. Within the models, there is a step where you need to plan for the change, and this is where you would develop a change management plan.
A change management plan helps you to plan and manage the change process. It is important because it is the document that will articulate the strategy, help people to understand the “why”, and see what the future will look like. It also outlines the current situation, including an analysis of the internal and external environment, potential barriers to change, financial implications and analysis, and how the change will be communicated. The schedule, resources, budget, and accountabilities are also included, as well as your approach to embedding the change into the organisational culture. You may also need to provide training and education, which can also be part of the change management plan.
It is also important that you have clear processes in place about how you will get feedback, monitor the plan and make any adjustments or changes to the plan.
In many change management strategies, you may need to consult with various subject matter experts or change agents to assist in the change process.
Think: Who might you need to consult with internally and externally about the change? What type of experts might you use?
At all stages of the change process, you must consult with stakeholders and seek feedback.
A simple approach to establishing a change management plan is to break the change process down into manageable steps. Work completed in the initial steps will help to inform the work required at later stages, so it is good to document your findings as you go.
Change Management Plan Stages
The stages required to develop a change management plan are:
- Stage 1: Assess the need for change
- Stage 2: Plan the change
- Stage 3: Implement the change
- Stage 4: Review, monitor and embed
Each step is vital in the change management process for success. These stages link to the change models outlined in section 1.2.
It is a good idea to set up some templates to help you document each step in the change management process. There are many free resources available on the web.
Visit SmartSheet to download free change management templates that could assist you in planning for change.
