Change management, also known as transformation management , deals with profound changes in companies. These changes can affect structures, processes, and behaviors, for example.

In this article, we will show you two of the fundamental approaches to change management. We will also explain the advantages and disadvantages of change management.

Change Management – ​​Time for Change?

Change – translated from English, it simply means " transformation ". And that's exactly what this article is about, because as Heraclitus once wrote: "The only constant in the universe is change."

Companies are constantly confronted with change processes, triggered both externally and internally. Only by adapting structures and strategies to changing conditions can a company survive in the globalized economy.

Internal triggers for such changes can include, for example, a reformulation of the corporate strategy, the introduction of new management concepts, or altered constellations in the personnel structure.

External triggers for change management can include new competitors, changing customer demands, technical developments, and new political or economic guidelines.

To withstand both internal and external changes and remain competitive, companies must be able to adapt. For this to happen, it is crucial that employees are involved in the change process and convinced of its necessity . Only then can the implementation of changes be driven forward.

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Kurt Lewin's 3-phase model

As mentioned at the beginning of this article, we will present two fundamental approaches to change management . The first approach is called the so-called three-phase model and was formulated by psychologist Kurt Lewin . In this model, Lewin describes the individual steps that a company goes through during the change process.

#1: Defrosting (Unfreezing)

In this first phase of the process , all participants are prepared for the change process. Furthermore, the problems of the current situation are identified. Once this has been done, it is important to secure support, for example, from management. Introducing a change process alone and without backing is futile.

Furthermore, the purpose and necessity of the change must be clearly communicated . This will foster a willingness among employees to actively participate in the change process. This initial phase is crucial.

#2: Change

This phase is somewhat more self-explanatory compared to the first and last phases and describes the process of actual change . The discussed processes are implemented, departments are restructured if necessary, and new concepts are tested and established.

During this phase, it is particularly important that the changes are accepted by everyone . To achieve this, it is crucial that all changes, benefits, and progress are clearly communicated. Furthermore, answer all emerging questions openly and honestly to dispel any fears or rumors among employees.

Change processes are not always easy to implement , and especially when some stakeholders expect disadvantages, it is important that you invest the time to clarify.

#3: Refreeze

This phase occurs after the changes have been implemented within the company. It ensures that the changes are sustainable and ingrained in the subconscious of the employees. This way, you can be sure that old patterns are not reverted and that the changes are adhered to.

This can be achieved primarily through support from management, feedback from employees, and communication.

Furthermore, you can support your employees by offering training and coaching . This will help them adapt to the new processes more quickly and ensure that the changes are maintained.

Disadvantages of the 3-phase model

Even though the model is relatively easy to implement, it is sometimes considered overly simplistic. In modern companies, change processes happen so quickly these days that a refreeze phase sometimes doesn't even occur anymore.

For this reason, some criticize the model as being outdated. It can be difficult to calmly address all three phases when the changes we are experiencing are happening too quickly.

However, this is precisely why it can be advantageous to take the time to implement a change sustainably and to go through all three phases.

Change process in 8 steps according to John P. Kotter

Many modern change management theories originated in the work of Harvard Business School professor John P. Kotter. His 8-step model, which represents successful organizational change , has been continuously refined since 1996 and is now used by many consultancies.

Since the model represents a holistic approach to implementing profound change, it is essential that all steps are completed in full. These steps can be divided into three phases , which we will present in this paragraph.

The loosening-up phase is carried out by…

#1: Creating a sense of urgency

Ensure that employees support and are behind the desired changes. Convince them that these changes are necessary and urgent . Highlight the opportunities and risks that arise from the process and appeal to your employees' emotions.

For this, you can use techniques such as "storytelling", which you can learn more about in our blog article.

#2: Building a pioneering performance team

Assemble a strong leadership coalition and ensure it represents the entire company. The performance team should possess credibility, expertise, and leadership qualities , and pursue common goals.

#3: Developing a vision for change and an implementation plan

The appointed leadership team should now develop a vision for the future. This vision should serve as a basis for decision-making , motivate employees, and efficiently coordinate actions . Furthermore, the vision should be unifying and provide a sense of purpose.

The next phase of the stage model is the so-called movement and adaptation phase, during which…

#4: The vision is promoted to convince employees.

The effort required for this is often underestimated. As mentioned in point #1, storytelling is an excellent method to bring your vision to life and make it understandable to all employees.

If the performance team leads by example and aligns its behaviors with the vision and strategy, mistrust can be reduced and motivation can be created .

#5: Employees should be given broad scope for action.

This motivates employees and encourages them to act in accordance with the changes. It is important that all stakeholders have access to competitive and market information. This ensures a smooth exchange of information and efficient work.

#6: Short-term successes will be made possible

Set short-term goals to maintain the motivation of everyone involved . Furthermore, quick successes have the advantage of taking the wind out of the sails of critics of the change.

The third and final phase, the freezing phase , is based on…

#7: Securing achievements and driving further changes

While short-term successes contribute significantly to achieving long-term goals, it's important not to rest on your laurels . Use the credibility gained to initiate further changes and involve other groups of people in the process.

#8: The sustainable anchoring of changes

Once all goals have been achieved, the resulting changes must be sustainably embedded in the company culture . If this doesn't happen, there is a risk that the changes will quickly be lost.

To achieve this, ensure that new and existing employees and managers believe in and embody the new direction .

Disadvantages of the model according to John P. Kotter

Although Kotter's model is more detailed than Lewin's, it appears very linear. What happens in the event of potential setbacks remains unclear in this model. Furthermore, stages 1-6 are easy to achieve. However, anchoring changes sustainably can take years and is a lengthy process.

Nevertheless, Kotter's model still strongly influences change management and is still successfully applied.

Conclusion: Dare to change!

Especially for modern companies, it is essential to react flexibly to the challenges of change and not to close oneself off to change.

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