The psychology of change management

“Change is the only constant” — this is not a new observation or discovery, but something that Greek philosopher Heraclitus spoke about 2,500 years ago. And yet, we don’t seem to have become any more comfortable around change, or any more successful in making it work.

According to global management consultancy firm McKinsey, almost 70% of all organisation transformation projects fail 1. How can this be, despite the huge amount of literature, ample education resources and availability of professional services addressing change management?

For many unsuccessful transformational projects, at least part of the answer is likely to be found in the prioritisation of change management activities over change leadership behaviours.

Managing change, and leading others through change, require two very different skillsets and approaches. If leadership tasks are neglected or under-represented, failure becomes more likely.

Very broadly speaking, management focusses on systems, processes and tools, and is concerned about budgets, timeframes and defined targets. Leadership, on the other hand, focuses on people, their behaviours, needs and responses to events and processes such as organisational change.

While risk control and the minimisation of potential deviations from the agreed project plan are a key responsibility for managers, a leaders’ success is measured in how well they inspire, motivate, engage and empower their teams so that they support and implement the intended change and adopt new behaviours to enable future success.

Leaders also need to act as role models — leading the way by demonstrating the behaviours they want to develop in others. They have to be able to provide an inspiring and unifying vision, create shared values and help employees connect their own goals, tasks and responsibilities to the bigger picture or the “greater good” behind the change.

The differentiation behind change management and leadership also reflects the difference between “change” (a clearly defined shift in external circumstances) and “transition” (the psychological process by which people try to make sense and come to terms with the change). While a workplacerelated change process usually has distinct start and end dates as well as specific milestones in between which must be reached at a certain points in time, each employee’s transition journey is an organic process which may run on different timelines for everyone. However, despite the individual differences in adapting to change, people tend to have similar emotional experiences in response to organisational change which can be visualised along a change or transition curve.

Based on the ground-breaking work of psychiatrist Elizabeth KueblerRoss who worked with terminally ill patients and their relatives in the 1960’s, organisational change practitioners and researchers have built on her original “grief curve” to describe the emotional stages people go through when confronted with significant change at work.

The below image provides an overview of the seven typical emotional stages during a change process:

1. Shock — when the change is first announced. People may experience a temporary inability to integrate/reconcile the new information into existing mental models and belief systems.

2. Denial — disbelief, looking for evidence that the announcement isn’t true. People may believe that there is no need for change, or that it won’t be relevant for their role. Typical phrases that are used at this stage include, “it won’t work here; we have tried this before”. As a leader, you can help people overcome this stage by providing repeated, clear information and authentic messages – without overwhelming people.

3. Anger/Frustration — realisation has set in that this is indeed “serious” and that the announced change will come. Common phrases may include “I can’t believe we are expected to deal with this. This is such a terrible idea!” People feel angry and annoyed, looking to fight the change, and for someone to blame for the misfortune that’s been placed at their door. Give people space and time to work through these emotions; remain calm and empathetic.

4. Depression — at this stage, employees may wonder of everything they have done so far didn’t matter, or if it wasn’t appreciated. Feelings of helplessness can prevail. They may also be worrying about their job security, if they have the necessary skills, and what will happen to their career. They may not seeing a way forward at this stage, and experience a feeling of loss without being able to see opportunities it also offers. At this stage and the previous one, leaders should provide emotional support and positive messages, provide empathy, focus on opportunities and engage in open, honest dialogue and listen to concerns.

5. Experiment — people start to constructively engage with the concept of change. They may ask “what-if” questions and explore ideas of how things might look and work after the change. “How may this work for me? What does this mean for me and my role?” At this point, people will often try to compromise a favourable outcome to the change. Comments like, “what if we do this”, or “can I try this instead” may reflect this. At this stage, it is important for leaders to create a safe-to-fail environment and give people space to build new skills and gain confidence. Make sure you enable collaboration and knowledge sharing, while providing guidance and a clear direction forward.

6. Decision — this is a conscious or unconscious decision point where people make a commitment. Each individual needs to make a decision to either fully embrace the change, reorganise their ways of working and adopt new behaviours - or reject the idea and bear the consequences, e.g. leave. It is only at this point that the organisation can start to experience the benefits of the change.

7. Integration — this is the stage at which individual and teams start to successfully work in the “new normal”, changes have been integrated into role and work. As a leader, don’t forget to celebrate with your team!

Understanding and working with employees’ emotional reactions to change requires leaders to have a highly-developed level of emotional intelligence (EQ). The concept comprises a set of learnable, observable skills around correctly identifying and constructively managing emotions – both your own and those of others.

The four pillars of emotional intelligence include:

• Self-awareness, e.g. understanding your own reactions to change, risk and uncertainty; how your emotions influence your behaviour; what impact your actions and communication style have on others.

• Self-management, e.g. the ability to manage your emotional reactions; motivating yourself; understanding your needs and personal boundaries; ensuring that you look after your own health and wellbeing so that you can lead and support others.

• Empathy / social awareness, e.g. ability to switch perspectives; understanding the feelings, emotional needs, values and motivators of others; picking up on moods and power dynamics within teams and organisations.

• Relationship management, e.g. tailoring your communication style and messaging around the change process to the needs of your audience; providing meaningful motivation, rewards and engagement opportunities which are relevant to individuals; inspiring, coaching and empowering others; connecting with people from diverse backgrounds and thinking styles.

In closing, make sure that your organisation plans for and addresses both management and leadership aspects to change and transformation processes. The message is not that one is better or more important than the other, but that both need to go hand in hand to ensure you don’t lose your most important asset along the journey — your people.