The ABCs of change management

Although widely documented in the literature, change management is a daunting challenge for managers. Many papers address fairly high failure or partial success rates of organizational change. Nonetheless, change is inherent to any organization. An organization that refuses to adapt to emerging changes may decline, even to the point of jeopardizing its own survival¹.

Stages of planned change

A common mistake in planning change is concentrating on the change itself but overlooking the fact that change is a stepped process. In response, Lewin² proposed a widespread and easy-to-understand model of the steps in planned change:

1. Unfreeze: At this stage, the people affected must be made aware of the need for change. The practical reasons for the change must be demonstrated, based on a preliminary diagnosis. The focus should be on communicating those reasons, ensuring that they are understood by those affected, and then listening to their concerns.
2. Change: This is when the change is implemented within the organization. This is a challenging step and all players affected by the change must be involved so they learn and understand the new ways of doing things.
3. Refreeze: When this stage is reached, the change becomes embedded. The people affected by the change must internalize it. They must get the support they need to make the transition and encouraged to embrace the new ways of doing things. The outcomes must also be assessed at this stage and adjustments made, if necessary, until the change becomes permanent³.

Resistance to change

To overcome resistance to change, it is critical to understand the above steps. Resistance to change is inevitable⁴ and may even be unconscious⁵. Be that as it may, the most common reasons for resistance to change can be summarized as follows⁶: 

• Personal interest: People may be afraid that they will lose something valuable for them, such as empowering tasks and responsibilities.
• Misunderstanding of the change: Individuals may resist change if the reasons for the change are misunderstood or they distrust the person initiating the change.
• Low tolerance for change: This can be seen in people who are worried about the uncertainty surrounding the change and the resulting new demands.

It can be seen that the common denominator in resistance to change is uncertainty. Resistance to change is like a “search for meaning” in the face of change; hence the importance of not only understanding the need for change, but also the way it is communicated within an organization⁷.

Change management strategies

There are a number of strategic options for managing change, depending on the context in which the change is introduced. The nature and scope of the change will determine which management strategy should be used. 

The selected change management strategy will in turn influence how quickly the outcomes are seen in the organization and the degree to which those affected commit to the change⁸.  The context will decide what has to be prioritized. If the change is urgent, speedy implementation will be the priority. If time permits, the focus will be on getting people to commit to the change so that it succeeds over the long term.  Schermerhorn, Chappell and Lambert summarize the three possible strategic options as coercion, rational persuasion and shared power⁹:

• Coercion means that the people who want to initiate change use their power, directly or indirectly, to introduce the change into the organization. This strategy uses rewards and punishments to positively or negatively reinforce observed behaviours. It achieves results quickly but is usually less successful over longer periods of time.
• Rational persuasion means that the change initiators use logical and practical arguments to persuade people to commit to the change. The goal is to ensure that the people affected understand the reasons for the change. Therefore, it is imperative to make a rational and credible case for the initiative. Although this strategy is slower than coercion, it tends to have better results in the long term.
• Shared power (or normative-re-educative strategy) relies on employee participation and commitment. It is the employees who, depending on their situation, actively determine which changes will be made. In theory, this strategy tends to maximize commitment, but is the slowest to implement.

Successfully implementing change

By definition, a change, no matter how big or small, upsets the status quo in an organization. It is important for change initiators to show positive leadership. They must also be agile and adapt to the specific context of the change and the organization itself. 

The people affected must also understand the rational and practical reasons underlying the change. Transparency and listening are key to overcoming resistance to change. To foster long-term commitment, it is necessary to clearly define the reason for the change, behave objectively and rationally throughout the process and listen to the reactions of people in the organization.

The active participation of both initiators and those affected by the change, open communication between these players and training are also key to successful change management¹⁰. It is important to realize that a failed initiative will adversely affect any future changes within an organization¹¹.

Reasons for failure

Johnson et al.¹² identified some of the reasons for failure in implementing change:  

• More time spent on planning the initiative—analyses, reports, meetings and committees—than on actually making the change.
• The reason for the change may be lost to sight and reinterpreted as the change process goes along.
• The change may be misinterpreted by those affected and then misapplied within the organization.
• The proposed change is out of touch with what’s happening on the ground, discrediting the change initiators and making it difficult for the organization’s people to buy into the change. 
• Individuals may appear to comply with the change without ever committing to it, creating a climate of cynicism within the organization.
• The change initiators disregard any resistance to or criticism of the change.
• The initiators do not keep their initial promises or deliberately withhold important information during the implementation process, which may generate resistance and lack of trust in the organization.

Change is inherent to any organization and can come from internal or external sources. For effective implementation, it is important to understand the stages and context of change. Leadership, transparent communication and making sure that those affected understand why change is needed are some keys to getting the organization’s people on board.

About the author

Samuel Saint-Yves-Durand, MBA, CPA auditor, CA, is an associate professor and chair of the committee responsible for graduate accounting science programs at the Université du Québec à Rimouski. He mainly teaches advanced management accounting courses, in addition to graduate-level accounting capstone and integration courses. Mr. Saint-Yves-Durand has acquired many years of experience at one of the “Big Four” international accounting firms. His research interests range from management accounting and management to innovation, entrepreneurship and other subject matter. In addition, he actively participates in various coaching activities for young entrepreneurs and sits on the boards of directors of many regional and provincial organizations.

References

• Balogun, J., V. H. Hailey and E. Viardot (2005). Stratégies du changement, Pearson Education.
• Bédard, M. G., M. Ebrahimi and A.-L. Saives (2011). Management à l'ère de la société du savoir. Montréal, Chenelière éducation.
• Bergeron, P. G. (2006). La gestion dynamique : concepts, méthodes et applications. Montréal, G. Morin Chenelière éducation.
• Dubé, L. and C. Bernier (2011). La gestion des technologies de l'information : un guide pratique pour l'expert-comptable. Saint-Laurent, QC, ERPI.
• Johnson, G., R. Whittington, K. Scholes, D. Angwin, P. Regnér and F. Fréry (2017). Stratégique. Montreuil, Pearson.
• Lewin, K. (1952). Group decision and social change. Readings in social psychology, New York: Holt.
• Schermerhorn, J. R., D. S. Chappell and J. Lambert (2008). Principes de management. Saint-Laurent, Québec, Éditions du Renouveau pédagogique.
• Weitzel, W. and E. Jonsson (1991). "Reversing the downward spiral: lessons from W.T. Grant and Sears Roebuck." Executive (19389779) 5(3): 7-22.
• Williams, C. (2010). MGMT3, South-Western Cengage Learning.

¹ Weitzel, W. and E. Jonsson (1991). "Reversing the downward spiral: lessons from W.T. Grant and Sears Roebuck." Executive (19389779) 5(3): 7-22.
² Lewin, K. (1952). Group decision and social change. Readings in social psychology, New York: Holt.
³ Schermerhorn, J. R., D. S. Chappell and J. Lambert (2008). Principes de management. Saint-Laurent, Québec, Éditions du Renouveau pédagogique. P. 376.
⁴ Williams, C. (2010). MGMT3, South-Western Cengage Learning. P. 126
⁵ Bédard, M. G., M. Ebrahimi and A.-L. Saives (2011). Management à l'ère de la société du savoir. Montréal, Chenelière éducation. P. 304
⁶ Williams, C. (2010). MGMT3, South-Western Cengage Learning. P. 126
⁷ Bédard, M. G., M. Ebrahimi and A.-L. Saives (2011). Management à l'ère de la société du savoir. Montréal, Chenelière éducation. P. 302-303
⁸ Balogun, J., V. H. Hailey and E. Viardot (2005). Stratégies du changement, Pearson Education.
⁹ Schermerhorn, J. R., D. S. Chappell and J. Lambert (2008). Principes de management. Saint-Laurent, Québec, Éditions du Renouveau pédagogique. P. 376-378
¹⁰ Dubé, L. and C. Bernier (2011). La gestion des technologies de l'information : un guide pratique pour l'expert-comptable. Saint-Laurent, QC, ERPI. P. 222-224.
¹¹ Bédard, M. G., M. Ebrahimi and A.-L. Saives (2011). Management à l'ère de la société du savoir. Montréal, Chenelière éducation. P. 306.
¹² Johnson, G., R. Whittington, K. Scholes, D. Angwin, P. Regnér and F. Fréry (2017). Stratégique. Montreuil, Pearson. (P. 585-586)