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What is organizational change?

Organizational change is a process that causes an organization to reach a new state from the current state. It can be caused by five factors, which are centralization and decentralization, formalization and informalization, specialization and generalization, degradation, and synergy. Organizational change is a multi-faceted and complex process. Change is typically more complex than it appears. There are new technologies and new ways of doing things around us. This forces organization to change.

The overall goal of organizational change is to reach a new state that improves organizational effectiveness and efficiency. This can be achieved in many ways. Organizational change can occur at two levels. It can occur at the level of individual processes or the level of the whole organization. The changes can be caused by one of the five factors mentioned earlier. Implementing a change within an organization is a very tough and complex process. Therefore, various models of change management have been developed to assist organizations in implementing the change.

Models of change management

Change management models are structured frameworks that define a step-by-step process for managing change. The following change management models are widely used to implement an organizational change within the organization.

Lewin’s change management model:

Lewin’s change management model is based on a three-stage process: unfreeze, change, and refreeze.

Stage 1: Unfreeze- In this stage, the change is identified and the organization is brought together to discuss this change. This may be the first time that many people in the organization have been exposed to the change idea.

Stage 2: Change- In this stage, the change is rolled out and the organization is given time to implement the change. The organization takes the action and implement the change.

Stage 3: Freeze- In this stage, staging the change is especially important when there are many different systems that are involved in implementing the change.

The McKinsey 7-S model:

The 7-S model is a framework for evaluating an organization’s staffing, structure, strategy, systems, skills, style, and shared values. It was developed in the 1960s by McKinsey & Company, a management consulting firm. The model is used to evaluate the organization within the context of the external environment. It is made up of seven factors. Although these seven categories are separate, they are not independent. For example, a company's strategy can be influenced by its skills and styles. These factors are;

1. Strategy
2. Structure
3. Systems
4. Staff
5. Style
6. Skills
7. Shared values

Kotter’s change management model:

Kotter’s change management model is a tool used to bring about change in a company. Kotter suggests that for change to occur, a sense of urgency must be created so that people are willing to change. This is done by focusing on why the change is needed, the potential consequences of not changing, and how the change will help the organization. It is an eight-phase model that shows how to go about implementing change in an organization. The model is broken down into eight phases:

1. Creating a sense of urgency
2. Building a change team
3. Developing a vision and strategy
4. Communicating the change
5. Identifying road-blocks and addressing anything hampering the process
6. Creating short-term wins
7. Keeping up the momentum throughout the process of implementation
8. Maintaining the change

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