Agentnoon Blog

Top 5 Change Management Models for Organizational Evolution 2024

Written by Dave Kim | Sep 9, 2024 4:00:00 AM

Did you know that oak isn’t the strongest tree? It’s actually willow. The willow is the strongest tree not because it has the deepest roots, but because it adapts to the blowing wind so no storm can take it out. 

50 years ago, the strongest company might have been the one with the largest construction hangar, but today, that’s no longer the case. Today’s strength is measured in adaptability; how fast “can your willow move with the wind.” 

Introduction 

Market disruption is no longer the game of the giants. Instagram was sold for a billion-dollar, even though at the time they only had 13 employees. If you don’t adapt, you risk falling behind not just your competitors but the entire market. 

That’s why we’ll talk about change management and the five best models that you can use to transform your organization. These change management models will help you bring your organization from the current point A to the desired point B. 

But before we jump into the top five change management models, let’s first understand how these models drive organizational transformation in your company. 

Understanding change management models to drive organizational transformation

Let’s first define organizational transformation. That’s a process of aligning organizational culture (how employees work together) with its strategy (the trade-offs the company is willing to make to achieve its goals).

So how do you actually start transforming your organization? By implementing change management models. They’re vehicles that guide you through this process. Even though all of them have the same purpose, there’s a variety of different change management models and which one would suit you the best depends on multiple factors. 

The following change management models have proven themselves time and time again by bringing exceptional results to whoever uses them: 


Best models for organizational transformation

We’ll cover the following five change management models:

  • Lewin’s Change Management Model 
  • Kotter’s 8-step Model 
  • ADKAR Model 
  • Agile Change Management 
  • Bridges transition model

1) Lewin’s Change Management Model 


Lewin’s change management model is named after Kurt Lewin, who developed the model in the 1950s. Don’t let the model’s simplicity trick you; it’s a really powerful model that will help you transform your organization.


The model has three steps: 

  • Unfreeze. A preparation stage where you analyze and understand everything that needs to be changed. 
  • Refreeze. Evaluation is the “normalization” of the implemented change, where you first evaluate through various KPIs, the effectiveness of the change and then normalize the new behavior as the standard one.

Small and medium-sized businesses benefit greatly from this model because of its simplicity (and effectiveness).


2) Kotter’s 8-step Model


Named after Harvard professor John Kotter, this model focuses more on the psychological aspect of change (the people involved) to achieve change. The idea is that no system changes if the people involved don’t change. His model has 8 steps: 

  • Create a sense of urgency. This is used as a motivational factor.
  • Form a guiding coalition. People need someone to look up to so create your “champions of change.”
  • Develop a vision and strategy. Define what you want to accomplish.
  • Communicate the vision. Why we’re changing and what will happen if we don’t.
  • Empower action. Remove obstacles and allow employees to implement change.
  • Generate short-term wins. These provide momentum to change, creating a “can-do” attitude.
  • Consolidate gains and produce more change. Showcase the first example of a change to motivate people to keep going.
     
  • Anchor new approaches in the culture. Make the changed behavior a new normal by having it become a part of the culture. 

3) ADKAR Model 


The ADKAR model was created by Prosci founder Jeff Hiatt and it focuses on five elements of change: 

  • Awareness. You need to communicate to everyone in the organization when they need to change, why the change has to happen.
  • Desire. Help your employees understand why they need to change so they also start “desiring” it. 
  • Knowledge. Provide the knowledge that the employees need to have to successfully achieve this change. 
  • Ability. Provide the skills and training to your employees so they can achieve this change. 
  • Reinforcement. Keep working on the changed behavior until it becomes the new normal.

 

4) Agile Change Management


This model draws inspiration from Agile project management methodology. It’s based on:

  • Collaboration. Cross-functional teams are created and they operate in short cycles, sprints.
  • Transparency. Open communication is essential and team members communicate with each other quite often (sometimes, it’s on a daily basis called Scrum meetings).
  • Iterative progress. Short cycles allow for fast completion of projects, review, and then jumping on to the next section.  

 

5) Bridges transition model

 

This model was created by consultant William Bridges and it focuses on the emotional journey the person goes through when changing. The journey involves the following steps: 

  • Ending, losing, and letting go. The first thing people do when they have to change is to resist that change. We can’t help it—humans are inherently creatures of habits and we don’t like change. So the first part is all about helping the person end the current behavior, lose that behavior, and then learn how to let go of it.  
  • The neutral zone. The step of letting go is quite difficult because people tend to revert to the old behavior, their current “default state,” and they still grapple with new behavior. 
  • The new beginning. Once people start doing the new things (and if they do them well), they will slowly start adapting and accepting the new behavior, making that the new norm.

Case studies of change management models

Let’s take a look at a concrete case of change management in action— IBM. 

They transformed their organization in the early 1990s, and the model they used was John Kotter’s Eight-Step Model. 

IBM realized that they needed to adapt to the changing market dynamics and trends and that’s why they decided to transform the organization. The main aspect was to create a sense of urgency and they emphasized the consequences of remaining in the status quo. This is how they managed to motivate and mobilize their employees and stakeholders to take action and drive change. 

Their first step was forming a guiding coalition with various leaders across the board— they served as change champions, providing guidance and support to everyone in the company. Their constant engagement proved indispensable because they constantly aligned everyone, especially employees, around a common goal. 

It was only through collaboration and cross-functional cooperation of employees on all levels that IBM successfully changed their company. This bottom-up approach used employee’s experience and expertise in a variety of fields to ensure that the company crosses every obstacle on the way. 

The transformation created a new IBM, one that focuses on innovation, agility, and customer-centricity. They started offering software, services, and consulting and moved from a solely hardware-centric company. 

How to choose the best model to drive organizational transformation

Look at the following factors when deciding on your change management model to find the right one.

  • Scope and Scale. Decide how large the transformation will be; is it department-wide, office-wide, or on the scale of the entire organization? 
  • Type and Nature. Understand what exactly needs to be changed in your organization. Is it multiple things? How encompassing are the things that you need to change? How vital is the transformation in your operating process? All of these play an important factor.
  • Organizational Culture. The success of your change depends on the ability of your employees to “forget” the old way of doing things and adapt to the new way of doing things. And your organizational culture is a critical factor here. By enacting new behaviors that you will deem desirable (and tolerable), you’ll show your employees how they need to adapt to change. 
  • Availability of Resources. What kind of resources will you need for the transformation? People, budget, and time are all crucial resources in an organizational transformation. 
  • Complexity. How complex is the change you’re implementing? Is it a small change in the operating process or overhauling everything in your production process? 
  • Purpose. What are the main goals of the transformation and how will you know you accomplished it? (Hint: Write down a clear measure of success for the transformation. That way, you’ll know when you hit it).
  • Flexibility. How flexible is your organization toward change; what kind of structural, financial, legal, and operational leeway do you have to implement the change? 
  • Gaps and Risks. What are potential gaps and risks that could prevent your organizational transformation?

By evaluating these factors, you can select the most suitable change model for your business.

Conclusion

We saw how important change management is and the five best models that can make that a reality. But no matter how good your plan (model) is, you still need everyone in the company to be involved and aligned to get the desired results.

If you’re still unsure if you can create a strong coalition of people to make change possible, we urge you to book a demo with one of our people who can guide you through this process. With our helping hand, you can become a positive, IBM-like example of a successful organizational transformation.