Change management

4 types of change management & their roles in business transformation

Discover the 4 types of change management and how they contribute to transformation for proactive change management.

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Effective change management is key to the success of any business. An organization that refuses to adapt to market developments is destined for failure. The capacity to respond swiftly to changes in the market, technologies, and customer needs are vital to competitiveness. With this in mind, let’s dive into 4 types of change management; continuous change, proposed change, directed change, and organized change. In this article, we’ll identify the distinctive characteristics of each of these changes, and their roles in business transformation.

What are the types of change management?

Change management involves a wide range of strategies and approaches designed to help organizations navigate transitions effectively, the bridges transition model for example. While there are numerous types of change management, this article focuses on four specific types. Each of these approaches addresses different aspects of managing change, from ongoing adjustments to carefully planned transformations. Using these 4 types of change management, we can better understand how organizations adapt and thrive in an ever-evolving environment.

1. Continuous change

Continuous organizational change management, often referred to as an evolutionary process, is a strategy of gradual and consistent transformation within a company. It requires regular adjustments and gradual evolutions across various levels within the company, such as operations, processes, products, or services. This organizational change is also characterized by its unstructured nature, lacking a starting or ending point.

When is continuous change necessary?

Identifying the need for continuous change within a company often stems from internal and external factors requiring attention. These factors include:

  • Feedback
  • Changing customer needs
  • Shortfalls noted after a diagnosis
  • Observation of best practices elsewhere in the industry

Continuous change and planned change differ mainly in the flexibility offered by continuous change. It functions as an adaptive model, responding in real time to developments and enabling adjustments throughout the process. Notably, the company manager can revise stages or objectives of the change project as circumstances shift.

How can I implement this continuous change practically?

Continuous change management is a process adopted by various sectors, notably the technology sector. Companies must adapt to rapidly changing customer needs driven by technological advancements, which often render product development processes inefficient.

In this case, employees can be encouraged by the company to report opportunities for improvement in their daily activities. The goal is to adopt more effective development methodologies and invest in employee training.

team discussing types of change management

2. Proposed change

Proposed change is another approach to manage a business change project. In this model, management decide what new actions need to be taken. They do not necessarily consult collaborators.

What is the role of management?

Management takes a proactive role in managing a proposed change. It identifies areas of modification or adjusted, develops an implementation plan and establishes the results they want to achieve. Management also defines the resources to be mobilized for the implementation of change and the solutions to overcome resistance.

To facilitate a seamless transition process, management should adopt a balanced approach. This requires collaboration with human resources (HR) to avoid imposing immediate changes on employees. How do they do this? By defining objectives, deadlines, and required resources, while decisions on the specific actions to achieve these objectives ASAP can be made in collaboration with employees.

Why should I communicate proposed changes to employees?

Effective communication in change management can enhance employee motivation, facilitating an easier transition. For instance, articulating the reasons behind the organizational change and its benefits for the company helps employees understand the necessity. Using experts, such as Lemon Learning, can be a good choice to help implement a proposed change project that fosters motivation and engagement among stakeholders.

3. Directed change

In the directed change approach to change management, employees must be controlled or guided by company management. The latter imposes an authoritarian style and controls each phase of the process. It makes unilateral decisions regarding actions to take and the methods to follow to implement change within the company.

What is the place of employees in this approach to change?

Directed change is a strategy frequently embraced by managers and business leaders and is commonly linked with the principles of the Taylorian approach to management, named after Frederick W. Taylor. In accordance with this approach, employees are viewed as executors whose primary responsibility is to adhere to the instructions provided by management. Consequently, they perform tasks in a standardized manner, which proves highly effective if management makes sound decisions. In this context, management plays an important role in establishing effective work methods, closely overseeing employees, and evaluating performance against predefined standards.

How can I implement directed change management with ease?

In a pursuit to enhance profits, a company may opt for a directed change approach aligned with the Taylorian model to substantially reduce production costs. Under this strategy, management formulates a strategic plan that outlines:

  • Work methods
  • Working hours
  • Production quotas to be achieved

Employees are then informed about the new work procedures, and a quality control team is established to oversee the implementation of these changes.

meeting to discyss

4. Organized change

Similar to the continuous model, the organized change approach doesn’t establish a predefined goal from the outset. This management approach emphasizes engaging with stakeholders, allowing each of them to suggest courses of action, working methods, and objectives. These proposals stem from an analysis of existing practices.

Why do we involve employees?

In an organized change model, employees are actively involved. The objective of this involvement of all actors affected by the transition is to create an environment that encourages creativity and innovation. Although management plays an important role in decision-making, the opinions of employees are taken into account. This approach provides flexibility and adaptability to the changing needs of the organization. It is based on experimentation.

How to implement organized change?

To initiate organized change, management often begins by establishing a shared vision of the desired transformation. Whether it involves structural or organizational changes, this vision outlines the objectives to be accomplished and the potential benefits for the company. Subsequently, collaboration with stakeholders ensues. Management actively encourages diverse stakeholders to contribute by proposing ideas or solutions. This iterative approach allows for ongoing adjustments based on the feedback received throughout the process.

Effective change management is essential for the longevity of any organization. We explored 4 types of change management, each offering varied approaches that are ideal for steering a business toward methods or structures that align more effectively with its current and future challenges. Selecting the right type of process is imperative, tailored to the specific needs of your business. Whatever model you choose, adapt it to the situation and culture of the company, as well as its objectives.

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