Why organizational change management is important

Organizational change management is one of the fundamental skills for current businesses. The pandemic has made it clear that we live in a very dynamic world, with constant changes, and it is the companies that must adapt to survive.

In this context of continuous adaptation to changes, organizational change management has become a fundamental pillar for any company to face both current changes and those that will come in the next few years.

One example of change management that we have seen a lot in recent years is the digitization process that many companies are going through. COVID-19 first introduced remote work and then hybrid work in companies, which made it necessary for companies to start digitizing, for example with popular management software.

Click here to learn about the benefits of hybrid work in your company.

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What is change management

Organizational change management seeks to implement processes for transforming companies in the most effective way possible. Sometimes companies resist certain changes or, as they are not used to implementing changes, they do not know how to start the process, that is why there are consulting firms that specialize in helping them achieve it.

Change management, however, must be carried out through a clear methodology so that it can be successfully applied. Changes in companies, both in small and large businesses, are never simple, there are members of the company resistant to change, so applying an organizational change management model is essential.

In this article, we explain why change management is important and provide some examples of change management. Discover what models of organizational change management exist and which one best suits your company.

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Why change management is important

Organizational change management is important because it helps reduce the conflict generated when changes are decided upon in a company and the resistance that some employees often have when it is time to adapt to new times.

Furthermore, it improves trust in the company and strengthens the relationships between employees. Ultimately, it is necessary for the team to be united and eager to adapt to new developments together for changes to be fruitful.

From the customer's perspective, it indicates that the company is still growing and cares about their well-being, as changes usually have a positive impact on them. Therefore, organizational change management increases business benefits, as customers are more satisfied and the team generally works better.

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Change management models

If you are looking for examples of change management, here are some models that consulting firms often implement when a company requests their organizational change management services.

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ADKAR model

The ADKAR model is based on 5 pillars:

• Awareness. Based on creating awareness among the team of why change is necessary, as well as communicating everything necessary to achieve this change.
• Desire. Focuses on generating a desire for change among employees. Often, communicating the benefits that these changes will bring can achieve this.
• Knowledge. Giving employees the ability to achieve these changes, the tools, and the knowledge they need to work in this new way from now on.
• Ability. Focused on the skill to achieve changes, on everyone's abilities to transform the company effectively.
• Reinforcement. Based on maintaining the change over time.

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Lewin model

The Lewin model is one of the favorites for implementing organizational change management. Although it is a model that requires time, it is divided into 3 levels:

• Unfreezing. Lewin states that people tend to resist change, so before implementing it, it is necessary to prepare the ground. To achieve this, the focus should be on internal communication within the company, explaining why change is necessary and what its benefits will be to motivate employees.
• Transition. This is the longest stage because it is when changes are implemented. During this stage, there need to be figures who can lead this change and reassure employees. Therefore, once again, communication is essential.
• Refreezing. Once the change has been implemented, the employees have accepted it and have managed to work in this new way, the goal is to ensure that these new ways of doing business endure over time effectively and do not revert to past ways of working.

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Bridges transition model

The Bridges Transition model is based on feelings, on the emotional reactions that may arise in the team throughout the transformation. The key to this model is to support the team in making the change, rather than forcing it. It has 3 stages:

• Ending. It is about helping employees "let go" of past habits to implement change. The key issue at this point is that they must accept that they will lose something to gain something else.
• Neutral Zone. Focused on helping the team make "the journey". Employees acquire knowledge, tools, new work techniques, so they need support when they feel lost.
• New Beginning. It focuses on commitment to change and making it endure over time. The goal of this phase is to maintain the change and ensure it continues to be effective.

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Kotter model

It is based on leaders in the company being convinced that change is necessary and promoting it so that it is accepted by the teams. This model argues that this strong belief that change is necessary is more important than the change itself, and without it, success is impossible.

The model has 8 steps:

• Increasing urgency for change. Communicate the urgency of change and create the necessary atmosphere for employees to be motivated by change.
• Build a team. The right people should guide the transformation. It is important that they are suitable and motivated for this process. They must be skilled individuals who are evolving.
• Change vision. Consider the challenges that must be faced and the methodology to do so. Also, what tools are needed.
• Communicate that change is necessary and urgent. Employees are the main ones affected by the change, so they must understand why the change is necessary and accept it.
• Empower the team. Try to break down barriers and fears, always support them during this process, which is not as simple as it seems.
• Short-term objectives. This will make it easier to achieve them, and the team will feel capable and motivated to do so.
• Persist. And also help the team work constantly for this change, otherwise, success will not be achieved or it will not endure over time.
• Ensure that the change endures in the future. The key to successful change management is that it is not temporary, so it must be incorporated into the company's culture.

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Urgency model

It is a technique that is used to encourage, inspire, and give the push needed to implement changes in the company, in this case, employees, the team. This is why changes are usually designed in a way that they cannot generate resistance.

But how can changes be made without generating resistance? It is necessary to have a perfect understanding of the team to offer changes that are aligned with their values, ways of working, etc. Sometimes these changes are related to avoiding punishments or leaving behind endless working days.