Change is an important and necessary fact of life for all organizations. But change is often unsuccessful because the people within organizations are resistant to change. Change management is a systematic approach to managing the transformation of organizational goals, values, technologies, or processes.
Harvard Business School professor Dr. John Kotter has been a thought-leader on organizational change, and he developed Kotter’s 8-step change model, which helps business managers deal with organizational change. Kotter created the 8-step model to drive organizational transformation.
McKinsey’s Seven Degrees of Freedom for Growth is a strategy tool. Developed by partners at McKinsey and Company, the tool helps businesses understand which opportunities will contribute to expansion, and therefore it helps to prioritize those initiatives.
The McKinsey 7-S Model was developed in the late 1970s by Robert Waterman and Thomas Peters, who were consultants at McKinsey & Company. Waterman and Peters created seven key internal elements that inform a business of how well positioned it is to achieve its goals, based on three hard elements and four soft elements.
Lewin’s change managementmodel helps businesses manage the uncertainty and resistance associated with change. Kurt Lewin, one of the first academics to focus his research on group dynamics, developed a three-stage model. He proposed that the behavior of individuals happened as a function of group behavior.
The ADKAR model is a management tool designed to assist employees and businesses in transitioning through organizational change. To maximize the chances of employees embracing change, the ADKAR model was developed by author and engineer Jeff Hiatt in 2003. The model seeks to guide people through the change process and importantly, ensure that people do not revert to habitual ways of operating after some time has passed.
Social psychologist Kurt Lewin developed the force-field analysis in the 1940s. The force-field analysis is a decision-making tool used to quantify factors that support or oppose a change initiative. Lewin argued that businesses contain dynamic and interactive forces that work together in opposite directions. To institute successful change, the forces driving the change must be stronger than the forces hindering the change.
Business innovation is about creating new opportunities for an organization to reinvent its core offerings, revenue streams, and enhance the value proposition for existing or new customers, thus renewing its whole businessmodel. Business innovation springs by understanding the structure of the market, thus adapting or anticipating those changes.
According to Prosci founder Jeff Hiatt, the secret to successful change “lies beyond the visible and busy activities that surround change. Successful change, at its core, is rooted in something much simpler: how to facilitate change with one person.”
Disruptive innovation as a term was first described by Clayton M. Christensen, an American academic and business consultant whom The Economist called “the most influential management thinker of his time.” Disruptive innovation describes the process by which a product or service takes hold at the bottom of a market and eventually displaces established competitors, products, firms, or alliances.
A consumer brand company like Procter & Gamble (P&G) defines “Constructive Disruption” as: a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. According to P&G, it moves around four pillars: lean innovation, brand building, supply chain, and digitalization & data analytics.
The McKinsey Horizon Model helps a business focus on innovation and growth. The model is a strategy framework divided into three broad categories, otherwise known as horizons. Thus, the framework is sometimes referred to as McKinsey’s Three Horizons of Growth.
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.
The term “paradigm shift” was first coined by American philosopher Thomas Kuhn in his 1962 book The Structure of Scientific Revolutions. A paradigm shift describes a fundamental change in the basic concepts and experimental practices of how something works or is accomplished.
Constructive paranoia is a term coined by author, geographer, and ornithologist Jared Diamond in his 2012 book The World Until Yesterday. Constructive paranoia describes an appreciation (and respect for) low-risk hazards that are encountered frequently. In fact, frequency changes the degree of risk from low to high. Thus it’s important to recognize that seemingly low-risk endeavors, when performed frequently, can become highly-risky actions.
The emotional cycle of change was developed in 1979 by psychologists Don Kelly and Darrell Connor. The cycle outlines some of the common emotions an individual will feel as they experience, react to, and navigate change.
The leader-member exchange theory was first proposed in a seminal paper by Fred Dansereau, George Graen, and William Haga in 1975. In the paper, entitled A Vertical Dyad Linkage Approach to Leadership within Formal Organizations, the authors proposed a new, dyadic leadership approach. Here, “dyadic” can best be described as the interaction between two individuals. The leader-member exchange (LMX) theory is a dyadic, relationship-based leadership theory.
GIST Planning is a relatively easy and lightweight agile approach to product planning that favors autonomous working. GIST Planning is a lean and agile methodology that was created by former Googleproduct manager Itamar Gilad. GIST Planning seeks to address this situation by creating lightweight plans that are responsive and adaptable to change. GIST Planning also improves team velocity, autonomy, and alignment by reducing the pervasive influence of management. It consists of four blocks: goals, ideas, step-projects, and tasks.
The EFQM model is a management framework helping organizations manage change and improve performance. The EFQM model was launched by the European Foundation for Quality Management in 1992 to increase the competitiveness of European companies.
Highlights
Concept
Description
When to Use
Advantages
Drawbacks
Change Management Loop
A systematic approach to managing organizational change, dealing with resistance to change, and facilitating successful transformations.
When organizations undergo significant changes, mergers, or restructuring and need to manage and adapt to the resulting transformations.
Helps navigate and facilitate change.
May require time and resources for implementation.
Change Management Framework
A systematic approach to managing the transformation of organizational goals, values, technologies, or processes to overcome resistance to change.
When organizations seek to initiate and navigate change processes effectively, ensuring alignment with organizational goals.
Provides structure for change initiatives.
Resistance and culture change can be challenging.
Kotter’s 8-Step Change Model
A model by Dr. John Kotter consisting of eight steps to guide organizations in driving successful organizational transformations.
When organizations need a structured approach to managing change, from creating a sense of urgency to anchoring new behaviors.
Offers a clear roadmap for change.
Implementation may require time and commitment.
McKinsey’s Seven Degrees
A strategy tool developed by McKinsey to help businesses understand growth opportunities and prioritize initiatives for expansion.
When organizations need to identify and prioritize growth opportunities and assess their potential impact on the business.
Facilitates strategic growth decisions.
Requires thorough market analysis and planning.
McKinsey 7-S Model
A framework developed by McKinsey & Company to assess how well an organization is positioned to achieve its goals, based on seven internal elements.
When evaluating and optimizing the alignment of key internal elements within an organization to achieve strategic objectives.
Provides a holistic view of the organization.
May face challenges in implementing changes.
Lewin’s Change Management
A three-stage change management model by Kurt Lewin that helps businesses manage uncertainty and resistance associated with change.
When organizations are undergoing change and need to unfreeze existing behaviors, implement change, and refreeze new behaviors.
Addresses resistance and psychological aspects.
May require effective communication and support.
ADKAR Model
A management tool designed to guide individuals and businesses through organizational change, focusing on achieving employee buy-in and lasting behavior change.
When organizations want to ensure that employees embrace and sustain change, preventing them from reverting to previous practices.
Focuses on individual change adoption.
Requires comprehensive change management plans.
Force-Field Analysis
A decision-making tool developed by Kurt Lewin to assess factors supporting and opposing a change initiative, quantifying the forces at play in driving or hindering change.
When organizations need to identify and analyze the forces affecting a proposed change, allowing them to address potential barriers.
Offers a structured approach to change.
Requires in-depth analysis and data collection.
Business Innovation Matrix
A framework for creating new opportunities and innovations within an organization, renewing its core offerings, revenue streams, and business model.
When organizations aim to innovate and create new value propositions, revenue streams, or improve existing products and services.
Fosters innovation and business growth.
Requires market understanding and adaptability.
Posci Change Management
A perspective emphasizing the importance of facilitating change on a personal level, addressing individual behavior and mindset changes.
When organizations recognize the significance of addressing personal change adoption for successful organizational transformations.
Focuses on individual-level change.
May require tailored approaches for different individuals.
Disruptive Innovation
A concept coined by Clayton M. Christensen describing how a product or service starts at the bottom of a market and eventually disrupts established competitors.
When businesses aim to introduce groundbreaking products or services that challenge incumbents and disrupt markets.
Can lead to market dominance.
High-risk and uncertainty are associated with disruption.
Constructive Disruption
A strategy focused on embracing change, adapting to new trends, and creating innovative technologies and practices to shape the industry’s future.
When organizations want to stay competitive and lead in their industry by continuously innovating and adapting to market changes.
Promotes agility and innovation.
Requires commitment to ongoing innovation efforts.
McKinsey Horizon Model
A strategy framework categorizing growth opportunities into three horizons, helping organizations focus on innovation and expansion.
When organizations want to manage and prioritize growth initiatives by distinguishing between short-term and long-term opportunities.
Provides a structured approach to growth.
Requires strategic planning and resource allocation.
Innovation Funnel
A tool or process for screening and testing innovative ideas to ensure that only the best products, processes, or business models are launched to the market.
When organizations want to streamline their innovation processes and prioritize the most viable and impactful ideas for execution.
Enhances innovation decision-making.
May require efficient idea generation and evaluation.
Paradigm Shift
A fundamental change in the basic concepts and practices of how something works or is accomplished, often leading to a transformative shift in thinking.
When organizations need to adapt to or capitalize on significant changes in their industry, technology, or market dynamics.
Can lead to breakthrough innovations.
May face resistance to changing established norms.
Constructive Paranoia
An approach that recognizes and respects low-risk hazards that can become highly risky when encountered frequently, promoting vigilance and preparation.
When organizations aim to mitigate risks by being proactive and prepared for low-risk hazards that may accumulate over time.
Enhances risk awareness and preparedness.
Requires continuous vigilance and adaptation.
Emotional Cycle of Change
A model developed to understand common emotions individuals experience during change, helping organizations manage the emotional aspects of change initiatives.
When organizations need to address the emotional impact of change on individuals and facilitate smoother transitions during transformations.
Supports emotional change management.
Requires empathy and tailored support for individuals.
Leader-Member Exchange Theory
A dyadic, relationship-based leadership theory that focuses on the interactions between leaders and team members, affecting their work relationships and outcomes.
When organizations seek to understand and improve leader-team member relationships, which can influence team dynamics and performance.
Enhances leadership and team collaboration.
May require efforts to build positive relationships.
GIST Planning
A lean and agile methodology for product planning, emphasizing autonomy, responsiveness to change, and alignment with organizational goals.
When organizations want to improve product planning processes by reducing management influence, enhancing team autonomy, and promoting adaptability.
Fosters agility and team alignment.
Requires a cultural shift and effective team collaboration.
EFQM Model
A management framework by the European Foundation for Quality Management (EFQM) to help organizations manage change, improve performance, and increase competitiveness.
When organizations aim to enhance their overall performance, manage change effectively, and align their operations with quality and excellence standards.
Supports performance improvement and change management.
May require comprehensive assessments and implementation efforts.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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