What is change management in organizations?

11 de December, 2024

“The only constant is change”. This phrase by the philosopher Heraclitus of Ephesus is more than 2,500 years old, but it’s still relevant today. And as well as applying to people’s lives, it can of course also apply to organizations.

Businesses are constantly evolving and there may be several factors that require them to adapt: the emergence of new technologies, the emergence of new competitors, changes to legislation, socio-economic trends, mergers or acquisitions of new companies, changes to the structure of the organization, among many others.

According to Mercer’s Global Talent Trends 2024 study, 97% of organizations were planning a significant transformation this year. At the same time, Oak Engage’s Change Report 2023 indicated that around 1 in 3 employees (37%) tend to be resistant to change in a professional context.

So how can organizations and their managers address change and involve employees in an effective, productive and constructive way?

Find out with us what change management is and what good practices are associated with it.

What is change management?

Change management is an approach that involves implementing strategies, policies and processes to help employees adapt to organizational change. It’s about empowering different professionals and teams to be able to accept and deal with change.

This change could consist of:

• In a development: when it involves changes and optimizations to internal processes and procedures, workflows or strategies.
• In a transition: when there is an evolution in the company in order to solve a problem (the adoption of a new technology or automation, the merger with another company or the acquisition of a new one, for example).
• A transformation: when the scope of the change is transformational, i.e. it tends to alter the company’s operations, culture or values (for example, the launch of a new product or service, the opening of a new business division or an international expansion).

Why is change management important?

Managers and company leaders must recognize that good change management is essential if the company and its professionals are to get through the transitions smoothly.

The anticipation of change, and the proper preparation of teams, will influence the impact and success that this change will have on the organization.

In addition, since organizational change is inevitable – due to the market and competition, technological developments, the response to crisis situations – being prepared to manage change is an essential skill for all leaders.

Best practices for managing change

Managing change can be a complex process, as it requires employees to adapt and adopt new ways of doing things. If changes are not handled and managed well, they can become a stress factor for employees.

For this reason, there are some good practices for managing change more effectively:

• Define clear and measurable objectives: there must be a clear, realistic and tangible vision of what needs to be ensured during the change (processes required, tasks that employees must carry out, when they must carry them out, etc.). In addition, it must be possible to assess whether the efforts involved during the change have made it possible to achieve the objectives set.
• Adopt clear and transparent communication: this is a fundamental skill for all professionals in leadership positions, and even more so during transition and adaptation processes. Since employees tend to feel uncomfortable with change, it is essential to involve them in an honest and transparent way in order to create a sense of trust.
• Empowering and training employees: organizational change is very likely to require new skills, especially when it comes to integrating new technologies. It’s crucial to invest in ongoing employee training, whether it’s necessary to develop existing skills (upskilling) or acquire new ones (reskilling).
• Listening to and involving employees in decision-making: leaders shouldn’t be the only ones talking. On the contrary, they should listen to what employees have to say and encourage them to ask questions and make suggestions. If employees feel that their ideas are heard and considered in decision-making, it is very likely that their resistance to change will decrease and their levels of involvement will increase.
• Choose good communication and collaboration tools: ensuring that communication and collaboration are effective also involves using the right tools. Avoiding email and opting for other project management and internal communication platforms can make change management smoother and even more efficient.
• Recognize and reward good work: it goes without saying, employees like to feel that they are recognized and valued for their work. Therefore, particularly when they are challenged to step out of their comfort zone and perform new tasks, it is crucial to motivate and reward them for their efforts.

Change management in 8 steps: Kotter’s model

There are various methodologies and approaches to change management, which aim to systematize how companies should address transitions while maintaining employee satisfaction and motivation.

One of these models is by John Kotter, a professor at Harvard Business School, who proposes 8 steps for managing change:

1. Create a sense of urgency: involve and inspire the people who will participate in the change process, trying to generate enthusiasm and passion through a joint vision of the future.
2. Develop strategic alliances: create a kind of coalition of people who can be genuine agents of change (not necessarily because they hold leadership positions, but because of the value they can add, their experience in the subject or their profile) and galvanize the rest of their colleagues.
3. Creating a vision for change: a clear, realistic and objective vision of what the change is intended to achieve, so that everyone is aligned on the direction to take.
4. Communicating this vision: developing a communication plan that includes regular updates on the change process, which keeps employees involved, motivated and interested.
5. Removing obstacles: removing any barriers that are blocking change, whether they are technical, procedural or human barriers (in the case of the latter, it is necessary to empower people, give them training and guidance and reward them for their efforts).
6. Set short-term goals: change processes can be complex and lengthy, and if employees don’t realize that some stages have already been completed and succeeded, they may feel frustrated and demotivated with regard to the final goal.
7. Maintaining the pace in a sustained manner: real change takes time and, as such, it is necessary to maintain the pace of deliveries and focus on the goal (don’t think that the work is already done after a few intermediate stages have been reached).
8. Making change last: the values behind the vision for change must remain in the day-to-day running of the organization and be anchored in the organizational culture, in the sense that people must remain open to change, must continue to internalize the importance of change and must be continually trained and empowered.