Lewin’s change management model 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.
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Understanding Lewin’s change management model
No business is immune to change in the rapidly changing global marketplace of today.
While change is certainly not a new concept, many organizations nevertheless fail to implement change management strategies.
To help provide a framework for change, social psychologist Kurt Lewin developed a three-stage model.
Lewin was one of the first academics to research organizational development and group dynamics.
He proposed that the behavior of an individual in response to change was a function of group behavior.
From his research, Lewin also noted that the model should evaluate two core ideas:
The change process in organizational contexts.
How the status-quo might be challenged to facilitate effective change.
Lewin wanted his model to be easily implemented with minimal disruption to business operations. He also wanted to explain how change might be permanently adopted.
The three stages of Lewin’s change management model
Each of Lewin’s three stages is vital in successfully instituting change. They describe the nature and implementation of change and common obstacles that result.
Stage 1 – Unfreeze
The unfreezing stage involves readying a business for change by ensuring that all staff understand its importance.
Four important steps characterize the first stage:
Gauge the need for change. A Current State Analysis (CSA) can be performed to determine what needs to change and why. This will mean challenging and then breaking down the status quo, which may require difficult conversations. Existing behaviors or practices will need to be revisited and then revised.
Gather support from key management personnel or interested stakeholders.
Develop a strategy for communicating change. The strategy should be a vision that aligns with company goals or objectives where applicable. Above all, the strategy needs to be persuasive.
Manage doubt and uncertainty. Some will inevitably oppose change, but a framework such as the Force Field Analysis can make it less intimidating by assessing a list of pros and cons.
Stage 2 – change
By the second stage, most individuals have thawed out and ready to move toward a future desired state.
Nevertheless, many will feel uncertain and apprehensive about the transition process. To manage employees during this critical juncture, consider these tips.
Leadership should clearly communicate the benefits of change, both for the individual and the business.
A regular meeting should be held to address concerns and provide support where necessary. This dismisses hearsay which can run rampant through a department and cause panic.
Appropriate action should be role-modeled by management, who should also design quick wins to empower and motivate employees toward appropriate action.
Stage 3 – Refreeze
The goal of the final stage is to ensure that change is incorporated into the organizational culture.
Ultimately, all staff must consider the change as the new status quo. Otherwise, there is a potential that they revert to old habits.
To counteract this, businesses should:
Link new changes into broader company culture through the identification of change supporters and change barriers.
Brainstorm methods of sustaining change long term. This can be done through incentivization and regular performance evaluation. Leadership should also be highly visible in promoting change as a means of influencing group dynamics and behavior.
Provide formal and informal training and support to employees who are finding it particularly difficult to adjust.
Lewin’s change management model example
In this section, we’ll discuss how Lewin’s change management model was used in a real-world example involving Nissan.
With a consistently declining market share, the company formed a strategic alliance with French company Renault which would assume Nissan’s debt in exchange for a 36.6% stake.
The alliance made sense for both parties on paper. Renault would be able to take advantage of Nissan’s strong presence in North America and engineering pedigree.
Nissan, on the other hand, would benefit from Renault’s strong cash position but also its history of innovative design.
The success of the deal also relied on Nissan’s ability to reverse its fortunes and once again become profitable.
The man tasked with this massive transformation was Carlos Ghosn, a change agent who understood the particularly sensitive nature of corporate mergers and alliances.
For the initiative to work, Ghosn also noted that the identity and self-esteem of Nissan employees must be protected at all costs.
This did not tend to be easy, since making changes and safeguarding employee identity could easily conflict with one another.
Ghosn was also an outsider who was met with skepticism and trepidation by Nissan’s Japanese management.
How change at Nissan was accomplished
Ghosn ensured that Renault would remain sensitive to Nissan’s corporate culture post-merger, with the latter able to form a new culture based on some elements of Japanese tradition.
This was extremely important to Nissan because the gesture showed respect to its people and allowed the company to protect its identity and dignity.
Certain aspects of Japanese cultural influence needed to change, however. One aspect was the outdated employee reward scheme that was based on tenure and age.
Essentially, those who stuck with the company the longest were paid the most irrespective of their performance.
Ghosn revamped this system to base the reward scheme on results, and when some younger employees became leaders of older employees, there was inevitable cultural pushback from some senior managers.
He also addressed Nissan’s organizational inability to accept responsibility, another cultural aspect where departments within the company blamed each other for subpar outcomes.
To manage the first and second stages of Lewin’s change management model, Ghosn instituted several initiatives.
First, he mobilized Nissan’s management into cross-functional teams (CFTs) with the goal of garnering organization-wide support. These teams then identified and spearheaded the transformative changes that were necessary to keep the company afloat.
Nine CFTs were assembled in areas such as manufacturing, logistics, research and development, purchasing, sales and marketing, and business development.
Each was given three months to review company operations and brainstorm ways to return the company to profitability.
The teams were also deliberately composed in such a way that no single perspective or opinion could dominate.
The unfreezing stage
The Nissan Revival Plan was released in October 1999, a blueprint developed by Nissan’s own executives over the aforementioned three-month period.
Unsurprisingly, plant closures and employee terminations were criticized by the press as revolutionary and counter to Japanese tradition.
To ensure that change was incorporated into Nissan’s organizational culture, Ghosn empowered employees to consider non-conventional methods and introduced an open feedback system to help staff increase workplace adaptability.
Performance-based incentivization was also seen as an important component.
Three years later in 2002, Ghosn was meeting with team leaders once a month and receiving briefings from entire teams at least once a year.
The cross-functional teams were such a success that they were retained by the company.
In addition to finding new ways to increase performance, the teams were also tasked with ensuring that Nissan did not revert to old ways of operating.
Additional Case Studies
IBM:
Unfreeze:
IBM recognized the need for change due to shifts in the technology industry.
Conducted a Current State Analysis to identify areas that needed transformation.
Challenged the status quo by shifting focus from hardware to software and services.
Communicated the benefits of the transition to employees.
Change:
Developed a strategy for the software and services business model.
Held regular meetings to address employee concerns and provide support.
Modeled the desired behaviors for employees to adapt to the new model.
Refreeze:
Ensured that the new software and services focus became the new norm.
Integrated the change into the organizational culture.
Continued to reinforce the importance of software and services through incentives and performance evaluations.
General Electric (GE):
Unfreeze:
Acknowledged the need for change to enhance competitiveness.
Communicated the vision of the change and its benefits.
Engaged leadership in driving the change process.
Change:
Implemented the Change Acceleration Process (CAP).
Focused on leadership communication and skills development.
Guided employees through the transition and encouraged quick wins.
Refreeze:
Sustained change through ongoing training and development.
Ensured that changes became part of the organizational culture.
Continuously monitored and improved the change process.
Procter & Gamble (P&G):
Unfreeze:
Identified the need to streamline product innovation processes.
Communicated the need for change and the reasons behind it.
Initiated discussions to challenge existing processes.
Identified the need to address changing consumer preferences and health concerns.
Communicated the importance of diversifying product offerings.
Initiated discussions on healthier beverage options.
Change:
Introduced a range of new beverage products, including water, juices, and teas.
Emphasized the importance of consumer health and well-being.
Conducted marketing campaigns to promote new products.
Refreeze:
Integrated the new product portfolio into Coca-Cola’s brand.
Continued to promote healthier options and sustainability.
Monitored consumer trends and adapted products accordingly.
Microsoft Corporation:
Unfreeze:
Recognized the need to shift from a traditional software company to a cloud-first, mobile-first organization.
Communicated the importance of embracing cloud technology.
Initiated discussions on organizational transformation.
Change:
Developed cloud-based products and services (Azure, Office 365).
Encouraged employees to adapt to a more agile and collaborative work environment.
Emphasized a customer-centric approach.
Refreeze:
Integrated the cloud-first approach into Microsoft’s culture.
Continued to innovate and expand cloud offerings.
Focused on customer satisfaction and digital transformation.
Walmart:
Unfreeze:
Recognized the need to compete effectively in the e-commerce space.
Communicated the importance of digital transformation.
Initiated discussions on online retail strategies.
Change:
Invested heavily in e-commerce, including the acquisition of online retailers like Jet.com.
Focused on improving the online shopping experience.
Encouraged employees to adapt to a digital retail mindset.
Refreeze:
Integrated e-commerce as a core component of Walmart’s business.
Continued to expand online offerings and improve logistics.
Maintained a strong presence in both physical and digital retail.
Key takeaways
Lewin’s change management model provides a simple yet effective framework for businesses wishing to institute change.
Lewin’s change management model argues that the capacity for change in an individual is strongly influenced by group dynamics. As a result, the model has a strong focus on the role of leadership during the change process.
Lewin’s change management model describes three stages common to most change processes. Businesses can use the three stages to remove the status quo, guide employees through the transitional process, and then ensure that implemented changes become part of organizational culture.
Key Insights
Change Management Framework: Lewin’s change management model is designed to assist businesses in effectively managing change, addressing uncertainty, and overcoming resistance. Developed by social psychologist Kurt Lewin, the model consists of three stages.
Adapting to Change: In today’s rapidly changing global marketplace, organizations must adapt to remain competitive. However, implementing change without a structured approach can lead to challenges and resistance.
Three-Stage Model:
Unfreeze: Prepare the organization for change by recognizing the need for change, gathering support, developing a communication strategy, and managing doubts and uncertainties.
Change: Transition individuals and the organization toward the desired future state. Address concerns, communicate benefits, hold regular meetings, and provide role modeling and quick wins.
Refreeze: Ensure that change is incorporated into the organizational culture, making it the new status quo. Link changes to company culture, sustain change through incentivization, and offer support and training to employees.
Group Dynamics Influence Change: Lewin’s model emphasizes that individual behavior in response to change is influenced by group dynamics. Leadership plays a crucial role in managing change effectively within the organization.
Balance between Change and Identity: In the case of corporate mergers or alliances, maintaining employee identity and self-esteem is essential. Successful change agents, like Carlos Ghosn at Nissan, ensure that change aligns with existing corporate culture while driving necessary transformations.
Real-World Example: Nissan:
Nissan faced financial turmoil and formed an alliance with Renault to save the company.
Carlos Ghosn led the transformation and focused on protecting Nissan’s identity while driving change.
Ghosn established cross-functional teams (CFTs) to drive organization-wide support and identify transformative changes.
The Nissan Revival Plan was developed through these teams, involving unconventional methods and open feedback.
Performance-based incentivization and ongoing team collaboration ensured sustained change.
Leadership Role: Lewin’s model underscores the importance of leadership in guiding employees through the change process, addressing concerns, communicating benefits, and supporting the integration of changes into the organizational culture.
Balancing Tradition and Innovation: Change agents must find ways to incorporate change while respecting organizational traditions and values. Effective communication, empowerment, and feedback mechanisms play a critical role.
Practical Application: Lewin’s model provides businesses with a structured approach to navigate the complexities of change management. By recognizing the influence of group dynamics and focusing on employee engagement, organizations can drive successful transformations.
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 management model 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 business model. 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.”
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.
