They say the only constant in life is change, which just may be twice as true in business. Whether dealing with new competitors, shifting economic conditions, unpredictable supply chain issues, or even the rise of paradigm-shifting new technologies, there always seems to be something requiring businesses to adapt.
Despite this, change is often challenging. Breaking old habits, introducing new processes, and sometimes even just recognizing the need for change in the first place, may all be met with resistance. This may well be why only about a third of today’s change initiatives end successfully.
This goes to show that change isn’t something you should just respond to, but rather something you can learn to prepare for. Let’s take a close look at how you can do this through an effective change management process.
What is change management?
Change management is the structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. It encompasses the methods, tools, and processes used to guide people through change—minimizing resistance, maximizing adoption, and achieving intended business outcomes.
While change itself is inevitable in business, change management is the discipline that determines whether that change succeeds or fails. Without a deliberate approach to managing change, organizations risk confusion, productivity losses, employee disengagement, and ultimately, failed initiatives that waste time and resources.
Why change management is critical for business success
Organizations that invest in change management see significantly better outcomes. Projects with strong change management are far more likely to meet objectives than those without it. Yet many organizations still approach change reactively, addressing problems only after they arise rather than proactively planning for the human side of change.
Effective change management creates clarity during uncertainty. It helps employees understand why change is happening, what it means for them, and how they can contribute to success. When people feel informed, supported, and equipped to navigate change, they’re more likely to embrace it rather than resist it. This translates directly to faster adoption, higher productivity, and sustained results.
Common types of organizational change
Organizations face multiple types of change, each requiring tailored change management approaches.
Structural change involves shifts in organizational design, reporting relationships, roles, or team composition. This might include mergers and acquisitions, departmental reorganizations, or shifts from hierarchical to flat structures.
Technological change encompasses new systems, tools, platforms, or processes. Examples include implementing new software, adopting automation, or migrating to cloud-based infrastructure.
Cultural change addresses shifts in values, behaviors, leadership approaches, or workplace norms. This could involve building a culture of innovation, improving diversity and inclusion, or shifting from command-and-control to collaborative leadership.
Strategic change involves pivoting business direction, entering new markets, launching new products, or fundamentally altering the business model.
Understanding organizational change vs. change management
It’s important to distinguish between organizational change and change management. Organizational change refers to the actual shift happening—whether that’s implementing a new system, restructuring teams, or pivoting strategy. Change management helps people navigate that shift successfully.
Organizational change management provides a systematic set of tools, resources, and processes for preparing for, responding to, and adapting to change. It creates a consistent methodology that guides the organization as it tackles challenges, launches new initiatives, and adjusts to evolving circumstances—all while minimizing disruption and negative outcomes.
Think of it this way: organizational change is the destination; change management is the roadmap and support system that gets everyone there. Change management touches many aspects of the organization. While it frequently involves project management elements, it also shapes leadership roles and responsibilities, influences HR functions, strengthens communication, and can even shift the organization’s culture.
You can implement organizational change without change management, but your likelihood of success drops significantly. For a deeper exploration of this distinction and practical guidance on navigating both effectively, see our guide on organizational change management.
What is a change management process?
A change management process is any system or framework an organization uses to design, build, implement, and manage change strategies. These changes may range from small and gradual to large and transformational, and can involve many different aspects of the business—culture, internal workflows, core products or services, communication processes, and more.
There are four main approaches to change management depending on the type of change needed.
- Anticipatory: A change in response to something expected to happen, such as the impending arrival of a competitor’s product.
- Reactive: A change in response to something that has just happened, such as a shift in the stock market.
- Incremental: This is a change that happens slowly, through a series of smaller adjustments. An example may be the introduction of a new product management system.
- Strategic: This change is implemented at a high level and designed to impact the larger organization. An example of this would be a merger.
Regardless of the approach, the process is designed to help businesses navigate through different stages of change—from assessment and recognition of the need for change, through planning and implementation, and finally to management and evaluation of the changes made.
By following a structured, systematic approach, the change management process enables businesses to develop comprehensive plans that address challenges while measuring progress along the way.
Benefits of implementing a change management process
Organizations regularly adopt change management processes because they offer an effective way to navigate difficult transitions. Here are the key benefits:
Minimize disruptions: By taking a systematic approach to change, businesses can anticipate and plan for likely disruptions, reduce resistance, minimize downtime, and maintain productive workflows throughout the transformation process.
Promote acceptance: Using a framework that emphasizes transparency and consistent communication, an effective change management process increases buy-in by proactively explaining the rationale behind changes, addressing concerns, and involving employees in key decisions.
Enhance team performance: Mismanaged change interrupts productive workflows and damages morale. With a well-executed change management process, team performance stays consistent and may even increase as improvements are introduced.
Foster adaptability: Change management gives structure to what might otherwise feel chaotic. This helps employees understand the benefits of change and how effective transformation happens, making them more likely to embrace new processes and technologies in the future.
Increase competitiveness: By systematizing the transformation process, change management helps organizations become more agile and responsive. When an organization can adapt quickly to changes, it’s more likely to gain a competitive advantage.
Real-world examples of successful change management
O’Reilly Hospitality Management faced rapid growth that threatened to disrupt its close-knit culture. The company implemented a comprehensive change management approach centered on understanding its people through behavioral assessments and employee experience surveys. By proactively identifying employees’ feelings about changes and creating tailored action plans for each property, they successfully scaled from 1,200 to 1,600 employees while reducing overall turnover by 20%—and by 50-70% at certain properties.
Centier Bank needed to transform its talent management approach when turnover reached 20%. Rather than react with quick fixes, the bank implemented a strategic change management process that included behavioral assessments for all employees, creation of Job Targets for key roles, and customized development strategies. Leadership used behavioral data to promote employees into optimal positions and shift roles to leverage strengths. The result: turnover dropped to 7%—significantly below regional and state levels—and the bank earned a spot in the top five on Indiana’s “Best Places to Work” list for six consecutive years.
Creating a change management plan
Crafting an effective change management plan requires several key components that not only anticipate challenges but also empower organizations to navigate through transformative shifts with purpose and precision.
Assessment and identification of change
Assessing and identifying the proposed change provides the critical groundwork for understanding the scope, impact, and implications of the impending changes, enabling informed decision-making and tailored strategies for effective implementation.
Stakeholder engagement
Stakeholder engagement helps ensure that the concerns, perspectives, and contributions of key stakeholders are integrated, fostering buy-in, collaboration, and alignment that are crucial for the successful execution of any organizational change.
Clear communication strategy
A clear communication strategy creates transparency and helps manage expectations among employees and stakeholders, reducing resistance, enhancing understanding, and facilitating a smoother transition through periods of change.
Training and resources
Incorporating a comprehensive training and resources component into a change management plan equips employees with the skills, knowledge, and tools to adapt to new processes and technologies, ultimately enhancing the overall effectiveness and sustainability of the organizational change.
Risk management
Risk management allows organizations to proactively identify, assess, and mitigate potential challenges and uncertainties, safeguarding against disruptions that could impact productivity or undermine the success of the change initiative.
Implementation strategy
An implementation strategy outlines the specific steps, timelines, and responsibilities required to execute the change initiative effectively, translating conceptual plans into actionable and measurable outcomes.
Feedback and continuous improvement
Integrating a feedback and continuous improvement element into a change management plan is crucial for fostering a culture of learning and adaptation, enabling organizations to gather insights, refine strategies, and enhance processes based on real-time experiences.
Developing your change management plan
Crafting a robust change management plan requires a systematic approach that encompasses a series of well-defined steps. Consider the following as you develop your change management plan.
- Define the change: Identify the need for change, analyze its scope, and evaluate the potential impacts on various aspects of the organization.
- Stakeholder analysis and engagement: Identify key stakeholders, understand their concerns, and develop strategies to engage and communicate with them throughout the change process.
- Defining objectives and goals: Clearly outline the change initiative’s objectives and set measurable goals to track progress and success.
- Communication strategy: Develop a comprehensive communication plan that outlines how information will be shared, who will be responsible for communication, and the timing of key messages.
- Training and resources: Identify the skills and knowledge required for successful adoption of the change, and design training sessions and resource allocation accordingly.
- Risk assessment and mitigation: Identify potential risks and challenges associated with the change, and develop strategies to minimize their impact on the organization.
- Implementation strategy: Create a detailed plan outlining the specific steps, responsibilities, and timelines for implementing the change initiative.
- Monitoring and feedback mechanisms: Establish methods to collect employee and stakeholder feedback, and create a process to evaluate progress and continuously adjust the plan as needed.
- Performance metrics: Define key performance indicators (KPIs) to measure the success of the change initiative and its impact on the organization.
- Sustainability and continuous improvement: Develop strategies to ensure changes are sustained over time and integrate mechanisms for continuous improvement informed by feedback and lessons learned.
- Leadership and support: Identify the roles and responsibilities of leaders and managers in driving and supporting the change, and ensure they are equipped to lead by example.
- Change agents and champions: Identify individuals who will play a pivotal role in advocating for change, guiding others, and ensuring successful adoption, and form a change management team to oversee the process.
- Timeline and milestones: Create a detailed timeline with specific milestones, checkpoints, and deadlines to track the progress of the change initiative.
- Resource allocation: Allocate the necessary budget, personnel, and other resources required for successful implementation.
- Documentation and reporting: Maintain detailed documentation of the change management plan, progress, and outcomes for future reference and reporting.
Change management challenges
Even with a standardized approach in place, leading an organization through change can still be difficult. Change, at least for some people, teams, and businesses, will never be easy. Here are some common challenges you may encounter.
Lack of resources
Implementing change typically requires making an investment, whether in time, money, technology, or people. Finding enough of these resources to properly support the change, especially when not enough people support it in the first place, may be difficult.
Leadership or staff resistance
Effective change requires support from both management and employees to provide direction and ensure the change management process is carried out effectively. If either of them isn’t committed, then this process may fall apart.
Communication problems
Transparently communicating both the need for change and how it will be implemented once it is underway is essential to its success. If any of this is unclear or insufficient, then it will be more difficult to gain buy-in from everyone involved.
Technological changes
If the change management process involves introducing new tools or technologies, there is likely to be a learning curve. If this is not managed properly, it may slow down progress or even halt it altogether.
Different perspectives
Especially when it comes to large strategic change, there may often be a variety of different perspectives on what needs to be changed and how. If these perspectives can’t align, they may compete and disrupt the process.
Leading organizational changes
Discussions of organizational change often focus on structures—how data should be organized, the logistics of relocating offices, or the efficiencies of new workflows. While these elements matter, it’s even more important to focus on the actual people who make up the organization. After all, change won’t happen unless individual employees embrace it.
The importance of leadership in change initiatives
Your change management process begins and ends with leadership. Unless the environment encourages individual employees to accept, support, and promote change, transformation efforts will struggle to gain traction.
Leadership commitment must be visible and active. Senior leaders need to both endorse change and demonstrate support through their actions. By participating actively in planning and preparation, they set a positive example for the rest of the organization. This visible commitment from the top cascades down, making it easier for managers and employees to buy into the change.
Leaders also play a critical role in establishing clear, open, and frequent communication. They should provide employees with consistent updates on changes, including the reasons behind them, their benefits, and their expected impact.
When leaders communicate transparently and regularly, they build trust and reduce the anxiety that often accompanies organizational change.
Building a change-ready culture
A change-ready culture doesn’t happen by accident. It requires intentional effort to create an environment where employees feel empowered to contribute to transformation.
Involve employees early and often
Include employees in decision-making and feedback sessions to ensure their voices are heard and valued. When people feel like participants rather than subjects of change, resistance decreases and ownership increases.
Empower teams to own the process
Whenever possible, entrust employees to make decisions about how best to introduce changes within their areas of responsibility. This autonomy makes them more committed to the success of the change management process.
Assign clear roles and responsibilities
While you want to empower teams, this only works when each team member has a well-defined role. Start by establishing a dedicated change management team with members from different departments who bring diverse skills and perspectives. This removes some burden from individual teams while ensuring cross-organizational representation.
Within this team, assign someone to manage the entire change management process—coordinating activities and ensuring alignment with organizational goals. Consider appointing additional specialized roles: a communication coordinator, a training and development lead, a KPI and metrics tracker, and someone who can proactively identify and mitigate potential roadblocks.
For teams and individual employees outside the core change management team, clarify roles by listing specific tasks and deliverables, explaining new reporting structures, and providing the resources and tools they’ll need to carry out their responsibilities effectively.
Provide consistent support and guidance
Offer ongoing communication, resources, and assistance to help employees navigate the change process with confidence. When people feel supported, they’re more likely to embrace transformation rather than resist it.
Case study: Leading organizational change at Master Electronics
Master Electronics faced an organizational crisis when the operations department turnover reached 111%—more than double the industry standard. Leadership recognized that structural fixes alone wouldn’t solve the issue. They needed to transform how the organization approached talent from the top down.
The Head of People secured buy-in from senior leadership to implement a comprehensive change management approach centered on behavioral insights. Leaders didn’t just endorse the change—they actively participated, using behavioral data to understand their own management styles and model the new approach. They communicated frequently about why the changes mattered and redesigned both hiring and onboarding processes to include behavioral assessments and personalized Relationship Guides.
By deliberately leading this organizational change, with visible leadership commitment, clear communication, and empowered teams to own the new processes, Master Electronics created a change-ready culture. Distribution center attrition dropped from 111% to 58%, total company attrition fell from 71% to 38%, and the organization saved $2 million in turnover-related costs.
Tools and resources for change management
Change management can be complex and time-consuming, but the right tools and data-driven approaches, such as those provided by The Predictive Index, streamline implementation and increase your likelihood of success. Whether you use specialized change management software or adapt existing project management tools, The Predictive Index helps you centralize information, track progress, and monitor key metrics. Communication and survey tools ensure you can share updates and gather employee feedback throughout the process.
Understanding how people naturally work and communicate is critical during times of change. The PI Behavioral Assessment reveals how employees prefer to receive information, process change, and collaborate with others. These insights help you tailor your change management approach to different individuals and teams—anticipating resistance, customizing communication, and supporting employees in ways that resonate with their natural working styles.
When you combine behavioral insights with engagement data and performance metrics, you can personalize your change management approach while tracking progress against clear benchmarks. This data-driven strategy increases adoption rates, reduces resistance, and creates measurable improvements in organizational outcomes.
Effective change management isn’t about eliminating uncertainty—it’s about navigating it with clarity, empathy, and purpose. By understanding your people through behavioral data, building a change-ready culture, and following a structured process, you equip your organization to not just survive change but thrive through it.
