What is Change Management?

Change management is the process of planning, implementing, and solidifying changes in an organization. It refers to how companies handle modifications, such as implementation of new technology, adjustments to existing processes, and shifts in organizational hierarchy.

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Overview of Change Management

Change management is the process of adapting to, controlling, and implementing change. This process can look different based on the type of change you are conducting.

The Different Levels of Change Management

  1. Organizational Change Management: How companies conduct transformations, such as altering the organizational hierarchy, introducing new processes, and integrating a new software
  2. Project-Level Change Management: The strategies and plans that focus on changes to ensure a project achieves the intended goal
  3. Individual Change Management: Managing the change of an individual person in order to help them grow in their role and/or achieve specific goals

Not all change initiatives will fit neatly into one of the levels of change management. In fact, it’s entirely possible for the levels to overlap. For example, let’s say you are modifying your organizational chart and launching an internal upskilling initiative for existing employees. If you also implement Workday to streamline your human capital management, your change would address all three levels.

Why Is Change Management Important?

Creating a change management plan helps create smoother transitions. You can mandate changes, but if you don’t have a plan for how to implement, monitor, and report on the success of that change, you’re setting yourself up to fail. Regardless of the type of change you want to make, change management gives you more control over the entire process.

Benefits of Change Management

The Benefits of Change Management

Change management allows you to do the following:

  1. Proactively combat resistance to change
  2. Set clear goals for changes and monitor results
  3. Create strategies for implementing change effectively
  4. Address and balance multiple aspects of change, such as people, processes, technology, etc.

All changes, big or small, benefit from well-thought-out change management. Change does not come naturally to people or organizations, so without proper management, you’ll likely hit barriers and waste time and money. Change management is the key to successfully implementing changes that stick.

What Are the Different Types of Change Management?

You can apply different types of change management, depending on the change you are navigating. Think about how you might approach each of these four types of changes:

  1. Exceptional: Isolated events that change an individual’s experience but don’t majorly affect multiple aspects of their life. For example, a name change would require some HR paperwork and a new email address but wouldn’t alter the person’s role at work.
  2. Incremental: Gradual changes that do not require major or sudden shifts, such as upgrading existing technology.
  3. Pendulum: Sudden swings from one state to another, often switching from one extreme to the opposing view or state. For example, moving from a 100% in-office work environment to a 100% remote team.
  4. Paradigm: Changes that result in new beliefs or values and become internalized as the new norm. For example, successfully shifting from synchronous communication to a hybrid model that involves both synchronous and asynchronous communication.

How to Drive Change Management

To implement change management, determine why the change needs to happen in the first place. What are you trying to achieve, and why is that goal so important? How will the change benefit your organization, people, and processes?

Once you’ve settled on the overarching goal for your initiative, it’s helpful to understand what factors often trip up business leaders along their change management journey. Knowledge of the typical missteps can better inform your change management strategy. So, set your change initiative up for success by avoiding these common pitfalls.

Top Reasons Why Change Management Fails

  1. Low level of internal buy-in: Without the support of leadership and the people most affected by the change, your initiative is dead before it even begins. Establish change leaders early on to build internal support.
  2. Poor communication: People need to understand why change has to happen and how it will affect them. Avoid vague announcements and mandates for change, and focus on clear, specific communication.
  3. Lack of measurement: Your change can’t be successful if you fail to define what success looks like. Set key performance indicators (KPIs) and metrics so you have a starting point, crucial milestones, and a desired end result.
  4. Insufficient focus on people: Many companies spend so much time planning the change itself that they neglect the people who will be affected by it. Even the most detailed change strategies can fail if they don’t focus on guiding people through the transition.
  5. Inadequate training: Whether you are adding new tools to your tech stack or adjusting internal processes, training is essential. Be sure to provide detailed, ongoing employee training.
  6. Lack of momentum: The Enhanced Kotter’s 8-Step Change Model highlights the importance of sustaining acceleration. Organizations often make the mistake of easing up on the change initiative too soon. It’s crucial to keep enthusiasm high all throughout the transition so you can continue to move toward your ultimate goals.

What Is the Change Management Process?

The change management process is how you get from Point A (existing state) to Point B (your desired change).

Change Management Process Steps

  1. Determine the reason for the change.
  2. Set specific goals for the change.
  3. Establish key performance indicators (KPIs) and milestones to monitor progress.
  4. Refer to change management models.
  5. Create a change management plan and implementation strategy.
  6. Designate change leaders.
  7. Implement change.
  8. Gather feedback.
  9. Analyze progress and results.
Change Management Process

How to Improve Your Change Management Process

No change initiative is perfect, but you can always learn from the experience. In order to continuously improve upon your change management process, you have to track and analyze each step. During and after your initiative, think about the following questions, and let them guide you toward a more effective process in the future.

  1. Determine the reason for the change: Did you make a convincing argument for the change?
  2. Set specific goals for the change: Did you achieve those goals?
  3. Establish key performance indicators and milestones to monitor progress: Did you hit milestones and achieve your desired KPIs according to the timeline you established?
  4. Refer to change management models: Did the change management model guide you through your specific change initiative?
  5. Create a change management plan and implementation strategy: Was your strategy detailed enough to serve as a helpful guide throughout the transition?
  6. Designate change leaders: Were your change leaders vocally supportive of the change and able to persuade others to be supportive?
  7. Implement change: Did the implementation process go as planned and stick to the timeline you established?
  8. Gather feedback: How did the people affected by the change feel about how the process was handled?
  9. Analyze progress and results: Which parts of the process went well, and which aspects need improvement?

What Are the Principles of Change Management?

Our experience has revealed six key change management principles:

  1. Create a sense of urgency: Based on the Enhanced Kotter’s 8-Step Change Model, this principle focuses on presenting the change as an urgent and exciting opportunity.
  2. Roll out in phases: Breaking your initiative into phases helps you avoid overwhelming your team with too much change all at once.
  3. Address resistance, and communicate the “what’s in it for me?” (WIIFM): By explaining the WIIFM for each person or department affected by the initiative, you can get ahead of the inevitable resistance to change.
  4. Use a variety of training methods: Not everyone learns in the same way, so it’s important to provide guidance through a variety of methods and training formats.
  5. Establish change leaders: Without internal buy-in, your initiative is over before it even begins. Change leaders help motivate the entire team to push forward with the transformation.
  6. Ask for feedback: Listening to your team is a great way to improve your change management process and address any concerns or resistance.
Gartner Report - Employee Usage Productivity - Change Management

What Is Organizational Change Management (OCM)?

Organizational change management refers to the ways companies handle changes to the people, processes, tools, and systems in their organization. To manage change, organizations need a plan for implementing changes and solidifying those changes as the new norm.

There are four types of organizational change:

  1. Strategic transformational change: Large-scale changes that require significant adjustments, such as updating your company’s mission statement or employee benefits package
  2. People-centric change: Adjustments that have a considerable effect on people, such as redefining roles and responsibilities, modifying leave policies, or hiring new employees
  3. Structural change: Major changes to organizational hierarchy, usually caused by mergers and acquisitions
  4. Remedial change: Reactionary corrections to unexpected problems that need to be solved immediately, such as hiring a replacement for an employee who put in their notice or addressing customer complaints

How to Build a Change Management Plan

A change management plan guides you and your team throughout the transition. These six change management plan templates will help you build the foundation of your change plan:

  1. Change proposal: Your argument for why the change needs to happen
  2. Change leaders: Your vocal supporters of the change, usually senior-level management and other influential leaders
  3. Change management communications plan: Your plan for how you will communicate every aspect of the change to the people affected by it
  4. Change management analysis: How you track the success (or failure) of various aspects of your change initiative
  5. Change management tools: The tools you need to support the change, such as employee training tools, internal knowledge wikis, etc.
  6. Change management training plan: Your outline for how training will be administered

Templates not only give you a head start, but they also force you to look at the change management process from an outsider’s perspective. Plus, you can use templates to set and monitor specific deadlines, watch out for potential issues, and take note of which parts of your change management plan may need improvement.

Download these six essential change management plan templates for free, and learn how to use them effectively.

What Are Change Management Models?

Change management models are theories, concepts, and methodologies that serve as guides to successful change. While they do not provide step-by-step instructions, they do create a framework for managing the entire transition.

Before you choose a change management model, think about what you plan to modify. Certain models are better suited to specific types of changes. For example, people-centric changes often benefit from emotion-based change management models, such as the Kübler-Ross Change Curve or the Bridges’ Transition Model.

ADKAR Change Management Model

For changes that focus more on processes and systems, models such as the ADKAR Model or the Enhanced Kotter’s 8-Step Change Model can be very beneficial. Both models are outcome-oriented and provide a framework for accelerating transformations.

ADKAR’s Change Management Model

The ADKAR Model is built around five key outcomes:

  • Awareness
  • Desire
  • Knowledge
  • Ability
  • Reinforcement

Kotter’s 8-Step Change Model

Kotter’s eight steps guide you to do the following:

  1. Create a sense of urgency.
  2. Build a guiding coalition.
  3. Form a strategic vision and initiatives.
  4. Enlist a volunteer army.
  5. Enable action by removing barriers.
  6. Generate short-term wins.
  7. Sustain acceleration.
  8. Institute change.

You can also borrow from multiple change management models to create a framework that is best suited to your initiative. Get started with 10 Proven Change Management Models.

How to Choose Change Management Tools for Your Initiative

Change management tools include software and apps that support the change process. You can use them to provide training, create knowledge bases, track progress, etc.

The tools you choose will depend on the type of change you are making. For example, if you are implementing Workday as your new human capital management software, you can use a digital adoption platform (DAP) to provide in-app guidance for your employees. The digital adoption tool will support the change by helping users onboard to Workday quickly and easily. Plus, with Whatfix’s DAP, you can provide guidance through a variety of formats, such as step-by-step walk-throughs, balloon tips, videos, and written guides.

You can also use change management tools to track the progress of your initiative and gather feedback from your team. Many organizations use tools like The Change Shop or something as simple as Google Forms to solicit feedback from employees, keep notes on people’s preferences, and adjust plans accordingly.

Examples of Change Management Across Industries & Functions

Change management can be applied to various industries and functions — anytime you make a significant change to how things work within an organization, you’ll need to manage that change. Here are some examples across industries and functions.

Change management examples by industry

IndustryExample
1RetailTakealot uses Whatfix to automate self-training for sellers
2HealthcareInternet Brands use Whatfix to drive product adoption
3ITWipro enables sales representatives with Whatfix
4Medical DevicesCentense switches from paper to an electronic quality management solution
5GroceryLocal Roots NYC quadruples delivery fleet during COVID-19 shutdowns

Change management examples by function

FunctionExample
1SalesSophos uses Whatfix to drive change management on Salesforce
2Human ResourcesManpowerGroup streamlines HR platform adoption with Whatfix interactive guidance
3OnboardingPlanetHS decreases internal support tickets with Whatfix onboarding assistance
4Customer trainingCorrigo uses Whatfix to reduce customer training costs
5PayrollTricor group uses RPA to save 3,000+ hours in payroll services each year
Gartner Employee Productivity Report
Deloitte Learning In The Flow Of Work Report
Everest Peak Matrix DAP Report 2020

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