Change Management Change management refers to a process of transitioning a business so that it can meet changing demands and objectives. Changes may need to be made to how the business functions or its operations, marketing, finance or the other aspects of the business. Change management involves the application of planned methods and frameworks to steer business from its current state to a desired state. The main benefit of using a change management method is that it helps to increase the chances that the business will complete the change while staying in budget and on schedule leading to better chance of realization of benefits. The complex business environment makes it important for every organization to adapt by constantly changing and adopting to new technology along with other changes to meet customer demand. Theories of Change Management Change management is a process that takes time, expertise, dedication and efforts to implement and run. It requires the involvement of employees of the company and may also result in these people being affected by the changes too. Before adopting one of the management approaches and models, an organization must first figure out why it needs the changes and the anticipated benefits of the change. Some of the most popular change management models and theories used today, include; Lewin’s Change Management Model, McKinsey’s 7-S Framework Model, Kotter’s Theory, Nudge Theory, ADKAR Theory of Change, and Bridge’s Transition Model. Lewin’s Change Management Model is an effective and popular model for structured organizational change. This model was created by Kurt Lewin in the 1950s is still used today. Lewin explained the organizational change through the changing states of a block of ice. His model consists of three main stages: unfreeze, change and refreeze. McKinsey 7-S framework model was developed for use at McKinsey & Company in the 1980s and includes seven steps or stages for managing change. The seven stages included strategy, structure, systems, shared values, style, staff, and skills. The benefits of this model included methods to understand an organization and get a deep insight into the way it works. It integrates both the emotional, as well as, the practical components of change which helps create ways to enable employees to deal with transition more easily. Kotter’s theory is one of the most utilized change management theories in the world. This theory was devised by John P. Kotter a Harvard Business School Professor and author of several books on change management. This change management theory is divided into eight stages and each one of them focuses on a principle that is associated with a response of people to change. This is a step by step model that is easy to follow and incorporate, however, because it is step by step no step can be skipped or incomplete making it very time-consuming. This model’s main focus is to accept the change and prepare for it. Nudge Theory is credited to Cas ...

1. Change Management
Change management refers to a process of transitioning a
business so that it can meet changing demands and objectives.
Changes may need to be made to how the business functions or
its operations, marketing, finance or the other aspects of the
business. Change management involves the application of
planned methods and frameworks to steer business from its
current state to a desired state. The main benefit of using a
change management method is that it helps to increase the
chances that the business will complete the change while
staying in budget and on schedule leading to better chance of
realization of benefits.
The complex business environment makes it important for every
organization to adapt by constantly changing and adopting to
new technology along with other changes to meet customer
demand.
Theories of Change Management
Change management is a process that takes time, expertise,
dedication and efforts to implement and run. It requires the
involvement of employees of the company and may also result
in these people being affected by the changes too. Before
adopting one of the management approaches and models, an
organization must first figure out why it needs the changes and
the anticipated benefits of the change. Some of the most popular
change management models and theories used today, include;
Lewin’s Change Management Model, McKinsey’s 7-S
Framework Model, Kotter’s Theory, Nudge Theory, ADKAR
Theory of Change, and Bridge’s Transition Model.
Lewin’s Change Management Model is an effective and popular
model for structured organizational change. This model was
created by Kurt Lewin in the 1950s is still used today. Lewin
explained the organizational change through the changing states
of a block of ice. His model consists of three main stages:

2. unfreeze, change and refreeze.
McKinsey 7-S framework model was developed for use at
McKinsey & Company in the 1980s and includes seven steps or
stages for managing change. The seven stages included strategy,
structure, systems, shared values, style, staff, and skills. The
benefits of this model included methods to understand an
organization and get a deep insight into the way it works. It
integrates both the emotional, as well as, the practical
components of change which helps create ways to enable
employees to deal with transition more easily.
Kotter’s theory is one of the most utilized change management
theories in the world. This theory was devised by John P. Kotter
a Harvard Business School Professor and author of several
books on change management. This change management theory
is divided into eight stages and each one of them focuses on a
principle that is associated with a response of people to change.
This is a step by step model that is easy to follow and
incorporate, however, because it is step by step no step can be
skipped or incomplete making it very time-consuming. This
model’s main focus is to accept the change and prepare for it.
Nudge Theory is credited to Cass R. Sunstein and Richard H.
Thaler. Nudging someone or encouraging them to change is the
foundation of this theory. Nudge theory is helpful in exploring
and understanding existing influences and explaining them to
either eliminate or change them to an extent that creates a
positive outcome.
ADKAR theory of change is a model which makes it possible
for the change management teams to focus on the steps or
activities that are directly related to the goals they want to
reach. The goals given in a specific order so this means that
when using this model a person must reach each of the results in
the correct order so that the change can be sustained and

3. implemented. The model is often used by managers of change to
determine if any holes or gaps exist in the process of change
management so that effective training can be offered to the
employees.
Bridges’ transition model was created by William Bridges who
is a well-known change consultant. This model concentrates on
transition and not change. The difference between transition and
change is subtle, but it is important to understand it. Transition
is internal, and it is something that happens to people when they
are going through the change. Change can be instantaneous, but
transition takes time.
Lewin's Change Management Model
This model consists of three main stages; unfreeze, change,
refreeze. The first stage of the process involves preparation for
the change. This phase is important because most people try to
resist change, and it's important to prepare people as best as
possible by explaining the need for change. The 2ND stage,
change, is where the big transition or change takes place. This
process may take some time as people become acclimated to the
change. Good leadership and reassurance are vital in this stage.
Communication is critical for this stage to be successful. The
final stage is called refreeze it is when the change starts to
become accepted and embraced. Employees start to get
comfortable and confident with the changes. The challenge of
this model is that all of the pieces are interrelated so if you fail
at one of the three parts of change, you will fail the entire
change attempt.
Mckinsey 7-S Framework Model
Mckinsey 7-s framework model includes 7 stages that must be
complete for successful change. The seven stages are strategy,
structure, systems, shared values, staff, and skills.
Strategy: strategy is the plan to get ahead of the competition
and reach the goals. This is the first stage of change and

4. involves the creation of a step-by-step procedure or future plan.
Structure: structure is the stage of the model that relates to the
way the organization is divided or structured.
Systems: systems is focused on the day-to-day activities that
performed to make the change happen.
Shared values: shared values refer to the core values of the
organization.
Staff: the employees and their working capacities and their part
in the change.
Skills: the skills and competencies that all employees in the
organization must possess for their various roles.
Kotter's Change Management Theory
Increase urgency: focuses on creating a sense of urgency among
the people to motivate them to move forward towards the new
goals or other changes.
Build the team: getting the right people on the team by selecting
the best mix of skills, knowledge, and commitment.
Get the vision correct: creating the correct vision by
considering the strategy and creativity, emotional connect, and
objectives.
Communicate: communication with people about the change is
needed and important.
Get things moving: management needs to get things moving by
empowering action, gaining support, removing roadblocks, and
implementing feedback in a constructive way.
Focus on short term goals: diving the change into small

5. achievable parts to alleviate stress and pressure.
Don't give up: it is important to keep striving and not give up
even when the change becomes difficult.
Incorporate change: it is important to consistently reinforce the
change and make it part of the culture, even after the change
takes place.
Nudge Theory of Change Management
Nudge Theory is radically different than the other theories, and
more sophisticated in its approach. It focuses on understanding
human nature and the design of choice which is responsible for
directing our preferences and influencing the choices that we
make. This theory says that choices must be designed in a way
that aligns with the way people think and decide. This theory
also eliminates traditional change methods like punishment as
enforcement and specific instructions. One of the main benefits
of this theory is that it considers the difference in feelings,
opinions, and knowledge of people and considers the reality of
the situation, as well as, the characteristics of human nature and
behavior. Therefore, it minimizes resistance and well applied in
some industries.
Adkar Change Model
The Adkar model can be used to provide help and support to
employees going through the process of change. It is also
helpful to diagnose and treat the resistance shown by employees
towards change.
Adkar stands for:
Awareness of the need and requirement for change.
Desire to bring about change and participate in it. Knowledge of
how to contribute to the change.
Knowledge of how to contribute to the change.
Ability to incorporate the change on a regular basis.
Reinforcement to keep the change implemented and going after
the change process.

6. Bridges Transition Model
Ending, losing, and letting go: when people are first introduced
to change, they may enter this stage with resistance and
emotional discomfort. Some of the emotions experiences in this
stage are fear, resentment, anger, denial, sadness, frustration,
and disorientation. The employee has to accept the changes and
new beginnings.
The neutral zone: this is the stage of uncertainty, impatience,
and confusion. This stage is the bridge between the old and the
new when people are still attached to the old but trying to adapt
to the new. This stage can include low morale and reduced
productivity, and one may experience anxiety and skepticism.
However, this neutral zone can also include innovation,
renewal, and creativity.
The new beginning: when the neutral phase is passed through
the use of management support and guidance, the stage of
acceptance and energy enters the picture. People will begin to
embrace the change and understand its importance. They are
starting to experience the benefits of change now, and are
committed to learn.
Organizational Change
There are many internal and external causes that drive
organizational change. External factors that influence change
are political and legal factors, market conditions, technology,
and social changes. Internal factors that can impact change are
management changes, employee changes, structure deficiencies,
and necessary culture changesExternal Reasons for Change
Political and legal changes, both domestic and international,
have an important influence on businesses. When laws are
passed to regulate the activities of the business industry, this is
an example of a legal/political external factor that will impact a
business and cause it to make internal changes.

7. Market conditions are another external factor that cause a need
for change. These market conditions include economic inflation
(deflation) rate, fluctuation in the interest rates, economic
recession, changes in the economic policies or taxation,
import/export duties, changes in the oil prices, financial
stability of the country or changes in consumer confidence in
the economic conditions of the country.
Technology is another external factor that creates a reason for
organizational change. The speed of technological change is
dizzying, and technological changes can impact the nature of
jobs at all organizational levels. Automation has also made a
significant impact on the functioning of organizations.
Technological advancements and innovations in communication
and computer technology have transformed the organizational
environment by facilitating newer ways of working thus
creating a need for developing a framework for managing this
change effectively.
Changes in what a society values can also greatly affect a
business. These changing values can be seen today with the new
focus on natural products with few ingredients, natural
healthcare products, and electric cars. Social changes are
happening often and quickly today because of the increased
availability of information from the internet and social media.
Another one of those changes is the push for social equity. This
includes equal opportunity and pay for people of different races,
genders, sexual orientations, etc. These new expectations have
opened doors for opportunity to improve and for creation of new
policies and programs within organizations. Organizational
management has to follow social norms in shaping its
employment, marketing, and other policies.
Political/Legal
The political environment creates regulatory parameters and
laws within which an organization must operate. Tax policies,

8. trade and trade regulations, and minimum wage legislation are
just a few examples of political and legal issues that may impact
the way an organization operates.
Social/Sociocultural
The social environment is very important because it determines
the goods, services, and standards that society values. Some
examples include: the changing demand to know what is in our
food and for organic products. Now organic products are almost
as common in supermarkets as non-organic. The demand for
gender equality and how that relates to pay. Organizations are
starting to make changes to align male and female pay for
comparable jobs.
Technology
The external technological environment impacts the processes
and inputs used in changing inputs (resources, labor, money) to
outputs (goods and services). The success of many
organizations depends on how well they identify and response
to external technological changes. One of the most significant
technological changes of the past few decades has been
increasing availability and affordability of management
information systems (mis). These systems allow managers the
ability to have access to information that can improve the way
they operate and manage their business.
Economy/Market conditions
The economic external environment reflects the financial
condition of the world. Certain economic conditions of special
concern to organizations include interest rates, inflation,
unemployment rates, gross national product, and the value of
the u.s. dollar against other currencies. A favorable economic
climate typically means more opportunity for growth in many
non-necessity industries like clothing, jewelery, and new cars.
But some industries do better in poor economic conditions like
education, alcoholic beverage, and low cost food/retail
industries.Internal Reasons for Change
Sometimes pressure for change arises for internal reasons, also.
Internal factors that can impact the need for change include

9. management changes, employee changes, structure deficiencies,
and necessary culture changes.
The reason why management changes cause the need for
organizational changes is because each manager brings his or
her own ideas and way of working. Changes in the organizations
can happen fast when new senior executives take over. The new
executive will follow their own plan and agenda and will likely
put into practice his own ideas and philosophy. This may lead to
very impactful changes in the organization including;
organization design, team and individual goals and
expectations, the delegation of authority, and much more.
The workforce is changing fast, and this change to the profile
and demographic of the average employee is another internal
force that causes a need for change. The newest generation of
employees have better educational qualifications, place greater
emphasis on human values and are questioning the status quo of
the corporate culture. Their behavior (like all previous
generations of employees) is complex and necessitates change
in the organization to be able to meet their needs and wants.
Changes may also be needed to fix problems caused by the
organizational structure. These problems could include an
unmanageable span of control, too many managerial levels, a
lack of coordination among departments, obstacles in
communication, overabundance of committees, a lack of
transparency in policy decisions, and a lack of cooperation
between line and staff employees. However, the need for change
in these instances often goes unrecognized until some major
crisis occurs.
These are just some of the ways that internal and external
factors drive the need for organizational change.