Change management strategy 101

Some businesses look to incorporate massive changes without a solid implementation plan. But the strategy behind big corporate changes often determines how successful the outcomes of those changes are. That’s where change management comes in. 

Change management strategy is a critical tool for navigating changes on both minor and major scales.

What is a change management strategy?

A change management strategy is a planned and systematic approach to effectively navigating organizational changes. Think of it as the engine powering change. It involves processes, techniques, and principles that support individuals, teams, and organizations in adapting and embracing change.

The primary goal of a change management strategy is to minimize resistance and disruption associated with changes and maximize the chances of successful implementation. It helps organizations realize the intended benefits of a change initiative while mitigating any negative impacts on employees, productivity, and overall performance.

When does a company need a change management strategy?

A company may need a change management strategy when it undergoes significant changes that impact its people, processes, or systems. Here are some common scenarios where a change management strategy is often necessary.

Organizational restructuring

When a company goes through mergers, acquisitions, or major reorganizations, it typically involves significant changes to reporting lines, roles and responsibilities, and overall organizational structure. A change management strategy helps employees adapt to new working methods and minimize disruptions.

Technology implementations

 Implementing new technologies or upgrading existing systems often requires changes in workflows, tools, and skill sets. A change management process ensures that employees understand the benefits of the new technology, receive proper training, and are supported during the transition to minimize resistance and maximize adoption.

Process improvements

When organizations undertake process improvement initiatives, a change management strategy helps employees embrace new processes, understand their roles, and overcome resistance to change.

Cultural transformation

Companies seeking to shift their culture or values, foster innovation, or enhance employee engagement may require a change management process. This involves aligning behaviors, promoting new mindsets, and creating a supportive environment for the desired cultural changes.

Strategic initiatives

When organizations embark on strategic initiatives such as entering new markets, diversifying product offerings, or pursuing sustainability goals, a change management strategy helps employees understand the strategic direction and align their efforts accordingly.

Leadership transitions

Leadership changes, particularly at the senior executive level, can create significant shifts in organizational direction, priorities, and culture. A change management process assists in effectively managing the transition, addressing any resistance or uncertainties, and ensuring continuity during leadership changes.

External market forces

Companies may need a change management strategy when faced with external market forces such as economic downturns, regulatory changes, or industry disruptions. This strategy helps organizations adapt to new market conditions and seize opportunities while mitigating potential risks.

Essentially, any significant change can impact employees, their work, and the organization, so if things are changing, you’ll need a change management strategy.

Types of change management strategies 

There are essentially three main types of change management strategies:

1. Transformational Change 

The transformational change management strategy focuses on guiding organizations through substantial and profound changes that often involve a complete shift in the organization's structure, culture, and operations. This strategy is employed when an organization needs to transform fundamentally to adapt to new market conditions, capitalize on emerging opportunities, or address significant challenges.

One notable company utilizing a transformational change strategy is IBM, which shifted focus in the 1990s from being strictly hardware-oriented to being a solutions and services provider.

2. Transitional Change 

The transitional change management strategy focuses on managing and facilitating smaller organizational changes. It is typically implemented when the organization undergoes incremental adjustments, improvements, or modifications that do not completely transform its core strategies, structures, or culture. 

The world’s most recognized restaurant, McDonald’s, is an example of a company that’s used transitional change management. Remember what the menu looked like when you were young (McSalad Shakers, anyone?), and look at it now to see how it’s changed.

3. Developmental Change

The developmental change management strategy focuses on continuous learning, improvement, and growth within an organization. It involves implementing changes to enhance skills, processes, systems, and overall organizational performance.

Google is an excellent example of a company incorporating a developmental change management strategy. It strongly fosters a culture of continuous learning, innovation, and employee development. 

Steps for a change management strategy

Though your change management process will need to be adjusted based on your specific change, here are the basic steps you’ll likely be taking:

1. Define the change: Clearly articulate the change initiative's scope, objectives, and rationale. This template can help you.
2. Conduct a change readiness assessment: Assess the organization's readiness and capacity for change. Identify areas that may require additional support or resources.
3. Develop a change management plan: Create a comprehensive plan outlining the approach, strategies, and activities to manage the change effectively. Define roles and responsibilities, timelines, and milestones. Ensure alignment with the organization's overall goals and objectives.
4. Identify and engage stakeholders: Identify all stakeholders affected by the change. Understand their concerns, motivations, and levels of influence. Develop tailored strategies for engaging and communicating with them throughout the change process.
5. Provide training and support: Identify the skills and knowledge required for individuals and teams to adapt to the change. Provide ongoing support and resources to help employees navigate the change successfully.
6. Implement the change: Execute the activities outlined in the change management plan. Monitor progress, address any issues or concerns, and make necessary adjustments. 
7. Monitor and evaluate: Collect feedback from stakeholders, measure key performance indicators, and evaluate the effectiveness of the change management strategies. 

Simplify change with a change management strategy

Change is necessary, and you’ll need to become comfortable with it for your organization to thrive. However, the way change is implemented often dictates its outcome. Approach change with a strategy, and you can better guide your business to success.