Change management is what enables companies to successfully overcome challenges related to the evolution of society, markets and technologies. Organizational changes are now commonplace in companies, and for this very reason, knowing how to implement the right change management strategies has become crucial.
Within this guide you will find the complete definition of change management, an in-depth look at the different stages that constitute organizational change, a detailed list of the best change management models, and a list of practical tips for perfecting business performance.
What is change management?
In the organization of a startup and, more generally, a company, change is the process of preparing for and managing a business transformation, which can involve a variety of factors (from procedures to the technologies the company possesses, through its values and goals).
The goal of this business management approach is to activate strategies and methods that will enable the company to best adapt to the new scenario imposed by internal or external factors and thus complete the transformation effectively, nullifying any possible negative repercussions and, on the contrary, using the newness to its advantage.
The stages of organizational change
Several phases can be identified within an organizational change. A widely recognized classification refers specifically to three phases.
Incubation and preparation phase
Being at the beginning of the business change process, the incubation and preparation phase plays a decisive role in its success.
At this particular stage, you need to be guided by mission and corporate vision so that you are clear about where you want to end up. Fundamental is also to define the timeline needed to achieve the goal you have set, as well as the costs against the benefits you can achieve. Remember that everyone involved in the organizational change process needs to be clear on all these aspects.
Organization Phase
Involving the company’s staff is also of paramount importance in the organization phase: in fact, all of them must know what actions are within their competence in order to successfully carry out the operational plan.
Execution phase
The third and final stage is the execution stage: in this regard, you must not forget that monitoring and measuring the results of each action allows you, at this stage, to fine-tune the most appropriate corrective activities should they prove necessary. Also, remember to be as flexible as possible: unfortunately, not always everything will go as you imagined in the previous stages.
Change Management Models
Now that you know the various steps in the change management process, you also need to know what the best change management models are.
ADKAR Model
The first change management model you are about to discover is called the ADKAR Model and was developed by Jeff Hiatt. ADKAR stands for Awareness, Desire, Knowledge, Ability, Reinforcement.
- Awareness: everyone in your organization must be clear about the need to bring about change.
- However, they must not only be aware of its importance: they must also have the Desire to bring about the change.
- Knowledge: everyone must be made aware of the actions to be taken to make their own contribution to change.
- Ability refers to the need to ensure that everyone is properly trained to successfully perform the actions required of them.
- Reinforcement, finally, points the way for “afterward”: even once the change has been completed, it is necessary to do everything to ensure that those involved continue to move in the direction charted in the new ways.
Kubler-Ross Model
Then among the change management models is the Kübler-Ross change management framework, created by Elisabeth Kübler-Ross. This is a particular model also used for managing the experience of bereavement.
- Denial: disbelief as a reaction to negative news.
- Anger is the reaction to having to deal with unwanted change.
- Then there is Bargaining: the search for compromise to avoid having to completely accept the unwanted change.
- Employees, upset by the change, may encounter the Depression phase.
- That of Acceptance is the last stage, that is, the one that comes into play when you realize that there is nothing else to do but carry out the change.
Lewin’s Model
Lewin’s change management model (named after its creator, Kurt Lewin) involves 3 key moments:
- Unfreezing, which is the preparation phase in which you lay out the operational plan with the changes to be made and explain it to your employees.
- The Changing, which is the phase of plan implementation.
- Refreezing, in which you have to put in place a control strategy to check that the new processes are working properly and to make sure that there is no going back after achieving the desired results.
McKinsey’s 7S model
The last model at the center of our analysis is McKinsey’s 7 S’s model. The main steps that make up the Change Management process, in this case, are:
- Change strategy;
- Structure of the company;
- Business systems and processes;
- Shared corporate values and culture;
- Working style or mode;
- Staff and personnel involved;
- Staff skills and competencies.
Strategies for managing change in business
To best manage change, you need to know the best strategies. Below we have listed seven of them.
Assessing change
Assessing all aspects involved in business change is the first step in managing it effectively. You need to identify the objectives, understand who will be involved in the process, and determine how quickly to implement the changes that have been established.
Define a strategy
To best manage change, it is essential to define an action plan, within which to put in black and white the business strategy with the changes to be implemented, but also the problems that may need to be addressed and their solutions.
Effective Communication
Effective communication is about explaining to all stakeholders why business change is necessary, as well as the impact it will have on each of them and how the company intends to carry it out.
Staff involvement
Staff should not only be informed of business plans, but should also be involved in them. Don’t forget to encourage feedback from workers and respond promptly and thoroughly to any concerns, requests or needs.
Training and development
For business change to be successfully completed, staff must be properly trained. Not only that: in addition to the right training, workers must also be provided with suitable equipment to perform the actions required of them.
Support and leadership
The leader‘s role in managing the work group, again, is crucial: set the right example, encourage workers, and recognize the merits of each employee for his or her personal contribution to the change process. Be careful because your job as a leader does not end at the moment of transition: the achievements made by implementing change must be protected in the long run, so it is forbidden to let your guard down.
Monitoring of results
Monitor, monitor, monitor. Each and every change process must be measured in real time and accurately so that we can understand whether the actions put in place are having a positive or negative impact and, if so, assess how to intervene with appropriate adjustments.
Strategies to counter resistance to change
Before we write the word “end” in this guide devoted to change management, it is important to remember the words of Jack Welch:
“Change before you have to.”
Resisting change, even more so today when transformations in society and markets are the order of the day, makes no sense. In fact, it risks being highly counterproductive.
As a business leader, you before anyone else must have an open, growth-oriented mindset so that you can seize every opportunity that is useful to make your startup more competitive.
If only you have this mindset, however, your startup will fail to grow. Internal communication within the company, as we have already pointed out, plays a decisive role in change management: explaining why business transformation is necessary and useful is crucial because, if your employees are aware of this, they will also be more involved in the process and the process can be successfully completed more easily and quickly.
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