Change management represents the set of processes, methodologies and practices aimed at managing and facilitating change within a company. It is a strategic approach that helps businesses manage transformations – both technological and cultural – by reducing resistance to change and maximising the adoption of new strategies, processes and technologies.
In this article, we will take an in-depth look at this type of management that has become fundamental for the growth and adaptation of companies in a constantly changing world.
What is change management: definition and meaning
Change management is a methodological and strategic approach aimed at effectively managing the process of change within a company and is primarily concerned with the planning, implementation and control of significant organisational changes (whether they relate to corporate culture, operational processes, technologies, organisational structures or any other relevant aspect).
This type of management aims to manage change strategically, ensuring that the organisation is ready to adapt, grow and prosper in an environment that changes day by day.
The pillars of change management
The four pillars of change management emphasise the importance of considering different aspects, from the people involved to the organisational context, from technology to business processes. Integrating each of these pillars can greatly improve the chances of success during a period of change within a company.
Let us see each of the four in detail:
- People: they are the very first point to consider during any change process. Involving and informing employees, listening to their concerns and opinions, clearly communicating the vision of the change and providing the necessary support are all crucial for successful change.
- Platforms: the technology platforms and tools adopted by the company play a significant role. The introduction of new IT systems or tools requires careful management to ensure that they are implemented effectively and accepted by employees.
- Workplaces: corporate culture, work environment and internal dynamics play a key role. Creating an environment where employees feel comfortable adapting to change and collaborating can facilitate the transition process.
- Work processes: the effectiveness and efficiency of business processes are equally important. During a change, the optimisation and revision of existing processes, as well as the introduction of new operational approaches, may be necessary to align the organisation with the change objectives.
The stages of change management
The change management process unfolds through several phases that help guide and manage change within a business. These phases, when managed consistently, help the business sail through change, maximising the likelihood of success and minimising resistance and obstacles along the way.
Below, we provide you with a step-by-step list of all the necessary steps to carry out the process without running the risk of making mistakes.
- Preparation and assessment: in this initial phase, the company identifies the need for change, assesses the current situation and defines the desired objectives. A dedicated change management team is also established and the necessary resources are planned.
- Analysis and design of change: obstacles to change are identified and a strategy is designed to address them. A detailed plan is created, actions are defined and indicators of success are established.
- Communication and stakeholder involvement: clear and transparent information is shared on the nature of the change, its benefits and next steps. Stakeholders’ opinions are voiced and concerns are listened to.
- Implementation of change: this phase involves the practical implementation of the change plan. Planned actions are carried out, training is provided, new processes are introduced and progress is constantly evaluated to make any corrections.
- Evaluation and monitoring: during and after the implementation of the change, results are monitored and evaluated. It is checked whether the objectives have been achieved, employee feedback is analysed and any changes or improvements are made.
- Consolidation of change: this phase concerns the stabilisation of the new corporate culture. New habits are consolidated, positive changes are reinforced and residual resistance is eliminated.
- Maintenance and improvement: even after the completion of the change process, it is necessary to continue monitoring to ensure that the results achieved are maintained. Strategies are implemented to maintain flexibility and the ability to adapt to future needs.
Benefits and challenges of change management for companies
Change management offers several benefits to companies, but it also brings some challenges. Here is a list of points not to be underestimated:
Advantages
- Implementing change management allows companies to adapt more easily to new market conditions, emerging technologies or internal evolutions.
- Well-managed changes can lead to more efficient processes and increased productivity.
- Change management fosters innovation by promoting new ideas and practices, encouraging cultural and behavioural change.
- It can help develop a corporate culture oriented towards change and continuous learning.
- Appropriate change management helps employees more easily understand and adopt new business processes and new technologies used to perform tasks.
Challenges
- Many people can resist change, creating obstacles and slowing down the process (even unconsciously at times).
- Unclear or poor communication can lead to confusion and uncertainty among employees.
- Poor control of timing and resources can lead to considerable delays in the implementation of new business practices.
- Major changes can entail a risk of failure if they are not managed properly, which can have a negative impact on the company and its employees.
- Changing corporate culture is difficult and takes time, because it affects different mentalities and many deep-rooted behaviours.
- If the leadership does not actively support the change, the process may fail or significant resistance may occur.
Who leads change management?
Change management is driven by business leaders who assume key roles in planning, implementing and controlling the change process within the business. The effectiveness of change management depends largely on the ability of these professionals (change managers) to collaborate, coordinate efforts and guide employees through the change process. Strong leadership and active involvement are essential here.
The figure of the change manager
The change manager ensures that change is managed effectively, minimising resistance and maximising the adoption and effectiveness of new practices, processes or technologies within the company.
This professional develops a detailed strategy for change, defining objectives, planning actions and identifying the resources required for a successful transition process. He/she manages internal and external communication regarding change, ensuring a constant flow of clear, accurate and timely information between employees, company leadership and other stakeholders.
Actively involves employees in the process, listens to their concerns, involves them in decisions and encourages them to actively participate in the implementation of change. He/she identifies potential resistance and develops strategies to address it proactively, ensuring that concerns are resolved even before they arise.
He/she constantly monitors the progress of the change, assessing the effectiveness of the strategies adopted and making modifications or corrections if necessary to ensure that the objectives are achieved.
Works closely with other stakeholders (HR, communication team, business leaders and external consultants) to ensure an integrated and coordinated approach. Fosters the development of an organisational culture open to change, promoting values of flexibility, adaptability and continuous learning.
How to implement a change management process
Implementing a change management process requires strategic planning and careful implementation to ensure the success of the change within the business. Remember, however, that a successful change will only take place if the real need for the company to implement a change management process has been established. Once the change is complete, it is very important to ensure that the new practices have been properly integrated into the organisational culture and that they can be sustained in the long term.
Change management examples
In each of the following examples, change management requires careful planning, management of resistance to change, communication and continuous evaluation of progress to ensure an efficient and successful transition.
- Implementation of a new IT system: when a company decides to introduce a new software or IT system, effective change management must be planned. This includes training employees on the new system, managing resistance to change and creating strategies to ensure a smooth transition.
- Organisational restructuring: if a company decides to redefine its organisational structure, this may involve redefining roles, processes and responsibilities. Change management, in this case, requires employee involvement and concern management.
- Cultural change: when a company aims to change its corporate culture, e.g. to promote innovation, collaboration or customer orientation, change management becomes crucial. It is a process that involves communicating the new vision, establishing new corporate values and promoting behaviour consistent with the desired new culture.
- Merger or acquisition: during a corporate merger or acquisition, it is essential to manage the integration and gradual merger of two different corporate cultures, the management of employee expectations and the definition of a new (and unique) organisational structure.
- Adoption of new business strategies: When a company decides to adopt new business strategies to adapt to changing market conditions, it is necessary to manage the change process. This may involve the introduction of new production methods, changes in product management or new marketing strategies.
Kilpatrick, with its proven experience in the human resources sector, can be a valuable partner to help your company during periods of transition: we identify the best change managers on the labour market, offer strategic consulting for human resources management during periods of change, and support companies in planning and implementing effective transition strategies.
Contact us to find out how we can work together to better manage change processes within your company.