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Change is expected in business. Markets shift, new technologies emerge and companies need to keep up. Unfortunately, it can also impact employees’ morale, performance and productivity. Managing change in the workplace effectively is essential so your business can continue to grow without impacting the foundations it has already laid down.

Since there is no one way to go about it, deciding how to manage change can be challenging. There isn’t a one-size-fits-all approach, and everything must be tailored around the business in question. This article will help you better understand the fundamentals of change management and some best practices you can use in your change management strategy.

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What is change management?

When change occurs in the workplace, it affects the ways employees do their jobs. Change management is the systematic approach to handling the transformation of a company’s policies, systems or goals. Leadership facilitates change management by formulating strategies that ensure a smooth transition. Effective change management strategies take a variety of aspects into consideration to optimize the impact of a change before it’s been implemented.

How does change in the workplace impact employees?

Change in the workplace can impact an employee’s performance and outlook on the company, so it’s important to understand the positive and negative outcomes that can occur. When handled poorly, changes implemented by a company may cause:

  • Communication breakdown: When a change is made without proper communication, employees may feel as if their input is irrelevant and become less likely to speak up in the future when it’s important.
  • Employee disengagement: When a business doesn’t properly assess how a change will affect its employees, they may feel management is being inconsiderate. Employees may become much less involved in company culture if they feel their well-being doesn’t matter.
  • Resistance to future changes: If changes have negatively affected an employee in the past, it may make them more hesitant to trust management. This can lead to negative behaviors and poor performance.
  • Lowered productivity: When there are major changes to tools or processes, it’s natural to see a temporary decline in productivity; however, if employees are not trained properly, they may feel overwhelmed and give up.

Change in the workplace won’t always lead to negative outcomes, and there are many benefits to change when it’s handled effectively:

  • Employee skill growth: If your office routine has become stale, staff may not have a chance to grow and develop. Change can provide the opportunity to nurture new skills and specialties that help your business.
  • Improvement of morale: Employees who see their company is ready to adapt to new circumstances may feel more confident about its future performance.
  • Opportunities for advancement: Your business may need to create new roles to facilitate changes in the workplace, which means more opportunities for employee advancement.
  • Cultural development: Good change management offers the chance for employees to speak up about their concerns regarding the status quo, which can facilitate cultural growth.

What are some types of change management?

Understanding what category the change you want to make fall into is essential to formulating a successful strategy. Most changes can be classified as one of the following:

  • Developmental changes: Changes that are aimed at improving what the business is currently doing. Making adjustments to existing skills, methods, metrics or conditions are all types of developmental changes.
  • Transformative changes: Plans to completely reshape the strategy, processes and culture of your business are considered making a transformative change. These are usually in response to an unpredicted or extreme shift in the market.
  • Transitional changes: Replacing leadership or the structure of management are transitional changes. A good example is the change that occurs during mergers or acquisitions.

10 best practices for managing change in the workplace

There are many effective strategies to choose from when it comes to workplace change management, and they all share common factors for success. Managing change in the workplace can be a daunting process for any company, but by implementing these practices, you’ll create an effective strategy that brings your goals to fruition:

  1. Clarify your goal: Evaluate how your company is performing and what improvements need to be made for future success. Envisioning a clear picture of your goals is an essential step before creating an action plan.
  2. Define the change: Once you know what needs to change, try to categorize it. Changes can be defined by what aspect of your business they’ll impact, such as organizational, procedural or cultural changes. Refine the language that you use to describe the change you want so it can be clearly conveyed to others.
  3. Assess potential challenges: Any significant changes in the workplace will have their own set of challenges. Sit down with departmental experts and stakeholders to discuss how your plans may impact their team.
  4. Create a roadmap: Before implementing any changes, it’s essential to create a plan that navigates pain points which may occur. Though creating an action plan can be daunting, you don’t need to reinvent the wheel. Consider pre-established models, such as Lewin’s Change Management Model or Kotter’s 8-Step Process for Leading Change.
  5. Establish measurable goals: Unless measurable goals are established, there is no objective way to monitor progress. Organize your action plan into smaller, more manageable goals, and then consider what metrics you’ll use to measure them.
  6. Listen to feedback: Create focus groups and ask for honest feedback. Identify key players who have the respect of their coworkers and can articulate concerns from an employee’s perspective.
  7. Invest in training: Providing effective training for your employees may help reduce the fear and negativity associated with change. Training your managers can give them the tools they need to confidently support teams through the adjustment period.
  8. Foster transparency: Openly providing information and updates about your plan helps create a feeling of certainty within the workplace. Employees are likely to perform better if they have a clear understanding of what’s going on and why it’s happening.
  9. Demonstrate patience: It’s important to keep a calm and confident demeanor during a challenging adjustment period. If a worst-case scenario does occur, remember that no one works well in a panic. React with a cool head and your employees will likely do the same.
  10. Reward good performance: Rewarding employees who perform well during transitional periods can incentivize others to do the same. One option may be to offer performance-based bonuses to employees who eagerly embrace the changes you’ve made.

FAQs about managing change in the workplace

Why is change in the workplace important?

A company needs to change to stay relevant to its customers and employees. Change encourages innovation, skill development and overall growth of a company. By implementing changes, your organization has the chance to gain a competitive edge within the market. Witnessing the company’s commitment to the future may also improve staff morale.

Why is change so hard in the workplace?

Change opens the door for opportunity, but doesn’t guarantee a good outcome. Employees tend to resist change because they may feel they won’t be able to adapt or they’ll lose their relevance within the company. When change implementation goes wrong, it’s often because of a lack of consideration for how the change impacts the company as a whole. Offering transparency, good communication and support at all levels can make for smoother transitions and happier employees.

What is a change management model?

Change management models provide in-depth concepts, theories, methodologies and approaches to organizational change. They help navigate the transformation process by providing a framework for change management strategy. Although there’s no right or wrong way to implement change, established change management models have been proven effective for many companies. Some popular change management models include the Lewin’s change management model and the ADKAR model.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.