What Is Change Management and How to Use It Effectively

What is change management?

Change management refers to any adjustments to company operations, such as employee promotions or a merger. It can occur circumstantially or be planned and introduced slowly.

Changes are necessary for businesses to grow and stay competitive in today’s changing market, but they are not always easy. Employees may need to adapt to a new environment or organisational structure quickly. Hence, a change management team or change manager needs to focus on transitioning smoothly to meet the organisation’s objectives while avoiding disruptions. In addition, a good change management plan can help employees understand and adapt to a new way of working.  

Keep reading to learn about important change management principles so your business or organisation can restructure seamlessly.

When is change management needed?

Change management within an organisation becomes necessary for different reasons, such as reorganisation, response to change, and adaptation. Consider the following signals that your company needs change management:

• Upgrading technology systems

• Migrating to cloud-based software

• Entering new markets

• Responding to economic changes

• Responding to consumers' changing needs

• Restructuring teams or departments

• Adapting product offerings

To remain competitive, a company will typically implement a change plan. This plan helps address previous changes that failed to meet goals and objectives and can result in more successful outcomes.

When implementing change, communicate clearly with employees well beforehand. Some employees might resist change, so the sooner they know what to expect, the smoother the transition.

Being upfront with your employees can alleviate their concerns. They should know how the changes affect them and their responsibilities, which can help them prepare for the unexpected.

Principles of change management

As you prepare for change, you’ll want to employ some core change management principles to help you meet your organisation’s objectives. To be successful, engage key stakeholders so they’ll support the adjustments. This can help you set expectations and keep change management plans transparently moving forward.

The 4 Core Change Principles

Harvard professor John Kotter developed four principles for a structured approach to managing organisational transitions [1]. These principles can help ensure that changes are implemented effectively and improve the chances of achieving the desired outcomes.

1. Management + leadership: Combine the stability of management and the innovation of leadership to seize opportunities.

2. Head + heart: Communicate the logic behind different ideas and appeal to people's natural desire to contribute to important causes.

3. Have to + want to: Create an environment where employees feel inspired to volunteer for important business activities.

4. Select few + diverse many: Some tasks must be carried out by a specific group of experts, while others require the involvement of more people.

Change management best practices

In addition to the four principles listed above, consider the following best practices in your change management strategy:

Identify the problem.

Before you can begin to think about change, you need to determine why you need to change and the proper process for it. Once you've identified the problem, you can begin to work on how to fix it. The next step is to involve your management or work with a change manager or team.

Create a plan.

When you've reached the planning stage, the change management team or manager will contact all employees for feedback. This will allow you to address concerns early in the process. 

Implement change.

It's important to implement change slowly to give employees time to adapt. You'll want everyone to be on board and know their new responsibilities. By having a comprehensive training programme, your employees do not have to deal with surprises. Allow opportunities for employees to ask questions and offer input. 

Give ongoing support.

As you continue implementing changes, offer ongoing support, guidance, and resources to your employees as they navigate the process. Ongoing support helps employees feel valued as they carry out new tasks and processes integral to your organisation's new way of operating.

Evaluate the plan.

Assess the plan as you move forward to make any unanticipated changes and keep the team working toward the desired results. Be prepared to handle any problems, and keep communication open with all employees.

The role of change manager

When an organisation is ready for change, it may appoint a change manager to form a team. Change managers may be part of an organisation or hired as a third-party consultants. In this role, you are a key person in the overall plan.

Average annual base salary (UK): £55,281 [2]

As a change manager, you lead the change management plan and ensure strategic, effective, and organised communication. Your role is to make assessments and identify risks and mitigation procedures. You will typically collaborate with project managers and project teams to set up change processes while overseeing change requests and the adoption period.

CCMP certification

Certifications are a great way to enhance your CV and show you're committed to your career. APMG International offers accredited certifications at the Foundation and Practitioner levels in partnership with the Change Management Institute. Depending on your preference, you can study online or in a classroom setting.

Change management tools

You can use software programs to track everything you need for a smooth transition. The software program should have an incident reporting feature, a critical event calendar, and a user-friendly interface. Some change management tools include Gantt charts, flowcharts, culture mapping, ADKAR analysis, Kotter's, and Lewin's change models. Commercial change management software programs include Whatfix, Wrike, and IdeaScale.

Explore change management with Coursera

Change management involves guiding an organisation through transitions to ensure minimal disruption and achieve desired outcomes. Employing principles such as effective communication, stakeholder engagement, and ongoing support can significantly enhance the success of organisational changes.

If you're interested in change management as a career, consider earning certificates to boost your CV. These courses provide the necessary skills and knowledge you'll need to have a successful career in change management. Explore a Professional Certificate in Google Project Management or take the Leading transformations: Manage change course at Macquarie University on Coursera.

Frequently Asked Questions (FAQs)