LEADING THE INNOVATION AND CHANGE

CHANGE MANAGEMENT THEORIES

Leading innovation is about inspiring others to work towards growth
and progress. It is helping employees envision a different future and
explore the possibilities of how to get there. Leadership is key to
fostering innovation.
Change isn't easy. Those who are affected by change feel very
stressed. Key traits of a good leader include being able to shoulder
this responsibility. It's up to us as leaders to lead our teams through
change and towards innovation. Embracing innovation is essential.
 What is Change and Innovation in the Workplace?
 Innovation means introducing new ideas that bring positive change and
improvement. Leaders must encourage creativity and foster
experimentation. Everyone then finds better ways to adapt to different
things.
 Effective change means moving from one place to another. Take
spider monkeys as an analogy. As they move through the forest, these
creatures quickly reach and test branches while holding securely to existing
ones. Once the next branch proves stable, they release the past one. They
do this very quickly which makes them successful in a dynamic (and very
unforgiving) environment.
 Like these primates, successful firms know how important stability is.
Crawling through the branches, they maintain a firm grip on one reliable
branch while testing the strength of another. In this way they balance
growth and stability.
 Organizations can adapt to changing conditions, letting them grab new
opportunities and maintain a competitive edge.

WHAT IS CHANGE AND INNOVATION

IN THE WORKPLACE?
Innovation should be built into any organization's DNA. Even so, resistance to change is a common
problem. Resistance occurs when new ideas are attempted within an organization but aren't accepted.
Here are some common reasons for resistance.

•Change brings uncertainty. Employees may resist change to avoid stepping into the unknown.
•We find comfort in familiarity. Routine provides safety, causing team members to resist doing
things differently from the way they are used to.
•Stability and structure matter. The perceived loss of control is frightening and causes apprehension
•A lack of trust in leaders. More than half of employees distrust leadership, responding that their
CEOs are somewhat or not at all credible. So, when these leaders propose change, their employees
resist.
•No one likes making mistakes. Change often involves experimentation. There's always a chance of
failure or errors when change happens.

Understanding the reasons behind resistance to change is key to managing and overcoming it.
Organizations and leaders who handle change better can embrace innovation.

WHY IS THERE A RESISTANCE TO

CHANGE?
 "The only constant in life is change." - Heraclitus
 As leaders we need to focus on improving and understanding the difference between change
leadership and change management leadership. We need to be good at change leadership and
have a strong change management process in place because change is happening around us all the
time.Here are some examples of external changes:

• Regulatory Changes: Regulations keep changing. Organizational changes are needed to stay
compliant. The last thing we'd want is a lawsuit.
• Economic or societal crisis: Unexpected crises can come from anywhere and are often outside
our control. This requires everyone to respond quickly and adapt. A proactive response can mitigate
the negative impact of the crisis.
• Competitive Pressure: The competition is fierce. Organizations need to evolve and innovate.
Failure to adapt can lead to market loss.
• Growth Opportunities: Organizations need to evolve to get a jump on growth opportunities. You
could expand your market. Diversify your product offerings. Acquire other businesses.

REASONS WHY ORGANIZATIONS

NEED TO CHANGE
Define a vision: Clearly define the vision for the organization, and make
it aspirational, inspiring, and succinct.
Communicate goals: Explain the change initiative clearly so that
everyone understands the need for change.
Create a sense of urgency: Get people excited about the change to get
results faster.
Build a strong team: Find the right people to lead the change.
Empower employees: Involve everyone in the change process.
Manage resistance: Not everyone will adapt easily, so manage
resistance effectively.
Invest in your team's development: Provide opportunities for skill-
building, encourage knowledge sharing, and support professional
growth.
Pass on innovative ideas: Ensure that new concepts are accepted and
possibly used to create further innovations.

STEPS TO CHANGE MANAGEMENT

 Change Management Theory is a framework of an approach to
transitioning people, processes, and resources to achieve better
outcomes. Change management theory helps people and
organizations focus on the future and make the right decisions to get
to that vision.

 Change management deals with many different disciplines, from

behavioral and social sciences to IT and business processes.

WHAT IS CHANGE MANAGEMENT

THEORY
1. Kotter’s change management theory
2. Lewin’s change management model
3. The McKinsey 7-S change management model
4. Nudge theory
5. Kübler-Ross change curve
6. Satir change management model
7. PDSA cycle
8. ADKAR change management model
9. Bridges’ transition change management model
10. Kaizen change management model
11. Lamarsh change management model
12. John fisher change management model
13. Maurer’s 3 levels of resistance and change model

INCREDIBLE CHANGE MANAGEMENT

MODELS
 Harvard Professor John outlines an 8-step process for organizational change:
 Create a sense of urgency
 Build a guiding coalition
 Create a strategic vision
 Communicate the vision
 Enable action by removing barriers
 Generate short-term wins
 Sustain acceleration
 Anchor changes in corporate culture
 Kotter’s organizational change theory is one of the most popular change management models because it does a great job of
establishing a sense of urgency and explaining why change is needed. Where it comes up short is in its lack of feedback from
all levels.
 Kotter takes a top-down approach. If you start with these steps, be sure to incorporate some ways to build grassroots
momentum and solicit feedback from frontline employees.
 This model is ideal for companies that are adopting new enterprise software. We especially like that this model promotes
“short-term wins” – specifically, onboarding departments that are least resistant to change first, which can help foster
internal buy-in across other departments .

1. KOTTER’S CHANGE MANAGEMENT

THEORY
Lurt Lewin developed his change model in the 1940s, and it’s still popular today – primarily because
of its simplicity. The model breaks up organizational change into three steps:
The Lewin model for organizational change is deceptively simple since it’s only three steps. You will
need to fight the temptation to rush through each phase. It takes time to plan, execute, and reinforce
a change. Make sure you allow enough time for employees to get used to the changes and provide
opportunities for them to give feedback.
What we like about this model:
This model focuses on empowering employees, rewarding them for adapting and communicating with
them regularly. We think the Lewin model would work well for large companies that want to avoid
internal rumors and confusion about major changes.

Unfreeze Change Refreeze

 Decide what needs to  Make the change.  Internalize and

change. institutionalize the
 Communicate often
change.
 Analyze your current about the benefits of the
processes and identify change.  Create a sense of
what needs to change. stability to sustain the
 Allow time and training
change.
 Communicate the for people to get used to
need for change. the change.  Celebrate successes.

2. Lewin’s Change Management Model

 The McKinsey 7-S model emphasizes the need for coordination and maps out a series of interconnected factors
that impact a company’s ability to change. These seven elements are:
 Strategy – your plan for how to compete and succeed in the marketplace
 Structure – how your organized i.e. your business unit and reporting structure
 System – the processes and technologies employees use to get their jobs done.
 Soft Elements
 Shared values – core values as defined by the company’s corporate culture and work ethic
 Style – leadership approach to managing the company and employees
 Staff – the company’s workforce
 Skills – employees’ collective knowledge and skill set.
 The 7-S model’s strength is helping organizations understand that status quo so they know what needs to
change. The model also helps illustrate how any organizational change will impact all seven elements.
 The model is less effective at actually guiding companies through making the change. The McKinsey model
might be best paired with a more actionable organizational change management framework

3. THE MCKINSEY 7-S CHANGE

MANAGEMENT MODEL
 The approach gently guides or suggests users make a change without strict
enforcement or penalizing non-compliance.
 Companies should present the change as a choice and remove as many
obstacles as possible to make it more likely people comply. They’ll also need to
celebrate small wins and highlight the benefits of the change.
 Companies have found success in using the Nudge theory to encourage more
people to contribute to their retirement plans. Governments have used it to
increase the number of people signed up for organ donation.
 Each of these actions is a one-time choice by the participant. When dealing
with complex organizational change, companies may need a more structured
change management framework.
 What we like about this model:
 This model reminds us of the ways marketers move people through the sales
funnel — using several “touchpoints” to drive consumers toward an action. We
can see how marketing agencies would be especially successful in
implementing the nudge theory.

4. NUDGE THEORY
 The Kübler-Ross Change Curve because it’s based on the five stages of grief outlined by psychiatrist
Elisabeth Kübler-Ross in her 1969 book On Death and Dying. She focused on how terminally ill patients
processed their grief about facing death. She outlined five phases:

 Denial, Anger, Bargaining, Depression AND Acceptance

 So why is a theory about grieving in a list of change management models for business? People are
naturally resistant to change. The change curve expands upon the five stages of grief to describe the
emotions employees feel when adjusting to an organizational change. The stages are:-

 Shock – Employees are surprised by the change.

 Denial – Employees are in disbelief about the change.
 Frustration – Employees begin to acknowledge changes, but are resentful.
 Depression – Employees are unmotivated to work or complete the change.
 Experiment – Employees begin to engage with the new structure/systems.
 Decision – Employees feel more comfortable with the change and learn how to work in the new
environment.
 Integration – Employees fully adapt to the change and make it part of their work life.
 The model is a great resource for thinking about and managing your employees’ reactions to a change
but doesn’t provide an overall framework for initiating organizational change.

5. KÜBLER-ROSS CHANGE
CURVE
 The Satir Change Model is also based on the five stages of grief. It can be used to model
how employees are performing during the change. The five phases are:
 Late status quo – This is when employees understand what is expected of them, but
may not agree with the productivity requirements.
 Resistance – This is the first phase after you introduce the change. You can expect
some resistance which will lead to a decrease in productivity.
 Chaos – This is the lowest point in your productivity as the change starts to take its full
emotional toll on your workforce. This is when you’ll need to provide the most support
to make your change successful.
 Integration – Productivity starts to improve in this phase as employees begin to see
the positive value of the change.
 New status quo – This is when you can expect productivity to become stable again
(hopefully at a higher level than when you started) as people accept and integrate the
change into their work.
 Like the Kübler-Ross model, this framework isn’t ideal for helping you plan and execute
your change. Where it is helpful is in predicting and responding to how your team’s
performance will be impacted during the successful implementation of your
organizational change.

6. THE SATIR CHANGE MODEL

 The Plan-Do-Study-Act (PDSA) Cycle is a continuous process for optimizing and
improving your business. The cycle is based on the work of W. Edward Deming
and Walter Shewhart. The approach is sometimes called the Deming Wheel or
Deming Cycle.

 The cycle is meant to work in a loop where you repeat the four steps:

 Plan – Recognize what needs to change and make a plan.

 Do – Test your idea on a small scale.
 Study – Analyze your results and determine what worked and what didn’t.
 Act – Take action based on your results and what you learned.
 The cycle is a great tool to use for continuous improvement. It can easily fit
into any or every part of your overall change management plan. But you’ll
probably need a more detailed framework for planning out a large
organizational change

7. PDSA CYCLE
 The Prosci ADKAR change management model is not a top-down approach. Instead, it
focused on what people at all levels of an organization need to do in order for an
organizational change to be effective. Prosci founder Jeff Hiatt created the ADKAR model.
According to the model, people need to achieve five outcomes:
 Awareness – Management explains that changes are coming and why they are necessary.
 Desire – Leaders persuade employees to support the change, by providing case studies or
other evidence. They may also need to address individual concerns to build confidence in
the changes.
 Knowledge – This is the stage at which employees learn how to implement changes. For
companies introducing new software, this stage includes training.
 Ability – At this stage, employees are applying what they’ve learned.
 Reinforcement – This is an ongoing process that recognizes employees for their
accomplishments and provides performance incentives.
 The ADKAR model is a useful tool because it helps you think about and plan for everything
that needs to happen on the ground for your organizational change to be successful. It
forces you to plan for how to support and create change across all levels of the organization.
 This model illustrates the need for educating employees about a change before jumping into
training. It’s a much more effective way to implement new software platforms.

8. PROSCI ADKAR CHANGE

MANAGEMENT MODEL
 William Bridges made an important distinction in Bridges’ Transition Model – it wasn’t
about change, it was about transition. Bridges believed changes happen abruptly and a
person has no control over the matter. A transition, however, is a slower process or
journey a person goes through. The model proposes three stages employees go through
during a transition:

 Endings – This is when employees understand what they will lose – for example,
colleagues, software platforms, or physical locations.
 Neutral zone – This is the transitional time between old and new. Employees may feel
unsure about new responsibilities or methods.
 New beginnings – This is when the change is accepted as the new norm. The goal is to
keep the momentum going.
 The model is similar to the Satir model or the Kübler-Ross Change Curve because it
focuses on managing employees’ emotions through an organizational change. Similarly,
it has the same drawback in that it does not actually provide a framework for
implementing change.
 This model mentions loss – allowing employees time to process those feelings may
ultimately lead to a better implementation of changes.

9. BRIDGES’ TRANSITION CHANGE

MANAGEMENT MODEL
 Kaizen is a popular change management model. This model calls for change to be a continuous process rather than a one-time transition.
 The Kaizen model promotes the concept that small and ongoing changes offer more benefits than infrequent and large changes.
 These are the 10 principles of Kaizen:
 Let go of assumptions.
 Be proactive about problem-solving.
 Reject the status quo.
 Let go of perfectionism and embrace iterative, adaptive change.
 Look for solutions as you discover mistakes.
 Create an environment that empowers everyone to contribute.
 Instead of accepting the obvious explanation, ask “why” five times to get to the root cause.
 Gather information and opinions from multiple people.
 Find low-cost, small improvements.
 Never stop improving.

 With the Kaizen model, all employees work as a team on a regular basis to promote small yet continuous and comprehensive development with
the cooperation and commitment of all partners.
 This model gives employees more control over changes, which we think is a creative approach to building employee trust. (We also like that Kaizen
loosely translates to “good change” in Japanese).

10. KAIZEN CHANGE MANAGEMENT MODEL

 The LaMarsh change management model refers to the organized process of risk mitigation in adoption and
the acceptance of new processes by those who will be affected by it most. The risks in acceptance and
adoption of change are addressed early on during the change management process, so the change can
happen smoothly across the entire organization.
 The LaMarsh model focuses on intentional changes in order to achieve success. It identifies areas that would
benefit most from the change and ensures that all employees involved understand the purpose and
implementation of the change.
 LaMarsh methodology entails a five-step framework for leaders to:
 Initiate the change – This is when leaders establish objectives.
 Identify risk – This stage involves evaluating the barriers to employee acceptance.
 Implementation phase – This is the stage in which leaders follow an action plan designed to minimize
employee resistance to acceptance.
 Achieve results – Once changes are implemented, results are measured against initial objectives. Risk
identification is ongoing, and plans may be adjusted accordingly.
 Sustain outcomes – Once changes are achieved, leaders support processes to sustain outcomes.
 This is a scalable model that could work for small companies or enterprise corporations.

11. LAMARSH CHANGE MANAGEMENT

MODEL
 John M. Fisher’s change management model looks at the transition stages that employees go through when a
personal or corporate change is initiated. Managers can help employees handle change more effectively by
determining which stage an employee is in, in the transition cycle.
 Once this stage is determined, the manager can employ appropriate tools to help the employee proceed to the
next stage, until finally, the employee accepts, embraces, and adopts the incoming change.
 Fisher’s model of change addresses how an individual deals with and responds to the change. It takes into
consideration the personal change or the “Personal Transition Curve,” which helps leaders understand
the employees’ perspective in the change process.
 There are 12 stages of emotion an employee might experience during a transitional time: Anxiety, Happiness,
Threat, Fear, Anger, Guilt, Despair, Hostility, Acceptance, Moving forward, Denial, Disillusionment.
 Individuals may experience some of those emotions, but employees won’t all react the same way.

 This model acknowledges the individuality of employees. That makes this model useful for companies that
have the time and ability to meet one-on-one with employees during a time of transition.

12. JOHN M.FISHER CHANGE

MANAGEMENT MODEL
 Author Rick Maurer’s change model focuses specifically on the three mindsets
employees may experience when they’re resistant to change. Those are:

 I don’t get it – This means employees don’t have enough information — or the
right kind of information — to understand what changes are coming and why.
 I don’t like it – This is the emotional state of feeling fear, when employees
may become defensive and closed-off to any messaging about changes.
 I don’t like you – Employees may dislike or distrust the person or people
attempting to implement the change, even if they see the change as positive.
 Like many of the other change models on our list, Maurer’s model advises
management to counteract resistance by communicating openly, sharing
evidence that inspires confidence, and listening to employees’ misgivings.

13. MAURER’S 3 LEVELS OF RESISTANCE

AND CHANGE MODEL