What is corporate social responsibility (CSR)?

Corporate social responsibility (CSR for short) is the internationally regarded concept for responsible
corporate behavior – although it is not clearly defined. In a nutshell, CSR refers to the moral and ethical
obligations of a company with regards to their employees, the environment, their competitors, the
economy and a number of other areas of life that its business affects.

Contents

Developed and detailed definition of corporate social responsibility

The three core focuses of corporate social responsibility

Examples of positive implementation of corporate social responsibility

CSR is often understood as a voluntary commitment to certain company rules i.e. beyond state laws and
standards. This means that companies that operate responsibly and morally can often use their CSR for
PR purposes as well. If it becomes known that a company voluntarily commits itself to a good cause, this
improves their public image.

For this reason, however, the concept of corporate social responsibility is repeatedly criticized: many
companies do not embrace CSR as a result of genuine altruism, but rather to develop their own image.
In this article we explain in detail what CSR is, how it has developed, and how CSR is borne out in some
companies today.

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Definition: Corporate social responsibility

Corporate social responsibility (CSR) refers to the self-imposed responsibility of companies to society in
areas such as the environment, the economy, employee well-being, and competition ethics. Many
companies use internal CSR regulation as a form of moral compass to positively influence the ethical
development of their business. Positive corporate social responsibility can also offer economic benefits.

Developed and detailed definition of corporate social responsibility

The concept of companies acting responsibly is not new, but through the term “corporate social
responsibility” (CSR) it has taken on a modern meaning. Even centuries ago people were occupied with
the question of whether the economic activity of a business should be used for good rather than to
simply make a profit. In the middle ages there was a concept of the “honest merchant” who would
operate according to a code of values and thereby influence other traders to bring benefits to society as
a whole by complying with certain rules of conduct.

For bigger companies, corporate responsibility won a greater meaning during industrialization, as firms
would build housing for their employees and harsh working conditions prompted a growth of the issue
in the collective consciousness. Companies slowly began to accept social responsibility for their

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employees and their families, although when decisive improvements were made it has only as a result of
nationwide implementation and state legislation. An environmental ethic simply did not exist in most
companies at that time.

The modern concept of company responsibility as we know it today arose in the 1950s in the US. At that
time, many public discussions were being held on the topic and the first scientific findings were being
published. Howard R. Bowen in his article “Social Responsibilities of the Businessman” described
corporate responsibility as the logical consequence of the social accountability of individuals within the
company. Thereby, it would have to orient itself according to these rules and thereafter enforce them.
At the time, most companies did not feel obliged to work towards a more moral business focus: the
defining outlook was that economic growth remained the determiner of everyday working life.

From the 1970s, socially active institutions that could have a positive influence on the moral outlook of
society were increasingly recognized by companies. Society and business were in constant interaction
and it was believed that through this there could be a consolidation of social norms within the capitalist
economy. Corporate social responsibility existed before the century’s end, although perhaps more so as
a hopeful ideal than as a behavior-changing act.

In recent years, with the growing focus on environmentalism and questions of ethics within a globalized
world, CSR has begun to take on a stronger meaning. The rising importance of the internet meant that
companies who behaved irresponsibly were quickly derided and suffered a serious blow to their public
image when operational scandals, abuses, and grievances were publicized on social networks. From this,
corporate social responsibility developed from an ideal to an important field of work for many
companies.

Corporate social responsibility (CSR) and "corporate citizenship" are also often used synonymously. The
confusion of terms shows, on the one hand, that CSR is a broad field and covers many sub-areas, while
on the other hand, that the term itself is misleading. This is because "responsibility" implies an
externally imposed principle and emphasizes the less voluntary nature of CSR.

These days, large companies cannot afford to not take CSR seriously. Some employ CSR specialists who
help to not only formulate the companies’ moral code but also to monitor its implementation. This can
often have added economic benefit if the positive corporate social responsibility can be used for
marketing and PR use; everyone involved benefits from well-implemented CSR.

Companies are sometimes accused of driving their CSR efforts in the hope of having a positive
advertising effect and increasing profits, and not for moral motives. Critics therefore simply equate CSR
with marketing. On the other hand, there is also a widespread opinion that the intention behind
corporate social responsibility is not so important, as long as it is ultimately benefitting people.

The three core focuses of corporate social responsibility

Corporate social responsibility is a somewhat unclear concept, and consequently there are several ways
of understanding the underlying concept. A relatively popular model is the responsibility model mapped

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out by Stefanie Hiss. She separates CSR into three core areas, which are each named according to the
nature of their work:

The internal area of responsibility encompasses all internal strategies and processes that do not reach
the public but which are essential for the ethical orientation of the company.

The middle area of responsibility includes all of the fields that are publicly effective and have a direct
effect on the environment and society, but which are still a normal part of the working process.

The external area of responsibility is for all activities that require action; for instance, if a company
becomes charitably active (mostly financially) and interrupts or adapts its daily work processes.

The three areas of corporate social responsibility

Corporate social responsibility can be broken into three main areas according to Hiss.

Internal responsibility

The internal area of responsibility includes all internal processes that affect the corporate strategy itself.
The internal area of responsibility is usually the responsibility of company executives and influences
important decisions, e.g. which business partners are acquired, one's own responsibility to the market
with regard to monopolies, fair and realistic growth planning, and healthy profitability.

In the ideal case, the moral compass of the company plays an important role in decision-making,
however, it is usually difficult to judge from the outside to what extent a company takes its internal area
of responsibility seriously. CSR management that is visible to the outside world is at least an indication
that the internal strategy also takes moral principles into account.

Middle area of responsibility

The middle area of responsibility includes all those actions of a company whose effects on the
environment and society can be measured more or less directly. This includes CO2 emissions and air
pollution as well as working conditions for employees. This also includes responsible supply chain
management, because cooperation with morally questionable companies ultimately supports their
corporate policy.

Corporate social responsibility (CSR) in the middle area of responsibility is the most difficult to
coordinate for many large corporations, but has gained considerable importance – precisely because it is
in this area that the most damage can occur. This applies not only to the environment and society, but
also to a company’s own employees, stakeholders, and reputation.

Stakeholders: Stefanie Hiss suggests that the middle area of responsibility mainly refers to stakeholders.
Generally speaking, stakeholders are people who have an increased interest in processes, working

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conditions and, in most cases, the success of the company. The following groups of people form
important stakeholders:

Employees

Companies have a duty to their employees to ensure a pleasant working environment and, in addition,
to make information sufficiently transparent in terms of career opportunities and hierarchies. This also
includes the issue of fair payment and profit sharing as well as the limitation of the term of contracts.

Another fundamental element for healthy CSR in this area is the constructive interaction with trade
unions when they operate within the company. In extreme cases, there can be strikes if companies do
not take their social responsibility towards their employees seriously. Unacceptable working conditions
sometimes even call human rights organizations or state institutions into question. Frequently
employees will make these grievances public, meaning that the news can spread like wildfire across
social media and cause considerable image damage.

Equity and debt capital providers

Investors have a clear interest not only in the success of the company, but also in fair cooperation.
Above all, listed companies are threatened with considerable damage if their dealings with business
partners and investors are morally questionable or dishonest.

Clients

Companies that supply products should not deceive their customers. Especially in the case of consumer
goods such as food, a company has the responsibility to correctly inform the customer about the
preparation and composition of the product. Knowing the origin of the product and the raw materials
used is also important to many customers. If a company presents itself to the outside world as
environmentally friendly, but uses eggs from caged production or components from environmentally
harmful production plants in the manufacturing of a product, this can lead to the loss of a considerable
customer base.

For many companies, the customer is by far the most important stakeholder. If a company does not take
its social responsibility towards its customers seriously, this is often due to poor CSR management (if
any)

Local residents

Companies located in cities or at least in the immediate vicinity of settlements also have a responsibility
towards local residents. The operation should not have a negative impact on the quality of life of the
residents. This applies, for example, to noise and environmental pollution. In many countries, people
still suffer from the harsh living conditions as large factories ignore their social responsibility.

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In the worst case, companies cause drinking water pollution, unacceptable noise, air pollution, and
damage to the surrounding flora and fauna. If such injustices are made public, the company is
threatened not only with damage to its image, but also problems with the law and environmental
protection organizations.

Governmental agencies

Companies must comply with the laws of the countries they operate within. This also includes smooth
and honest cooperation with government organizations such as, for example, health and safety
departments and health offices. In production facilities, the quality standards and regulations specified
by the legislator must be observed through regular checks and surveys.

Media

The responsibility of the "fourth estate" includes the most complete possible reporting of grievances in
companies. The relationship between journalists and business is therefore often two-sided: on the one
hand, a company wants to present itself as well as possible, so that the media can help cultivate a
positive image of them through their reporting. On the other hand, companies that do not live up to
their corporate responsibilities can quickly suffer damage to their image if journalists speak out about it.
Media representatives are therefore not welcome on some company premises.

Since corporate social responsibility is not subject to state control, the media often feels obliged to
inform the public about corporate misconduct. Good CSR management in principle involves an open and
honest dialogue with the media. However, journalists will rarely report on the positive performance of
companies and instead focus on incidents of misconduct simply because negative press sells better.

External area of responsibility

As part of their corporate social responsibility, many companies not only concentrate on internal
processes, but also assume social responsibility outside their own operations. The external area of
responsibility is often equated with the term "corporate citizenship", and these are some examples of
what it constitutes:

Contributions

Corporate giving is the most popular means of actively living corporate responsibility. Frequently,
however, these donations are also linked to the sale of goods and are thus intended to promote higher
sales figures: for example, by promising to donate part of the profit per product sold to a good cause.
Many companies also participate in events such as marathons and fundraisers, where employees can
participate. Of course, all this brings good publicity to the companies, but it does not diminish the
general benefit of these actions. Such charity events are ultimately profitable for all concerned.

SponsoringCompanies often also fulfil their social responsibility by sponsoring special initiatives or
supporting associations that pursue charitable goals. In return, the companies are positively mentioned

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by these institutions and benefit from being associated with them. Often, this helps companies improve
their reputation with local residents – for example, by sponsoring city projects and regional events.

Social activities

Companies are often willing to give employees time off if they want to carry out social activities.
Alternatively, paid time for charitable work is regulated in employment contracts: for example, where
employees are granted half a working day per quarter for these activities. Many companies are
therefore prepared to support and even reward the social contributions of their employees by recording
these activities as working time.

Examples of positive implementation of corporate social responsibility

When companies establish foundations, promote social projects, and participate in fundraising galas,
CSR is seen. However, CSR must also be assessed in relation to the size and scope of a company.
Companies that operate globally but have their headquarters in a rich country should also extend social
engagement to the poorer countries where they produce their products.

The ways in which CSR can be fulfilled are multifaceted: a small local company, for example, already acts
in a socially responsible manner when it is involved in a particular project; a small financial injection for
the local city park can mean that CSR has been positively implemented just as successfully as the
company offering assistance in the event of a natural disaster. Below you will find examples of some
companies that have excelled in the field of corporate social responsibility.

Ben & Jerry’s

Ben & Jerry’s are known the world over for their iconic labelling and wacky – but delicious – ice cream
flavors. Since their humble beginnings in 1977, Ben and Jerry have always done things their own way
and maintained a strong sense of economic and social duty in the way they handle their business.

Ben & Jerry’s corporate social responsibility spans all areas of their business. They are committed to
using only Fairtrade, non-GMO ingredients in their produce, and support sustainable agricultural
practices and ethical treatment of their dairy cows. They have vowed to operate the company in a
manner than ensures only sustainable growth is achieved and that it is the development of their
employees which is put first. Their social missions are where they have been most visible, however,
having supported a number of causes at a local, national, and international level. These include:

1% for Peace was established in 1988 to promote peace activities and projects across the world

Drilling Is Not The Answer: a 2005 protest against oil drilling in the Arctic National Wildlife Refuge

Cool Your Jets: an initiative for people around the world to help offset their car emissions from air travel

The 2011 Occupy movement was staunchly supported by the company

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The Ben & Jerry’s Foundation awards more than $1.8 million per year to initiatives across the US
targeting sustainability and community action

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IKEA

IKEA is one of the world’s largest home furniture companies and it has taken up the mantle of helping
combat global poverty and living conditions in a number of extraordinary ways. As part of their “people
and planet positive” mantra they are seeking to celebrate sustainable living in all its guises; from the
materials we use to how we source our energy.

The IKEA Foundation was set up to oversee the company’s international corporate social responsibility
initiatives. Since 2003, it has donated €1 to Save the Children for every soft toy that they have sold, with
over 104 million Euros (as of 2014) being committed to help campaigns in India, Sri Lanka and Sudan, to
name a few. In recent years, IKEA has supported Brighter Lives for Refugees in association with the
United Nations Refugee Agency, helping bring light and renewable energy to refugee camps across Asia,
Africa and the Middle East.

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Bosch

The electronics manufacturer runs several charitable foundations. The best-known of these is the Robert
Bosch Stiftung, which is active in the fields of health, science, society, education, and international
education. Robert Bosch Stiftung concentrates on supporting charitable projects, but also develops its
own initiatives.

Bosch also operates foundations across the world that aim to improve the quality of life of the people
living in the immediate vicinity of its production facilities. The Bosch India Foundation works to improve
medical care in the poorest regions of India – especially for sick children and pregnant women. The
Instituto Robert Bosch in Brazil operates several educational institutions as well as being involved in the
fight against poverty and drug abuse. Bosch also operates several foundations for its numerous
production facilities in China with the aim of reducing poverty and creating better educational
opportunities. For example, Bosch supports first-year students by paying their university fees for the
first semester. In addition to its local foundations, Bosch also maintains a number of foundations that
are dedicated internationally to the areas of refugee aid and disaster control.

What is Corporate Social Responsibility (CSR)?

Definition: Corporate Social Responsibility (also known as CSR, corporate conscience, and corporate
citizenship) is the integration of socially beneficial programs and practices into a corporation's business
model and culture. CSR aims to increase long-term profits for online and offline businesses by enabling
them to become more efficient and attract positive attention for their efforts.

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What Benefits Does CSR Offer to Businesses?

Both ecommerce and brick-and-mortar businesses stand to benefit from the implementation of CSR
strategies. Some activities that fall under the umbrella of CSR, with their corresponding benefits,
include:

Prevent financial ramifications: Compliance with the spirit and letter of the law — both nationally and
internationally — through self-regulatory processes will prevent fines, put your business "low on
regulators' radar screens," and lower legal expenses.

Increase employee loyalty: Treating your employees fairly and generously is a part of corporate social
responsibility. By providing good jobs and encouraging high professional and moral standards, you
increase employee loyalty, and by procuring only those overseas products produced at factories where
workers were treated ethically, you gain support among "Fair Trade" advocates.

Maintain a positive reputation: Demonstrated consciousness in a variety of areas can garner publicity
and give a business tangible proof of their conduct, which can be proudly displayed on a company
website. These include:

Environmental consciousness: Reducing waste, recycling, minimizing carbon footprint, and other best
practices can . Using or producing only sustainable products, lowering energy usage, and supporting
environmental causes will boost a business's "green reputation" among environmentally concerned
clients.

Social Concern: Donating to humanitarian causes that fight persistent poverty, help the victims of
epidemics like AIDS or Ebola, or assist those displaced by hurricanes or earthquakes shows concern for
issues that consumers are more and more aware of in our modern, interconnected world.

Local Community: Involvement in local community projects, either through financial donations,
employee participation, connecting your customers with project leaders, or promotion of the project
through advertising and fundraising enhances your CSR credentials with clients in the given location.

4 corporate responsibility types your business can practice

Recognizing how important socially responsible efforts are to their customers, employees and
stakeholders, many companies now focus on a few broad CSR categories:

Environmental efforts: One primary focus of corporate social responsibility is the environment.
Businesses, regardless of size, have large carbon footprints. Any steps they can take to reduce those
footprints are considered good for both the company and society.

Philanthropy: Businesses can practice social responsibility by donating money, products or services to
social causes and nonprofits. Larger companies tend to have a lot of resources that can benefit charities
and local community programs. It is best to consult with these organizations about their specific needs
before donating.

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Ethical labor practices: By treating employees fairly and ethically, companies can demonstrate their
social responsibility. This is especially true of businesses that operate in international locations with
labor laws that differ from those in the United States.

Volunteering: Attending volunteer events says a lot about a company's sincerity. By doing good deeds
without expecting anything in return, companies can express their concern for specific issues and
commitment to certain organizations.

::::::::::::::

Change Management

There are many different types of change and different approaches to managing

change. Finding an approach that suits you and your situation goes to the heart of

being an effective and professional manager in the education sector (HEFCE, 2003).

However, whilst recognising each change situation will be unique, there are still a

number of common themes that will help ensure that the change process stands

the greatest chance of success.

Change process

Change usually involves three overlapping aspects: people, processes and culture

Often, the emphasis is upon the processes. However, in order to properly embed a

change, a manager needs to balance all three of these aspects.

CULTURE

PEOPLE PROCESS

Why are change management skills so

important at MMU?

Organisations undergo major change approximately once every three years, whilst

smaller changes are occurring almost continually (CIPD, 2007). In this context,

managers have to be able to introduce and manage the change to ensure that

the overall objectives of this change are met, while ensuring that they support

their team through the change process, both during and after implementation.

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Generally, at the same time, they also have to ensure that business continues as

usual.

Particularly given the scale of MMU’s Change Agenda, having effective change

managers across the University is crucial. Managing the impact of wider

changes while also ensuring that local changes are introduced is one of the major

challenges for us as managers.

Key considerations for managing change

As a manager looking to bring about a change, the following are

key areas to think about:

What is the nature and the scope of the change?

This is the first thing to think about because it influences all your subsequent

actions. Who is the change going to impact? How are you going to keep people

informed, get their feedback and get a meaningful plan for the change?

What are the priorities for action in your environment?

Managing change involves a lot of different activities: once the options have been

considered some difficult choices need to be made about what to focus on in your

particular area/department. This applies whether this is a change imposed from

elsewhere or a change that you are introducing. What needs to be worked on first?

What must be put in place as soon as possible?

What is the nature of your team/department/other areas impacted by

the change?

It is crucial to understand how ready your team/department is to engage with

the change. If you manage change in a way that is not congruent with your

environment it will at best produce more conflict than necessary and at worse not

produce the results that you want.

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Do a systematic analysis of the factors that will support progress and those that

might hinder it. This enables you to draw up a sensible action plan based on the

real environment in which you work.

Working with people

This is the most challenging part of managing change. You need to consider how

to support people through the changes they are facing, how to empower them,

when to apply pressure and when not to. The considerations below should help

you to think this through.

How do I manage people through times of change?

HEFCE (2003) suggest that, when leaders or managers are planning to manage

change, the following key principles should be kept in mind:

1. Different people react differently to change

2. Everyone has fundamental needs that have to be met

3. Change often involves a loss, and people go through the “loss curve”

4. Expectations need to be managed realistically

5. Fears have to be dealt with

6. There are no easy solutions

7. Adapt processes to suit the change intended

8. Change requires teamwork and leadership (and the two are related)

9. Work with the culture (even when you want to change it)

10.Communicate, communicate, communicate

Change and Transition

People react to change in different ways, in what has been described by Bridges

(1991) as transitioning. Bridges explains this as follows:

“Change is not the same as transition. Change is situational: the new

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site, the new structure, the new team, the new role, the new procedure.

Transition is the psychological process people go through to come to terms

with the new situation. Remember that change is external and transition

is internal.”

William Bridges (1991)

Bridges says that transitions can be described in three stages:

The ending

• When we acknowledge that there are things we need to let go of

• When we recognise that we have lost something

• Example: changing your job. Even when it is your choice, there are still some

losses such as losing close working friends

Unless people can make a real ending, they will be unable to make a successful

beginning.

The neutral zone

• When the old way has finished but the new way isn’t here yet

• When everything is in flux and it feels like no one knows what they should be

doing

• When things are confusing and disorderly

• Example: moving house. The first few days or even months after moving the

new house is not home yet and things are quite probably in turmoil

The beginning

• When the new way feels comfortable, right and the only way

• Example: having a baby. After a few months in the neutral zone of turmoil, you

come to a stage when you cannot imagine life without your new baby

People transition through change at different speeds and are impacted by the same

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change in different ways. As a manager, understanding how your team members

react to change and planning how you will manage this will give any changes you

are introducing the best chance of success.

Managing others through change

Managers’ self assessment questionnaire

This self assessment has been designed to help you to reflect on how you

manage change. Consider your current stage of development and any further

actions required. The tools and resources outlined at page 9 may be useful when

considering your actions.

Sharing information True/false Gap or action required

I recognise the importance of sharing information and

keeping my staff up to date about changes

I ask good questions and make sure that I have the

information I need

I take a planned approach to sharing information

I understand the importance of keeping staff updated

throughout the change (even if this is to let them know

that there has been no movement)

Influencing others True/false Gap or action required

I inspire confidence in others

I am articulate when talking to colleagues

I am sensitive to and aware of my colleagues’ needs

::::::

10 Principles of Change Management

Tools and techniques to help companies transform quickly.

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This classic guide to organizational change management best practices has been updated for the current
business environment. To read the newest article, click here. Or, to watch a related video, click on the
play button above.

Way back when (pick your date), senior executives in large companies had a simple goal for themselves
and their organizations: stability. Shareholders wanted little more than predictable earnings growth.
Because so many markets were either closed or undeveloped, leaders could deliver on those
expectations through annual exercises that offered only modest modifications to the strategic plan.
Prices stayed in check; people stayed in their jobs; life was good.

Market transparency, labor mobility, global capital flows, and instantaneous communications have
blown that comfortable scenario to smithereens. In most industries — and in almost all companies, from
giants on down — heightened global competition has concentrated management’s collective mind on
something that, in the past, it happily avoided: change. Successful companies, as Harvard Business
School professor Rosabeth Moss Kanter told s+b in 1999, develop “a culture that just keeps moving all
the time.”

This presents most senior executives with an unfamiliar challenge. In major transformations of large
enterprises, they and their advisors conventionally focus their attention on devising the best strategic
and tactical plans. But to succeed, they also must have an intimate understanding of the human side of
change management — the alignment of the company’s culture, values, people, and behaviors — to
encourage the desired results. Plans themselves do not capture value; value is realized only through the
sustained, collective actions of the thousands — perhaps the tens of thousands — of employees who are
responsible for designing, executing, and living with the changed environment.

Long-term structural transformation has four characteristics: scale (the change affects all or most of the
organization), magnitude (it involves significant alterations of the status quo), duration (it lasts for
months, if not years), and strategic importance. Yet companies will reap the rewards only when change
occurs at the level of the individual employee.

Many senior executives know this and worry about it. When asked what keeps them up at night, CEOs
involved in transformation often say they are concerned about how the work force will react, how they
can get their team to work together, and how they will be able to lead their people. They also worry
about retaining their company’s unique values and sense of identity and about creating a culture of
commitment and performance. Leadership teams that fail to plan for the human side of change often
find themselves wondering why their best-laid plans have gone awry.

No single methodology fits every company, but there is a set of practices, tools, and techniques that can
be adapted to a variety of situations. What follows is a “Top 10” list of guiding principles for change
management. Using these as a systematic, comprehensive framework, executives can understand what
to expect, how to manage their own personal change, and how to engage the entire organization in the
process.

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1. Address the “human side” systematically. Any significant transformation creates “people issues.” New
leaders will be asked to step up, jobs will be changed, new skills and capabilities must be developed, and
employees will be uncertain and resistant. Dealing with these issues on a reactive, case-by-case basis
puts speed, morale, and results at risk. A formal approach for managing change — beginning with the
leadership team and then engaging key stakeholders and leaders — should be developed early, and
adapted often as change moves through the organization. This demands as much data collection and
analysis, planning, and implementation discipline as does a redesign of strategy, systems, or processes.
The change-management approach should be fully integrated into program design and decision making,
both informing and enabling strategic direction. It should be based on a realistic assessment of the
organization’s history, readiness, and capacity to change.

2. Start at the top. Because change is inherently unsettling for people at all levels of an organization,
when it is on the horizon, all eyes will turn to the CEO and the leadership team for strength, support,
and direction. The leaders themselves must embrace the new approaches first, both to challenge and to
motivate the rest of the institution. They must speak with one voice and model the desired behaviors.
The executive team also needs to understand that, although its public face may be one of unity, it, too,
is composed of individuals who are going through stressful times and need to be supported.

Executive teams that work well together are best positioned for success. They are aligned and
committed to the direction of change, understand the culture and behaviors the changes intend to
introduce, and can model those changes themselves. At one large transportation company, the senior
team rolled out an initiative to improve the efficiency and performance of its corporate and field staff
before addressing change issues at the officer level. The initiative realized initial cost savings but stalled
as employees began to question the leadership team’s vision and commitment. Only after the
leadership team went through the process of aligning and committing to the change initiative was the
work force able to deliver downstream results.

3. Involve every layer. As transformation programs progress from defining strategy and setting targets to
design and implementation, they affect different levels of the organization. Change efforts must include
plans for identifying leaders throughout the company and pushing responsibility for design and
implementation down, so that change “cascades” through the organization. At each layer of the
organization, the leaders who are identified and trained must be aligned to the company’s vision,
equipped to execute their specific mission, and motivated to make change happen.

A major multiline insurer with consistently flat earnings decided to change performance and behavior in
preparation for going public. The company followed this “cascading leadership” methodology, training
and supporting teams at each stage. First, 10 officers set the strategy, vision, and targets. Next, more
than 60 senior executives and managers designed the core of the change initiative. Then 500 leaders
from the field drove implementation. The structure remained in place throughout the change program,
which doubled the company’s earnings far ahead of schedule. This approach is also a superb way for a
company to identify its next generation of leadership.

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4. Make the formal case. Individuals are inherently rational and will question to what extent change is
needed, whether the company is headed in the right direction, and whether they want to commit
personally to making change happen. They will look to the leadership for answers. The articulation of a
formal case for change and the creation of a written vision statement are invaluable opportunities to
create or compel leadership-team alignment.

Three steps should be followed in developing the case: First, confront reality and articulate a convincing
need for change. Second, demonstrate faith that the company has a viable future and the leadership to
get there. Finally, provide a road map to guide behavior and decision making. Leaders must then
customize this message for various internal audiences, describing the pending change in terms that
matter to the individuals.

A consumer packaged-goods company experiencing years of steadily declining earnings determined that
it needed to significantly restructure its operations — instituting, among other things, a 30 percent work
force reduction — to remain competitive. In a series of offsite meetings, the executive team built a
brutally honest business case that downsizing was the only way to keep the business viable, and drew
on the company’s proud heritage to craft a compelling vision to lead the company forward. By
confronting reality and helping employees understand the necessity for change, leaders were able to
motivate the organization to follow the new direction in the midst of the largest downsizing in the
company’s history. Instead of being shell-shocked and demoralized, those who stayed felt a renewed
resolve to help the enterprise advance.

5. Create ownership. Leaders of large change programs must overperform during the transformation
and be the zealots who create a critical mass among the work force in favor of change. This requires
more than mere buy-in or passive agreement that the direction of change is acceptable. It demands
ownership by leaders willing to accept responsibility for making change happen in all of the areas they
influence or control. Ownership is often best created by involving people in identifying problems and
crafting solutions. It is reinforced by incentives and rewards. These can be tangible (for example,
financial compensation) or psychological (for example, camaraderie and a sense of shared destiny).

At a large health-care organization that was moving to a shared-services model for administrative
support, the first department to create detailed designs for the new organization was human resources.
Its personnel worked with advisors in cross-functional teams for more than six months. But as the
designs were being finalized, top departmental executives began to resist the move to implementation.
While agreeing that the work was top-notch, the executives realized they hadn’t invested enough
individual time in the design process to feel the ownership required to begin implementation. On the
basis of their feedback, the process was modified to include a “deep dive.” The departmental executives
worked with the design teams to learn more, and get further exposure to changes that would occur.
This was the turning point; the transition then happened quickly. It also created a forum for top
executives to work as a team, creating a sense of alignment and unity that the group hadn’t felt before.

6. Communicate the message. Too often, change leaders make the mistake of believing that others
understand the issues, feel the need to change, and see the new direction as clearly as they do. The best

16
change programs reinforce core messages through regular, timely advice that is both inspirational and
practicable. Communications flow in from the bottom and out from the top, and are targeted to provide
employees the right information at the right time and to solicit their input and feedback. Often this will
require overcommunication through multiple, redundant channels.

In the late 1990s, the commissioner of the Internal Revenue Service, Charles O. Rossotti, had a vision:
The IRS could treat taxpayers as customers and turn a feared bureaucracy into a world-class service
organization. Getting more than 100,000 employees to think and act differently required more than just
systems redesign and process change. IRS leadership designed and executed an ambitious
communications program including daily voice mails from the commissioner and his top staff, training
sessions, videotapes, newsletters, and town hall meetings that continued through the transformation.
Timely, constant, practical communication was at the heart of the program, which brought the IRS’s
customer ratings from the lowest in various surveys to its current ranking above the likes of McDonald’s
and most airlines.

7. Assess the cultural landscape. Successful change programs pick up speed and intensity as they
cascade down, making it critically important that leaders understand and account for culture and
behaviors at each level of the organization. Companies often make the mistake of assessing culture
either too late or not at all. Thorough cultural diagnostics can assess organizational readiness to change,
bring major problems to the surface, identify conflicts, and define factors that can recognize and
influence sources of leadership and resistance. These diagnostics identify the core values, beliefs,
behaviors, and perceptions that must be taken into account for successful change to occur. They serve
as the common baseline for designing essential change elements, such as the new corporate vision, and
building the infrastructure and programs needed to drive change.

8. Address culture explicitly. Once the culture is understood, it should be addressed as thoroughly as any
other area in a change program. Leaders should be explicit about the culture and underlying behaviors
that will best support the new way of doing business, and find opportunities to model and reward those
behaviors. This requires developing a baseline, defining an explicit end-state or desired culture, and
devising detailed plans to make the transition.

Company culture is an amalgam of shared history, explicit values and beliefs, and common attitudes and
behaviors. Change programs can involve creating a culture (in new companies or those built through
multiple acquisitions), combining cultures (in mergers or acquisitions of large companies), or reinforcing
cultures (in, say, long-established consumer goods or manufacturing companies). Understanding that all
companies have a cultural center — the locus of thought, activity, influence, or personal identification —
is often an effective way to jump-start culture change.

A consumer goods company with a suite of premium brands determined that business realities
demanded a greater focus on profitability and bottom-line accountability. In addition to redesigning
metrics and incentives, it developed a plan to systematically change the company’s culture, beginning
with marketing, the company’s historical center. It brought the marketing staff into the process early to
create enthusiasts for the new philosophy who adapted marketing campaigns, spending plans, and

17
incentive programs to be more accountable. Seeing these culture leaders grab onto the new program,
the rest of the company quickly fell in line.

9. Prepare for the unexpected. No change program goes completely according to plan. People react in
unexpected ways; areas of anticipated resistance fall away; and the external environment shifts.
Effectively managing change requires continual reassessment of its impact and the organization’s
willingness and ability to adopt the next wave of transformation. Fed by real data from the field and
supported by information and solid decision-making processes, change leaders can then make the
adjustments necessary to maintain momentum and drive results.

A leading U.S. health-care company was facing competitive and financial pressures from its inability to
react to changes in the marketplace. A diagnosis revealed shortcomings in its organizational structure
and governance, and the company decided to implement a new operating model. In the midst of
detailed design, a new CEO and leadership team took over. The new team was initially skeptical, but was
ultimately convinced that a solid case for change, grounded in facts and supported by the organization
at large, existed. Some adjustments were made to the speed and sequence of implementation, but the
fundamentals of the new operating model remained unchanged.

10. Speak to the individual. Change is both an institutional journey and a very personal one. People
spend many hours each week at work; many think of their colleagues as a second family. Individuals (or
teams of individuals) need to know how their work will change, what is expected of them during and
after the change program, how they will be measured, and what success or failure will mean for them
and those around them. Team leaders should be as honest and explicit as possible. People will react to
what they see and hear around them, and need to be involved in the change process. Highly visible
rewards, such as promotion, recognition, and bonuses, should be provided as dramatic reinforcement
for embracing change. Sanction or removal of people standing in the way of change will reinforce the
institution’s commitment.

Most leaders contemplating change know that people matter. It is all too tempting, however, to dwell
on the plans and processes, which don’t talk back and don’t respond emotionally, rather than face up to
the more difficult and more critical human issues. But mastering the “soft” side of change management
needn’t be a mystery.

:::::::

8 Elements of an Effective Change Management Process

Try Smartsheet for Free

In this article, you’ll get an in-depth look at change management processes and principles. We’ve
included the critical elements that are essential to facilitate successful change management outcomes.

18
Included on this page, you’ll find the 8 essential steps for an effective change management process,
common challenges of change management to get ahead of, and supporting tools necessary to
implement change management processes.

History of Change Management

Understanding Change Management Terminology

8 Essential Steps for an Effective Change Management Process

Common Challenges of Change Management

Supporting Tools and Components for Implementing Change Management Processes

Managing Change in Healthcare Organizations

Why Smartsheet is the Ultimate Tool for Managing Processes

History of Change Management

The philosophies inherent in today's change management practices are structured to plan (rather than
react) to the challenge of organizational change. It's a growing industry with thousands of books and
numerous theoretical management frameworks that address both the necessity and the pain involved in
managing and planning for change.

The concept of change management dates back to the early to mid-1900s. Kurt Lewin’s 3-step model for
change was developed in the 1940s; Everett Rogers’ book Diffusion of Innovations was published in
1962, and Bridges’ Transition Model was developed in 1979. However, it wasn’t until the 1990s that
change management became well known in the business environment, and formal organizational
processes became available in the 2000s.

There are concrete reasons for accelerated growth in the change management industry. Products,
technology, or ideas that used to take years to design, develop, test, and deploy are now being
squeezed down to months or even weeks. The evolving consumer expectations for better, faster, and
cheaper products also drive the need to reorganize the work culture to meet demand. Books touting
these concepts run from the obvious, such as Change the Culture, Change the Game by Roger Connors
and Tom Smith, to Alan Deutschman's dire call to action in Change or Die, Linda Ackerman Anderson’s
Beyond Change Management, and Daryl Conner’s Managing at the Speed of Change. In addition, models
and certifications from The Association of Change Management Professionals have come to life in
support of this growing industry.Automated Actions

Understanding Change Management Terminology

Change Management has evolved over the past several years with Change Management Models,
Processes, and Plans developed to help ease the impact change can have on organizations. So, what is a

19
Change Management Model, a Change Management Process, and a Change Management Plan and how
do they differ?

Change Management Models have been developed based on research and experience on how to best
manage change within an organization or in your personal life. Most Change Management Models
provide a supporting process that can apply to your organization or personal growth.

Change Management Processes include a sequence of steps or activities that move a change from
inception to delivery.

Change Management Plans are developed to support a project to deliver a change. It is typically created
during the planning stage of a Change Management Process.

Here is a great resource for an overview of effective change models, methodologies, and frameworks.
You’ll find theories such as the McKinsey’s change management framework, John Kotter’s change
management model, the Prosci ADKAR process, and the Deming Cycle.

8 Essential Steps for an Effective Change Management Process

Your organization is constantly experiencing change. Whether caused by new technology

implementations, process updates, compliance initiatives, reorganization, or customer service
improvements, change is constant and necessary for growth and profitability. A consistent change
management process will aid in minimizing the impact it has on your organization and staff.

Below you will find 8 essential steps to ensure your change initiative is successful.

1. Identify What Will Be Improved

Since most change occurs to improve a process, a product, or an outcome, it is critical to identify the
focus and to clarify goals. This also involves identifying the resources and individuals that will facilitate
the process and lead the endeavor. Most change systems acknowledge that knowing what to improve
creates a solid foundation for clarity, ease, and successful implementation.

2. Present a Solid Business Case to Stakeholders

There are several layers of stakeholders that include upper management who both direct and finance
the endeavor, champions of the process, and those who are directly charged with instituting the new
normal. All have different expectations and experiences and there must be a high level of "buy-in" from
across the spectrum. The process of onboarding the different constituents varies with each change
framework, but all provide plans that call for the time, patience, and communication.

20
3 .Plan for the Change

This is the "roadmap" that identifies the beginning, the route to be taken, and the destination. You will
also integrate resources to be leveraged, the scope or objective, and costs into the plan. A critical
element of planning is providing a multi-step process rather than sudden, unplanned "sweeping"
changes. This involves outlining the project with clear steps with measurable targets, incentives,
measurements, and analysis. For example, a well-planed and controlled change management process
for IT services will dramatically reduce the impact of IT infrastructure changes on the business. There is
also a universal caution to practice patience throughout this process and avoid shortcuts.

4. Provide Resources and Use Data for Evaluation

As part of the planning process, resource identification and funding are crucial elements. These can
include infrastructure, equipment, and software systems. Also consider the tools needed for re-
education, retraining, and rethinking priorities and practices. Many models identify data gathering and
analysis as an underutilized element. The clarity of clear reporting on progress allows for better
communication, proper and timely distribution of incentives, and measuring successes and milestones.

5. Communication

This is the "golden thread" that runs through the entire practice of change management. Identifying,
planning, onboarding, and executing a good change management plan is dependent on good
communication. There are psychological and sociological realities inherent in group cultures. Those
already involved have established skill sets, knowledge, and experiences. But they also have pecking
orders, territory, and corporate customs that need to be addressed. Providing clear and open lines of
communication throughout the process is a critical element in all change modalities. The methods
advocate transparency and two-way communication structures that provide avenues to vent
frustrations, applaud what is working, and seamlessly change what doesn't work.

6. Monitor and Manage Resistance, Dependencies, and Budgeting Risks

Resistance is a very normal part of change management, but it can threaten the success of a project.
Most resistance occurs due to a fear of the unknown. It also occurs because there is a fair amount of risk
associated with change – the risk of impacting dependencies, return on investment risks, and risks
associated with allocating budget to something new. Anticipating and preparing for resistance by arming
leadership with tools to manage it will aid in a smooth change lifecycle.

7. Celebrate Success

Recognizing milestone achievements is an essential part of any project. When managing a change
through its lifecycle, it’s important to recognize the success of teams and individuals involved. This will
help in the adoption of both your change management process as well as adoption of the change itself.

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8. Review, Revise and Continuously Improve

As much as change is difficult and even painful, it is also an ongoing process. Even change management
strategies are commonly adjusted throughout a project. Like communication, this should be woven
through all steps to identify and remove roadblocks. And, like the need for resources and data, this
process is only as good as the commitment to measurement and analysis.

Common Challenges of Change Management

Due to ever-changing consumer expectations and the competition in the global economy, the science of
organizational change is itself constantly changing and evolving. The human element of change
management may be one of the most difficult to navigate because people do not inherently like change
or adjust to it well.

Most change methods agree that change is difficult and cumbersome. Therefore, involving people early
on, implementing process, and continuously adjusting for improvement is critical to success. This
includes thorough planning, buy-in, process, resources, communication, and constant evaluation.

Supporting Tools and Components for Implementing Change Management Processes

Effective change management processes rely on supporting activities and tools. These tools are often
developed and managed internally by either the change management team or stakeholders of the
change management process. For example, a product roadmap may be developed by the product
management team, while a post mortem review would involve everyone responsible for and impacted
by the change. These may include:

Product or Business Roadmaps

Readiness Assessments

Training Tutorials and Education Sessions

Stakeholder Feedback Forums

Post Mortem Review

Measurements and Analytics

Resistance Management

Continuous Improvement Plan

Business Case

Today, there are numerous proven methodologies. Some models focus on changing the individual as a
method of cultural change and some have structures and frameworks to move an entire organization
towards focused change and improvement. There is no one "right" solution, but with research,

22
exploration, and resource planning, a change management strategy is possible regardless of
organization size or need. If the explosive growth in the change management industry is any indication,
the business of change is here to stay.

Managing Change in Healthcare Organizations

As the healthcare industry looks to digital transformation to optimize their processes and procedures,
the need for change management best practices has become even more apparent. Clinical tests and
trials, healthcare credentialing, team onboarding, and clinic openings are all processes in need of a more
streamlined, automated approach.

However, implementing change in a healthcare organization requires high-level visibility into updates,
efficient organization of contracts and timelines, and secure documentation and storage of confidential
information. As the demand for better, more standardized processes increases, the need for a
collaborative, visible, and real-time tool is more apparent than ever.

Smartsheet is a work execution platform that enables healthcare companies to improve work efficiency,
scale repetitive processes, and securely store and share protected health information compliant with
HIPAA’s regulatory requirements. Streamline documentation, improve communication across your
organization, and modify healthcare processes for the better, while also maintaining top-level data
security and compliance.

Interested to learn more about how Smartsheet can help you maximize your efforts? Discover
Smartsheet for Healthcare

Why Smartsheet is the Ultimate Tool for Managing Processes

Smartsheet is a work management and automation platform that enables enterprises and teams to
work better. Organizations embracing change management methodologies can utilize Smartsheet’s
features to streamline documentation, improve communication, and modify work styles. During the
strategic planning phase, you can use Smartsheet to proactively chart your vision, align the right
timelines, and empower your team members to share their ideas with an accessible model.

Track the progress of your processes with Smartsheet Sights. Build a customized, centralized dashboard
in Sights to surface key information and stay updated in real time. The automated reporting tool
provides visibility into resources, status, and performance so you can quickly align operations to
strategy.

::::::::

Approaches and models for change management

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Abstract Change management is currently one of the most sought-a er business management tech-
nologies. O en, change management is called the most di cult part of a managerial work, which
requires great skill. is is particularly relevant in the context of modern business, when deep, almost
constant changes are in principle considered a factor that is very im-portant for a company to adapt to
the changing demands of the market and the glob-al economic situation. e purpose of the article is an
analysis of approaches and models of change management. To achieve it a literature review was carried
out. Article describes main di erences between ADKAR, EASIER, Lewin’s model of change and Nadkar
twelve steps approach to name a few. Analysis led to the conclusion, that it is impossible to pick the best
approach to change management. Each approach to change management draws attention to di erent
aspects of this issue but at the same time they do not exclude but complement each other. Change
management models focus, to a large extent, on the practical process of this management area.Paper
type: conceptual articleKey words: change management, approaches to organizational change, change
manage-ment models.1 maciej.teczke@uj.edu.pl2 brs_@mail.ru3 prur@keu.kz

Change management is currently one of the most sought-a er business manage-ment technologies. O
en, change management is called the most di cult part of a manager activity, which requires complex
skills. is is particularly relevant in the context of modern business when deep, almost constant changes
are in principle considered a factor that is very important for a company to adapt to the changing
demands of the market and the global economic situation. Change management has evolved over the
past several years with change management models, processes, and plans developed to help ease the
impact change can have on organizations. e article is an attempt to organize knowledge in the eld of
change management and presents the main models related to this issue. To achieve this goal, an
analysis of the literature on the subject was made, focused on approaches and models, on the basis of
which e ective change management is carried out.
ere is a large body of literature from several disciplines about change management and what makes it
succeed. It is a complex topic with many contradictions. Nota-ble to organizational change theory are an
institutional theory, neo-institutional theory, organizational ecology theory, evolution theory and
political theory.Even though the world has changed ever since Lewin has published the model in 1947, it
is still extremely relevant and the foundation of several other new models (Newstrom & Davis, 1985). is
three-step model was for many years the domi-nant framework (Todnem By, 2005). Ever since its
formulation, the theory has been reviewed and adapted, with stages being divided to make more
precise steps. For example, Bullock and Batten (1985) developed a four-stage model: exploration,
planning, action, integration.Building on the work of the early theorists, change has been consistently
con-ceptualized in two basic ways. e rst sees change as a rational, strategic process where the
organization chooses a new course of action and adapts to change. e second approach views change as
an evolutionary selection, where organizations typically resist the change happening around them

24
(Flood & Fennell, 1995). is is parallel to earlier viewpoints – organizations adapt through strategic
processes, or they fail to see the need for change and are replaced. Wiggins (2008) cites awed maps of
change, complex problems, super cial solu-tions, misunderstanding resistance, and misuse of
knowledge about change manage-ment process as the main challenges in the change management
process. Change management cannot be an ad hoc performance but is a crucial skill for leaders and
managers. It should be a structured process of managing people, processes and

197Approaches and models for change managementtechnology in response to the changing

environment, so as to align business strate-gies with external changes and keep competitive. Leaders
should become role mod-els and demonstrate what is expected from employees in relation to the
change. is is consistent with social learning theory and the concept that people learn through
observation of others. e move from resistance to acceptance goes through stages, and there should be
the ongoing support that re ects those stages. e rst reaction is commonly disbelief and a strong need
for accurate information. Later people go through a number of emotions – anger, loss feelings,
depression, for example, and they need a di erent kind of support. When they reach the change
acceptance phase they need to nd their own way of making the necessary changes, and they may need
support while doing this. At all stages, there should be clear communication of the vision, the desired
changes, and the advantages that the change will bring.Anyieni, Bcom, and Campus (2013) further
argues that change management means to plan, initiate, realize, control and stabilize change processes
on both cor-porate and personal levels. Nickolas (2006) argues that the task of managing change
includes its impact on people, and many managers nd this di cult. Change may cover such diverse
problems as strategic direction or personal development pro-grammers for sta . Strategic,
technological, and structural changes, as well as changes in attitudes and behaviors, are all aimed at
competitiveness and viability.Another key element is to have the suitable and updated technology, from
the start of implementation, through monitoring during the process, and in the nal evaluation. is is
very expensive, and nancial strength is essential (Senge, et al., 1999). However, technology can also
reduce cost. Training in skills and professional development of the IT workforce is critical and it is an
important driver of ERP (Enterprise Resource Planning). Technological change may be either incremental
(gradual changes over time made for general improvement) or breakthrough (ma-jor change due to new
advances), which applies new knowledge to existing prob-lems. It is likely to lead to new jobs, and to old
jobs being phased out. A business that does not keep up with technological advances will fail sooner or
later. Willingness to change means exibility, but unforeseen events at any point in the business
process make that di cult (Kotter, 1995). Good management of in-formation ow will reduce, but not
eliminate, unforeseen events. Kotter (1995) ob-serves that other initiatives, such as total quality
management, rightsizing, restruc-turing and cultural change are also forms of change management.
Kotter (1995) produced an eight-step model: − establishing a sense of urgency, − creating a guiding

25
coalition, − developing a vision and strategy, − communicating the change vision, − empowering
employees for broad-based action, − generating short-term wins, − consolidating gains and producing
more change,

− anchoring new approaches in the culture.Kanter, Stein, and Jick (1992) argue that the rst step to
implementing change is building coalitions of stakeholders, including employees and sponsors, such as
local authorities whose support is essential. A leader has to be able to in uence others, create a vision
and then communicate, empower people, and build teams to make the vision happen.Aladwani (2001)
postulates that the tools of management of change are leader-ship, communication, training, planning,
and incentive systems, which can all act as levers and can move great obstacles with a minimum of e ort
when applied cor-rectly. Organizational change can occur at di erent levels which require di erent
change strategies and techniques (Goodstein & Burke, 1991): − changing the individuals who work in the
organization, − changing organisational structures and systems, − directly changing the organizational
climate.Meyer and Rowan (1977) point out the need to sustain those parts of the busi-ness that are
working well while making changes. Daily essential tasks must be maintained while addressing
fundamental change. e changes within the com-pany re ect changes in the wider social, economic,
political and technological environment, and organizations need to respond to those changes. e
necessary internal restructuring is likely to be strategic or “mould-breaking.” e mould that needs to be
broken is the rigid, autocratic, bureaucratic approach to organization and management.Burnes (2000)
noted the importance of responding to change in consumer preferences, which may be simply due to
fashion. Rumours can also make a dispro-portionate di erence; if it is suggested that a product or type
of product is harmful in any way, even if there is no basis in reality. A lot depends on customer belief,
and no organization can succeed without customers. An in-depth knowledge of their behavior is vital if
their wants and needs are to be satis ed. Speci c markets or seg-ments of markets need to be targeted
in order to provide a focus for the marketing e ort. In order to understand the behavior of consumers,
one must understand who the customers are, what they buy, how they buy, and when they buy. Each
customer market has particular features which can be identi ed through careful analysis. ere are
concrete reasons for accelerated growth in the change management industry. Products, technology, or
ideas that used to take years to design, develop, test, and deploy are now being squeezed down to
months or even weeks. e evolv-ing consumer expectations for better, faster, and cheaper products also
drive the need to reorganize the work culture to meet demand. Books touting these concepts run from
the obvious, such as Change the Culture, Change the Game by Connors and Smith (2011), to
Deutschman’s (2007) dire call to action in Change or Die, An-derson and Anderson’s (2010) Beyond
Change Management, and Conner’s (1993) Managing at the Speed of Change. In addition, models and
certi cations from e

26
199Approaches and models for change managementAssociation of Change Management Professionals
have come to life in support of this growing industry.2. Change management approachesCentral to the
concept of change management is the idea that all changes in the organization a ect not only the basic
and auxiliary processes, but also the sta . e concept suggests that it is possible to create a reproducible
model of successful change and that there are speci c processes and tools that allow you to implement
change e ectively.With e ective change management, a high-tech enterprise can gain the follow-ing
competitive advantages:1. Creating a uni ed organizational approach to change, implying the estab-
lishment of all processes, the use of necessary tools, the formation of a uni- ed system of goals.2.
Reducing resistance to change, which results in avoiding a drop in producti-vity and the occurrence of
con icts.3. Consistency and sustainability of changes, accelerated learning, the ability to continuously
improve the processes of introducing changes and develo-ping an organizational development
strategy.At high-tech enterprises, creating a model of successful changes, implying spe-ci c processes
and tools that allow you to implement changes e ectively, depends on the direction of activity, strategy,
methods of doing business and can include various approaches and models of change management, the
classi cation of which is quite extensive.By the type of change, there are two radically opposite
approaches to manage-ment: revolutionary and evolutionary. e rst – a revolutionary approach –
provides for a fundamental change in processes, calling into question the established methods and
foundations, thereby achieving the optimum state of a airs. is approach is also called reengineer-ing.
e focus of the approach is determined by the radical growth of indicators, and its application is peculiar
only in situations whose solution requires extreme methods. e second approach – an evolutionary –
includes changes which occur within the organizational development. e approach is based on systemic
improvement aimed at increasing the e ciency of the company by changing the established norms and
values. e implementation of evolutionary development is based on the modi cation of the structures
and processes underlying the activities of the organization.Change management can also be classi ed
according to the direction of change.

ere are the following approaches: − “ eory O.” From the point of view of theory, an organization is an
evolving learning system. Changes are aimed at developing organizational compe-tencies and abilities.
e approach focuses on the behavioral aspects of the organization and is focused on bottom-up changes.
e application of this theory is most likely in the absence of urgent problems requiring immedia-te
action. − “ eory E.” e approach involves changes a ecting the structure of the or-ganization, the main
focus of which provides economic performance. e main aspect of the theory is the implementation of
leadership from top to bottom, which allows you to focus on elements that are able to focus on the

27
rapid achievement of e ect. Application due to cases where the decision must be taken
immediately.Classi cation of change management approaches can be based on the principle of
temporal changes. From this point of view, approaches are considered: “changes as a project” and
“changes as a constant part of the component”.One approach regards change as a project. In this case,
the changes are assumed to be a one-time action with a clearly de ned start and end dates of the
project, with a clear and transparent result. e approach is used when signi cant changes in the
company’s strategy are necessary, as well as the restructuring of the busi-ness model caused by mergers
or acquisitions. e advantage of the project is its concreteness, focusing on important management
tasks. e disadvantages of the approach include the risk of a gap between the objectives of the
implementation of the strategy and the objectives of the project for managing change, and the likeli-
hood that a er the end of the project the company may not be ready for further transformations and an
evolutionary continuation of development: to do this, it is necessary to launch a new project. e second
approach to change management is that the company and its em-ployees develop the ability and
willingness to change. is work is carried out con-tinuously, without time limits and regardless of speci c
projects. is process is aimed at the long-term development of the company and is not a solution to any
speci c problems, but rather an investment in the development of human resourc-es. e main risk in
this case is the loss of connection with speci c business prob-lems, when abilities develop, and changes
do not occur.In addition to the above, approaches to change management can be viewed through the
prism of managing the development of an organization.It is necessary to distinguish between
approaches to development manage-ment in those settings that determine the nature of planning,
organization, man-agement and control. ere are the following signs of distinguishing approaches to
development management:

201Approaches and models for change management − e subject of development management. On this
basis, it is established who is the subject of the organization. On the basis of the de nition, two
approaches to management are distinguished: administrative, that is, deci-sions are made only by
management, or participatory, and the labor collec-tive is involved in making decisions. − Orientation
management. e sign allows determining the focus of the ma-nagement of the organization. Process-
oriented management sets as its goal the development of innovations, without imagining what, there
will be im-provements a er implementation. Target management believes that you rst need to
determine the desired result, and then develop an innovation that allows you to get it. − Integrated
management. Allocate autonomous control, the purpose of which is the development of various
innovations occurs independently and system management, when innovation is part of the
implementation of a complex project. − Type of management response to changes requiring solutions.

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e reacti-ve control allows you to react to irreversible changes that have already oc-curred. − e opposite
is the advanced management, which allows developing an ac-tion plan for future changes, forecasted. In
addition to the approaches to change management in high-tech enterprises, it is advisable to use di er-
ent models.3. Change management modelsOne of the dominant perspectives within “planned
approaches” to change is a Lewin’s (1951) model of change, which argues that change involves a three-
stage process: − unfreezing current behavior, − moving to the new behavior, − refreezing the new
behavior.Unfreezing means that old ideas and practices need to be cast aside so that new ideas can be
learned. It basically means to have an open mind and exibility to accept new changes. It’s getting rid of
old practices and accepting new challeng-es. It’s basically breaking the current comfort zone and getting
ready for a change. So a manager must help employees clear their minds of old roles and old proce-
dures. Only then they will be able to embrace new ideas. e Unfreezing stage is probably one of the
more important stages to understand in the world of change we live in today.

Moving to the new behavior (changing) is a step in which new ideas and practices are learnt. is process
involves helping an employee think reason and perform in a variety of new ways. It can be a time of
confusion, disorientation, overload and despair. Patience is very important at this point. ere should be
hope, discovery and excitement to overcome to overcome all chaos and enter a new mode of
development.Refreezing means that what has been learned is integrated into actual practice. e new
practices become emotionally embraced and incorporated into the em-ployee’s routine behavior.
Successful on-the-job practice they must be the ultimate goal of the refreezing step. In this step, the
emphasis is on stabilizing the work pro-cess a er rapid change transition (Lewin, Internet resource).It is
this concept that is fundamental to change management and to form a basic understanding of the
process of change.Nadler (1997), has developed a management framework of twelve action steps which
is helpful for managers and executives to apply at every level of hi-erarchy during the change process.
is is immensely helpful for leading and managing change at every corner of the organization. e twelve
action steps are as follows: − get the support of key power groups, − get leaders to model change
behavior, − use symbols and language, − de ne areas of stability, − surface dissatisfaction with the
present conditions, − promote participation in change, − reward behaviors that support change, −
disengage from the old, − develop and clearly communicate an image of the future, − use multiple
leverage points, − develop transition management arrangements, − create feedback.Kanter et al. (1992)
have done a wonderful research on organization change and proposed Ten Commandments on how to
plan a change process, which are: − analyze the need for change, − create a shared vision, − separate
from past, − create a sense of urgency, − support a strong leadership role, − line up political sponsorship,
− cra an implementation plan, − develop enabling structures, − communicate and involve people, −
reinforce and institutionalize change.

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203Approaches and models for change managementKotter (1995) has designed an extremely helpful
model (Eight-Step Change Model) to understand and manage change. Each step in the model is
characterized by the key principle, in which people see, feel and then change. Kotler (1995) explained
them as principles of response and approach to change. ese are explained descriptively in his highly
appreciated book Leading Change. Kotter’s Eight-Step Change model is considered one of the world’s
best change management models. It has simpli ed the change process immensely and concluded that
every successful change e ort is messy and full of surprises. Managers have to view the change process
in a see-feel view where major problems in the process are highlighted and thereby easily
solved.Ghoshal and Barlett (1996) argue for the importance of sequencing and im-plementation of
activities in a change process. e interrelated change phases are (Ghoshal and Barlett’s Model): −
Rationalization: Streamlining company operations. − Revitalization: Leveraging resources and linking
opportunities across the whole organization. − Regeneration: Managing business unit operations and
tensions, while at the same time collaborating elsewhere in the organization to achieve perfor-mance.
ey claim that while change is o en presented as di cult and messy, there is nothing mystical about the
process of achieving change with e ective strategies fol-lowing the rationalization, revitalization and
regeneration sequential process (As-wathappa & Reddy, 2009).Pendlebury, Grouard, and Meston (1998)
have presented the Ten Key Factors Model which can be adapted to any particular change situation. All
these keys may be needed to be implemented either simultaneously or separately based on the change
process. e ten keys are as follows: − de ne the vision, − mobilize, − catalyze, − steer, − deliver, − obtain
participation, − handle emotions, − handle power, − train and coach, − actively communicate Model of
changes – Force eld – is based on the analysis of factors (forces) that may contribute to changes or,
on the contrary, inhibit them. It is assumed that under any conditions there are two groups of forces:
driving and restraining, and these forces are possible both inside the organization, for example, in the
behavior of people, in resources, and outside it – in the processes that occur in the country. e
structure of the model is shown in Figure 1.

The force eld change management model.Source: own drawing Huy (2001) categorizes
change into for ideal types: − Commanding: Commanding change intervention is one where the time
period is short term, abrupt and rapid. Change is usually implemented by senior managers who demand
compliance from organizational mem-bers. Changes may well include downsizing, outsourcing and
divestments. − Engineering: is model is oriented toward a medium – term, relatively fast change
perspective and o en assisted by work design analysts who assist in changing work and operational
systems. e change agent act as a catalyst in this process. − Teaching: is model takes a more gradual,
long-term organizational chan-ge perspective. Assisted by outside process consultants, sta s and taught
how to probe their work practices and behaviors to reveal new ways of working. − Socializing: is

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intervention is also gradual and long-term. It sees chan-ge as developing through participative
experimental learning based on self--monitored democratic organizational processes.Each ideal type has
its limitations. e commanding approach may lead to re-sentment and rarely produces lasting
behavioral change. e teaching approach is very individualistic and may not be aligned with corporate
strategic objectives. Another model – ADKAR – is a practically oriented model of change, consist-ing of
ve consecutive steps: − Awareness of the need for change. e reasons for the change are described at
this stage. − Desire and willingness to change. At the stage, a decision is made to sup-port these or other
changes, which are achieved only if they are understood as necessary. − Knowledge of how to change.
At this stage, knowledge is formed about how exactly it is necessary and should be changed, and also
contains the kno-wledge and skills necessary for changes. − Ability to implement change. e stage
involves the demonstration of the applicability and attractiveness of changes, as well as the identi
cation of barriers that may prevent change.

205Approaches and models for change management − Providing support for change. Here, special
attention is paid to e orts to su-pport change. eir stabilization and adoption are achieved through fee-
dback, reward, performance evaluation and corrective action.High-tech enterprises introducing changes
in the production process must go through all phases of changes in order for the ADKAR model to be e
ective (Figure 2). Model ADKAR.Source: based on Hiatt, 2006, pp. 43–62. e EASIER
model is a change management model. is model is used to ana-lyze the strategy, it is applicable in a
situation of any complexity associated with the changes and is shown in Figure 3. e model includes six
elements. e elements of EAS (creation of vision, ac-tivation, support) are more behavioral, and the rest
– IER (implementation, provi-sion, recognition) are related to issues of the system and processes
(Hussey, 2000).With regard to high-tech enterprises, the elements of the EASIER model imply the
following: − Creating a vision – an understanding that changes resulting from project implementation
will provide competitive advantages in the industry. − Activation – the creation of a project team of
employees convinced of the need for implementations, the creation of cooperation for the development
of the project. − Support – nding and convincing investors of the need to invest in the project. −
Implementation – writing R&D on the subject of the project, the creation of prototypes. − Providing –
carrying out monitoring of activity, drawing up reports on the performed works. − Approval,
recognition. − Project implementation.

Model EASIER.Source: based on Hussey, 2000, p. 74.ConclusionsIt should be noticed that none of
the approaches and models for a change manage-ment is the ideal one. e choice of a particular
approach should be based on con-sideration of real conditions, as well as when integrating several

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models. us, for the correct implementation of changes, it is necessary, rst of all, to assess the speci c
situation and desired results, as well as learn how to correctly manage changes based on the approaches
and models considered. A special role is given to the creation of high-tech enterprises engaged in the
design, develop-ment and production of competitive products with a high degree of knowledge-
intensiveness and novelty, and, as a result, ensuring the country’s leading position in the world
market.All of the models listed have a unique approach to change management, emphasizing di erent
aspects of the issue. erefore, these models should be considered in terms of complementarity and not
opposites. Due to its complexity, change management requires knowledge of di erent perspectives,
models and approaches. e aim of the article was to confront these approaches, which allows to see
both di erences and similarities in the presented views.ReferencesAladwani, A.M. (2001). Change
management strategies for successful ERP implementation. Business Process Management Journal, 7(3),
266–275.Anderson, D., & Anderson, L.A. (2010). Beyond Change Management: How to Achieve Break-
through Results through Conscious Change Leadership (Vol. 36). Hoboken, New Jersey: John Wiley &
Sons.

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