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Change management
View on WikipediaChange management (CM) is a discipline that focuses on managing changes within an organization. Change management involves implementing approaches to prepare and support individuals, teams, and leaders in making organizational change. Change management is useful when organizations are considering major changes such as restructure, redirecting or redefining resources, updating or refining business process and systems, or introducing or updating digital technology.
Organizational change management (OCM) considers the full organization and what needs to change,[1] while change management may be used solely to refer to how people and teams are affected by such organizational transition. It deals with many different disciplines, from behavioral and social sciences to information technology and business solutions.
As change management becomes more necessary in the business cycle of organizations, it is beginning to be taught as its own academic discipline at universities.[2] There are a growing number of universities with research units dedicated to the study of organizational change. One common type of organizational change may be aimed at reducing outgoing costs while maintaining financial performance, in an attempt to secure future profit margins.
In a project management context, the term "change management" may be used as an alternative to change control processes wherein formal or informal changes to a project are formally introduced and approved.[3][4]
Drivers of change may include the ongoing evolution of technology, internal reviews of processes, crisis response, customer demand changes, competitive pressure, modifications in legislation, acquisitions and mergers, and organizational restructuring.[5][6]
History
[edit]Pre-1960s
[edit]Kurt Lewin was a social scientist who researched learning and social conflict. Lewin's first venture into change management started with researching field theory in 1921. Five years later, Lewin would begin a series consisting of about 20 articles to explain field theory. He would go on and publish Principles of Topological Psychology in 1936, which was Lewin's most in depth look at field theory. Shortly before his death, Lewin would write two articles called Human Relations which are the foundation of his three-step model.[7]
In 1934, Lewin set up a proposal to create an action research-orientated department of psychology at the Hebrew University of Jerusalem. Shortly after, Lewin moved to America and started up other action research initiatives with children, housewives, religious groups, racial intolerance, and leadership. During this time, Lewin became the first psychologist to study group dynamics. His definition of a "group" from this project is still used today; "It is not the similarity or dissimilarity of individuals that constitutes a group, but interdependence of fate."[8]
1960s
[edit]Many change management models and processes are based with their roots in grief studies. As consultants saw a correlation between grieving from health-related issues and grieving among employees in an organization due to loss of jobs and departments, many early change models captured the full range of human emotions as employees mourned job-related transitions.[9]
In his work on diffusion of innovations, Everett Rogers posited that change must be understood in the context of time, communication channels, and its impact on all affected participants. Placing people at the core of change thinking was a fundamental contribution to developing the concept of change management. He proposed the descriptive Adopter groups of how people respond to change: Innovators, Early Adopters, Early Majority, Late Majority and Laggards.[10]
1980s
[edit]McKinsey & Company consultant Julien Phillips published a change management model in 1982 in the journal Human Resource Management.[11]
Robert Marshak has since credited the big six accounting and consulting firms with adopting the work of early organizational change pioneers, such as Daryl Conner and Don Harrison, thereby contributing to the legitimization of a whole change management industry when they branded their re-engineering services as change management in the 1980s.[12]
In the late 1980s, General Electric under Jack Welch was somewhat shell-shocked and demoralized following several years of organizational restructuring and de-layering that resulted in far fewer people but the same amount of work, while saddled with a stifling bureaucracy. Welch directed a team that ultimately included Dave Ulrich, Todd Jick, Steve Kerr, and Ron Ashkenas among others, to create a process to "get unnecessary work out of the system." The process became known as Work-Out, which was similar in concept to Quality Circles that were made popular by Japanese companies in the 1980s. “In small teams, people challenge prevailing assumptions about ‘the way we've always done things’ and come up with recommendations for dramatic improvements in organizational processes. The Work-Out teams present their recommendations to a senior leader in a Town Meeting where the manager engages the entire group in a dialog about the recommendations and then makes a yes-no decision on the spot. Recommendations for changing the organization are then assigned to ‘owners’ who have volunteered to carry them out and follow through to get results. That's Work-Out in a nutshell.” “[Work-Out] is also a catalyst for creating an empowered workforce that has the self-confidence to challenge the inevitable growth of organizational bureaucracy. It can help create a culture that is fast-moving, innovative, and without boundaries.”[13]
1990s
[edit]In 1990, The Fifth Discipline: The Art and Practice of the Learning Organization by Peter Senge is published. In 1997, Harvard Business Review identified The Fifth Discipline as one of the seminal management books of the previous 75 years. For this work, he was named "Strategist of the Century" by the Journal of Business Strategy, which said that he was one of a very few people who "had the greatest impact on the way we conduct business today." According to Senge, there are four challenges in initiating changes: 1. There must be a compelling case for change. 2. There must be time to change. 3. There must be help during the change process. 4. As the perceived barriers to change are removed, it is important that some new problem, not before considered important or perhaps not even recognized, doesn't become a critical barrier.
The first edition of Managing Transitions: Making the Most of Change by William Bridges is published in 1991. Bridges emphasized the importance of managing the psychology of transitions, consisting of three phases: letting go of the past, the "neutral zone" where the past is gone but the new isn't fully present, and making the new beginning.
The 1990 oil price shock occurred as a result of the Iraqi invasion of Kuwait on August 2, 1990 and contributed to the recession of the early 1990s in the United States. At General Electric, Jack Welch and the senior leadership team were forced to abandon methodically developed strategic plans. Welch recognized the obvious problem with long-term planning – no one can predict the future. Welch has been quoted by Steve Kerr as saying, “It's not that we're surprised that bugs me, it's that we're surprised that we're surprised that bugs me.” He recognized the advantage of being able to react to change faster than GE's competitors. Welch commissioned a team, including Dave Ulrich and Steve Kerr, to create a process to "accelerate change" throughout GE. “Thus in 1992 and 1993, some of the external faculty, in collaboration with Crotonville staff, developed and implemented the Change Acceleration Process (CAP) as a follow-up to Work-Out. In this process, drawn from experiences with other companies, teams of managers from a business took on major change projects and learned how to orchestrate an entire change effort.”[14]
In his 1993 book, Managing at the Speed of Change, Daryl Conner coined the term 'burning platform' based on the 1988 North Sea Piper Alpha oil rig fire. He went on to found Conner Partners in 1994, focusing on the human performance and adoption techniques that would help ensure technology innovations were absorbed and adopted as best as possible.[15] The first State of the Change Management Industry report was published in the Consultants News in February 1995.[16]
In the mid-90s, John Kotter authors arguably the most influential publications in the history of Change Management. Leading Change: Why Transformation Efforts Fail appeared in a 1995 issue of the Harvard Business Review, and his follow-up book, Leading Change published in 1996.
Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life, published in 1998, is a bestselling seminal work by Spencer Johnson. The text describes the way one reacts to major change in one's work and life, and four typical reactions to those changes by two mice and two "Littlepeople," during their hunt for "cheese." A New York Times business bestseller up on release, Who Moved My Cheese? remained on the list for almost five years and spent over 200 weeks on Publishers Weekly's hardcover nonfiction list.[17]
2000s
[edit]Linda Ackerman Anderson states in Beyond Change Management that in the late 1980s and early 1990s, top leaders, growing dissatisfied with the failures of creating and implementing changes in a top-down fashion, created the role of the change leader to take responsibility for the human side of change.[18]
2010s
[edit]In response to lack of understanding in how to manage change in large projects and programs of work, Christina Dean (author of RIMER Managing Successful Change Professional Edition), established the Australian Government National Competency Standards at Diploma Level, and RIMER as the Australian National Competency Standard Certification. RIMER is a Project Based approach to managing change, which introduced the concept of Enterprise Change Management. Christina also influenced the Human Resource Management Institute and Project Management Institute Industry Associations to include Change Management in their Academic programmes to Masters Level. By 2016, all Australian Universities offered programs that provided a formal vocational pathway, through a HRM or Project Management.[19]
In response to continuing reports of the failure of large-scale top-down plan-driven change programmes,[20] innovative change practitioners have been reporting success with applying Lean and Agile principles to the field of change management.[21][22]
The Lean Change Management Association became the world's first global organization to offer trainings designed to apply Lean Startup, Agile, and Design Thinking principles to change.[23]
The Association of Change Management Professionals (ACMP) announced a new certification to enhance the profession: Certified Change Management Professional (CCMP) in 2016.[24]
2020's
[edit]The 2020s have seen a marked evolution in change management, shaped by global disruptions and rapid technological adoption. The COVID-19 pandemic accelerated the need for agile and digitally enabled change practices, as organisations adapted to remote and hybrid work models, supply chain instability, and new employee wellbeing priorities.
During this period, change management increasingly intersected with digital transformation and organisational resilience disciplines. Many organisations integrated change approaches into broader enterprise agility frameworks such as Scaled Agile Framework (SAFe) and DevOps. The emphasis shifted from managing discrete projects to enabling continuous change, supported by digital tools for communication, analytics, and feedback.
Advancements in artificial intelligence (AI), automation, and data analytics have also influenced the field. Practitioners began using AI-enabled sentiment analysis, predictive analytics, and adaptive learning platforms to monitor change adoption and engagement.
Scholars, practitioners and many progressive organisations in the 2020s are seeing the benefits and success in applying human-centred change, integrating behavioural science, diversity and inclusion, and employee experience principles into change frameworks. This decade reflects a movement away from static, top-down change models toward dynamic, participatory, and evidence-based approaches.
Approach
[edit]Organizational change management employs a structured approach to ensure that changes are documented and implemented smoothly and successfully to achieve lasting benefits.[25]
Reasons for change
[edit]Globalization and accelerated innovation of technology result in a constantly evolving business environment. Phenomena such as social media and mobile adaptability have revolutionized business and the effect of this is an ever-increasing need for change, and therefore change management. The growth in technology also has a secondary effect of increasing the availability and therefore accountability of knowledge. Easily accessible information has resulted in unprecedented scrutiny from stockholders and the media and pressure on management. With the business environment experiencing so much change, organizations must then learn to become comfortable with change as well. Therefore, the ability to manage and adapt to organizational change is an essential ability required in the workplace today. However, major and rapid organizational change is profoundly difficult because the structure, culture, and routines of organizations often reflect a persistent and difficult-to-remove "imprint" of past periods, which are resistant to radical change even as the current environment of the organization changes rapidly.[26][27]
Due to the growth of technology, modern organizational change is largely motivated by exterior innovations rather than internal factors. When these developments occur, the organizations that adapt quickest create a competitive advantage for themselves, while the companies that refuse to change get left behind.[28] This can result in drastic profit and/or market share losses. Organizational change directly affects all departments and employees. The entire company must learn how to handle changes to the organization. The effectiveness of change management can have a strong positive or negative impact on employee morale.
Change models
[edit]There are several models of change management:
Human-Centred Design Change
[edit]Human-centred design (HCD) has emerged as a significant approach within change management, emphasising empathy, co-creation and iterative feedback with the individuals impacted by change rather than adopting only a top-down model.
Drawing upon design-thinking principles, HCD seeks to engage stakeholders actively in defining the problem, exploring solutions and shaping the change experience.
Proponents argue that by involving employees and other stakeholders in designing the change, not just executing it, organisations can enhance buy-in, reduce resistance and accelerate adoption. Academics note the “intersection of change management and human-centred design” as a growing focus for effective transformation[29].
Practically, HCD change approaches emphasise three core capabilities:
- Co-creation and stakeholder engagement – engaging diverse groups in problem-framing and ideation rather than only communicating predetermined plans;
- Continuous learning and adaptation – treating change as an iterative process with frequent feedback loops and adjustments;
- Human experience focus – shifting from purely process, technology or system change to attending to behaviours, emotions, empathy and meaning for individuals.
This shift complements existing change frameworks (e.g., those derived from organisational development or project-based change) and reflects an increasing organisational emphasis on the human dimension of transformation.
Lean Change Management
[edit]Lean Change Management is an ecosystem of modern change management ideas created by Jason Little. Inspired by Lean Startup, Agile, and Design Thinking, Lean Change Management is designed to help change agents create an adaptable, and contextual approach to change
- focus on creating shared purpose over creating false urgency
- focus on enabling meaningful dialogue over broadcasting change communications
- focus on experimentation over executing tasks in the plan
- focus on understanding the response to change over blaming people for resisting
- focus on co-creation of change over getting buy-in
Jason began developing Lean Change Management in 2009 as a response to outdated traditional change management approaches designed in a pre-digital world.
Kurt Lewin's 3-step change model
[edit]Kurt Lewin, a German-American psychologist, developed this 3-step model to implement change. The model consists of three steps:[30]
- Unfreezing, which "destabilizes the equilibrium", that is, breaking down the old attitude and behaviours, customs and traditions, and "unleashes some energy for change", that is, making members willing and ready to accept the change by promoting the new ideas
- Changing, which involves entering the change using collaboration and action research
- Refreezing, the stabilizing stage in which new policies and standards becomes normal way of life
This model of change, developed by Lewin, was a simplistic view of the process of change.[according to whom?] This original model, "developed in the 1920s and fully articulated in Lewin's ... book Principles of Topological Psychology" (1936),[8] paved the way for other change models to be developed in the future. Burnes argues that Lewin's model was "far from being simplistic".[8]
John Kotter's 8-Step Process for Leading Change
[edit]John P. Kotter, the Konosuke Matsushita Professor of Leadership, Emeritus, at the Harvard Business School is considered the most influential expert of change management.[30] He invented the 8-Step Process for Leading Change. It consists of eight stages:
- Create a Sense of Urgency
- Build a Guiding Coalition
- Form a Strategic Vision and Initiatives
- Enlist a Volunteer Army
- Enable Action by Removing Barriers
- Generate Short-Term Wins
- Sustain Acceleration
- Institute Change
These steps are very much tied to Lewin's model and build upon his simplistic process of creating change. They follow the same general steps of Lewin's model: Unfreezing, Changing, and Refreezing.
Change Management Foundation and Model
[edit]The Change Management Foundation is shaped like a pyramid with project management managing technical aspects and people implementing change at the base and leadership setting the direction at the top. The Change Management Model consists of four stages:
- Determine Need for Change
- Prepare & Plan for Change
- Implement the Change
- Sustain the Change
The Prosci ADKAR Model
[edit]The Prosci ADKAR Model is an individual change framework created by Jeff Hiatt. ADKAR is an acronym that represents the five building blocks of successful change for an individual:
- Awareness of the need for change
- Desire to participate and support in the change
- Knowledge of what to do during and after the change
- Ability to realize or implement the change as required
- Reinforcement to ensure the results of a change continue[31][32]
The ADKAR Model is prescriptive and goal-oriented, each milestone must be achieved to define success. It uses a 1–5 scale to determine how strongly an individual meets the requirements of each milestone. If a person scores a three or below, that specific step must be addressed before moving forward, Prosci defines this as a barrier point.[33]
The Plan-Do-Check-Act Cycle, and choosing which changes to implement
[edit]
The Plan-Do-Check-Act Cycle, created by W. Edwards Deming, is a management method to improve business method for control and continuous improvement of choosing which changes to implement. When determining which of the latest techniques or innovations to adopt, there are four major factors to be considered:
- Levels, goals, and strategies
- Measurement system
- Sequence of steps
- Implementation and organizational changes
The Plan-Do-Check-Act (PDCA) cycle, often referred to as the Deming Cycle, is a scientific method for testing concepts and putting changes into action that helps make better decisions. The focus on small-scale plan testing initially, which lowers the possibility of broad problems and encourages fault avoidance, is what distinguishes PDCA. By gathering data to evaluate the efficacy of improvements, it also promotes ongoing progress. Organizations may practice scientific management and promote continuous improvement by employing PDCA, which focuses on finding and fixing the underlying causes of issues.[34]
Balogun and Hope Hailey types of change
[edit]Balogun and Hope identified four different classifications of change that depend on the speed of change and the extent of change:[35][36]
- Evolution, involves implementing change slowly through interrelated initiatives.
- Adaption, involves undertaking a series of steps to realign the company culture.
- Revolution, involves taking huge steps to change company culture.
- Reconstruction is change undertaken to realign the company culture and is often forced and reactive, involving many initiatives.
Managing the change process
[edit]Although there are many types of organizational changes, the critical aspect is a company's ability to win the buy-in of their organization's employees on the change. Effectively managing organizational change is a four-step process:[37]
- Recognizing the changes in the broader business environment
- Developing the necessary adjustments for their company's needs
- Training their employees on the appropriate changes[38]
- Winning the support of the employees with the persuasiveness of the appropriate adjustments
As a multi-disciplinary practice that has evolved as a result of scholarly research, organizational change management should begin with a systematic diagnosis of the current situation in order to determine both the need for change and the capability to change. The objectives, content, and process of change should all be specified as part of a change management plan. Change management processes should include creative marketing to enable communication between changing audiences, as well as deep social understanding about leadership styles and group dynamics. As a visible track on transformation projects, organizational change management aligns groups' expectations, integrates teams, and manages employee training. It makes use of performance metrics, such as financial results, operational efficiency, leadership commitment, communication effectiveness, and the perceived need for change in order to design appropriate strategies, resolve troubled change projects, and avoid change failures.[citation needed]
Create a Circle of Support
[edit]A Circle of Support is a people-centered framework for managing change, emphasizing empathy, inclusion, and tailored responses to individual and team dynamics. It focuses on stakeholders and the volume of information they need to be aware of, support, and take action on. This subject is covered in detail on PMI's September 2025 Projectified podcast. A Circle of Support consists of three iterative steps designed to foster sustainable adoption by addressing resistance and building trust.
In the first step, Include, stakeholders are selected and actively involved through listening and feedback mechanisms, creating a sense of belonging and early alignment. This is followed by Observe, where behavioral assessments and science-backed tools evaluate each participant's position in their change journey, identifying unique needs and stages of readiness. The final step, Respond, delivers customized actions—such as targeted support or adjustments—based on these observations, avoiding uniform interventions and promoting adaptive, empathetic guidance.
This model integrates well with broader change initiatives, such as technology implementations or process optimizations, by mastering stakeholder engagement and reinforcing long-term behavioral shifts and enhancing organizational resilience. It underscores the value of iterative feedback loops to navigate non-linear transformations, contributing to broader buy-in, higher engagement, and measurable outcomes like improved adoption rates.
Factors of successful change management
[edit]Successful change management is more likely to occur if the following are included:[39]
- Define measurable stakeholder aims and create a business case for their achievement (which should be continuously updated)
- Monitor assumptions, risks, dependencies, costs, return on investment, dis-benefits and cultural issues
- Effective communication that informs various stakeholders of the reasons for the change (why?), the benefits of successful implementation (what is in it for us, and you) as well as the details of the change (when? where? who is involved? how much will it cost? etc.)
- Devise an effective education, training and/or skills upgrading scheme for the organization
- Counter resistance from the employees of companies and align them to overall strategic direction of the organization
- Provide personal counseling (if required) to alleviate any change-related fears
- Monitoring implementation and fine-tuning as and when required
Reasons for failure
[edit]Research into change management has identified a number of reasons why change might fail:[40][41]
- Inappropriate executive sponsorship, in particular where the executive sponsor does not have a sufficiently senior position within the organisation [40]
- Starting on a solution before the underlying problem [that requires the change] is fully understood
- Failure to spend time on systematically analyzing the people and styles that are involved
- Jumping to a solution to the problem(s)
- Failure to validate the proposed solutions
- Failure to communicate what is happening and why
- Failure to plan for certainty
- Failure to define measurable outcomes and way-points
- Absence of strong governance in place, particularly around dependencies
- Not dealing properly with risk and contingency
- Lack of shared commitment and leadership
- Lack of a clear sense of urgency when warning signs are clear
- Lack of ability to recognize obstacles to the vision
- Lack of planning for and creating short-term wins
- When firms are very complex—for example, when they are strongly diversified in unrelated industries[42]
- Poor anchoring of changes within an organisation's culture
- Change fatigue[43]
Challenges
[edit]Change management is faced with the fundamental difficulties of integration and navigation, and human factors.[citation needed] Change management must also take into account the human aspect where emotions and how they are handled play a significant role in implementing change successfully.[citation needed]
Integration
[edit]Traditionally, organizational development (OD) departments overlooked the role of infrastructure and the possibility of carrying out change through technology. Now, managers almost exclusively focus on the structural and technical components of change.[44] Alignment and integration between strategic, social, and technical components requires collaboration between people with different skill-sets.
Navigation
[edit]Managing change over time, referred to as navigation, requires continuous adaptation. It requires managing projects over time against a changing context, from interorganizational factors to marketplace volatility. It also requires a balance in bureaucratic organizations between top-down and bottom-up management, ensuring employee empowerment and flexibility.[44]
Human factors
[edit]
One of the major factors which hinders the change management process is people's natural tendency for inertia. Just as in Newton's first law of motion, people are resistant to change in organizations because it can be uncomfortable. The notion of doing things this way, because 'this is the way we have always done them,' can be particularly hard to overcome.[45] Furthermore, in cases where a company has seen declining fortunes, for a manager or executive to view themselves as a key part of the problem can be very humbling. This issue can be exacerbated in countries where "saving face" plays a large role in inter-personal relations. As mentioned above, there are some groups that prioritize their own benefits above organizations' benefits, and involving such groups into organizational change will naturally create obstacles, and some departments may directly or indirectly resist organizational change due to the conflicts of their interests.[46]
To assist with this, a number of models have been developed which help identify their readiness for change and then to recommend the steps through which they could move. A common example is ADKAR, an acronym which stands for Awareness, Desire, Knowledge, Ability and Reinforcement.[47] This model was developed by researcher and entrepreneur Jeff Hiatt in 1996 and first published in a white paper entitled The Perfect Change in 1999.[48] Hiatt explained that the process of becoming ready for change is sequential, starting from the current level of each individual,[49] and none of the five steps could be avoided: "they cannot be skipped or reordered."[50]
Solutions to overcoming challenges and avoiding failure
[edit]When going through change, many organizations and individuals fail and are faced with challenges when implementing change. There are many measures organizations and individuals can take to avoid failure and overcome challenges.
Human factors
[edit]When faced with a resistance to change by individuals, there are many strategies to get individuals to change. Morten T. Hansen proposed the following ten methods to induce personal change.[51]
- Embrace the power of one – Focus on one behavior to change at a time. This is because people are not good at multi-tasking.
- Make it sticky – With the goal to change behavior, to do this effectively the goal must be measurable and concrete.
- Paint a vivid picture – To be effective in getting change for people, tap into their emotions and paint them a picture of where they currently are and offer up the vision of where they should want to get to.
- Activate peer pressure – As individuals people look to others in their immediate circle for approval. These peers can set the expectations to what is acceptable behavior. Leaders can implore these people to apply pressure and get the change that is desired.
- Mobilize the crowd – When individuals embrace a new behavior it typically follows a pattern – early adopters, safe followers, and late-comers. To get a change in the group it is imperative that a leader gets a few early adopters on board with a changed behavior. Then have them influence and convince the rest of the group to come and adopt said behavior.
- Tweak the situation – People tend to go with the default option. To influence change, an organization can nudge them and indirectly shape their choices. This can be done by changing the default option which in turn shapes individual behavior.
- Subtract, not just add – Instead of trying to add something in to solve the problems, rather removing the enablers, triggers, and barriers that cause these problems.
- Dare to link carrots and sticks (and follow through) – To motivate individuals to change behavior, offer incentives for both performance related objectives and behavior related objectives.
- Teach and coach well – Developing certain behaviors have a skill dimension. Time is needed for people to develop desired behaviors. As a leader it is important to guide individuals to the desired end result.
- Hire and fire based on behaviors – Some people may or may not be able to or want to adopt these new behaviors and change. Instead leaders should look to bring in people that embody these desired behaviors and are able change.
These tactics can be helpful when faced with resistance from individuals with implementing change into a group. The tactics can be helpful with either implementing a behavioral change among the group or a procedural or managerial change in the group.
On an organizational level
[edit]When trying to change at an organizational level, these tactics developed by Irving Calish and Donald Gamache[52] help companies in trying to enter into new markets and with creating new products.
- Welcome the opportunity for change
- Creating an environment that does not punish mistakes
- Clearly define a growth plan that will enable management to zero in company resources on meaningful targets
- Set realistic criteria for new opportunities
- Avoid trying for short-term financial success
- Remember that a good idea can be identified only after the fact. An idea is "good" only when it is the right fit for the company, its resources, and its goals
- Have a fund of ideas; a choice of opportunities fosters objectivity and helps prevent falling hopelessly in love with one
- Make sure the rewards for success are far greater than the penalties for failure
These tactics implored on an organizational level aid in overcoming resistance and challenges when it comes to change. These tactics are more optimal for when an organization is trying to implement change at an organizational level or trying to enter into a new product space, but still work for other avenues.
Avoiding failure
[edit]Based upon the reasons for failure, there are many actions a leader can take to avoid these failures when it comes to change.[53] They can:
- Create a clearly defined and organized plan
- Communicate this plan effectively to the group
- Define measurable goals
- Create a solid management structure
- Properly manage risk
The antithesis for this is doing the opposite of what causes failure in the first place. Following these steps in combination with the other suggestions will aid in avoiding failure and overcoming challenges. Additionally, to be successful with change, it is imperative to follow the change models to get actions right and avoid failure in the first place.
Case studies
[edit]There are many situations in which the change models have been implemented successfully. Two of the following case studies below highlight these examples.
Lewin's change-theory example
[edit]At a Vietnamese University there was a desire to use Lewin's change theory to create a more "effective working environment where lecturers collaborate in a constructive spirit to improve their teaching practices and learning outcomes."[54] To start this process of implementing change, they began by observing how the teachers at this university taught their class, and by giving questionnaires and interviews about how the teachers conducted their jobs. After receiving the feedback about how the teachers conducted their lectures and where they needed to improve, the administration communicated to the teachers how to fix these problems. They began by offering professional seminars as a way for the teachers to improve and refine their knowledge. Additionally the university also brought in professionals that introduced them to alternative ways of teaching. After the teachers had learned this new information they then implemented this into the classes they teach. To monitor the transition and the implementation of these new tactics, the classes were once again observed and feedback was provided through questionnaires and interviews. This data was sent to the administration after the second review and later was organized to show the feedback before and after the changes were implemented in the class room. The data ultimately revealed that after this change was conducted, satisfaction among the students was far greatly improved. This university followed Lewin's model when trying to implement change at their university and the end result was a success.
Kotter's change-theory example
[edit]The Centers for Disease Control and Prevention (CDC) conducted an analysis at a federally qualified health center in Kentucky and looked to "improve its delivery of preventive care services, close care gaps, and reduce health disparities among its patient population."[55] With understanding the goal in mind, they utilized Kotter's change theory as a model to attain this goal and implement the change needed at this facility. They began this process to change, by creating a climate for change within the health center. To do this they interviewed employees on how well this facility implemented certain protocols, how high these standards were held, and how well these standards were being enforced. This was done to gain insight on where the organization currently is and where it should be going. Once this knowledge was attained, the organization then implemented the change into the care facility with higher quality standards. After this was complete, the employees were interviewed again and this time the questions shifted to how leadership engaged and enabled the whole organization. This was done to look at how well the organization was implementing the new standards at the care facility. The final phase of questioning was about how the implementation of these standards could have gone better and if there were any unanticipated challenges that came with implementing these standards. These interviews gave the CDC a read on how well the implementation of new health standards at this care facility went well and where they could have improved. This example is one of many of how organizations can use Kotter's change model to correctly implement change.
See also
[edit]- Accountability § Individuals within organizations
- Business process reengineering
- Business transformation
- Change management (ITSM)
- Communication and leadership during change
- Employee engagement
- Human resource management
- Leadership development
- Learning cycle
- Industrial and Organizational Psychology
- Organization studies
- Organizational culture
- Organizational structure
- Performance management
- Stakeholder management
- Strategic management § Strategy as adapting to change
- Talent management
- Training and development
- Transparency (behavior) § Management
- Transtheoretical model
- Turnaround management
- Workers' self-management
References
[edit]- ^ "Home". International Organizational Change Management Institute. Archived from the original on 2015-12-08. Retrieved 2015-12-08.
- ^ Bennett, Naomi (2022-05-04). "Change Management in Higher Education: Pre-, During and Post-Pandemic". SUMS. Retrieved 2023-11-29.
- ^ Filicetti, John (August 20, 2007). "Project Management Dictionary". PM Hut. Archived from the original on June 14, 2012. Retrieved November 16, 2009.
- ^ Levin, Ginger (2012). "Embrace and Exploit Change as a Program Manager: Guidelines for Success". Project Management Institute. Archived from the original on September 30, 2013. Retrieved August 10, 2013.
- ^ "Hucmi". Archived from the original on 2018-05-17. Retrieved 2018-05-16.
- ^ "5.2 - Operational Issues". ITRevision. Retrieved 2023-11-29.
- ^ Burnes, Bernard (March 2020). "The Origins of Lewin's Three-Step Model of Change". The Journal of Applied Behavioral Science. 56 (1): 32–59. doi:10.1177/0021886319892685. hdl:1893/30461. ISSN 0021-8863. S2CID 212959759. Archived from the original on 2021-11-15. Retrieved 2021-11-16.
- ^ a b c Burnes, Bernard (2019-12-18). "The Origins of Lewin's Three-Step Model of Change". The Journal of Applied Behavioral Science. 56 (1): 32–59. doi:10.1177/0021886319892685. hdl:1893/30461. ISSN 0021-8863. S2CID 212959759.
- ^ Welbourne, Theresa M. "Change Management Needs a Change".
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Data related to Change management at Wikidata
Change management
View on GrokipediaIntroduction
Definition and Scope
Change management is defined as a structured and systematic approach to transitioning individuals, teams, and organizations from a current state to a desired future state, aiming to achieve intended business benefits while minimizing disruptions. This practice emphasizes preparing and supporting people through the human side of change, ensuring adoption and utilization of new processes, structures, or technologies.[7][8][9] The scope of change management encompasses strategic, operational, and cultural transformations within organizations, integrating with areas such as project management and organizational development to address the effects of new initiatives. It focuses on the people-centric aspects, distinguishing itself from project management, which primarily handles tasks, timelines, and deliverables, by prioritizing behavioral and cultural adoption to mitigate resistance and enhance sustainability. Unlike change control in information technology, which is limited to monitoring and approving modifications in systems, change management broadly covers leadership-driven efforts across all organizational levels to align changes with overall goals.[7][9][10] Key components include strong leadership involvement to drive and sustain initiatives, effective stakeholder engagement to build buy-in from senior leaders, managers, and employees, clear communication strategies to align expectations and reduce uncertainty, and comprehensive training programs to equip individuals with necessary skills. These elements work cyclically, involving planning, implementation, and ongoing review to ensure seamless transitions and maximize outcomes.[7][10][9] Change management has roots in the mid-20th century, developing in response to accelerating technological and market shifts in the post-World War II era, to provide structured methods for organizational transitions effectively.[7][9]Importance in Organizations
Effective change management is vital for organizational survival and performance, as it mitigates employee resistance, boosts morale, and drives higher productivity during transitions. Research indicates that projects with excellent change management are up to seven times more likely to achieve their desired outcomes, compared to those with poor or fair practices where success rates drop to around 39%.[11] [12] Without structured approaches, approximately 70% of change initiatives fail, primarily due to resistance and insufficient leadership support, underscoring the need for proactive strategies to enhance adoption and realization of benefits.[13] Conversely, inadequate change management poses significant risks, including substantial financial losses from project delays, unrealized synergies, and escalated operational costs. For example, poor handling can result in significant loss of expected benefits per initiative due to low utilization.[14] It also accelerates talent attrition, with disengaged employees leaving at higher rates, leading to substantial recruitment and training expenses.[15] These failures further compound into reputational damage, as repeated shortfalls erode trust among stakeholders and hinder future partnerships.[16] In modern, dynamic environments, change management enables agility, allowing organizations to navigate volatile markets, economic shifts, and technological disruptions effectively. Companies that invest in change capabilities during downturns, such as cost reductions or digital transformations, not only survive but accelerate recovery by preserving employee buy-in and operational continuity.[17] This adaptability is crucial for long-term sustainability, as it builds resilience against ongoing uncertainties like supply chain volatility or regulatory changes.[18] The value of change management manifests in key metrics, including elevated return on investment (ROI), improved employee engagement scores, and sustained organizational health. Effective practices can make projects six times more likely to meet or exceed objectives through better adoption rates, directly tying people-side efforts to financial gains.[19] They also correlate with higher engagement and improvements in morale metrics post-implementation, reducing turnover and supporting enduring performance.[15] Ultimately, these elements contribute to long-term sustainability by embedding change readiness into the organizational culture.[20]Historical Development
Early Foundations (Pre-1960s to 1980s)
The foundations of change management trace back to the early 20th century, rooted in efforts to optimize industrial efficiency and address human factors in organizational settings. Frederick Winslow Taylor's scientific management principles, introduced in his 1911 work The Principles of Scientific Management, emphasized systematic analysis of workflows, time-motion studies, and standardized processes to boost productivity in manufacturing environments.[21] This approach laid the groundwork for planned organizational changes by treating management as a science rather than an art, influencing early bureaucratic reforms in factories and administrative structures.[22] Parallel to Taylorism, the human relations movement emerged in the 1920s and 1930s, shifting focus from mechanical efficiency to worker motivation and social dynamics. Elton Mayo's Hawthorne studies, conducted at the Western Electric Hawthorne Works from 1927 to 1932, revealed that productivity improvements were often driven by social factors, such as attention from supervisors and group cohesion, rather than solely physical changes like lighting or rest periods.[23] These findings challenged Taylor's mechanistic view and highlighted the need for change initiatives to consider psychological and relational elements, influencing early applications in labor relations and workplace reforms.[24] In the pre-1960s era, psychologist Kurt Lewin contributed foundational ideas through his field theory and action research, particularly in the 1940s, where he explored group dynamics and planned change in manufacturing and community settings.[25] Lewin's work, including his brief three-stage model of unfreezing, changing, and refreezing, provided an initial framework for managing transitions in bureaucratic organizations, though it was not yet formalized as a standalone discipline.[26] The 1960s marked the emergence of systems theory in organizational contexts, viewing companies as interconnected systems influenced by internal and external environments. Ludwig von Bertalanffy's general systems theory, adapted to management in the late 1950s and popularized through works like Katz and Kahn's 1966 book The Social Psychology of Organizations, encouraged holistic approaches to change that accounted for feedback loops and interdependencies.[27] This theoretical shift facilitated the rise of organizational development (OD), a practice-oriented field that applied behavioral science to improve group processes and adaptability, with early interventions in manufacturing firms emphasizing team-building and sensitivity training.[28] By the 1980s, quality management principles gained prominence, integrating change strategies into operational improvements. W. Edwards Deming's 14 points for management, outlined in his 1982 book Out of the Crisis, advocated for systemic transformations to reduce variation and foster continuous improvement, drawing from his post-World War II work in Japan.[29] These ideas influenced U.S. industries facing global competition, promoting cultural shifts toward employee involvement and process-oriented change in manufacturing sectors.[30] Concurrently, the decade saw the establishment of formal change consulting practices, with firms like McKinsey & Company expanding services to include organizational transformation, exemplified by their 1982 publication In Search of Excellence which emphasized adaptive cultures and leadership-driven change.[31] These developments solidified change management as a professional domain, bridging early theoretical roots with practical applications in bureaucracy and industry.Key Developments (1990s to 2010s)
The 1990s marked a pivotal era in change management with the emergence of Business Process Reengineering (BPR), championed by Michael Hammer and James Champy in their 1993 book Reengineering the Corporation. BPR advocated for the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed, shifting focus from incremental adjustments to transformative overhauls that integrated technology and organizational restructuring. This approach influenced change management by highlighting the need for holistic, cross-functional interventions to address globalization and competitive pressures.[32] A key milestone came in 1996 with John Kotter's publication of Leading Change, which introduced an eight-step framework emphasizing urgency creation, coalition building, vision communication, empowerment, short-term wins, consolidation, and cultural anchoring. Kotter's model provided a practical, leadership-oriented structure for navigating complex transformations, becoming widely adopted in corporate settings amid rapid technological and market shifts.[33] Entering the 2000s, the Prosci ADKAR model gained traction as a tool for individual-level change, developed by Jeff Hiatt based on research from over 900 organizations and first detailed in the 2006 book ADKAR: A Model for Change. Focusing on Awareness, Desire, Knowledge, Ability, and Reinforcement, ADKAR complemented organizational strategies by addressing personal transitions, with Prosci establishing formal certification programs around this period to professionalize the field.[34] The decade also emphasized knowledge management within change initiatives, viewing it as essential for capturing and disseminating lessons from transformations to sustain long-term adaptability. Knowledge management practices, such as repositories and communities of practice, supported ongoing learning and reduced reinvention during restructurings.[35] Post-merger integrations became a focal point amid a surge in M&A activity, where change management addressed cultural clashes, process alignment, and employee retention to realize synergies. Strategies prioritized early communication and leadership involvement to mitigate disruption, with studies showing that effective integration could boost value capture by up to 25% in large deals.[36] In the 2010s, change management integrated with agile methodologies, adapting structured processes to support iterative development in dynamic environments like software and project management. This hybrid approach enabled faster adaptation through sprints and feedback loops while applying change tools to manage team resistance and scaling.[37] Multinational firms increasingly prioritized cultural change management to navigate diverse workforces, incorporating cross-cultural training and inclusive leadership to foster global cohesion. Frameworks addressed national cultural dimensions, such as power distance and individualism, to enhance collaboration and reduce integration failures in international expansions.[38]Recent Evolution (2020s)
The COVID-19 pandemic from 2020 to 2022 catalyzed a rapid shift in change management practices, particularly toward managing remote and hybrid work environments. Organizations worldwide transitioned abruptly to remote setups, with remote work rising dramatically as companies adapted to lockdowns and health protocols.[39] By 2022, hybrid arrangements—combining office and home work—emerged as the norm, with over 80% of employees in surveyed firms gaining some remote flexibility, including 55% in hybrid roles and 26% fully remote.[40] This evolution required change leaders to focus on virtual communication tools, team cohesion, and productivity metrics in distributed settings, while addressing challenges like isolation and blurred work-life boundaries.[41] Concurrently, the pandemic accelerated digital transformation initiatives, as firms invested in cloud technologies, automation, and cybersecurity to sustain operations; Deloitte's 2020 survey found that digitally mature organizations achieved superior financial performance amid these disruptions.[42] From 2023 to 2025, change management increasingly integrated artificial intelligence (AI) for predictive analytics, enabling organizations to forecast employee resistance and adoption risks through data analysis of surveys and feedback.[43] Prosci's 2024 research indicated that 39% of change practitioners employed AI for such purposes, including behavioral forecasting and sentiment analysis to tailor interventions.[43] Agile change practices gained prominence, incorporating sprints and iterative feedback loops to drive cultural shifts, such as fostering collaboration in cross-functional teams.[44] Employee-centric models emphasized mental health support, with integrations of apps and trauma-informed approaches to mitigate stress during transitions, alongside asynchronous tools like collaborative platforms to accommodate flexible schedules in hybrid environments.[45] Key trends in the 2020s included data-driven strategies, exemplified by Boston Consulting Group's (BCG) agent-based simulators, which model employee networks to test tailored interventions like incentives or leadership messaging for optimal adoption.[46] Sustainability-focused changes also rose, aligning transformations with environmental goals through narratives that emphasize long-term societal impact and innovation.[45] As of 2025, 96% of firms are undergoing some transformation, reflecting heightened volumes driven by technological and market pressures.[47] Influencing these developments was the rise of change strategy over traditional management, reconceiving change as a contextual, strategic imperative rather than a procedural exercise, as BCG advocated in 2025.[46] This shift aided in handling uncertainty in volatile economies, with transparent communication and adaptive planning helping organizations navigate disruptions like inflation and geopolitical tensions.[44]Drivers of Change
Internal Factors
Internal factors refer to the endogenous elements within an organization that prompt the need for change management, often arising from strategic, operational, or cultural imperatives that leaders can directly influence. These drivers are typically controllable and stem from the organization's internal dynamics, such as evolving business needs or performance gaps, distinguishing them from external pressures like market shifts.[7][9] Leadership decisions frequently serve as primary internal drivers, including succession planning, mergers and acquisitions, and process optimizations aimed at aligning the organization with long-term goals. For instance, a new executive team may initiate a merger to consolidate operations, requiring structured change management to integrate teams and systems effectively. Succession planning can trigger changes when a leadership transition demands realignment of strategic priorities, ensuring continuity while fostering innovation. Process optimizations, such as streamlining decision-making hierarchies, often arise from internal assessments to enhance agility and responsiveness.[48][49][7] Operational inefficiencies represent another key internal catalyst, encompassing outdated technologies, skill gaps among employees, and the imperative for cost reductions to bolster financial health. Organizations may pursue change when legacy systems hinder productivity, prompting investments in modern tools to automate workflows and reduce errors. Skill gaps, identified through internal audits, drive training programs or talent realignment to address deficiencies in areas like digital competencies. Cost-reduction needs often lead to efficiency-focused initiatives, such as consolidating redundant departments, to improve bottom-line results without external mandates.[9][7][49] Cultural shifts within the organization also propel change management efforts, including evolving core values, diversity and inclusion initiatives, and responses to internal audits that reveal misalignments. As values evolve—such as emphasizing sustainability or collaboration—leaders may implement programs to embed these into daily practices, fostering a more adaptive environment. Diversity initiatives often arise from internal commitments to equity, involving training and policy updates to reflect a broader workforce composition. Internal audits highlighting cultural disconnects, like siloed communication, can necessitate shifts toward greater transparency and employee involvement.[9][48][49] Illustrative examples of these internal drivers include organizational restructuring for enhanced efficiency and innovations sparked by employee feedback. In restructuring, a company might flatten its hierarchy to accelerate decision-making, directly addressing operational bottlenecks and improving resource allocation. Employee feedback mechanisms, such as internal surveys, can uncover opportunities for innovation, leading to changes like adopting flexible work policies that boost engagement and creativity. These examples underscore how internal drivers enable proactive change, positioning the organization for sustained performance.[7][48][50]External Factors
External factors encompass environmental forces beyond an organization's control that compel adaptation to maintain viability and relevance in a dynamic landscape. These drivers often arise from broader economic, technological, and social contexts, pushing organizations toward reactive or proactive changes to align with evolving realities. Unlike internal factors, external ones typically demand swift responses to unforeseen pressures, such as shifts in global markets or regulatory landscapes, to avoid competitive disadvantage or operational disruption.[9][51] Market dynamics represent a primary external driver, including intensified competition, economic fluctuations, and regulatory mandates that reshape business operations. For example, economic recessions, like the 2008 financial crisis, which led companies such as Netflix to capitalize on in-home entertainment through its existing streaming services, adding over 3 million subscribers in 2009 amid reduced consumer spending on outings. Similarly, regulatory changes, such as the European Union's General Data Protection Regulation (GDPR) enacted in 2018, required organizations worldwide to fundamentally alter data management practices, integrating privacy-by-design principles into core processes to avoid hefty fines and ensure compliance. These pressures highlight how market volatility and legal requirements can trigger widespread organizational restructuring to sustain market position.[51][52] Technological advancements further accelerate external-driven change by introducing innovations that disrupt traditional models and demand rapid integration. The proliferation of artificial intelligence (AI) and related technologies has compelled industries to adopt automation and predictive analytics, with firms facing cybersecurity threats that necessitate enhanced digital defenses. For instance, the e-commerce boom, fueled by advancements in online platforms, transformed retail sectors by shifting consumer access from physical stores to digital marketplaces, requiring supply chain overhauls to meet heightened delivery expectations. Such developments underscore the imperative for organizations to evolve technologically to counter obsolescence and capitalize on emerging opportunities.[9][53] Societal influences, including sustainability imperatives, demographic trends, and global events, also exert significant external pressure on organizations. Rising demands for environmental responsibility have prompted shifts toward eco-friendly practices, such as fast-food chains replacing Styrofoam packaging with paper alternatives in response to public advocacy. The COVID-19 pandemic exemplified this through abrupt societal disruptions, accelerating remote work adoption and digital service expansions across sectors to address health protocols and workforce mobility constraints. Additionally, geopolitical tensions, like U.S.-China trade frictions, have disrupted global supply chains, forcing companies to diversify sourcing and build resilience against tariffs and export restrictions. Post-2020 consumer behavior evolution, marked by preferences for contactless and sustainable options, has further driven adaptations in product offerings and marketing strategies.[51][54][55]Change Management Models and Frameworks
Kurt Lewin's Three-Stage Model
Kurt Lewin's three-stage model of change, introduced in the 1940s, represents a foundational framework in change management, emphasizing a structured process for altering group behaviors and organizational dynamics. Developed during his research at the University of Iowa and through practical experiments like the Harwood manufacturing studies, the model draws from Lewin's broader work on social psychology and was first articulated in his 1947 article on group dynamics.[56] This approach has endured as a cornerstone of organizational development (OD), influencing subsequent theories by providing a simple yet psychologically grounded method for planned change.[57] The model's theoretical basis lies in Lewin's field theory, which posits that behavior is a function of the person and their psychological environment, creating a dynamic "field" of interdependent forces. Central to this is force field analysis, a tool Lewin developed to visualize equilibrium in social systems. In a typical force field diagram, the current state is shown as a balance between driving forces (arrows pushing toward change, such as new goals or incentives) and restraining forces (arrows pulling back, like resistance or habits); effective change requires tipping this balance by strengthening drivers or reducing restraints. This analysis, compiled posthumously from Lewin's notes, underscores the need to address both motivational and inhibitory elements before initiating shifts.[58] (Note: The 1951 book is the primary compilation; URL to APA as it's the publisher.) The three stages—unfreezing, changing, and refreezing—outline a sequential process for managing transitions. Unfreezing involves preparing the system by destabilizing the status quo, such as through awareness campaigns or demonstrating the need for change to overcome inertia and psychological comfort with existing norms.[56] The changing stage implements the new behaviors or structures, often via training, group discussions, or pilot initiatives, allowing individuals and groups to experiment and adopt alterations amid temporary discomfort.[57] Finally, refreezing stabilizes the new state by reinforcing successes, updating policies, and embedding the changes into culture to prevent reversion, ensuring long-term equilibrium.[59] In applications, the model excels in scenarios requiring cultural or procedural shifts, such as reorganizing team norms in manufacturing or altering employee habits during policy updates, where its emphasis on group psychology facilitates collective buy-in. For instance, it has been used in OD interventions to address resistance in procedural overhauls by systematically mapping forces. However, limitations arise in fast-paced environments, where the model's linear, equilibrium-focused structure may overlook continuous adaptation or complex, nonlinear dynamics, rendering it less agile for volatile contexts like digital transformations.[59] Despite these constraints, its simplicity and focus on human elements continue to inform OD practices, with over 10,000 citations of Lewin's foundational works highlighting its lasting impact.John Kotter's Eight-Step Process
John Kotter's Eight-Step Process is a structured framework for leading organizational change, introduced by Harvard Business School professor John P. Kotter in his 1996 book Leading Change. Derived from his analysis of over 100 companies undergoing major transformations during the 1990s, the model focuses on top-down leadership to generate and sustain momentum for successful change initiatives.[60] It addresses eight common errors in change efforts, such as failing to establish urgency or empower broad action, by outlining a sequential path that emphasizes vision, coalition-building, and cultural embedding. The process is designed for large-scale, strategic changes in corporations, promoting a leadership-driven approach where executives rally support and remove barriers to drive adoption. Unlike more psychological or individual-focused models, it prioritizes organizational momentum through visible wins and sustained acceleration. Kotter's framework has been widely adopted in business transformations, offering a roadmap that integrates strategy with people management to minimize resistance and maximize buy-in.[61] The eight steps are as follows:- Create a Sense of Urgency: Leaders must highlight potential threats, opportunities, or crises to motivate stakeholders and initiate discussions that compel immediate action, often by examining market realities or competitive pressures.[62]
- Build a Guiding Coalition: Assemble a powerful group of influencers from various levels and departments to form a committed team capable of directing the change effort with credibility and authority.[62]
- Form a Vision and Strategy: Develop a clear, inspiring vision of the future along with practical strategies to achieve it, ensuring it aligns with core values and is simple enough for widespread understanding.[62]
- Communicate the Vision: Repeatedly and powerfully convey the vision through multiple channels, addressing concerns, linking it to daily work, and integrating it into training and performance evaluations to build commitment.[62]
- Empower Action: Remove organizational obstacles, such as outdated structures or negative attitudes, by aligning systems with the vision, enabling risk-taking, and rewarding those who support the change.[62]
- Generate Short-Term Wins: Plan and achieve visible, quick successes within the first six to eighteen months to build credibility, reward early contributors, and energize the broader organization.[62]
- Consolidate Gains and Produce More Change: Use early wins to challenge the status quo further, hire and promote change agents, and reinvigorate the process with new initiatives to prevent premature victory declarations.[62]
- Anchor Changes in the Culture: Embed new behaviors and successes into the organization's culture through leadership modeling, succession planning, and storytelling to ensure long-term sustainability.[62]
Prosci ADKAR Model
The Prosci ADKAR Model is a goal-oriented framework designed to manage change at the individual level, emphasizing the personal transitions required for successful organizational adoption. Developed by Jeff Hiatt, founder of Prosci, in the mid-1990s, the model draws from extensive benchmarking research involving over 900 organizations across 59 countries, conducted over a 14-year period. This research identified common patterns in successful changes, leading to the ADKAR acronym as a simple, actionable structure for building employee support and capability. Unlike broader organizational models, ADKAR focuses on the "people side" of change, ensuring that individuals progress through sequential building blocks to achieve lasting results.[64][65] The model's methodology adopts a bottom-up, employee-centric approach, starting with individual assessments to identify gaps in change readiness and creating personalized roadmaps for progress. Prosci integrates ADKAR into its 3-Phase Process—preparing the approach, managing activation, and sustaining outcomes—using tools like the ADKAR Blueprint for coaching and the Prosci Hub for tracking. This enables change practitioners to diagnose barriers, such as lack of motivation or skills, and tailor interventions accordingly, fostering higher engagement from the ground up.[66][64] At its core, ADKAR comprises five sequential elements, each representing a critical outcome for individual change:- Awareness of the need for change, which involves communicating the reasons behind the initiative, such as business risks or opportunities, to build understanding without overwhelming details.
- Desire to support the change, cultivated through addressing personal motivations, like "what's in it for me," via incentives, peer stories, or leadership endorsement to overcome resistance.
- Knowledge of how to change, delivered through targeted training on both the technical "how-to" aspects and the process of transitioning from current to future states.
- Ability to implement the change, focusing on turning knowledge into action by removing obstacles, providing practice opportunities, and offering ongoing support to bridge the gap between knowing and doing.
- Reinforcement to sustain the change, achieved by monitoring progress, recognizing achievements, and embedding new behaviors to prevent reversion.[64][67]
Plan-Do-Check-Act (PDCA) Cycle
The Plan-Do-Check-Act (PDCA) cycle is an iterative four-step management method designed for continuous improvement and problem-solving in organizational processes, particularly within change initiatives. Originating from the work of statistician Walter A. Shewhart in the 1930s, who developed a cycle for quality control involving specification, production, and inspection, the framework was adapted by W. Edwards Deming in 1950 during seminars in Japan, where he introduced it as the "Deming Wheel" emphasizing ongoing refinement.[68] Japanese executives further modified it in 1951 into the PDCA format to standardize problem-solving and process enhancements.[68] This cycle has become integral to quality management systems, underpinning methodologies like Lean and Six Sigma for systematic change.[69] The cycle's stages provide a structured approach to implementing and refining changes. In the Plan stage, practitioners identify the issue or opportunity, collect baseline data, set measurable goals, and develop a detailed action plan, often using root cause analysis to anticipate potential outcomes.[70] The Do stage involves executing the plan on a small scale to minimize risks, such as piloting a process adjustment in a single department.[70] During the Check stage, results are evaluated against objectives through data analysis and feedback collection to determine effectiveness and uncover variances.[70] Finally, the Act stage standardizes successful changes across the organization or adjusts the plan for another iteration if needed, ensuring institutionalization of improvements.[70] In change management, the PDCA cycle facilitates selecting and refining targeted modifications rather than large-scale overhauls, promoting an experimental mindset that reduces resistance and allows for adaptive learning.[69] By iterating through the cycle, organizations can test hypotheses incrementally, building evidence-based adjustments that align with broader change goals.[70] This approach is especially valuable in quality-driven changes, such as enhancing operational efficiency or compliance processes, where repeated cycles drive sustained progress.[69] Supporting tools within the PDCA cycle emphasize empirical validation, including data collection methods like surveys, performance metrics, and statistical tracking to inform planning and evaluation.[70] Feedback loops are embedded throughout, particularly in the Check stage, where real-time input from stakeholders refines interpretations and guides the Act phase, fostering a culture of responsiveness in change efforts.[70]Balogun and Hope Hailey's Change Types
Balogun and Hope Hailey's framework for change types, introduced in their 1999 book Exploring Strategic Change, provides a diagnostic tool within the broader Change Kaleidoscope model to classify organizational change based on two dimensions: the nature of change (incremental versus big bang) and the scope of change (realignment versus transformation). This classification enables managers to tailor change strategies—such as directive (top-down, authoritative) or collaborative (participative, consensus-building) approaches—by assessing contextual factors including available time, organizational capability to manage change, and overall readiness (e.g., employee awareness and cultural alignment). The model emphasizes context-sensitive planning to enhance success rates in strategic transitions.[71][72] The four resulting types of change are plotted on a matrix, guiding the selection of implementation styles. Evolution involves incremental transformation, where gradual, interrelated initiatives embed fundamental shifts in strategy and culture across the organization over time; it suits environments with sufficient time and capability for cultural evolution. Realignment (also termed adaptation) entails incremental realignment, focusing on progressive adjustments to operational processes and structures while preserving the existing culture; this is appropriate for ongoing fine-tuning without radical disruption. Revolution represents big bang transformation, demanding rapid, simultaneous overhauls of strategy, operations, and culture in response to urgent threats; it often requires directive leadership due to its intensity. Reconstruction features big bang realignment, involving swift, forced operational restructuring—typically reactive and capability-constrained—to address immediate crises without deep cultural change.[71][73]| Type | Nature | Scope | Key Characteristics | Suitable Approach |
|---|---|---|---|---|
| Evolution | Incremental | Transformation | Gradual cultural and strategic shifts | Collaborative |
| Realignment | Incremental | Realignment | Step-by-step operational adjustments | Collaborative |
| Revolution | Big Bang | Transformation | Rapid, fundamental overhaul | Directive |
| Reconstruction | Big Bang | Realignment | Urgent operational turnaround | Directive |
Implementing Change
Planning the Change Process
Planning the change process involves the preparatory activities that lay the foundation for effective organizational transformation, focusing on assessing needs, defining strategies, and allocating resources to ensure alignment and feasibility. This phase emphasizes creating a structured roadmap that anticipates potential obstacles and secures buy-in from key parties before implementation begins. According to established frameworks, successful planning integrates diagnostic tools and strategic elements to bridge the gap between current states and desired outcomes.[75] Key steps in planning include stakeholder analysis, which identifies individuals or groups affected by the change, their influence levels, and engagement strategies to prioritize involvement. For instance, stakeholders are categorized by their attitudes—such as allies, opponents, or neutrals—to tailor interactions and mitigate opposition early.[76] Risk assessment follows, evaluating potential threats like financial, operational, or compliance issues, and developing mitigation plans to address them across the change lifecycle.[76] Resource allocation then determines the necessary budget, personnel, and tools, with sponsors approving commitments to support the initiative.[76] Finally, communication planning outlines messaging channels, timelines, and content to keep stakeholders informed and aligned throughout the preparatory stage.[76] Essential tools for this phase include the change charter, a document that outlines the initiative's scope, objectives, sponsorship, and success metrics to provide a clear governance structure.[77] Impact assessments complement this by analyzing how the change will affect processes, roles, and systems, using methods like interviews or worksheets to quantify disruptions and inform adjustments.[78] Integration of models such as John Kotter's eight-step process aids in visioning, where step 3—forming a strategic vision—helps articulate a compelling future state during planning to guide subsequent actions.[61] Best practices stress aligning the change with broader organizational goals to ensure relevance and support from leadership, while setting measurable objectives using SMART criteria—specific, measurable, achievable, relevant, and time-bound—to provide clarity and trackability.[79] For example, an objective might specify reducing process inefficiencies by 20% within six months through targeted training. Considerations for scalability involve customizing the plan based on change type, such as piloting for incremental shifts or phasing for large-scale transformations, to adapt to organizational size and complexity without overwhelming resources.[80] This approach, akin to the planning phase in the PDCA cycle, ensures iterative refinement before full rollout.[70]Executing and Managing Transitions
Executing and managing transitions in change management entails the active deployment of planned initiatives through structured rollout strategies, ongoing monitoring, and adaptive responses to ensure smooth adoption across the organization. Rollout approaches often include pilots to test viability and phased implementations to scale gradually, reducing risks associated with large-scale disruptions. For example, pilots validate proof of concept by demonstrating value creation and proof of feasibility by confirming replicability, as seen in Achmea's double-pilot method for organizational reforms.[81][81] Phased rollouts begin with targeted pilots before expanding, allowing teams to refine processes iteratively. In electronic health record (EHR) system implementations, change teams deploy the technology in stages—starting with a pilot to identify workflow issues—enabling employees to adapt incrementally and minimizing errors in critical operations like patient records.[82] Training delivery supports this by equipping individuals with essential skills at key transition points, such as through personal-insight workshops that help leaders internalize new mindsets using methods like the U-process (sensing, presencing, realizing).[81] Progress tracking relies on key performance indicators (KPIs) tailored to the change's scope, providing real-time insights into execution effectiveness. Recent advancements as of 2025 incorporate generative artificial intelligence (gen AI) tools to automate KPI monitoring, predict adoption risks, and personalize feedback, enhancing adaptive management in complex transformations.[53]| Category | Example KPIs | Purpose |
|---|---|---|
| Adoption Speed | Time to learn new skills; number of active users post-launch | Measures how quickly individuals engage with the change |
| Utilization | System usage rates; compliance via audits | Assesses ongoing application of new processes or tools |
| Proficiency | Performance against targets; issue report frequency | Evaluates mastery and problem resolution |
Challenges in Change Management
Organizational and Structural Challenges
Organizational and structural challenges in change management arise from entrenched institutional elements that impede the adaptation of processes, hierarchies, and resource allocation during transitions. These barriers often stem from rigid organizational designs that prioritize stability over flexibility, leading to systemic friction when implementing new strategies or technologies. Siloed departments, for instance, create isolated workflows that hinder cross-functional collaboration, resulting in duplicated efforts and miscommunication during change initiatives.[87] Legacy systems represent another critical hurdle, as outdated infrastructure resists integration with modern tools, complicating updates and increasing technical debt. Resource constraints further exacerbate these issues, with limited budgets, personnel, or time allocation forcing organizations to underinvest in comprehensive change planning, often leading to incomplete implementations. Misaligned incentives, such as performance metrics that reward departmental silos rather than enterprise-wide goals, discourage alignment and perpetuate fragmented decision-making.[88] In hierarchical structures, resistance manifests through top-down authority that stifles innovation at lower levels, slowing decision-making and adaptation in dynamic environments. A prominent example is seen in mergers and acquisitions, where structural integration failures—such as incompatible IT systems or overlapping departmental functions—frequently derail post-merger synergies. These challenges are particularly acute in large-scale changes, like enterprise-wide digital transformations, where complex interdependencies amplify coordination difficulties.[89] The impacts of such challenges are profound, including significant delays in project timelines, cost overruns exceeding initial estimates, and diminished overall initiative effectiveness. For example, organizational redesign efforts, which directly address structural issues, see only 21% achieving success, with 49% abandoned before full implementation due to these barriers. Research indicates that structural factors contribute substantially to setbacks, with up to 75% of redesigns failing to meet their objectives or improve performance, underscoring their role in broader change failure rates of around 70%.[90][13]Human and Cultural Challenges
Human and cultural challenges in change management primarily stem from psychological resistances and entrenched cultural norms that impede the adoption of new practices within organizations. These challenges manifest as emotional responses to disruption, where individuals and groups grapple with uncertainty and shifts in established behaviors, often leading to suboptimal outcomes in change initiatives. Research indicates that such resistances are not merely individual but are amplified by collective cultural dynamics, making them a persistent barrier across various organizational contexts.[10] Key factors contributing to these challenges include fear of the unknown, which arises from ambiguity about future roles and outcomes, prompting employees to withdraw or oppose changes perceived as threats. Loss of control further exacerbates resistance, as individuals experience diminished autonomy over their work processes, fostering anxiety and reduced motivation. Cultural inertia, defined as the tendency to cling to longstanding norms and routines, reinforces these issues by creating a collective reluctance to adapt, even when change is necessary for survival. Additionally, burnout emerges as a significant factor, particularly when successive changes overwhelm employees' emotional and cognitive resources, leading to exhaustion and disengagement.[91][92][93][5] Psychologically, these challenges align with the Kübler-Ross change curve, an adaptation of the grief model that outlines stages of denial, anger, bargaining, depression, and acceptance as individuals process organizational transitions. In this framework, initial denial reflects disbelief in the need for change, progressing to anger over potential losses, before eventual acceptance if navigated appropriately. This curve highlights how emotional progression influences resistance, with prolonged early stages hindering overall adoption.[94] Illustrative examples underscore these dynamics in contemporary settings. Employee skepticism during shifts to hybrid work models, as seen in surveys where 77% of workers questioned the motives behind return-to-office mandates, exemplifies fear of the unknown and loss of control in altering work-life boundaries. Similarly, cultural clashes in global teams often arise from differing values and communication styles, such as varying emphases on hierarchy versus collaboration, which can stall cross-border change efforts and amplify inertia.[95][96] The impacts of these challenges are profound, resulting in low employee engagement, where affected individuals contribute minimally to initiatives, and overt sabotage, such as deliberate delays or misinformation, which undermine progress. These effects are particularly acute in the rapid changes of the 2020s, including pandemic-induced transformations, where accelerated disruptions intensified emotional strain and cultural frictions, contributing to higher failure rates in change programs.[10]Strategies for Successful Change
Addressing Human Factors
Addressing human factors in change management requires targeted strategies that recognize the emotional and psychological dimensions of change, such as fear of the unknown, loss of control, or perceived threats to job security. These strategies aim to transform resistance into engagement by focusing on individual needs and motivations. Seminal work by Kotter and Schlesinger identifies key reasons for resistance, including parochial self-interest and uncertainty, and recommends approaches like education, communication, and facilitation to address them effectively.[97] Empathy-based communication is a foundational technique, involving active listening to employees' concerns and validating their emotions to build trust and reduce defensiveness. By framing the change story in ways that resonate with individuals' roles and aspirations, leaders can foster conviction and alignment, as emphasized in psychological models of change adoption.[98] Involvement in decision-making further empowers employees, allowing them to contribute ideas during planning stages, which enhances ownership and lowers resistance levels—studies show participatory methods can increase commitment by addressing feelings of alienation.[99] Personalized training complements these efforts by tailoring skill-building programs to individual gaps, using phased learning with reflection and application to boost confidence and competence, thereby easing transitions.[64] Practical tools support these techniques, including resistance management plans that proactively assess potential barriers through readiness evaluations and outline interventions like targeted dialogues. Organizations employing such plans see significantly higher project success rates, according to research on change effectiveness.[100] Coaching sessions offer one-on-one guidance to navigate personal transitions, helping individuals process affective responses and develop resilience.[101] The use of change champions—respected peers who model desired behaviors and advocate for the change—amplifies these efforts by leveraging social proof to influence attitudes and build peer support networks.[100] Best practices emphasize strategic timing and reinforcement to sustain momentum. Announcing changes when employees are sufficiently prepared, through transparent and iterative updates, minimizes uncertainty and cynicism.[97] Celebrating milestones, such as recognizing early adopters or team achievements, reinforces positive behaviors and cultivates desire for the change, maintaining engagement over time.[13] When implemented effectively, these strategies yield measurable outcomes, including improved adoption rates—Prosci's benchmarking data indicates that strong individual change management increases the likelihood of meeting objectives by seven times.[100] They also contribute to reduced turnover by enhancing employee satisfaction and retention during transitions, as disengaged individuals are less likely to leave when their concerns are addressed empathetically. In one documented case, comprehensive human-focused interventions led to doubled economic profit and accelerated revenue growth in a financial institution.[98]Organizational-Level Interventions
Organizational-level interventions in change management involve systemic adjustments to an organization's structure, policies, and processes to facilitate large-scale transformation and ensure alignment with strategic objectives. These interventions target the institutional framework rather than individual behaviors, aiming to create an environment conducive to sustained change by addressing barriers at the enterprise level. Effective implementation requires coordinated efforts from leadership to realign resources and embed adaptability into core operations.[81] Key approaches include restructuring teams to streamline operations and enhance responsiveness. For instance, organizations may reorganize departments to reduce hierarchical layers, enabling faster decision-making during transitions, as seen in a retailer's overhaul of its 75,000-employee workforce that achieved a 12% cost reduction in six months through flattened structures. Policy updates complement this by revising guidelines to support new workflows, such as a multinational energy company's centralization of public relations processes via updated protocols in a rapid two-month rollout. Cross-functional collaboration fosters integration across silos, with initiative teams comprising members from line and staff functions working under executive oversight to solve complex challenges collectively.[81][81][81] Supporting tools encompass governance frameworks that define clear roles, such as executive steering committees and change management offices, which increase program success rates by up to 6.4 times when properly structured. Incentive realignments shift rewards to emphasize change adoption, where non-financial motivators like recognition events have proven more effective than monetary bonuses by tapping into social dynamics. Agile pods, small cross-functional units, promote flexibility by enabling autonomous operations and iterative progress, as adopted in marketing organizations to accelerate campaigns and boost ROI through enhanced collaboration.[81][81][102] Practical examples illustrate these interventions' impact, including enterprise-wide dashboards that provide real-time visibility into change metrics across initiatives, health indicators, performance, and value delivery, correlating with a 7.3-fold increase in success probability. Leadership alignment workshops, such as personal-insight sessions engaging 25-30% of leaders, build consensus and model behaviors to propagate change organizationally. Post-2020, integration with digital tools like AI for simulation has emerged as a trend, using generative AI to model scenarios, predict resistance, and simulate outcomes for proactive adjustments in workplace transformations.[81][81][53]Factors of Success and Failure
Key Success Factors
Strong leadership commitment is a cornerstone of successful change management, providing direction, alignment, and sustained support throughout the process. Research indicates that active executive sponsorship significantly enhances outcomes, with initiatives featuring visible leader participation being three times more likely to meet objectives compared to those without.[103] In a study of organizational change determinants, leadership scored highest among success factors in successful cases, achieving a mean rating of 4.53 out of 5, underscoring its role in stakeholder alignment and momentum building.[104] Clear communication ranks as another critical factor, fostering understanding, reducing uncertainty, and building buy-in among affected parties. Effective, ongoing messaging about the change's purpose, benefits, and progress is essential, as evidenced by its mean score of 4.3 in high-performing change initiatives.[104] Employee involvement complements this by empowering staff through participation in planning and execution, which boosts engagement and ownership; studies show that high stakeholder involvement correlates with success rates, averaging 4.25 in effective implementations.[104] Adequate resources, including time, budget, and training, ensure feasibility and capacity, preventing overload and enabling smooth transitions.[104] Empirical evidence from benchmarking research demonstrates that projects applying these factors through excellent change management practices are up to seven times more likely to meet objectives, up to seven times more likely to stay on schedule, and up to seven times more likely to stay on budget.[105] In agile contexts, adaptability emerges as a vital enhancer, allowing iterative adjustments to evolving needs and increasing responsiveness; Prosci's analysis highlights how flexible change approaches in agile environments improve adoption and overall project agility.[106] Success is often measured using maturity models, such as Prosci's five-level framework, which assesses organizational capability across leadership, application, competencies, proficiency, and governance—from ad hoc practices to enterprise-wide integration.[107] These benchmarks provide quantifiable insights into progress, with higher maturity levels correlating to elevated success rates. A holistic approach integrates elements from established models, such as Kotter's emphasis on urgency and coalitions, to create comprehensive strategies that address multiple dimensions of change.[108] In recent years, as of 2025, emerging success factors include the integration of artificial intelligence (AI) for predictive analytics in change planning and agile methodologies to enhance responsiveness in dynamic environments. These trends support sustained adoption, particularly in digital transformations.[109]Common Pitfalls and Reasons for Failure
Change management initiatives frequently encounter significant obstacles, with the failure rate commonly cited as around 70%, though recent studies as of 2024 indicate that only about 30-34% achieve full success, with many partial outcomes.[110][111] This high failure rate is often attributed to people-related issues, such as resistance to change, which emerges as the most common barrier due to fears of disruption, job loss, or loss of control among employees.[5] Studies emphasize that overlooking these human elements, rather than technical or process flaws, accounts for the majority of shortcomings, particularly in rushed implementations like digital transformations where employee buy-in is hastily assumed.[112] A primary pitfall is underestimating resistance, where leaders fail to anticipate or address employee concerns, leading to widespread disengagement and sabotage of the change process. Poor planning exacerbates this, as incomplete strategies—lacking clear goals, timelines, or resource allocation—result in confusion and inefficiency from the outset. Lack of follow-through further compounds issues, with initiatives stalling after initial rollout due to insufficient monitoring and reinforcement, causing reversion to old practices. Ignoring metrics, such as employee engagement surveys or progress indicators, prevents timely adjustments and allows problems to escalate undetected.[5] Root causes often include inadequate sponsorship, where executive leaders provide only superficial support without active involvement, undermining credibility and resource commitment. Siloed execution, driven by departmental barriers or cultural clashes, fragments efforts and hinders cross-functional collaboration. Misreading external factors, such as market shifts or regulatory changes, leads to misaligned strategies that become obsolete mid-process. These issues are particularly prevalent in complex organizational environments, where a disconnect between top-down directives and frontline realities amplifies failure risks.[110][113] To mitigate these pitfalls, organizations must prioritize recognizing early warning signs, such as rising absenteeism or vocal dissent, through regular pulse checks and feedback mechanisms. Conducting thorough post-mortems on past initiatives reveals recurring patterns, enabling refined approaches in future efforts; for instance, data shows that 25% of organizations neglect these reviews, perpetuating the same errors.[114] By focusing on these lessons, change leaders can address root causes proactively, though persistent emphasis on hard factors like structured planning remains essential alongside human considerations.[113]Case Studies
Lewin's Model in Practice
One notable application of Kurt Lewin's change management model occurred during the Harwood Manufacturing Corporation studies in the 1940s, a series of experiments conducted at the company's pajama factory in Marion, Virginia, amid efforts to address high labor turnover and low productivity during and after World War II. Invited by factory director Alfred J. Marrow in 1939, Lewin and his research team, including Lester Coch and John R. P. French Jr., focused on reorganizing work processes, particularly transferring operators to new jobs with revised piece-rate systems, which had historically provoked strong resistance from workers fearing wage reductions. These studies exemplified Lewin's emphasis on group dynamics in driving organizational change, serving as empirical foundations for his three-stage model.[115] The unfreezing stage was implemented through structured group discussions and workshops, where workers and supervisors collaboratively identified production bottlenecks and the necessity for job transfers, thereby destabilizing entrenched attitudes toward the status quo. In the changing phase, training programs incorporated participatory methods, such as involving employees in learning new tasks and negotiating revised incentive rates, which fostered ownership and reduced anxiety. Refreezing was achieved by establishing new group norms via signed agreements on work standards and ongoing feedback sessions, embedding the changes into the factory's culture. For instance, in experimental groups with full participation, these steps contrasted sharply with control groups receiving only top-down directives, highlighting the model's reliance on democratic processes to align individual behaviors with organizational goals.[116] Outcomes demonstrated the model's effectiveness in this context: participatory groups achieved productivity increases of 63.5% to 73%, compared to a mere 14% initial gain followed by decline in non-participatory groups, while aggression—manifested as verbal hostility and sabotage—dropped to near zero, and turnover plummeted from rates as high as 17% over 40 days in control groups to negligible levels in experimental ones. Initial resistance was pronounced in non-participatory transfers, including slowdowns, quits, and even a brief work stoppage, underscoring workers' perceptions of unfairness and loss of control. However, the participatory approach mitigated these by rebuilding trust through involvement, leading to sustained morale improvements.[116] The success of Lewin's model in the Harwood reorganization stemmed from its suitability for small-scale, group-level interventions in a manufacturing setting, where altering social norms via action research directly countered resistance rooted in group cohesion and perceived inequities. This application fit well for targeted changes like job reassignments, as it leveraged Lewin's field theory to balance driving and restraining forces without overwhelming larger systemic structures, though it faced limitations in scaling to broader organizational overhauls. Overall, the studies not only boosted factory efficiency but also validated participatory change as a practical tool for post-war industrial recovery.[25]Kotter's Process Application
In 2006, Ford Motor Company faced a severe financial crisis, with mounting losses exceeding $12 billion in the prior year and the threat of bankruptcy looming, prompting the board to appoint Alan Mulally, a veteran executive from Boeing, as CEO. Mulally applied principles from John Kotter's eight-step change model to orchestrate a comprehensive turnaround, beginning with establishing a sense of urgency through candid communication about the company's dire situation, including public acknowledgment of its near-collapse and the need for radical restructuring.[117][118] He built a guiding coalition by assembling a unified leadership team of global executives, fostering collaboration to break down silos that had long hindered Ford's operations.[117] Mulally then developed and communicated a clear vision under the "One Ford" initiative, which emphasized a single global team working on one plan toward one goal: delivering profitable growth for all stakeholders through customer-focused products.[119] To empower broad-based action, he introduced weekly Business Plan Review meetings where executives used a traffic-light system—green for on-track, yellow for risks, red for problems—to promote transparency and accountability, enabling rapid problem-solving without fear of reprisal.[118] Quick wins were generated early, such as securing a $23.6 billion loan by mortgaging assets like the Blue Oval logo, selling non-core brands including Jaguar and Land Rover to raise cash, and accelerating product launches like the redesigned Ford Fusion and Focus models, which helped stem immediate losses.[117][118] To sustain acceleration, Mulally consolidated vehicle platforms to cover 85% of sales with just nine architectures by 2016, reduced European production capacity by 18%, and invested in quality improvements, turning around unprofitable segments.[117] He anchored these changes in the culture by defining expected behaviors—such as "speak up," "respect each other," and "find a way"—and integrating them into performance evaluations, creating a collaborative environment that outlasted the initial crisis.[119] The outcomes were transformative: Ford avoided government bailout unlike competitors General Motors and Chrysler, returned to profitability in 2009 with $2.7 billion in net income, achieved over 10% operating margins in North America, and repaid the entire loan two years early by 2011, boosting stock value from under $2 to more than $18 per share.[118][117] Key lessons from this 2000s-era application highlight the importance of leadership commitment to sustain momentum beyond quick wins, particularly in traditional industries facing pre-digital scale challenges like global supply chains and legacy structures.[117]Modern Digital Transformation Example
A prominent example of modern digital transformation in change management is Walmart's accelerated shift toward AI-powered e-commerce and personalization between 2022 and 2024, driven by post-pandemic consumer demands for seamless hybrid shopping experiences. Following the COVID-19 acceleration of online retail, Walmart invested heavily in technologies like its proprietary Wallaby large language models and the Retina augmented reality platform to create hyper-personalized customer interactions, such as tailored product recommendations and virtual try-ons that reduced returns and boosted conversions by up to 10 times in tested experiences. This initiative built on earlier e-commerce foundations, like the Buy Online, Pick Up in Store (BOPIS) model, which saw widespread adoption during the pandemic and contributed to Walmart becoming the second-largest U.S. online retailer by 2024.[120][121] Walmart's change management approach employed a hybrid strategy emphasizing leadership-driven visioning and employee-focused adoption to navigate the transformation. Executives, including CTO Suresh Kumar, established a clear urgency for digital adaptation by forming Walmart Global Tech hubs in locations like Silicon Valley and India, aligning with principles of creating coalition and communicating vision to empower action across the organization. Simultaneously, efforts targeted individual awareness, desire, knowledge, ability, and reinforcement—key to building employee buy-in—through reskilling programs and cultural shifts toward innovation, enabling remote and hybrid teams to integrate AI tools into daily operations despite challenges like geographic dispersion and resistance to new workflows. These elements addressed post-pandemic hybrid work integration by fostering "highly aligned, loosely coupled" teams that supported agile development in a distributed environment.[122][123] The transformation faced hurdles such as intense competition from Amazon, the need to upskill a large workforce for AI adoption amid remote setups, and ensuring equitable access to digital tools in hybrid models. Despite these, outcomes were significant: Walmart reported a 6.05% year-over-year revenue increase to $161.5 billion in Q1 2024, partly attributed to AI-enhanced efficiency in supply chains and customer service, alongside a 10-15 point improvement in Net Promoter Score through better personalization algorithms. Key learnings included the value of agile iterations in smaller, cross-functional teams to rapidly deploy AI features, and the critical need for robust governance around AI ethics, such as data privacy in personalization, to maintain trust while scaling immersive commerce experiences like virtual store integrations. This case underscores how structured change management can sustain digital momentum in the 2020s retail landscape.[121][122][124]References
- https://sebokwiki.org/wiki/Origins_of_the_Systems_Approach
