What Is Change Management? + How to Use It Effectively

What is change management?

Change management refers to any adjustments to company operations, such as employee promotions or a merger. Change management can occur circumstantially or be planned and introduced slowly.

Changes are necessary for businesses to grow and stay competitive in today’s changing market, but they are not always easy. Employees may need to adapt to a new environment or organizational structure quickly, so a change management team or change manager needs to focus on how to transition smoothly to meet the organization’s objectives while avoiding disruptions. In addition, a good change management plan can help employees understand and adapt to a new way of working.  

Keep reading to learn about important change management principles so your business or organization can restructure smoothly.

When is change management needed?

Change management within an organization becomes necessary for different reasons, such as:

• Upgrading technology systems

• Migrating to cloud-based software

• Entering new markets

• Responding to economic changes

• Responding to consumers' changing needs

• Restructuring teams or departments

• Adapting product offerings

To remain competitive, a company will typically implement a plan for change. A change management plan helps address previous changes that failed to meet goals and objectives and can result in more successful outcomes. 

It’s important to communicate changes to employees clearly and well before implementing them. Some employees might resist change, so the sooner they’re made aware of what to expect, the smoother the transition. 

Alleviate your employees' concerns by being upfront with your employees so they know how the changes will affect them and their responsibilities, and can prepare for the unexpected.

Principles of change management

As you prepare for change, you’ll want to employ some core principles of change management to help you meet your organization’s objectives. To be successful, engage key stakeholders so they’ll support the adjustments. This will help you set expectations and keep change management plans moving forward with transparency.

The 4 Core Change Principles

Harvard professor John Kotter developed these principles [1]:

1. Management + leadership: Combine the stability of management and the innovation of leadership to seize opportunities.

2. Head + heart: Communicate the logic behind different ideas and appeal to people's natural desire to contribute to important causes.

3. Have to + want to: Create an environment where employees feel inspired to volunteer for important business activities.

4. Select few + diverse many: Some tasks must be carried out by a specific group of experts, while other tasks need the involvement of more people.

Change management best practices

In addition to the four principles listed above, consider the following best practices in your change management strategy:

Identify the problem.

Before you can begin to think about change, you need to determine why you need to change and the proper process for it. Once the problem is identified, you can begin to work on how to fix it with the involvement of management, a change manager, or a change management team.

Create a plan.

When you’ve reached the planning stage, the change management team or manager will reach out to all employees to get feedback. This will allow for concerns to be addressed early in the process. 

Implement change.

It’s important to implement change at a pace that allows employees time to adapt. You’ll want everyone to be on board with their new responsibilities. By having a comprehensive training program, there won’t be any surprises. Allow opportunities for employees to ask questions and offer input. 

Give ongoing support.

As changes are implemented, offer ongoing support, guidance, and resources to your employees as they navigate the changes. Ongoing support helps employees feel valued as carry out new tasks and processes that are integral to your organization's new way of operating.

Evaluate the plan.

Assess the plan as you move forward to make any unanticipated changes and keep the team working toward the desired results. Be prepared to handle any problems, and keep communication open with all employees.

The role of change manager

When an organization is ready for change, typically, a change manager is appointed to form a team. Change managers may be part of the organization or hired as a third-party consultant. A change manager is a key person in the overall plan.

Average annual base salary (US): $102,678 [1]

A change manager is responsible for leading the change management plan and ensuring communication is strategic, effective, and organized. The change manager's role is to assess and identify risks and mitigation procedures. This type of manager will typically collaborate with project managers and project teams to set up change processes, all while overseeing change requests and the adoption period.

CCMP certification

Certifications are a great way to enhance your resume and show you’re committed to your career. Through the Association of Change Management Professionals (ACMP) certificate, you can learn more about change management and how to implement it. According to the ACMP, to qualify, you must submit your education, experience, and training and answer three of five essay questions. Once your application has been accepted, you can schedule an exam.

Change management tools

Software programs are available to track everything you need for a smooth transition. The software program should have an incident reporting feature, a critical event calendar, and be user-friendly. Some change management tools include Gantt charts, flowcharts, culture mapping, ADKAR analysis, Kotter's model, and Lewin's change model. Commercial change management software programs include Whatfix, Wrike, and IdeaScale.

Explore change management with Coursera

If you’re interested in change management as a career, consider taking online courses to build skills and discover career options at your own pace. Explore Coursera's offerings:  

Frequently asked questions (FAQ)