Change management

For software version changes, see Change control.

Robert Marshak has since credited the big 6 accounting and consulting rms with adopting the work of early
organizational change pioneers, such as Daryl Conner
Change Management (CM) refers to any approach to
transitioning individuals, teams, and organizations using and Don Harrison, thereby contributing to the legitimization of a whole change management industry when they
methods intended to re-direct the use of resources, busiservices as change manageness process, budget allocations, or other modes of op- branded their reengineering
ment in the 1980s.[7]
eration that signicantly reshape a company or organization. Organizational Change Management (OCM) considers the full organization and what needs to change.[1]
Organizational Change Management principles and prac- 1.3 1990s
tices include CM as a tool for change focused solely on
the individual.
In his 1993 book, Managing at the Speed of Change, Daryl
CM focuses on how people and teams are aected by Conner coined the term 'burning platform' based on the
an organizational transition. It deals with many dif- 1988 North Sea Piper Alpha oil rig re. He went on to
ferent disciplines, from behavioral and social sciences found Conner Partners in 1994, focusing on the human
to information technology and business solutions. In a performance and adoption techniques that would help enproject management context, CM may refer to the change sure technology innovations were absorbed and adopted
[8]
control process wherein changes to the scope of a project as best as possible.
are formally introduced and approved.[2][3]

1
1.1

1.4 2000s

History

Linda Ackerman Anderson states in Beyond Change

Management that in the late 1980s and early 1990s, top
leaders, growing dissatised with the failures of creating
and implementing changes in a top-down fashion, created
the role of the change leader to take responsibility for the
human side of the change.[9] The rst State of the Change
Management Industry report was published in the Consultants News in February 1995.[10]

1960s

Many change management models and processes are

based with their roots in grief studies. As consultants saw
a correlation between grieving from health-related issues
and grieving among employees in an organization due to
loss of jobs and departments, many early change models
captured the full range of human emotions as employees
mourned job-related transitions.[4]

1.5 2010s

In his work on Diusion of Innovations, Everett Rogers

posited that change must be understood in the context of
time, communication channels, and its impact on all affected participants. Placing people at the core of change
thinking was a fundamental contribution to developing
the concept of change management. He proposed the
descriptive Adopter groups of how people respond to
change: Innovators, Early Adopters, Early Majority, Late
Majority and Laggards.[5]

1.2

In Australia, change management is now recognised as

a formal vocation through the work of Christina Dean
with the Australian government in establishing national
competency standards and academic programmes from
diploma to masters level.[11]
In response to continuing reports of the failure of largescale top-down plan-driven change programmes,[12] innovative change practitioners have been reporting success
with applying Lean and Agile principles to the eld of
change management.[13][14]

1980s

McKinsey & Company consultant Julien Phillips published a change management model in 1982 in the journal
Human Resource Management, though it took a decade
for his change management peers to catch up with him.[6]

The Association of Change Management Professionals

(ACMP) announced a new certication to enhance the
profession: Certied Change Management Professional,
planned for 2016.[15]
1

APPROACH

Approach

Organizational change management employs a structured approach to ensure that changes are implemented
smoothly and successfully to achieve lasting benets.

2.1

Reasons for change

Globalization and constant innovation of technology result in a constantly evolving business environment. Phenomena such as social media and mobile adaptability have
revolutionized business and the eect of this is an ever
increasing need for change, and therefore change management. The growth in technology also has a secondary
eect of increasing the availability and therefore accountability of knowledge. Easily accessible information has
resulted in unprecedented scrutiny from stockholders and
the media and pressure on management.
With the business environment experiencing so much
change, organizations must then learn to become com- Dr. John P. Kotter, a pioneer of change management, invented
fortable with change as well. Therefore, the ability to the 8-Step Process for Leading Change
manage and adapt to organizational change is an essential ability required in the workplace today. Yet, ma Communicate the Change Vision
jor and rapid organizational change is profoundly dicult because the structure, culture, and routines of orga Empower Employees for Broad-Based Action
nizations often reect a persistent and dicult-to-remove
imprint of past periods, which are resistant to radical
Generate Short-Term Wins
change even as the current environment of the organiza Consolidate Gains and Produce More Change
tion changes rapidly.[16]
Due to the growth of technology, modern organizational
change is largely motivated by exterior innovations rather
than internal factors. When these developments occur,
the organizations that adapt quickest create a competitive advantage for themselves, while the companies that
refuse to change get left behind.[17] This can result in drastic prot and/or market share losses.

Anchor New Approaches in the Culture

Change Management Foundation and Model

The Change Management Foundation is shaped like a

pyramid with project management managing technical
aspects and people implementing change at the base and
Organizational change directly aects all departments and leadership setting the direction at the top. The Change
employees. The entire company must learn how to handle Management Model consists of four stages:
changes to the organization.
Determine Need for Change

2.2

Change Models

Among the many methods of change management exist

several key models:

Prepare & Plan for Change

Implement the Change
Sustain the Change

John Kotters 8-Step Process for Leading Change

Deming Cycle of Plan-Do-Check-Act

Dr. John P. Kotter, the Konosuke Matsushita Professor
of Leadership, Emeritus, at the Harvard Business School, The Plan-Do-Check-Act Cycle, created by W. Edwards
invented the 8-Step Process for Leading Change.[18] It Deming, is a management method to improve business
method for control and continuous improvement of proconsists of eight stages:
cesses and products. It consists of four stages:
Establish a Sense of Urgency
Create the Guiding Coalition
Develop a Vision and Strategy

Plan - establish objectives and processes

Do - implement the plan, execute the process, make
the product

2.5

Factors of successful change management

The Plan-Do-Check-Act (PDCA) Cycle created by W. Edwards

Deming

Check - study actual results and compare against the

expected results
Act - enact new standards[19]

2.3

Change management involves collaboration between all employees, from entry-level to top-management

Choosing which changes to implement change and the capability to change. The objectives, con-

tent, and process of change should all be specied as part

When determining which of the latest techniques or inno- of a change management plan.
vations to adopt, there are four major factors to be conChange management processes should include creative
sidered:
marketing to enable communication between changing
audiences, as well as deep social understanding about
Levels, goals, and strategies
leadership styles and group dynamics. As a visible track
on transformation projects, organizational change man Measurement system
agement aligns groups expectations, integrates teams,
and manages employee-training. It makes use of per Sequence of steps
formance metrics, such as nancial results, operational
Implementation and organizational changes
eciency, leadership commitment, communication effectiveness, and the perceived need for change in order
to design appropriate strategies, resolve troubled change
2.4 Managing the change process
projects, and avoid change failures.
Although there are many types of organizational changes,
the critical aspect is a companys ability to win the buy-in 2.5 Factors of successful change manageof their organizations employees on the change. Eecment
tively managing organizational change is a four-step process: [20]
Successful change management is more likely to occur if
the following are included: "
Recognizing the changes in the broader business environment
Dene measurable stakeholder aims and create a
Developing the necessary adjustments for their
business case for their achievement (which should
companys needs
be continuously updated)
Training their employees on the appropriate changes
Winning the support of the employees with the persuasiveness of the appropriate adjustments
As a multi-disciplinary practice that has evolved as a result of scholarly research, organizational change management should begin with a systematic diagnosis of the current situation in order to determine both the need for

Monitor assumptions, risks, dependencies, costs, return on investment, dis-benets and cultural issues
Eective communication that informs various stakeholders of the reasons for the change (why?), the
benets of successful implementation (what is in it
for us, and you) as well as the details of the change
(when? where? who is involved? how much will it
cost? etc.)

5 SEE ALSO
Devise an eective education, training and/or skills
upgrading scheme for the organization
Counter resistance from the employees of companies and align them to overall strategic direction of
the organization
Provide personal counseling (if required) to alleviate
any change-related fears
Monitoring of the implementation and ne-tuning as
required
The University of New South Wales oers a Graduate Certicate
in Change Management (GCCM)

Challenges of change manage4.1 Universities

ment

Change management is faced with the fundamental diculties of integration and navigation, and human factors.

3.1

Integration & navigation

Integration
Traditionally, Organizational Development (OD) departments overlooked the role of infrastructure and the possibility of carrying out change through technology. Now,
managers almost exclusively focus on the structural and
technical components of change. Alignment and integration between strategic, social, and technical components requires collaboration between people with dierent skill-sets.
Navigation

The University of New South Wales, through the

Australian Graduate School of Management, offers a Graduate Certicate in Change Management
(GCCM) to develop eective agents of change.
Warwick University and Sheeld University in
the United Kingdom oer organizational change
courses through their business programs.
Charles Sturt University oers a Graduate Certicate in Organisational Change.

5 See also
Change management (ITSM)
Employee engagement
Human resource management
Leadership development

Managing change over time, referred to as navigation,

requires continuous adaptation. It requires managing
projects over time against a changing context, from interorganizational factors to marketplace volatility. It also requires a balance in bureaucratic organizations between
top-down and bottom-up management, ensuring employee empowerment and exibility...

Organization studies
Organizational culture
Organizational structure
Performance management
Project management

Change management as an academic discipline

Business process reengineering

Stakeholder management
Strategic change

As change management becomes more necessary in the

business cycle of organizations, it is beginning to be
taught as its own academic disciple at universities. There
is a growing number of universities with research units
dedicated to the study of organizational change.

Talent management
Training and development
Transtheoretical model

References

[1] Home. International Organizational Change Management Institute. Retrieved 2015-12-08.

[2] Filicetti, John (August 20, 2007). Project Management
Dictionary. PM Hut. Retrieved November 16, 2009.
[3] Levin, Ginger (2012). Embrace and Exploit Change as a
Program Manager: Guidelines for Success. Project Management Institute. Retrieved August 10, 2013.
[4] Welbourne, Theresa M. Change Management Needs a
Change.
[5] Rogers, Everett (16 August 2003). Diusion of Innovations, 5th Edition. Simon and Schuster. ISBN 978-07432-5823-4.
[6] Phillips, Julien R. (1983).
Enhancing the eectiveness of organizational change management.
Human Resource Management 22 (12): 18399.
doi:10.1002/hrm.3930220125.
[7] Marshak, Robert J. (2005). Contemporary Challenges
to the Philosophy and Practice of Organization Development. In Bradford, David L.; Burke, W. Warner. Reinventing Organization Development: New Approaches to
Change in Organizations. pp. 1942. ISBN 978-0-78798159-4.
[8] Conner, Daryl (August 15, 2012). The Real Story of the
Burning Platform.
[9] Anderson, D. & Anderson, L.A. (2001). Beyond
Change Management: Advanced Strategies for Todays
Transformational Leaders. San Francisco: JosseyBass/Pfeier. Retrieved 12/21/11 from http://books.
google.com/books?id=WbpH7p5qQ88C&printsec=
frontcover&dq=beyond+change+management&hl=
en&sa=X&ei=kEfzTpewMYKpiQLGz5S8Dg&ved=
0CD0Q6AEwAA#v=onepage&q=beyond%20change%
20management&f=false
[10] Whelehan, S. (1995). Capturing a Moving Target: Change
Management. Consultants News.
[11] Dean, Christina (2009). RIMER Managing Successful
Change. Australia: Uniforte Pty Ltd.
[12] Build a change platform, not a change program. McKinset and Associates. Retrieved 24 March 2016.
[13] Anderson, Je (2013). The Lean Change Method: Managing Agile Organizational Transformation Using Kanban,
Kotter, and Lean Startup Thinking. CreateSpace Independent Publishing Platform.
[14] Little, Jason (2014). Lean Change Managment: Innovative Practices For Managing Organizational Change.
Happy Melly Express.
[15] ACMPs Certied Change Management Professional
programme. The Association of Change Management
Professionals. Retrieved 20 November 2015.

[16] Marquis, Christopher;

Tilcsik, Andrs (2013).
Imprinting: Toward A Multilevel Theory. Academy of
Management Annals: 193243.
[17] Skelsey, Dan (29 July 2013). Why Do People In Business
Resist Change?". Project Laneway. Retrieved 8 February
2015.
[18] Editorial Team, Mind Tools (18 February 2016).
Kotters 8-Step Change Model. Mind Tools. Retrieved
18 February 2016.
[19] Vora, Manu K. Business Excellence Through Sustainable
Change Management.
[20] http://www.lewis-tisdall.com/essays/
why-is-change-management-necessary-in-contemporary-organisations/

7 TEXT AND IMAGE SOURCES, CONTRIBUTORS, AND LICENSES

Text and image sources, contributors, and licenses

7.1

Text

Change management Source: https://en.wikipedia.org/wiki/Change_management?oldid=711880407 Contributors: Kku, Ihcoyc, Rich

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Rightbrainguy, Michelle Wylde Smith, Strike Eagle, BG19bot, Liu.spain, Sameer.sa20, Scmbwis, OscarBanjo, BattyBot, Sunnykshah85,
Khazar2, Dohaschmoha, Platos Dog, Prof. Miles, G, SFK2, Winkey097, Matthews sam, Moormktg, Phamnhatkhanh, Maya.lincoln,
Joshualagan, FrigidNinja, New worl, 296.x, Texprofessional, Polymathicus, Mrm7171, Dbpatton, Changelinx, Shilpy Bajaj, JaconaFrere,
KAJDI, Arvind Bhatnagar, Airport691, JodieMcIlwain, KH-1, Viam Ferream, KasparBot, Slainte12, Sarahmalik92, Rjc12, Kellyhphan,
LaurenM3SM, Organizational Change Management, Verabuena and Anonymous: 139

7.2

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7.3

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