Change management: Achieve your goals with the right change model

Change and transformation. Everyone talks about it and knows how necessary it is to adapt quickly to permanently changing conditions. And yet change is difficult. This is shown by examples such as the Mann-Gulch disaster, in which experienced firefighters died because they were unable to discard what they had learned and spontaneously change their behavior. We also saw this in the COVID-19 pandemic, and at the same time we learned that change is possible if it is perceived as necessary. The following article provides an overview of the most important change management methods and models. 

What is change management? 

Change management encompasses “all tasks, measures and activities that are intended to bring about a comprehensive, cross-departmental and far-reaching change in an organization — to implement new strategies, structures, systems, processes or behaviors.” But what exactly does change management address? Change has become an integral part of everyday business life: changing market conditions, increased customer demands and technical progress require new structures and better processes. The human factor plays the central role – even in digitalization. The economist Peter Drucker stated more than 50 years ago: “We are becoming aware that the major questions regarding technology are not technical but human questions.” 

And it is precisely this human factor that change management addresses. As humans, we find change difficult. Our brain is programmed for survival. It wants to ward off danger and is always looking for reward. However, danger prevention plays the more dominant role. It is additionally activated in the case of changes that cannot be foreseen in their effect: analytical thinking is suppressed, making change difficult. Change management methods ensure that changes can still be implemented because they guide you through the change process stringently and effectively, defining fields of action and individual tasks. 

Change management models: An overview 

The Lewin model 

The change management model of psychologist Kurt Lewin is one of the simpler ones with its three phases “Unfreeze — Move — Refreeze.” Lewin developed it in the 1940s. Originally conceived as a model for social change in a society, it is now used wherever change takes place — including in companies and projects. 

Each of the three phases includes a set of core tasks. In the “unfreeze phase,” the existing state is thawed out, which prepares the changes. By the time participants realize that change is necessary, things start to move. In the “move phase,” the actual change takes place. Here it is important to create new solutions, to learn new behaviors and to implement change. Once the changes have been introduced, the new state is frozen in the “refreeze phase” to maintain the changes. This is achieved, among other things, through training and coaching. However, the freezing also signals that the goal of the current change measures has been achieved. 

The 8-step Kotter model 

The model by John P. Kotter is probably the best-known model for the successful implementation of business transformations. The graphic shows Kotter’s eight-step process, which is also divided into three phases. 

The first three steps are about building a willingness to change. Once there is an awareness of the need for change, the management team can be won over to the transformation. Only when these steps have been successfully completed can the next steps follow. 

1. Increase urgency 

The necessity for change must be demonstrated: things cannot continue as they are. Targeted communication measures make those involved aware that the company and thus also jobs are at risk if nothing is done. The reason for this is that change is only possible when those involved internalize the need to avert danger. 

The following points should be considered: 

• Present the threat scenario and at the same time show a possible solution 
• Present the benefits of the new strategy for the company 
• Highlight the benefits for those affected and answer the question “What’s in it for me?” 
• Clearly present the target picture: describe all the facts, including those taken for granted. Use the “KISS” principle (KISS = keep it short & simple) 

2. Build the guiding team 

You need a good leadership team of influential people who are all pulling in the same direction. This is the only way to implement upcoming changes and anchor them in the company. It is important to include people in the leadership team who have a great deal of influence and/or are well respected by the workforce. At the same time, these people must be fully committed to the planned change. If you can also win over so-called “gray eminences” — people in the company who are known for their critical attitude — this will further strengthen the team. 

3. Develop a vision (“Get the vision right”) 

A strong vision is essential because it helps to implement change. It sets an overarching goal, shows what the future should look like, and answers the question of meaning: why and for what purpose do we exist? What role does the respective team play in relation to the overarching goals? Vision is one of the most important instruments in change management. If it can address people’s unconscious goals — because these are what control their thoughts and behavior — then it has a magnetic effect. It motivates projects and is one of several success factors for mobilizing employees. Strategy complements vision: it describes the concrete path to the overarching goals. 

In the second phase, the organization is involved and thus empowered to support the upcoming change. It is important here that as many affected people as possible become participants and help shape the changes. This increases the chances of success and sustainability of the changes enormously. 

4. Communicate the vision (“Communicate for buy-in”) 

Communication comes before implementation. Those affected must understand it to become participants or supporters. Initiating measures without first explaining the context to those involved would unnecessarily create unrest in the company. When communicating, it makes sense to proceed in several steps: the change team first informs the clients and gets a “go” from them. After that, the change team informs the managers so that they can answer questions from employees during company-wide communication. The next step is to find the appropriate way to communicate the vision to everyone involved. 

5. Empowerment (“Empower action”) 

Only those who feel “empowered” can really help. That is why it is so important to give those involved not only tasks but also room for maneuver. In this way, implementation is spread across many shoulders. If everyone is involved, then in the end everyone has to do something, change something, so that the vision can be achieved. Planning is also important: who has to do what so that everyone achieves the goal? Responsibility is also distributed along with the tasks. Here it is often advisable to break down the goals into sub-goals for teams or organizational areas, rather than just distributing tasks. Teams can then plan themselves. They are “empowered.” 

6. Create short-term wins 

Quick wins must be realized and made visible to increase motivation. Quick wins should therefore also be identified when defining objectives, because success is important to ensure that the initial motivation does not fizzle out. Initial successes should be related to the overarching goal, because then they strengthen intrinsic motivation. Small successes can thus have a big impact. 

The last two stages serve to sustainably implement the change. 

7. Don’t let up 

Stage 7 goes hand in hand with Stage 6 — after a period of change work, there is a risk of falling back into old patterns and letting up in the change efforts. The main problem is that the people in the company or project no longer perceive the necessity and urgency created in stage 1. After all, they have already achieved something. Now it is important to stay focused and strong and, for example, to keep reminding yourself and the team of the necessity that led to the change measures being launched. And to make it clear that the goal has not yet been achieved. 

8. Anchoring changes in the corporate culture (“Make change stick”) 

Only when the changes that have been made have been successfully anchored in the corporate culture can they be sustainable and only then can one speak of a successful change management process. To achieve this, the right values must be conveyed. Training and development programs can help to achieve this, but it is equally important to eliminate processes and procedures that do not fit into the new culture. Finally, a decision must be made on how to deal with colleagues who are resistant to the implemented changes and the new culture in the long term, i.e. who are not willing to accept the new approach. 

Management theory according to Covey 

Even though Stephen Covey’s method is not one of the standard change management procedures, it is worth mentioning here. This is because Covey shows why the implementation of plans (especially changes) often fails, and what can be done to ensure that the implementation is successful. To achieve a sustainable change, it is important to monitor progress over the long term and to communicate the degree of achievement transparently to all parties involved. This is how the so-called implementation gap is closed. Covey divides this implementation gap — shown in the following figure — into four levels: 

• Employees do not know the goal 
• Employees do not know what they need to do to achieve the goal 
• Employees have no idea where they stand on the path to the goal 
• Employees do not feel responsible for achieving the goal 

These four stumbling blocks are also addressed in Kotter’s model. Nevertheless, it is extremely helpful to consciously ask the following questions for each change measure: 

• Do the people involved know the goal? 
• Do they know what they have to do to achieve it? 
• Do they know where they stand on the way to achieving the goal? 
• And do they also feel responsible? 

To address the last two points, Covey recommends continuously measuring the degree to which goals are achieved and actively and regularly communicating with all parties involved. This avoids not only the third pitfall but also the fourth. By regularly involving them, the management team shares responsibility with everyone involved. This builds trust and allows those involved to make their own contribution as independently as possible. And that is precisely what satisfies people: Knowing what is expected of them, combined with the freedom to help shape things and take on responsibility. This sustainably boosts their motivation, especially when transparent communication shows that they themselves are currently part of a successful implementation. 

Change management: Seize the opportunity! 

As mentioned at the beginning, the current pandemic, among other things, shows that change is possible. And it teaches us all how to deal with change. With Kotter’s or Lewin’s methods, there are good approaches that can be effectively complemented by the perspective Covey brings. Now is the right time to take a closer look at these, because both the willingness and the necessity for change are at a high right now. 

11 tips for better change management 

1. Clearly define who is supposed to do what now. Change tends to shake up roles and responsibilities. From day one, every employee needs to know what they are supposed to do at that very moment. Until that changes and a new directive comes down. 

2. Outline the tasks. You will achieve more if you allow your employees to help shape the process. It is therefore advisable to draw up a rough outline of the change project and let the team make suggestions for developing it, rather than presenting a fully developed plan. 

3. Adopt the team perspective. How does the change affect team members, what does the initiative mean from their perspective — whoever adopts this perspective will have the employees on their side. 

4. Share experiences. As much as possible, employees should participate in specific activities such as customer visits. The more closely they experience the change, the better. 

5. Allow questions. Questions from the team should never be seen as resistance. Quite the opposite. A manager who allows questions and answers them can transfer partial responsibilities to employees more quickly. 

6. Present the business case. In addition to communicating a lot with the team, it is also important to develop metrics and key figures for the change project and to make these clear. 

7. Know where the focus is. Within a change, a lot of small details need to be clarified and organized. The focus must not be forgotten. Regular meetings must always refer back to this focus, and clear metrics must make it clear where the team currently stands. 

8. Update sub-goals. Not every milestone will be achieved as originally planned. It is therefore important to regularly update sub-goals together with the team. 

9. Coordination. Shared calendars for the change project and jointly developed guidelines that set priorities are good ways to keep the work of individual team members aligned. 

10. Organizing commitment. Who takes responsibility for what, and how does the team ensure that these responsibilities are actually fulfilled? Questions like these need to be clarified together. The individual employees need to know what part they are taking on, and they need to be able to formulate specifically what they need from their manager in return. 

11. Contextualize the change into the company’s history. The team needs to know which earlier points in the company the current change ties in with and which future direction it is setting. 

Dr. Oliver Janzen is managing partner of the consulting firm FAKTOR D. He has a demonstrated track record in the IT services industry, and is skilled in digitalization, transformation engineering, IT strategy, IT management and bringing new IT solutions to market.