In the midst of dynamic business environment, organizations are urged to constantly evolve and adapt to meet a variety of chanllenges – from changes in technology, increasing new competitors to a shift in laws, regulations, or underlying economic trends. Inability to adapt would lead organization to stagnation and worse, gradually lose to their competitors.

According to Gartner, only 34% of organizations have reached overall success in change management!

In order to not only survice but also win the competition, organization should be able to modernize their business. Therefore, change management is essential for realigning their workforce to meet with markets’ needs and setting new priorities, which later lead them to improve overall business performance. However, what is meant by change management?

Change Management is the process of identifying, implementing, and maintaining change within an organization. It involves a structured approach to transitioning individuals, team, and organizations from a current state to a desired future state. The process of Change Management is crucial for organizations as it helps them adapt to new situation and achieve their goals.

Change Management can be:

Adaptive:

Small, gradual, iterative changes are made to evolve its products, processes, workflows, and strategies over time. The example are hiring a new team member or implementing new work policy

Transformational:

Larger changes are made in scale and scope and often signify a dramatic and occasionally sudden, departure from the status quo. The example are launching a new product or business division.

Successful Change Management implementation enables organizations to:

1. Improve efficiency: by streamlining processes and identifying areas for improvement

2. Enhanced effectiveness: with well-planned and executed changes

3. Better alignment with business goals: aligning their processes and practices with their overall business goals, leading to improved performance.

4. Increase employee engagement and motivation: by increasing their engagement and motivation, leading to better job staisfaction and performance

5. Improved stakeholder relationships: by engaging with stakeholders, including customers, suppliers, and investors

6. Increased competitiveness: by quickly and effectively respond to new market conditions to them remain competitive

7. Improved risk management: by identifying and mitigate potential risks associate with changes. Reducing the likelihood of negative consequences.

It is obvious that new approaches and change management can contribute to improve business value. When organizations are committed to change, it is important to analyze the current state of their organization. In this way, people are aware of things that should be fixed and able to conduct appropriate change management methods to suit their needs.

Here are the 4 Models of Change Management that could boost your organizations’ performance and gain values!

1. ADKAR Model

The Awareness, Desire, Knowledge, Ability, and Reinforcement (ADKAR) model is a goal-oriented change management model that focuses on individual change. The model aims to help employees understand the need for change, build a desire to support the change, acquire the knowledge and skills needed to support the change, and reinforce the change permanently.

2. Kotter’s 8-Step Model

This popular change management model developed by John Kotter consists of eight steps to prepare employees for change. The 8 Steps model are creating a vision, communicating the vision, empowering others to act, creating short-term objectives, consolidating gains, anchoring new approaches in the organization’s culture, and establishing ongoing communications.

3. Lewin’s Change Management Model

Lewin’s model is based on the three-step process of unfreezing, changing, and refreezing. The first step involves breaking down the resistance to change and making employees aware of the need for change. The second step is implementing the change, and the final step is consolidating the change and making it a permanent part of the organization.

4. Action Research Model

This model involves involving employees in the change process. It starts with a problem-solving phase, followed by a planning phase, an action phase, and a reflection phase. This model encourages employees to participate in the change process and helps to build ownership and commitment to the change.

The choice of change management model will depend on the nature of the change, the size and complexity of the organization, and the culture of the organization. Effective change management helps organizations to adapt to changes in the environment, improve processes, and achieve their business goals.

Reference:

Buchholz, U., Knorre, S. (2023). Change Management. In: Internal communication and management. Springer, Wiesbaden. https://doi.org/10.1007/978-3-658-38614-6_13

Cameron, Esther. Mike Green. (2020). Making Sense of Change Management 5th ed. A Complete Guide to the Models, Tools and Techniques of Organizational Change. Kogan Page. ISBN: 9780749496982

Sancak, Ibrahim E. (2023). Change management in sustainability transformation: A model for business organizations, Journal of Environmental Management, Volume 330, 117165, ISSN 0301-4797, https://doi.org/10.1016/j.jenvman.2022.117165.

Supriharyanti, E. and Sukoco, B.M. (2023), "Organizational change capability: a systematic review and future research directions", Management Research Review, Vol. 46 No. 1, pp. 46-81. https://doi.org/10.1108/MRR-01-2021-0039