Change Management vs. Change Leadership: How to Ace Organizational Transformation

If the last few years have taught us anything, it's how to adapt to change. Whether voluntary or forced upon us, employers and employees have constantly adapted to survive. From pandemic lockdowns and remote working to the tidal wave of resignations that followed, it's been a lot. 

And it's not over yet. Need an example? 

McKinsey reports that businesses are now three times more likely to be a minimum of 80% digital compared to their pre-pandemic interactions. 

That's quite a shift! 

Change is here to stay, and the organizations harnessing this evolution will come out on top.

But what does that mean in practice?

This article will examine the concepts of change leadership and change management, discussing the key differences between them and when to embrace each. 

🏢 Why is change inevitable and necessary?

Change is essential for businesses to grow. From new technology, demographic shifts, and fresh business opportunities, the work environment is constantly shifting, and organizations must shapeshift to stay relevant. Here are some specific ways in which change can benefit businesses.

Cultural

It's depressing that anyone would need a business case for diversity. 

Still, if you must attach monetary values, Forbes reports that firms with more cultural and ethnic diversity in executive positions are 33% more profitable than those without.

Diversity, equity, and inclusion is a pressing issue, with an ever-growing focus on ensuring that employees feel comfortable and valued in the workplace.

Employers must be proactive in overhauling or enhancing their work culture so everyone feels they belong. 

Structural

The pandemic has forced organizations to re-evaluate how they work, with many questioning the need for physical offices and expensive real estate. 

Fortune reports that before the pandemic, real estate costs for S&P 500 budgets were 3 to 9%. So, it's easy to see why remote or hybrid work is such a cost saver. 60% of execs plan to reduce office space by 50%. 

Still, they will need significant scale transformation to adapt to the hybrid model in the long term. However, with more people working remotely, there's an opportunity to save on costs and create a leaner, more agile organization.

Procedural

Many businesses must review and commit to streamlined process improvements from supply chains to customer service. Not only is there a financial incentive to this, but it can help companies to meet their sustainability targets by reducing waste and becoming more efficient.

🤯 But why is a successful change initiative so hard?

Change may be positive and inevitable, but it's also challenging. Unfortunately, humans are hardwired to resist change. They prefer to stick to their tried and tested methods, even if a new, improved solution or shortcut exists. 

Did you know that even monkeys are better than humans at trying new things? 

A 2019 behavioral study from Georgia State University found that monkeys outperform humans in cognitive flexibility and are "more open to switching to more efficient strategies to achieve their goals." 

Plus, humans took longer to accept and use new strategies than a group of rhesus macaques and capuchin monkeys. Previous studies involving chimpanzees and baboons also corroborate this test. 

The bottom line: humans suck at change, but change is a necessity for business progress, dynamism, and the promise of a better future. 

That's quite the catch-22. Don't worry, though. 

Change management or a change leadership approach are perfect solutions for powering organizational transformation, so long as you put your employees at the heart of your evolution. 

➡️ Check out our Become a Change Leader training program.

🔍 Change leadership vs. change management - let's break them down! 

Dr. John Kotter, Konosuke Matsushita Professor of Leadership, Emeritus at the Harvard Business School, breaks down the fundamental differences between change leadership and formal change management systems. 

"Change management is a set of processes, tools, and mechanisms that are designed to make sure when you do try to make some changes that a) it doesn't get out of control, and b) the number of problems associated with it (rebellion among the ranks, bleeding of cash that you can't afford) doesn't happen. 

Change leadership is associated with putting an engine on the whole change process and making it go faster, smarter, more efficiently; it's associated with large-scale changes, urgency, and about masses of people who want to make something happen. It's about big visions, it's about empowering lots and lots of people."

Both change management and change leadership are essential for organizational success, but they require different skill sets and approaches. 

Change management focuses on maintaining stability and minimizing risk during change. If you choose this model, you'll need a robust plan enabling you to meet specific objectives. 

Regarding stakeholders, buy-in from employees, managers, and executive sponsors is essential. 

Change leadership relies on role models to build trust, instill pride and empower employees through growth and development opportunities. 

You'll regularly praise your team, organize frequent 1:1 sessions and commit to continuous employee feedback. Do these things, and you'll swiftly achieve transformational goals while inspiring others to achieve your vision.

✅ Embrace transitions with this change management checklist

Leading a team through organizational change can be daunting, no matter your experience. Want to know how to make change stick? Work the steps of this change management checklist, and you'll find out! 

1. Develop a consistent communication strategy 

Consider how you'll communicate the change initiative to different stakeholders. 

For example, keep employee feedback loops open – meaning you'll address employees and give them a chance to deliver their valuable insights. 

Tip #1: Consider how you'll articulate the change to customers or clients.

Tip #2: The key is to over-communicate during organizational change. Use a variety of channels, from face-to-face interactions to digital tools like video conferencing and instant messaging.

2. Manage resistance proactively 

Honestly, some people fear change. Maybe they're scared, or perhaps they misunderstand. 

Regardless, you'll need to manage resistance proactively, anticipating and addressing objections before they become a problem.

Tip: hold regular meetings with employees to keep them updated on the change initiative progress. Clarify why the change is necessary, how it will benefit employees, and what you expect of them.

3. Get buy-in from key stakeholders 

You'll need the support of upper management and other key stakeholders to make organizational change successful. This means getting their buy-in from the start and providing regular updates on your progress.

Tip: Use data to show how the change will benefit the entire organization.

For example, if you're implementing a new CRM system, use hard figures to demonstrate how it'll improve sales or customer satisfaction.

4. Roll out the change gradually 

Trying to implement too much change at once is a recipe for disaster. The solution? Roll out change gradually, starting with a pilot group. This way, you can work out any kinks before expanding to the entire organization.

Tip: Use a phased approach when rolling out a new initiative. For example, you might gradually start with a few different departments or locations.

5. Put reinforcement systems in place 

Change is hard, and people are creatures of habit. So, you'll need reinforcement systems to help employees adapt to the new way.

Tip: Use rewards and recognition to reinforce desired behaviors. Use an accountability tool and offer bonuses for meeting specific goals related to the change initiative.

6. Systematically manage project results 

Track the results of your change initiative to ensure it's going to plan. 

By setting up systems to track progress, you can also identify any issues to address.

Tip: Use project management software like Asana or Monday to track milestones, enhance communication and identify any roadblocks. By doing so, you'll stay on schedule to meet your OKRs. 

7. Monitor employee engagement 

How are your employees adapting to the change? And most importantly, how do you know? 

Employee engagement is key to making organizational change successful. Therefore, you'll need to monitor engagement levels and address any issues that could arise. 

Tip: Use an employee satisfaction survey to get employees' feedback on how they feel about the change initiative. You will be able to identify any areas of concern and take action to address them.

Remember to do so with an open mind – their concerns may be legitimate!

☑️ Supercharge change management with this change leadership checklist 

With your change management approach in place, follow this change leadership checklist to put the engine behind your strategies. 

1. Remove barriers to change 

The first step is to identify and remove any barriers to success. 

Internal barriers might include a lack of resources or outdated documentation. 

External barriers could be things like regulatory requirements or market conditions. 

Tip: Once you've pinpointed any blockages, take steps to remove them. This might involve working with other faculty leaders or getting approval from upper management. 

2. Offer rational responses

It's important to remember that people are emotional creatures, but offering rational responses to their reactions can ease any nerves. For example, if employees are worried about job security, explain the career path opportunities and how the change will benefit them in the long run. 

Tip: Flex those soft skills like listening, communication and empathy to help build trust with employees. But be prepared with data and reasoning to back up your responses. 

3. Invest in long-lasting employee relationships 

To create a lasting bond, you must invest in your employee relationships. This means taking the time to get to know them personally and understanding their needs and motivations. 

Tip: Try to forge strong relationships with employees before a change initiative is announced. This way, you'll already have a foundation of trust to work from when the time comes. 

4. Promote a harmonious work environment 

Positive company culture is one where employees feel like they belong and can do their best work. 

Promoting a harmonious work environment means creating an inclusive environment where people feel comfortable being themselves.

Tip #1: Promote a positive company culture by hosting social events, offering flexible work arrangements, and providing opportunities for professional development. 

Tip #2: Upward feedback also provides a goldmine of information for company leaders.

Tip #3: Send out regular pulse surveys and employee engagement surveys to take the temperature of your team. 

Most importantly? Don't forget to act on the data!

👨‍🏫 3 Best change management models 

These popular change management initiatives will ensure your transitions give you the greatest chances of success.

Lewin's change model 

Lewin's model is one of the most cited models regarding change management. Psychologist Kurt Lewin first proposed it in the 1940s. The model outlines three steps for any change: unfreezing, changing, and refreezing. 

Unfreezing: This stage is all about creating the motivation for change. It's about challenging the status quo and getting people to let go of their current way of doing things. 

Changing: This is the stage where the actual change takes place. It's important to note that change doesn't happen overnight, and there will likely be some bumps along the way. 

Refreezing: The final stage is all about making the change permanent. This is where you solidify the new way of doing things and make sure it sticks. 

McKinsey 7-S 

The McKinsey 7-S model is a framework developed by business consultants Robert H. Waterman Jr. and Tom Peters in the 1980s. The model focuses on the idea that the seven internal elements of an organization must be perfectly aligned to be successful. These elements are: 

• Structure: The way the organization is set up. 
• Strategy: The overall plan for how the organization will achieve its goals. 
• Systems: The processes and procedures in place. 
• Skills: The capabilities of the people working within the organization (employee skills could include technical skills, green skills, soft skills, durable skills, etc.) 
• Style: The company culture and the way you do things.
• Staff: The people who work for the organization. 
• Shared company values: The core beliefs that guide the organization's actions. 

The 7-S model can help organizations ensure that all of these elements are aligned and working together towards a common goal.

Bridge's transition model

William Bridges, a leading expert on change management, developed the Bridge's transition model. It includes three main stages: ending, neutral zone, and beginning. 

• Ending: The first stage is all about coming to terms with the fact that change is happening, which is often the most challenging stage, as it can be complex to let go of the past. 
• Neutral zone: The second stage covers the transition period, where people are adjusting to the new way of doing things and figuring out how they fit into the new organization. 
• Beginning: The final stage focuses on starting fresh, where people are fully onboard with the new way of doing things and are ready to embrace the future. 

A change management model can help you more effectively manage change within your organization. By understanding the different stages of change, you can better prepare for and navigate through times of transition. 

👩‍🏫 3 Best change leadership models

Need a change leadership model instead? One of these could be the structure you seek. 

The Bacharach approach 

Sociologist Paul C. Bacharach developed the Bacharach approach. It consists of four steps: diagnosis, feedback, planning, and action. 

• Diagnosis: identify the problem you need to address. 
• Feedback: gather feedback from all stakeholders involved. 
• Planning: develop a plan of action. 
• Action: implement the action plan and make the change happen. 

The Prosci ADKAR change model 

Prosci, a change management firm, developed the ADKAR model. The model stands for Awareness, Desire, Knowledge, Ability, and Reinforcement. 

• Awareness: create awareness of the need for change. 
• Desire: build a willingness to change. 
• Knowledge: provide the knowledge and skills needed to make the change. 
• Ability: help people develop the ability to make the change. 
• Reinforcement: reinforce the change to ensure that it sticks. 

Kotter's theory 

Kotter's theory of change, developed by Dr. John Kotter, is one of the most widely used change management models. The model consists of eight steps: 

1. Establish a sense of urgency. 
2. Create a guiding coalition.
3. Develop a vision and strategy. 
4. Communicate the change vision. 
5. Empower others to act.
6. Generate short-term wins. 
7. Consolidate gains and produce more change. 
8. Institutionalize new, proactive approaches.

➡️ Ensure successful change with Zavvy

Here at Zavvy, stagnation is our enemy! We're passionate about change and its incredible growth opportunities for companies and employees. That's why we've built solutions to help you deploy change smoothly and efficiently.

• 🌱 Growth plans: We strongly believe you can't grow your business without growing your people. Our employee development solutions make change easy by filling your organization with highly skilled and motivated contributors ready for any transformation.
• 🔄  360 feedback: Gain powerful insights from all your employees during times of transition. Our 360 feedback tool makes it easy to gather, collate and act upon valuable insights from your entire team. With all your team aboard, you'll pinpoint general concerns about your change initiatives and reflect on the best way to progress your business to the next level.
• 💪 Leadership development: Help your managers become fantastic change leaders by providing actionable guidance in the flow of work. From just-in-time guidance (where managers receive key information before an important meeting) to support for handling conflict and challenging situations, this tool will transform your managers into the leaders you always wished to have.

Learn more about our sophisticated suite of tools by signing up for a free demo today.

❓ FAQs

We get it – change management vs. change leadership can be challenging to get your head around. However, the answers to these top FAQs will ensure you're entirely up to speed! 

How does leadership affect change management? 

Leadership teams play a vital role in change management. Leaders are responsible for setting the direction and motivating others to follow. Your communication efforts should enable the entire organization to buy into the change vision and provide support throughout this iterative process. 

Why is leadership important during change? 

If you want to change things fast, it's tempting to cut some corners by not investing in your leadership. But trust us – this is a mistake! Leadership is essential during change because it provides direction, motivation, and support. Without it, change will be much slower, and people are more likely to resist – both could lead to a disruptive business environment. 

Why is change management so important for a leader?

Change management puts leaders firmly in the driving seat when it comes to change. It provides them with a framework and the tools they need to effectively lead their team through times of transition. Change management is essential for leaders because it helps to ensure that changes are successful and that people are on board with the new direction.