The Four Models You Need For Change Management
August 1st, 2019 (Updated 03/23/2021) | 5 min. read
By Duncan Hendy
Change is a challenge within any business. It brings up a plethora of navigational issues whether they be from your team, from new systems lacking critical elements or strongly embedded processes that are hard to shift away from.
As a manager, it can be easier to avoid innovation and instead continue to use systems that are tried and tested, despite how out of date they may be.
But you needn’t be so quick to despair or to feel forced to choose the ‘safe’ option, there are methods which you can utilize in order to create a smooth transition process and make change work best for you and your business for a more profitable future.
Change management is the process where a business implements an organizational change as well as the management of it. It is an ongoing and evolving process which affects various elements of the business from the employee’s emotions to the processes you maintain.
In this article, we will cover four of the key change management models and how these relate to you so that you can most effectively manage your transition to our bespoke pricing solution platform and overcome any and all resistance to change.
Kotter’s Theory – A Top-down Point of View
Kotter’s theory focuses primarily on the people behind the change in order to seamlessly adapt your business to the changes you make through a sense of urgency.
The key steps within Kotter’s theory are creating a sense of urgency, following through with that by getting everyone on board with short-term quick wins and utilizing that momentum to solidify the changes permanently within the foundations of the business. Our software–as–a–service solutions allow for flexibility in the form of customizable software that is bespoke to the needs of your business. Something which will allow your team to get those early short-term wins with software that they can rely on.
Kotter’s theory relies heavily on maintaining a strategic vision in which the whole team is completely clear on the changes and why they must be made. Thus, requiring a significant amount of effort on the managers’ part in order to ensure that the transition moves smoothly.
The ADKAR model – A Bottom–up Method
The ADKAR model, created by Jeffery Hiatt, similarly, focuses on the team behind the change but rather than following unique steps, sets five key goals for your business to achieve throughout the transition.
These goals make up the acronym by which this method names itself. Awareness, Desire, Knowledge, Ability and Reinforcement.
While these goals can be taken on in order, many of these are likely to happen at similar stages. Throughout your transition to Pricefx, our in–house project leaders are on hand to ensure that your team is fully informed and trained to use our systems.
By offering clean and visual data, custom made for your needs, our software allows you to track your pricing strategies and adjust where necessary in order to reach your business’ revenue goals.
Deming Cycle (PDCA) – Four Steps to Success
Deming Cycle, also known as Plan-Do-Check-Act, cycle is a bottom–up method which is especially effective with change in individual departments.
The four phases of the Deming Cycle focus on perfecting processes involved in the change. ‘Plan’ allows you to identify inefficiencies and explore more suitable software solutions. ‘Do’ requires implementations of the changes on a small scale, promoting a less risky transition.
This is a perfect time to utilize Pricefx’s scalable solutions in which our software develops alongside your business as and when you need it to. Through this stage, you can create a more bespoke solution for your business.
‘Check’ is where your business analyses the results and compares the new solution to the old. This stage encourages you to weigh up the benefits against the drawbacks and leads you into the final stage.
Now, it’s time to act – you have tested the solution and compared it to your old processes. If you decide that Pricefx is the solution for your business, our team will be by your side to complete your transition to our software and begin a long and beneficial relationship.
Bridges Transition Model – Your Employees’ Reaction
The Bridges Transition Model specifically focuses on your employees themselves and how they react to the changes made. It specializes in dealing with the transition as opposed to the implementation of change. Typically, the Bridge’s model is best used alongside other change management models in order to achieve the best results.
Three stages make up the Bridge’s model –
- Ending, Losing and Letting Go
- The Neutral Zone
- The New Beginning
Each of these marks a key stage in your employees’ journeys through change and details how to manage them.
The first stage revolves around the initial reaction of your employees and the varied fears they may have around change such as whether or not they will be able to adapt to the new system or the overall effect the change will have on your business.
The best way to manage this stage is to communicate with your employees and keep them well informed of the why.
The second stage forms a middle ground, which should consist of regular motivation and reinforcement.
Finally, your employees should be on board with the change and ready to move into the new future of your business. Here, it is important to acknowledge the employees who had a positive effect on the change.