Business Engineering and Entrepreneurship

Change Management
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Lewin's Change Management Model

If you have a large cube of ice but realize that what you want is a cone of ice, what do you do?
 First you must melt the ice to make it amenable to change (unfreeze).
 Then you must mold the iced water into the shape you want (change).
 Finally, you must solidify the new shape (refreeze).

By looking at change as a process with distinct stages, you can prepare yourself for what is coming
and make a plan to manage the transition – looking before you leap, so to speak. All too often,
people go into change blindly, causing much unnecessary turmoil and chaos.
To begin any successful change process, you must first start by understanding why the change
must take place. As Lewin put it, "Motivation for change must be generated before change can
occur. One must be helped to re-examine many cherished assumptions about oneself and one's
relations to others." This is the unfreezing stage from which change begins.

Unfreeze
This first stage of change involves preparing the organization to accept that change is necessary,
which involves breaking down the existing status quo before you can build up a new way of
operating.
Key to this is developing a compelling message showing why the existing way of doing things
cannot continue. This is easiest to frame when you can point to declining sales figures, poor
financial results, worrying customer satisfaction surveys, or suchlike. These show that things have
to change in a way that everyone can understand.

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To prepare the organization successfully, you need to start at its core – you need to challenge the
beliefs, values, attitudes, and behaviors that currently define it. Using the analogy of a building,
you must examine and be prepared to change the existing foundations as they might not support
add-on storeys. Unless this is done, the whole building may risk collapse.
This first part of the change process is usually the most difficult and stressful. When you start
cutting down the "way things are done," you put everyone and everything off balance. You may
evoke strong reactions in people, and that's exactly what needs to be done.
By forcing the organization to re-examine its core, you effectively create a (controlled) crisis, which
in turn can build a strong motivation to seek out a new equilibrium. Without this motivation, you
won't get the buy-in and participation necessary to effect any meaningful change.

Change
After the uncertainty created in the unfreeze stage, the change stage is where people begin to
resolve their uncertainty and look for new ways to do things. People start to believe and act in
ways that support the new direction.
The transition from unfreeze to change does not happen overnight: people take time to embrace
the new direction and participate proactively in the change. A related change model, the Change
Curve, focuses on the specific issue of personal transitions in a changing environment and is useful
for understanding this aspect in more detail.
In order to accept the change and contribute to making it successful, people need to understand
how it will benefit them. Not everyone will fall in line just because the change is necessary and will
benefit the company. This is a common assumption and a pitfall that should be avoided.
Time and communication are the two keys to the changes occurring successfully. People need time
to understand the changes, and they also need to feel highly connected to the organization
throughout the transition period. When you are managing change , this can require a great deal of
time and effort, and hands-on management is usually the best approach.

Refreeze
When the changes are taking shape and people have embraced the new ways of working, the
organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart,
consistent job descriptions, and so on. The refreeze stage also needs to help people and the
organization internalize or institutionalize the changes. This means making sure that the changes
are used all the time, and that they are incorporated into everyday business. With a new sense of
stability, employees feel confident and comfortable with the new ways of working.

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The rationale for creating a new sense of stability in our ever-changing world is often questioned.
Even though change is a constant in many organizations, this refreezing stage is still important.
Without it, employees get caught in a transition trap where they aren't sure how things should be
done, so nothing ever gets done to full capacity. In the absence of a new frozen state, it is very
difficult to tackle the next change initiative effectively. How do you go about convincing people
that something needs changing if you haven't allowed the most recent changes to sink in? Change
will be perceived as change for change's sake, and the motivation required to implement new
changes simply won't be there.

Question:
Think you work in a company. How to proceed at each stage of Lewin's Change Management
Model. What would you do?

Unfreeze
1. Determine what needs to change.
 Survey the organization to understand the current state.
 Understand why change has to take place.

operating.
Key to this is developing a compelling message showing why the existing way of doing things
cannot continue. This is easiest to frame when you can point to declining sales figures, poor
financial results, worrying customer satisfaction surveys, or suchlike. These show that things have
to change in a way that everyone can understand.

2. Create the need for change.

 Create a compelling message about why change has to occur.
 Use your vision and strategy as supporting evidence.
 Communicate the vision in terms of the change required.
 Emphasize the "why."
3. Manage and understand the doubts and concerns.
 Remain open to employee concerns and address them in terms of the need to change.
Prepare some answers to some possible questions.
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Change
1. Communicate often.
 Do so throughout the planning and implementation of the changes.
 Describe the benefits.
 Explain exactly how the changes will affect everyone.
 Prepare everyone for what is coming.

2. Empower action.
 Provide lots of opportunity for employee involvement.
 Have line managers provide day-to-day direction.
3. Involve people in the process.
 Generate short-term wins to reinforce the change.

Refreeze
1. Anchor the changes into the culture.
 Identity what supports the change.
 Identify barriers to sustaining change.
2. Develop ways to sustain the change.
 Create a reward system.
 Establish feedback systems.
 Adapt the organizational structure as necessary.
3. Provide support and training.
 Keep everyone informed and supported.