What is change management? Definition + 6 key steps

Every business goes through change. Employees come and go, consumer preferences shift, and new technologies transform organizations. That said, it’s not enough to identify what needs to be changed. In fact, according to Gartner, only 34 percent of changes stick and are clearly successful, showing you can’t just “wing it” when it comes to change—you need a comprehensive plan.

In this guide, we cover everything you need to know about change management. From key steps to crucial change management principles, you’ll learn everything you need to know to stay flexible and profitable through change.

More in this guide:

• Why is change management important?
• 6 key steps in the change management process
• Types of change management
• Benefits of change management
• Frequently asked questions
• Excel in change management with Zendesk

Why is change management important?

Change management is important because it helps your organization make strategic adjustments, minimize disruption, and implement initiatives effectively.

Businesses frequently face situations that call for a shift in strategy. This can include incremental changes like reshuffling a support team structure or large-scale alterations like adopting new customer service software. Effective change management ensures that change—no matter how big or small—is successfully implemented.

6 key steps in the change management process

Change management isn’t just about blazing a new path—it’s about being in sync with your employees, stakeholders, and business needs to reach the best outcomes. Here are some key change management steps to help you achieve your goals.

1. Define the change

The first step in effective change management is to clearly define the change you want to implement. Start by asking yourself questions like:

• What is your business trying to change?

• What do things look like now, and what would success look like?

• Which people will be impacted by the change?

• How big of a change are you considering?

Above all, consider how this new strategy will affect your business processes in the short term and the future.

2. Evaluate your metrics

Once you’ve defined your change goals, dig into your data. Take a benchmark of performance figures—for example, customer service metrics if you’re making a customer-facing change—to get an idea of where you are now and where you want to end up after making the change. This establishes a baseline that you can use to see if your change efforts are successful in the future.

3. Select your change agents

Even the best leadership can’t make a change process happen alone. Gather people from across your company for a change advisory board so they can give you valuable insights on how employees are feeling and the potential roadblocks to change. Hold meetings to work through your change plan with this team and encourage them to communicate updates to employees, help with implementation, and set up training sessions.

It’s important to note that this group can and should include people at all levels, not just the leadership. Having a collection of different viewpoints in these meetings can ensure that your changes improve business productivity and the overall employee experience.

4. Craft and execute your plan

Now that you’ve done the groundwork, it’s time to start a change management plan. In your plan, include the key information we covered above, as well as your communication plan, timeline, and strategy. Include enough details so the people executing the plan have all the information they need to succeed. Also, decide when to communicate the change to your workforce; don’t leave them in the dark

5. Foster open communication

Your change management plan should include a constant feedback loop with employees and stakeholders to keep everyone updated. This might include team meetings, email updates, or formal communications. Encourage open employee communication and feedback—and ensure you have reliable ways of collecting it. Anonymous surveys, one-on-one meetings, and similar methods are good choices.

6. Analyze results and celebrate success

After implementing the change, keep a close eye on your metrics. There may be some volatility in the early stages, but if your metrics are trending in the right direction after the change, that’s a good sign for continuous improvement. Conversely, if your metrics don’t improve, you may need to evaluate where you went wrong.

No matter the results, celebrate the team’s hard work. It’s easy to overlook this step in your rush to focus on what’s next for your business, but it’s important to your team’s morale. Celebrations don’t have to be extravagant—a catered lunch, a public thank you, or gift cards could do the trick.

Types of change management

Not all changes are the same; some may be minor structural changes, while others can significantly impact how your business functions. As such, change management comes in several forms—here are some of the most common:

• Adaptive change: Small, incremental adjustments businesses make based on external conditions. For example, when a SaaS company makes a software update to its product.
• Developmental change: Change that improves existing processes or skills. This could include creating new responsibilities or job titles and training existing employees to fulfill those roles. Or, it could be a company-wide initiative to improve customer service skills.
• Transitional change: Moving from one distinct state to another—or making a moderate change to how you do business. An example is an organization changing its CRM or core technology.
• Transformational change: A large-scale profound change that alters the core of an organization. These changes often result in total reinvention; for example, a company that decides to produce a completely different product and take on a new mission statement.

The type of change depends on factors like how many employees are involved and how your business values shift.

Benefits of change management

Effective change management can bring a wealth of benefits to your organization. Some of the most impactful include:

• Increased change success: Businesses with strong change management initiatives and fundamentals are likelier to achieve their objectives and successfully implement change.
• Reduced resistance to change: It’s common for some employees to be resistant to change. With proper change management initiatives, organizations can achieve greater team-wide buy-in.
• Improved use of resources: Implementing change can cost businesses tremendous time, resources, and personnel. Proper planning and coordination during change allow teams to optimize resource allocation.
• Boosted employee experience management: Even simple changes can affect how employees do their work. Effective change management strategies can boost employee satisfaction and foster a positive work environment.

Frequently asked questions

Excel in change management with Zendesk

Change can be hard—but it doesn’t have to be. You’ll set yourself up for success if you have a clear vision, foster open communication throughout the change, and monitor your metrics. And to take it one step further, consider Zendesk. Our comprehensive AI capabilities, like Zendesk QA, can alert you to areas of improvement and help you communicate with employees and customers—giving you a better chance of all parties adopting the change.