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What is Organizational Change Management?

Organizational change refers to actions in which a company or business changes a key component of its organization, such as its culture, the underlying technologies or infrastructure it uses to operate, or its internal processes. Organizational change management is the method of leveraging change to bring about a successful resolution, and it typically involves three major steps: preparation, implementation, and follow-up.

What is the reason for organizational change?

Many factors make organizational change necessary. Some of the most common ones encountered by managers include:

New leadership at the top of the company or in its departments
Change in organizational team structure
implementation of new technology
adopting new business models

Types of organizational change
Organizational change is a broad term. Some changes are sweeping: a significant development in the direction of a company. Other changes are less dramatic, focusing instead on a small aspect of a firm.

It can be helpful to think of change as a spectrum. On one end, you’ll find adaptive change, which explains those minor iterations. On the other hand, there is transformational change, in which huge change is followed. Adaptive changes are small, incremental changes that organizations adopt over time to meet evolving needs. Typically, these changes are minor modifications and adjustments that managers fine-tune and implement to execute on business strategies. Throughout the process, the leadership can add, subtract or refine processes.

An example of adaptive change is an organization that upgrades its computer operating system from Windows 8 to Windows 10.

Transformational changes have a larger scale and scope than adaptive changes. They can often include simultaneous changes in mission and strategy, company or team structure, people and organizational performance, or business processes. Because of their scale, these changes often take a substantial amount of time and energy to implement. While this is not always the case, transformational changes are often made in response to external forces, such as the emergence of a disruptive new competitor or issues affecting a company’s supply chain.

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