Change management. Change management in German. Probably no other word is currently used more frequently in companies and organizations. No wonder. After all, change is omnipresent. As Keynote Speaker When it comes to change management, I have the great privilege of working with companies of all sizes from a wide range of industries. And I don't know of a single one that has not been affected by change in some way, sometimes even on a massive scale.
Change management: Why are changes no longer „nice to have“?
But when we talk about change management, we have to realize one thing right at the beginning: Change itself has changed massively. Long gone are the days when there was a change process every few years (which was implemented more or less successfully) before people settled back into the new status quo.
Today, we live in a time characterized by complexity, uncertainty and ever-increasing intensity, which is determined by the following factors, among others:
- Globalization
- Digitization
- Generational change (different values, expectations, life plans)
- Radically changed consumer behavior
- Change in markets
- Crises of all kinds (wars, social unrest, pandemics such as COVID-19, etc.)
- Political decisions (regulations, minimum wage, laws, bans, etc.)
- Technological progress (artificial intelligence, robotics, machine learning, virtual reality, etc.)
Only those who respond to this development with courageous decisions will remain relevant in the future. And from this follows: Active change management is no longer a „nice to have“, but a measurable competitive advantage. Or to put it even more succinctly: it's change or be changed. Change or die.
Definition of change management
Before we delve deeper into the topic, let's take a look at what change management actually is. The online lexicon Wikipedia defines the term as follows:
Change management encompasses [...] all tasks, measures and activities that are intended to bring about a comprehensive, cross-divisional and far-reaching change - to implement new strategies, structures, systems, processes or behaviors - in an organization.
Of course, this sounds rather bumpy, so I would like to share my own personal definition with you:
Change management is the sustainable anticipation, planning and control of meaningful change processes in an organization. Modern change management focuses equally on the planning, control and monitoring of processes, methods and instruments, as well as on involving, empowering and leading the people involved, who are the decisive - because most important - success factor for sustainable change.
This definition makes it clear why I have emphasized that the Shift has changed itself. Because even if processes and methods are of course still important, at the end of the day it always comes down to the most important success factor of all: The people.
Change management methods at a glance
What distinguishes successful change management from projects that end up failing? I have developed a model that combines my research of the last twenty years with my practical work in a wide variety of companies around the world. But before I present my model of change competence to you, I would like to introduce you to the best-known concepts of the most important change researchers: Kurt Lewin's 3-stage model, John P. Kotter's 8-stage model, Elisabeth Kübler-Ross' Change Curve and Jeff Hiatt's ADKAR model.
Even if the models come from different times and all have different approaches, you will quickly realize that certain „ingredients“ appear again and again. No wonder, because the bottom line is that successful change is not rocket science. It's about letting go of old patterns, strategies and behaviors and replacing them with new, innovative alternatives.
But what sounds so simple is actually not in practice, because in addition to all rational and intellectual factors, people's psychology plays a decisive role. And this is sometimes unpredictable, which makes the need for clear framework conditions and models all the more important.
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Change management according to Lewin: The 3 phase model
Back in 1947, social researcher Kurt Lewin published his three-phase model, which he used to explain change processes in groups and organizations. Change management according to Lewin proceeds in three phases, namely:
Phase 1: Unfreeze (defrost)
This phase is about preparing for change. This is done through a detailed analysis, communication of the plans, involvement of those affected and discussion of the measures. The sum of these factors results in an increased awareness of change and generally more desire and motivation for implementation.
Phase 2: Change
In phase two, the status quo is actively abandoned, solutions are identified, various alternatives are tried out and concrete changes are implemented. To ensure sustainable results, new standards are established by those responsible and processes are monitored through regular training and controlling.
Phase 3: Refreeze (repeated freezing)
Kurt Lewin defines phase three as the process of adapting to the new status quo and the new behaviors. In order to avoid falling back into old patterns, a lot of emphasis is placed on feedback, communication, training and support. In addition, the processes are monitored and adapted until a permanent change has been achieved.
Change management according to John P. Kotter: The 8-stage model
In 1996, the American professor John Paul Kotter published his world-famous book Leading Change, which contained his 8-stage model of a change process. It is based on his 1995 Harvard Business Review article „Leading Change - Why Transformation Efforts Fail“ and attempts to provide organizations with a model that increases the likelihood of successful change management. John Kotter formulates the change process in 8 stages, which - depending on the depth and scope of the change - can take several months to years.
Level 1: Create a Sense of Urgency
Every change requires an appropriate level of awareness among managers and employees. This stage involves demonstrating the need for change, a realistic analysis of the market and competition, and identifying opportunities and risks.
Stage 2: Build a guiding coalition
In stage two, a team is formed that is responsible for implementing the change. According to Kotter, this team should be representative of the organization and have sufficient competence, trust and expertise to be prepared for possible challenges in the best possible way.
Stage 3: Develop a Vision and Strategy
Stage three determines what the vision and long-term goal of the change should look like so that it is clear from the outset in which direction it is heading. The vision should be imaginable, realistic, sufficiently specific but also flexible and reflect the interests of as many stakeholders as possible. The strategy is then developed from the vision.
Stage 4: Communicate the Change Vision
Communication is crucial for the acceptance of the vision, which should therefore be disseminated as simply, visually and clearly as possible to all employees via a wide variety of channels so that they can identify with the long-term goal of the change.
Level 5: Empower employees and enable broad-based action (Empower broad-based action)
What is preventing employees from implementing the planned changes? This question is addressed in stage five, where the aim is to remove obstacles in order to enable active action. These may be existing structures, a lack of skills or managers who are resistant to change.
Level 6: Generate short-term and visible successes (Generate short-term wins)
As change processes can take a very long time, it is crucial to achieve quick and visible successes in order to increase the credibility of the change process. At the same time, the short-term wins serve as feedback and a reward for the commitment shown and can therefore increase employee support.
Stage 7: Consolidate gains and produce more Change
In stage seven, the successes achieved are consolidated and established within the organization. However, Kotter warns against resting on one's laurels and announcing the end of a change management process too quickly. It is therefore necessary to build on the successes and to introduce and implement further changes.
Stage 8: Anchor new approaches and changes in the corporate culture
The final stage of change Management process is achieved when the change is firmly anchored in the corporate culture. To achieve this, it is necessary to let go of old parts of the culture that are not compatible with the vision and replace them with new values and convictions.
Overall, John P. Kotter's 8-stage model can be divided into three broad phases: Phase 1: Establishing a climate for change (stages 1-3), phase 2: Involving and empowering the entire organization (stages 4-6) and phase 3: The sustainable implementation of change (stages 7 and 8).
The change curve by Elisabeth Kübler-Ross
The well-known change curve is a model published in 1969 that goes back to the psychiatrist Elisabeth Kübler-Ross, who used it to explain the various psychological phases that dying people go through. In the context of change management, the 7 (emotional) phases of the model are helpful, Change processes better and thus be able to deal with them better.
Phase 1: Premonition and worry
A change is announced or is on the horizon, and you immediately ask yourself questions such as: „What might this mean for me?“, „Will I be worse off afterwards?“ or „Is my job in danger?“. The result: a gnawing worry about your own future that puts an emotional strain on you.
Phase 2: Shock and resistance
As soon as the worry becomes real, there is a shock reaction, the intensity of which depends on the extent of the change. This is followed by a violent aversion, and those affected go into resistance.
Phase 3: Denial and rejection
It is deeply human to argue why everything should stay the way it is. And so it happens that changes are denied, suppressed and rejected: „It may affect others, but not me“, „let them do it, but without me“ or „they'll calm down, then everything will go back to the way it was“.
Phase 4: Rational acceptance
At some point, there comes a point when you rationally understand that change is not only inevitable, but also necessary. However, this does not mean that those affected have the necessary willingness for personal change. Many take refuge in working to rule, pushing frustration, which leads to a bad mood in teams and organizations.
Phase 5: Valley of tears
Only when the „valley of tears“ has been crossed has the change been accepted emotionally. In this phase, there is an intense rollercoaster ride of emotions, which can lead from elation to grief. But as soon as you have let go of the emotions associated with the old ways, you can fully embrace the changes to come in the future.
Phase 6: Curiosity and trial and error
In phase six, which is characterized by curiosity, new ideas, strategies and behaviours are carefully tried out, analysed and further developed. Of course, there are always setbacks, but in combination with a constructive error culture, the foundation for sustainable change management is laid here.
Phase 7: Integration and commitment
The final phase marks the conclusion of the change process by committing to the new paths and permanently integrating the changes into everyday life. The new status quo has become a matter of course and in turn serves as a starting point for further transformation projects.
According to Elisabeth Kübler-Ross, all people go through the same seven emotional phases, regardless of how open they are to change. This helps people to better understand their own feelings and to be able to understand other people.
Change management with the ADKAR model by Jeff Hiatt
Last but not least, I would like to introduce you to the ADKAR model, which I greatly appreciate and which was developed in 1999 by Jeff Hiatt, founder of the management consultancy Prosci. ADKAR is an acronym for the five stages that, according to Hiatt, individuals and organizations need to go through for successful change management:
AWARENESS of the need for Change
Only if you are really aware of the need for change will people be prepared to implement it. What will be new, what will remain the same, who will be affected and what concrete effects will the change management process have? The greater the awareness, the greater the likelihood of successful implementation
DESIRE to participate in the Change (wish)
This stage is about providing individuals with the intrinsic motivation to implement the upcoming changes. In addition to the impact on the organization, the main question is what improvements there are for the individual. The key question is: What's in it for me?
KNOWLEDGE about how to change (Knowledge)
Awareness and desire form the foundation for the upcoming change management. However, it is crucial to know exactly how the upcoming changes can be implemented. This can be done through active communication, training and regular meetings.
ABILITY to implement the Change
Of course, the best knowledge is useless if the crucial skills for implementation are missing. The implementation of systems, training, standards and processes is therefore essential.
REINFORCEMENT to sustain the Change (reinforcement)
This phase ensures that general satisfaction is not achieved too quickly, but that initial successes are made visible and celebrated, while at the same time making it clear that the path will only go forwards, never backwards. In this way, you create a dynamic that ensures lasting and sustainable results.
The ADKAR model is ideally suited for an initial analysis of a change program. Management project, as well as for concrete implementation with the help of the five phases of the change process.
Management of change is dead - long live modern change management
Of course, there are many other change management models in addition to those presented here. What they all have in common is that they focus on certain success factors for sustainable change:
- Awareness of the need
- A clear vision and strategy
- A pronounced intrinsic motivation of those involved
- Transparent and regular communication
- Empowering people
- Change as co-creation (We are change! It only works together)
- A concrete plan for dealing with setbacks
- Staying power and stamina (change is a marathon, not a sprint).
However, all models neglect one point: change has long since ceased to be a process with a beginning and an end. Change management has long since become a permanent state of a change loop, which I have illustrated in the following graphic.
Change management of the future: change competence
My Change management model focuses on people and no longer sees change management as a process, but as a skill that can be learned, trained and developed (and must be for sustainable results). An overview of the model is as follows:
As you can see, the Change Competence model is based on four important pillars (if you want to go even deeper, then click here to read a comprehensive article on change competence):
1) Leadership: Guidance and successful change management go hand in hand
2) Culture: The Mindset and the way we interact with each other are crucial
3) Communication: This is the key to sustainable results
4) Performance: The more concrete the strategy and the subsequent processes, the better
The future of change management is radically human
For me, people are the most important success factor for sustainable change management (after all, I worked with Radically human - personality as a success factor in times of change a whole Book written on the subject). This is also reflected in my model of change competence, which focuses on two factors that all other models either only mention in passing or not at all: purpose and values.
The purpose, the motive or the why is the central focal point to which everything else is aligned. If there is no clarity here, then even the best plan and the most modern process are doomed to failure.
If you combine purpose with strong values that are shared (and lived) by everyone, you have created a foundation that dramatically increases the likelihood of successful change management.
Because suddenly change is no longer a compulsion, but has a purpose.
Because suddenly change is no longer a threat, but a wonderful opportunity to become better, to develop further and to take the future by the horns and actively shape it.
And that is precisely what should always be the primary goal of change management: The joy of change instead of the frustration of change.
Would you agree with me? I look forward to your comment...
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