Change management is the process of guiding individuals, teams, or organisations through transitions in the way they operate. Change management helps minimise disruptions when businesses adopt new systems, tactics, or structures while keeping everyone aligned with new goals. It helps a business’s employees understand and get comfortable with change, while ensuring day-to-day operations run smoothly.
The percentage of employees willing to support organisational change fell from 74% in 2016 to 38% in 2022. Change management efforts can address this resistance to change and help businesses adapt to new initiatives without losing productivity. Below, we’ll explain why change management matters, the different types of change management models that businesses use, and how to develop your own change management plan.
What’s in this article?
- Why change management is so important
- Different change management models
- How to develop a change management plan
Why change management is so important
When you’re running a business, every change – whether it’s adopting new software, reorganising teams, or switching to a different market – affects how employees work. People get comfortable with their routines, and any disruptions can create anxiety, decrease productivity, and lead to confusion or pushback. Change management helps employees embrace new systems or tactics while overcoming these negative reactions and keeping normal business operations on track.
Change management strategies prepare the team for the transition and guide them through it. This involves communicating the reason behind any changes, conducting training so the team is equipped to handle the changes, and ensuring leadership is visible and supportive throughout the process. The goal of change management is to reduce uncertainty, address concerns, and keep everyone aligned, so the transition is as successful as possible.
Change management is also risk management. It manages the emotional and cultural impact of changes on your workforce and can minimise risks such as project delays, cost overruns, and talent loss. Change should be an opportunity for growth rather than a disruption: it should allow a business to improve, help it remain agile, and keep employees engaged. Change management can help create this ideal experience when a business introduces new initiatives.
Different change management models
Different change management models have different approaches to anticipating resistance, managing disruptions, and keeping employees supported and engaged throughout the change process. Each model has its strengths, and the right choice depends on the specific nature of the change you’re managing. Here are some of the most well-known models.
Kotter’s 8 Steps change model
John Kotter’s model is about creating a sense of urgency and building momentum to implement change. This model is particularly useful for large-scale organisational changes, when there’s a need to create and maintain energy around the initiative. Here are the eight steps:
Establish a sense of urgency: Help everyone understand why change is necessary.
Form a guiding coalition: Assemble a team of leaders to champion the change.
Create a vision for change: Develop a clear, compelling direction.
Enlist volunteers: Bring individuals on board to pursue the vision together.
Remove obstacles: Address barriers that could slow progress.
Create short-term wins: Aim for small victories to maintain momentum.
Sustain momentum: Build on early wins and push for continued progress.
Reinforce change: Ensure the change sticks by incorporating it in the company culture and reinforcing the new approach with management practices.
ADKAR model
The ADKAR model was developed by the change management certification program Prosci. This model helps managers focus on the individual’s journey through the transition, directly handle any resistance, and equip employees to work through changes. Here are the five elements of the ADKAR model:
Awareness: Ensure employees understand the need for change.
Desire: Cultivate a willingness to participate in the change.
Knowledge: Provide the necessary information and training.
Ability: Enable employees to apply the changes in their roles.
Reinforcement: Sustain the change by celebrating successes and reinforcing new behaviours.
Lewin’s Change Management Model
Kurt Lewin’s model is straightforward and works well for organisations that want to make clear, defined changes. It might not suit more fluid or ongoing transformations, because it assumes that change happens in a relatively linear way. This model divides change into three stages:
Unfreeze: Show the need to change the status quo.
Change: Implement the transformation, whether it’s a new system, process, or behaviour.
Refreeze: Solidify the change and embed it into the organisation’s culture.
7-S framework
The 7-S framework involves identifying areas that are not aligned, deciding where changes should be made, and then making the necessary changes. It’s ideal for more complex transformations, where multiple facets of the organisation need to shift simultaneously. This model identifies seven elements within an organisation and emphasises that they are interconnected – change in one area will affect the others. The 7-S framework focuses on the following elements:
Strategy: The company’s business plan
Structure: How a company is organised
Systems: The company’s business and technical infrastructure
Shared values: The company’s mission and values
Skills: The employees’ capabilities
Style: The management style of senior employees
Staff: The company’s recruitment and training systems
Bridges’ Transition Model
William Bridges’ Transition Model focuses on the emotional, human side of change. It emphasises that change is a process of transitioning from an old way to a new way. This model is especially useful in change initiatives that involve substantial emotional or cultural shifts. It includes three stages:
Endings: The discomfort of leaving the old way behind
Neutral Zone: The confusing, uncertain phase of being caught between old and new
New Beginnings: An embrace of the new direction, solidifying the change
Kübler-Ross Change Curve
Adapted from the stages of grief theory by Elisabeth Kübler-Ross, the Kübler-Ross Change Curve acknowledges the emotional journey people experience during change. This model is particularly useful for understanding the emotional reactions towards change and preparing leadership to address these feelings with empathy. These are the stages:
Shock: Employees can’t believe the change is happening.
Denial: Employees pretend the change isn’t happening.
Anger: Employees express frustration as they feel the impact of the transition.
Bargaining: Employees attempt to negotiate to maintain the status quo.
Depression: Employees enter a period of low morale or productivity as the reality of the change sets in.
Acceptance: Employees begin to adapt and accept the change.
Problem-solving: Employees find ways to make the change work.
How to develop a change management plan
Building a change management plan involves clarifying exactly what changes you’re making, anticipating the resistance it might elicit, and strategising how to best support the organisation as the changes occur. A strong change management plan functions as a road map while being flexible enough to adjust when real-world conditions change. To create a change plan that’s sustainable, minimises disruption, and drives long-term results, plan for the technical rollout as well as how people will be affected by the change. Here’s a step-by-step guide to the process.
Clarify what’s changing
Establish exactly what’s changing and why. Are you rolling out new tech, shifting roles, or adjusting core processes? Specify what the change will achieve – are you looking for efficiency gains, better collaboration, or cost savings? Be prepared to tie these outcomes back to the big picture: how will this change support long-term goals or help the organisation compete?
Map out stakeholders
Think about whom this change will impact. Include all levels of the organisation, from frontline workers to middle managers. Identify who might be a natural champion for the change and help drive momentum and who might push back and need additional time to address concerns.
Assess your starting point
Get a feel for how ready people are for change. Talk to key teams, look at past change initiatives, and understand any underlying issues. For example, if you’re introducing new software, consider whether people have the digital skills to use it or whether there will be a steep learning curve.
Build a customised communication strategy
Plan exactly what you’re saying to your team and how and when you’ll communicate it. Different groups will need different messages. Executives need to hear the high-level vision, while the rest of the organisation should know how the change affects their day-to-day. For big changes, consider cascading information through leadership and managers, rather than sending mass emails. Keep it conversational, human, and honest.
Create a training programme
Think about how people learn best and how to support that preference in the long term. For example, can you create a hands-on pilot group to test the new process or tool first? Build peer-to-peer learning opportunities, give people access to resources such as tutorials and Q&A sessions, and ensure training is paced gradually so people can absorb it. Plan for follow-ups – a one-and-done approach is not sufficient for complicated changes.
Establish a support network
Once things begin changing, people will need ongoing help. Implement a dedicated support system such as a help desk, Slack channel, or in-person “office hours” for people to ask questions. Ensure that managers are actively checking in on their teams. Peer support can help, too. If you have early adopters, use them to guide others.
Get ahead of resistance
During the planning phase, determine where the most resistance is likely to come from and why, whether it’s due to fear of job loss, added workload, or simply a natural aversion to change. Once you’ve identified these issues, create specific strategies to address them such as extra training, one-on-one meetings with team leads, and publication of data or pilot programme results to show tangible benefits. Use surveys or informal feedback to spot issues before they escalate.
Celebrate small wins
Identify quick wins that can show progress early on and keep momentum going. Whether it’s a specific department that rolls out the new software successfully or one that hits a project milestone, these wins create positive buzz and help build buy-in across the organisation. Highlight these victories through internal newsletters, shout-outs in team meetings, or a quick thank-you from leadership.
Make the change stick
Embed the change into the organisation’s fabric. Update job descriptions, tweak performance reviews, or offer incentives to reinforce new behaviours. Keep communicating: post-launch updates are just as important as the initial rollout for reminding people why the change matters and how it’s making a difference.
Evaluate and adjust
Track the progress of change over time. Are people using the new systems or processes effectively? Are the expected benefits appearing in the data? If not, find out why and be prepared to change course. Use key performance indicators (KPIs) such as adoption rates, feedback from employees, and financial metrics to see where the plan needs adjusting. Sometimes you might need to offer more support, conduct additional training, or tweak the process based on feedback.
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.