Organizations—hospitals, schools, banks—all undergo change. Those changes may be as simple as the use of a new electronic record system or as daunting as organizational restructuring.
A 2023 review of the literature is clear: If mismanaged, organizational change can lead to a range of negative impacts among workers. These include worsened social relationships, efforts to leave or sabotage the organization, neglect of duties, and lower job satisfaction.
Leadership is a critically important factor in organizational change. The same review concluded that leadership accounts for about 70 percent of effective organizational change. One can infer that the opposite is also true: Ineffective leadership sets up a greater chance of failed organizational change.
So what should organizational change management look like? Glad you asked. Turns out there is a pretty clear consensus about the steps and factors involved.
A 2018 integrated review provided the following step-by-step process for successful organizational change:
Step 1: Understand the problem necessitating change. This step involves gathering perspectives from multiple constituent groups in the organization. The focus should be on two items: whether change is needed and, if so, what constraints may exist. Those on the receiving end of the change must believe the reasons for change are both legitimate and rational. To quote Mr. Spock, organizational change must be undertaken for “logical” reasons.
Step 2: Assess the organization’s readiness to........© Psychology Today