What is change management? – Definition
Change management refers to the systematic management of change processes in organizations. It goes far beyond purely technical implementation and addresses the human side of change: How are employees motivated to adopt new behaviors? How can resistance be used productively?
In the context of business model innovation and digital transformation, change management is the decisive success factor. Studies show that 70% of all transformation projects fail—and in most cases, the cause is not technology, but inadequate change management.
For Austrian SMEs that want to transform their business models, digitize, or build an innovation culture, professional change management is not a luxury, but a necessity.
The most important change management models
Kotter’s 8-step model: Probably the best-known model by John Kotter describes eight consecutive steps: create urgency, build a guiding coalition, develop a vision, communicate the vision, remove obstacles, celebrate short-term wins, consolidate change, embed change in the culture.
Lewin’s 3-phase model: Kurt Lewin’s classic model distinguishes: Unfreeze (thaw existing structures), Change (implement change), Refreeze (stabilize new structures). Simple and intuitive—ideal as a thinking framework for SMEs.
ADKAR model (Prosci): Focuses on individual change: Awareness, Desire, Knowledge, Ability, Reinforcement. Particularly helpful for guiding individual employees through the change process.
Agile change management: Combines agile methods with change principles. Instead of a linear plan, changes are implemented in iterations, with continuous feedback and adjustment. Ideal for dynamic environments and innovation management.
The change management process in 5 phases
- Analysis & diagnosis: What change is necessary? Who is affected? How strong is the readiness for change? Tools: stakeholder analysis, culture assessment, maturity assessment
- Planning & strategy: Formulate a change vision, create a communication plan, identify quick wins, define resources and responsibilities
- Communication & mobilization: Transparent, regular communication at all levels. Answer the “why” question. Activate multipliers and change agents
- Implementation & enablement: Training, coaching, introduce new processes, remove obstacles. Innovation coaching supports leaders in this critical phase
- Embedding & sustainability: Integrate new behaviors into systems, processes, and culture. Celebrate successes. Identify setbacks and counteract them
7 success factors in change management
- Clear vision: Employees must understand WHERE the journey is going and WHY
- Leadership commitment: Leaders must role-model change—not just demand it
- Communication: Better too much than too little. Across different channels, regularly, honestly—even about difficulties
- Involvement: Turn those affected into participants. Participation increases acceptance and the quality of solutions
- Quick wins: Early, visible successes build trust and momentum for further change
- Capability building: Do not only communicate what is changing, but also build the skills needed for the new way
- Sustainability: Change is only successful once it has become the new normal—this typically takes 12–18 months
Understanding resistance and using it productively
Resistance to change is normal and even healthy—it shows that the change is being taken seriously. The most common causes:
| Type of resistance | Cause | Strategy |
|---|---|---|
| Information gap | Lack of transparency | Open communication, Q&A sessions |
| Fear of lacking competence | Fear of not being able to meet the requirements | Training, mentoring, gradual rollout |
| Fear of loss | Fear of losing status or power | Define new roles, highlight benefits |
| Change fatigue | Too many changes at the same time | Prioritize, plan breaks, celebrate successes |
The most important principle: Take resistance seriously—do not ignore it or try to break it. Seek dialogue, address concerns, and—where possible—turn them into better solutions.
Change management in digital transformation
Digital transformation places special demands on change management:
- Speed: Digital changes are often faster than classic reorganizations—this requires agile change approaches
- Technology as a trigger: New tools and systems fundamentally change ways of working—from SME digitization to Industry 4.0
- Cultural change: Digital transformation requires a new innovation culture—data-driven, experimental, collaborative
- Generational differences: Digital natives and digital immigrants have different needs in the change process
- Continuous change: Unlike classic change projects, digital transformation is not a state that gets “finished”—it requires continuous change capability
Change management for Austrian SMEs
SMEs have specific advantages and disadvantages in change management:
Advantages: Short decision-making paths, personal relationships, high flexibility, management can communicate directly and role-model change
Challenges: Little experience with formal change management, limited resources for change support, strong dependence on individual key people
Pragmatic change approaches for SMEs:
- Use your proximity to the workforce for direct, personal communication
- Invest in innovation coaching for management and key people
- Start small and scale step by step—Lean Startup principles also apply to internal change
- Use innovation funding for external change support
Making change successful
Whether business model transformation, digitization, or cultural change—we support you throughout the change process and ensure your team embraces the change.
Frequently asked questions about change management
Why do change projects fail so often?
The main reasons are: lack of support from leadership, insufficient communication, missing involvement of those affected, too few resources for implementation, and trying to carry out too many changes at the same time. In very few cases does a change fail due to technical feasibility—almost always, it is human and organizational factors.
How long does a change management process take?
The duration depends on the depth of the change. A process change can be implemented and embedded within 3–6 months. A cultural transformation—such as building an innovation culture or comprehensive digitization—typically takes 18–36 months. The key point is: Active implementation may be faster, but true embedding in the corporate culture takes time and consistency.
Does a small company really need change management?
Yes—even if it may not need to be as formal as in a large corporation. Any change that affects employees (new software, changed processes, new strategy) benefits from deliberate communication and support. In SMEs, the advantage is that management can communicate directly and role-model change. The downside: If the one key person is not convinced, it blocks the entire change.
What is the role of leaders in change management?
Leaders are the most important success factor in change management. Their tasks: develop and communicate the vision for change, lead by example (walk the talk), provide resources, remove obstacles, make successes visible, and support employees individually. Without authentic leadership commitment, no change project stands a chance—regardless of how good the methodology is.