Change agents and leaders play crucial roles in guiding organizations through various types of organizational change, from adopting new technology to transforming business processes.
A good change management strategy helps organizations adapt to changing market conditions and improve operational efficiency. It also encourages a culture of continuous improvement and challenges the status quo.
In this guide, you’ll learn the components of successful change management and a step-by-step process to implement change. Finally, we’ll explore top software solutions that help with the process.
What is change management?
Change management is a structured approach that transitions individuals, teams and organizations to a desired future state. It includes the steps and processes that guide and support team members on the path to full implementation.
Suppose a mid-sized accounting firm switches from traditional paper-based bookkeeping to cloud-based accounting software. The change management process might involve:
Communicating the reasons for the change to all staff
Providing training sessions on the new software
Phasing out old systems gradually while troubleshooting issues with the new one
Change management addresses the technical aspects (implementing new software) and the human elements (training, communication and support) of a significant organizational shift.
Preparing employees for new processes or technologies, adjusting structures to fit new goals and updating systems ensure lasting transformation.
Benefits of change management
Effective change management offers these advantages:
Smoother transitions: A well-executed plan minimizes disruptions to daily operations. Prosci’s research shows that projects with excellent change management are 71% more likely to stay on schedule. Team members get a clear roadmap for implementation, which helps them adapt more quickly to new processes or systems.
Improved overall outcomes: The same Prosci research found that projects with effective change management are 600% more likely to meet project objectives. It ensures changes are sustainable long-term, maximizing return on investment and driving real organizational growth.
Increased employee engagement: Change management encourages open communication and involves employees. Transparency allows staff to feel valued and heard, which increases their buy-in and commitment. This process helps develop change management skills throughout the organization.
Reduced resistance: Change management reduces pushback by addressing concerns proactively and providing support. Employees understand the reasons behind changes and see the benefits, leading to greater acceptance.
Types of change management
Change agents and change leaders can tailor change management strategies to different organizational scales and contexts. Understanding the various types of organizational change helps you choose the right approach.
| Type | Example |
| Transformational changes are large-scale shifts that alter an organization’s structure, culture or core operations. They involve major strategic pivots, mergers or new business models. | After a significant industry disruption, a traditional brick-and-mortar retailer pivots to an e-commerce-first model. The shift requires restructuring processes, retraining staff and changing how they engage customers. |
| Adaptive changes represent incremental adjustments to improve existing processes or respond to minor market shifts. They focus on continuous improvement and help organizations stay competitive without disrupting the operational framework. | A software company introduces a new feature prioritization process to align product development with customer needs. They adjust team workflows and implement new feedback loops but don’t alter the company’s overall structure or sales culture. The change might involve updating the customer relationship management (CRM) system to capture new types of customer feedback for a more efficient sales cycle. |
| Individual change management centers on personal development initiatives within the organization. It empowers employees to grow their skills, take on new responsibilities or adapt to evolving job requirements. | A longtime sales representative takes on a new role as a customer success manager to support the company’s shift towards a subscription-based model. They undergo intensive training in customer retention strategies and data analysis, developing new competencies to excel in this evolving position. |
Change management models
Several change management methodologies guide these initiatives. Each model offers a different approach to managing change. Popular models include:
Lewin’s change management model
Lewin’s model provides a straightforward change management framework. It divides transformation into three phases.
Unfreezing: The initial stage involves preparing the organization for change. It creates awareness of the need for change and motivates people to let go of old workflows.
Transitioning: During this phase, your team implements the actual changes. There’s often a period of uncertainty as people learn new systems or processes.
Refreezing: The final stage focuses on solidifying the new state. It involves reinforcing new behaviors, celebrating successes and embedding changes into the company culture.
For example, a retail company deciding to shift from in-store to online sales might follow these stages:
Unfreezing: Management shares data on declining foot traffic and increasing online shopping trends to help staff understand the need for change.
Transitioning: The company launches its e-commerce platform, training staff on new roles in online order fulfillment and customer service.
Refreezing: The company adjusts performance metrics to align with the new goals and celebrates reaching online sales milestones.
Lewin’s model emphasizes the importance of both preparation and post-change stabilization. Recognizing these distinct phases helps leaders better support their teams through the change journey.
Kotter’s 8-step process for leading change
Kotter’s model provides a clear roadmap to guide organizations through transformation. The eight-step approach considers all the aspects that may deter the change management process.
Let’s look at each step using the example of a manufacturing company implementing lean production methods:
Create a sense of urgency: Spark the initial motivation for change and help others see the need for it. The sample company could share data on increasing competition and the need for efficiency improvements.
Form a powerful coalition: Assemble a group with enough power to lead the change effort, like a team of respected managers and workers from different departments. Encourage this group to work as a team.
Create a vision for change: Develop a clear vision to help everyone understand why you’re asking them to do something, such as creating a waste-free and efficient production line. Ensure strategies achieve that vision.
Communicate the vision: Share the vision frequently and powerfully. Embed it within everything you do. Use town halls, team meetings and visual aids to communicate.
Remove obstacles: Identify and remove barriers to change by providing training on lean techniques and updating outdated equipment. Empower others to act on the vision.
Create short-term wins: Plan for visible improvements and recognize the people who made those wins possible. For example, celebrate the first production line to reduce waste by 20%.
Build on the change: Use this increased credibility to change systems, structures and policies that don’t fit the vision. For example, lean principles can be applied to other areas like inventory management and office processes. Hire, promote and develop employees who can implement the new workflows.
Anchor the changes in corporate culture: Articulate the connections between new behaviors and organizational success. Incorporate lean thinking into company values and new employee orientation.
Kotter’s model takes time to implement, but the result is worth the time and effort.
The ADKAR model
The ADKAR Model focuses on the human side of change, recognizing that shifts depend on individual transformation. It breaks the change process down into five elements:
Awareness: Help employees understand why change is necessary. Clear communication shows the need for change and its potential benefits.
Desire: Motivate employees to support and participate in the change. Addressing personal concerns and highlighting positive outcomes encourages desire.
Knowledge: Share information about how to change so each individual knows how to use their new skills.
Ability: Provide coaching, practice and feedback. Knowledge alone isn’t enough; individuals need training, education and resources to implement new behaviors.
Reinforcement: Sustain the transformation to make change stick. Recognition, rewards and ongoing support reinforce new behaviors and prevent backsliding.
The ADKAR Model’s strength lies in its focus on individual readiness and support throughout the change process.
Why do change management initiatives fail?
According to Gartner, the average organization has made five significant changes in the last three years and nearly 75% plan to multiply the types of changes they make in the future. Still, half of change initiatives fail, and only 34% succeed.
Let’s look at the main reasons change management initiatives fail:
Inadequate communication
Effective communication is vital for change, yet many initiatives fail due to poor messaging. Top-down, one-way communication often falls short, leaving employees feeling disconnected and resistant.
Understanding and commitment stem from dialogue, not dictation. Employees who are deprived of opportunities to voice concerns, ask questions or contribute ideas are less likely to embrace change.
Organizations without open feedback channels risk increased anxiety and frustration among staff. Grammarly’s 2024 State of Business Communication reports that 51% of knowledge workers have experienced increased stress due to poor communication.
Breakdowns in communication lead to misunderstandings, reduced productivity and failed change initiatives.
Lack of employee buy-in
Change initiatives fail when employees feel like passive recipients instead of active participants. Staff may view changes made without their involvement as imposed threats rather than growth opportunities.
Failing to engage employees early in the process breeds skepticism and resistance. Motivation plummets when workers don’t understand why changes happen or see how they benefit.
Leaders who neglect to address individual concerns or tap into employees’ expertise miss valuable insights. Oversight from leadership leads to impractical solutions and a disconnect between management’s vision and frontline realities.
As a result, employees need to understand why you’re making changes. Gallup’s research shows that strong employee engagement leads to 23% higher profitability and 10% greater customer loyalty. This ripple effect leads to lasting benefits.
Undefined objectives
Vague or misaligned objectives can derail even the most well-intentioned change efforts. When goals lack clarity, teams struggle to understand success or how to achieve it.
Examples of poorly defined objectives include:
“Improve customer satisfaction” without specifying metrics or timeframes
“Implement new software” without outlining expected benefits or user adoption targets
“Increase efficiency” without identifying specific processes to streamline
Ambiguous objectives lead to confusion, misaligned efforts and wasted resources. They make it difficult to measure progress or determine when changes are successful.
Clear, specific and measurable objectives provide a roadmap for change. They help everyone understand their role and stay focused on tangible outcomes throughout the transition process.
Insufficient training
Implementing change without adequate training leaves employees lost and frustrated. Insufficient training manifests in various ways:
Rushed, superficial sessions that only scratch the surface of new systems or processes
One-size-fits-all approaches that fail to address different learning styles or skill levels
Lack of ongoing support or resources for employees to reference after training
When training falls short, employees need help applying knowledge in real-world scenarios, which can lead to decreased productivity, increased errors and a reluctance to adopt changes.
Note: Effective training goes beyond imparting information. It involves hands-on practice, personalized coaching and continuous learning opportunities. Invest in comprehensive training programs that empower your workforce to navigate transitions confidently.
Failure to address resistance
Resistance to change is natural, but ignoring it can derail transformation. When leaders brush aside concerns or label resistors difficult, they miss opportunities to strengthen change initiatives.
Unaddressed resistance often manifests as:
Passive non-compliance with new procedures
Decreased morale and productivity
Increased turnover as frustrated employees seek stability elsewhere
Informal networks of dissent that undermine change efforts
Failing to tackle resistance head-on allows it to fester, creating a toxic environment where change is a threat rather than an opportunity for growth.
Note: Change management requires acknowledging and engaging with resistance. Listen to concerns, address misconceptions and involve skeptics in problem-solving to turn potential obstacles into valuable insights. That way, you find robust, well-rounded solutions that benefit the organization.
5 steps in the change management process
Implementing change can be daunting, but a structured approach makes the process smoother and more effective. A well-defined framework simplifies the process of change while ensuring buy-in, minimizing resistance and driving sustainable results.
Here’s a five-step framework that provides a clear path to transformation.
1. Prepare the organization for change
Preparing an organization sets the foundation for successful transformation. The first stage involves creating awareness and urgency while simultaneously addressing potential barriers at the organizational level.
Change management is about perfecting the technical aspects of a transition while preparing people psychologically and emotionally for what’s to come.
Laying a solid groundwork also helps identify and mitigate risks early, ensuring the organization can handle both the technical and human aspects of change.
Key activities include:
Creating a compelling vision that aligns with your organization’s strategic management goals
Conducting a thorough assessment of the organization’s readiness for change
Identifying and engaging stakeholders, including potential change agents and resistors
Addressing cultural factors that may impede or support the change effort
Evaluating logistical challenges and figuring out how to overcome them
Building leadership alignment and capacity to drive the change and provide needed guidance to employees
Focus on these preparatory activities to create a receptive environment for change. Ample groundwork minimizes resistance, builds initial momentum and increases the likelihood of successful implementation.
Centralize your project documentation to streamline this process, especially for remote team management. Use Pipedrive to send trackable documents so all stakeholders can keep track of essential documents and stay aligned on the change objectives and implementation plan from the outset.
2. Create a vision and plan for change
Developing a clear vision and comprehensive plan involves more than drafting a wish list of improvements.
While the vision inspires and guides, the change management plan provides the practical steps to achieve that vision. Both are necessary but serve different purposes in steering the organization.
Note: A study with hospital workers as a sample size showed that employees with an integrated vision at their workplace performed better. This integration helps employees align their efforts with organizational goals and enhance creativity in their roles.
Articulate a compelling future state that resonates with all levels of the organization. The vision should provide direction and answer the question, “Where are we going and why?” Involve stakeholders at all levels, from business owners to the sales team. Shape the vision to ensure it speaks to the challenges and aspirations of the entire organization.
Make the plan detailed and actionable. Outline specific goals, measurable key performance indicators (KPIs) and a realistic timeline. Identifying key stakeholders and their roles is essential, as is anticipating potential roadblocks.
Consider resource allocation, communications plans and training needs. Address these elements upfront to guide your organization through the transformation, regardless of your project management approach.
3. Implement the changes
Execution is where the rubber meets the road in change management. It transforms plans into action, requiring both careful orchestration and adaptability.
Successful implementation relies on empowering employees. Provide them with the tools, training and authority to drive changes forward. Adjust management styles to be more supportive and coaching-oriented, especially when implementing changes that affect day-to-day routines.
For example, a manufacturing company transitioning to a new inventory management system might provide hands-on training sessions for warehouse staff and designate “change champions” to offer peer support during the rollout.
Note: Pipedrive offers customizable kanban boards and list views that allow teams to monitor project progress visually. These features make it easier to track change initiatives, identify bottlenecks and change course in real time.
Celebrate short-term wins along the way. These victories, no matter how small, build confidence and maintain momentum. They prove that change is possible and worthwhile.
Set up continuous feedback loops to gather insights from employees on the ground. Real-time data allows you to adjust quickly and improve the implementation process as it unfolds.
Communication remains vital throughout implementation. Keep all stakeholders informed of progress, setbacks and next steps. Transparency maintains trust and alignment across the organization.
Change is about shifting behaviors and mindsets. Support your team throughout this transition with patience and encouragement.
4. Embed the change
Embedding change turns temporary adjustments into permanent improvements. This stage focuses on making new behaviors and processes stick so they become an integral part of the organization’s DNA.
Leaders must reinforce the changes consistently. Align systems, policies and procedures with the new way of doing things. Accountability systems, such as clear ownership of new processes and regular progress reports, ensure that changes become part of daily operations.
Training and support should continue once you implement the changes. Use continuous learning opportunities to help employees refine their skills and adapt to evolving requirements. Hold regular feedback sessions to identify areas needing further attention.
Also, prepare for some backsliding – it’s natural. When old habits resurface, address them promptly but constructively. Use these moments as opportunities to learn and reinforce, not punish.
For example, a software company transitioning to an agile development methodology might embed this change by restructuring team meetings around daily stand-ups and sprint planning. Regular “retrospective” sessions allow teams to improve their agile practices, cementing the new approach into the company culture.
5. Review and reflect on the change
The review and reflection phase turns change efforts into organizational wisdom.
Revisit your initial goals and KPIs. How well did the changes meet the objectives? Be honest in assessing both successes and shortfalls.
Gather feedback from all levels of the organization. What worked well? Where did people struggle? These insights help refine your organizational change management approach.
For example, a tech company that implemented a remote work policy might survey employees six months after the change about productivity, work-life balance and team collaboration. They could use this data to adjust guidelines and improve technology use.
Document your findings thoroughly. Create a “lessons learned” report that guides future initiatives. This record will be a valuable asset for the entire organization.
Use this reflection to update your change management playbook. What new best practices emerged? How can you streamline the process next time?
Change management is an ongoing process and each initiative strengthens the organization’s ability to adapt in the future.
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3 change management software solutions and tools
Once you’ve identified your organization’s change management needs, you can choose the right tool for lasting change.
1. Pipedrive
Pipedrive is a sales CRM platform that streamlines sales processes and drives growth. It offers intuitive tools to manage leads, track deals and implement changes across sales teams.
Key features:
Visual sales pipeline that makes it easy to track progress and identify bottlenecks
Customizable workflows to match your unique sales processes
Robust reporting and analytics for better decision-making
Integration capabilities with over 500 tools
Mobile CRM system for managing sales on the go
Who should use Pipedrive?
Pipedrive is ideal for small to medium-sized businesses that want to optimize their sales processes, improve team collaboration and implement measurable sales strategies. It’s particularly well-suited for organizations undergoing sales transformations, standardizing customer relationship management or looking for ways to use their sales data throughout the purchasing cycle.
2. Asana
Asana is a project management platform that allows teams to organize and track work during change initiatives. Users can coordinate tasks, timelines and team communication throughout the change management process.
Key features:
Project views (lists, boards, timelines and calendars) for different work styles
Task dependencies and milestones to map out change initiatives
Workflow automation to track client processes
Reporting and status updates to keep stakeholders informed
Integrations with tools like Google Drive and Microsoft Office
Who should use Asana?
Organizations can use Asana to improve project visibility, enhance team collaboration and streamline implementation of change initiatives. Cross-functional teams managing change projects that require coordination and communication could benefit from this tool.
3. Freshservice
Freshservice is a platform for change management across IT environments. It automates approvals and assists with compliance tasks.
Key features:
Calendar for planning and scheduling changes
Workflows to match your organization’s approval processes
Risk assessment matrix to evaluate and prioritize changes
Notifications and reminders to stay in touch with stakeholders
Incident, problem and release management capabilities
Who should use Freshservice?
Freshservice is for IT departments and service-oriented organizations looking to standardize their change management processes and service delivery. Businesses concerned about compliance or IT change risks may also benefit.
Final thoughts
Effective change management is crucial for organizations to adapt, grow and thrive in today’s dynamic business landscape. Although structural, technological or cultural changes are complex, knowing how to navigate them is essential.
Discover how Pipedrive’s CRM platform can support change management with customizable workflows and detailed insights. Start a 14-day free trial and learn how to streamline your initiatives.
