2026
CHANGE MANAGEMENT
REPORT ASSIGNMENT
COURSE: MANAGEMENT OF ORGANIZATION
HARIS SAIF | SID: 20252-37539
1. Introduction
In a volatile and increasingly complex business environment, organizational change management
has evolved from a periodic necessity into a continuous strategic imperative. This report explores
the foundational theories, common pitfalls, and leadership requirements essential for navigating
organizational transformations successfully.
2. Why 70% of Organizational Change Initiatives Fail
The statistic that 70% of change initiatives fail is widely attributed to Michael Beer and Nitin
Nohria in their seminal work "Cracking the Code of Change" (Beer & Nohria, 2001). They argue
that many transformations fail because managers focus exclusively on either economic value or
organizational capability without effectively integrating the two (Beer & Nohria, 2001).
While some scholars argue that this 70% figure lacks specific empirical backing in modern
contexts (Hughes, 2011), it remains a standard benchmark reflecting high levels of
organizational struggle. Common causes for these failures include:
Lack of Holistic Planning: Organizations often install new systems or processes but fail
to fully implement the human side of the change (Miller, 2004; Pollack et al., 2012).
Employee Resistance: Fear of the unknown and perceived unfairness are primary drivers
of employee pushback (Chukwuma & Zondo, 2024; Dobrovič & Timková, 2017).
Inadequate Leadership: A lack of clear direction, insufficient communication, and
failure to engage with the organizational culture often lead to project abandonment (Priya
et al., 2025; Westover, 2024).
3. Foundational Change Models
3.1 Lewin's Three-Step Model of Change
Kurt Lewin’s model is considered the classic foundation of change management (Cummings et
al., 2015). It conceptualizes change as a process of shifting an organization from one stable state
to another through three phases:
1. Unfreeze: This stage involves destabilizing the current equilibrium to overcome inertia.
It requires defining the current state and justifying the need for reform to motivate staff
(Agboola & Salawu, 2010; Bekmukhambetova, 2021).
2. Move: This stage focuses on the transition. It involves active processes such as
analyzing, understanding, and developing new behaviors, norms, and structures (Agboola
& Salawu, 2010; Edwards et al., 2020).
3. Refreeze: The final stage focuses on stabilizing the new state. This is achieved by setting
new policies, rewarding success, and institutionalizing the change into the corporate
culture to prevent a return to old habits (Bekmukhambetova, 2021; Filho et al., 2023).
3.2 Kotter's 8-Step Change Model
John Kotter’s model provides a more detailed, practitioner-oriented framework for large-scale
transformation (Appelbaum et al., 2012). The eight steps are (Barbosa & Pereira, 2023; Okolie &
Memeh, 2022; Pollack et al., 2012):
1. Create a sense of urgency to motivate the organization.
2. Build a guiding coalition with enough power to lead the effort.
3. Form a strategic vision and initiatives.
4. Enlist a volunteer army by communicating the vision broadly to gain buy-in.
5. Enable action by removing barriers such as inefficient structures or systems.
6. Generate short-term wins to build credibility and momentum.
7. Sustain acceleration by using gains to drive further changes.
8. Institute change by anchoring new behaviors in the company culture.
4. Managing Employee Resistance to Change
Resistance is a natural psychological response to change (Priya et al., 2025). Strategies to
mitigate resistance include:
Transparent Communication: Clearly explaining the "why" behind the change reduces
uncertainty and fear (Bharathi, 2026; Curvey, 2025).
Employee Involvement: Participative strategies that involve employees in the planning
and execution phases significantly reduce resistance compared to directive approaches
(Bharathi, 2026a, 2026b).
Support and Training: Providing the necessary skills and emotional support helps
employees navigate the transition (Curvey, 2025; Priya et al., 2025).
5. Leadership in Organizational Change
5.1 The Role of Leadership and the Change Sponsor
Leadership is the primary driver of successful change, responsible for building trust and
providing clear direction (Priya et al., 2025). A critical role within this is the Change Sponsor.
Senior sponsors are facility or organization leaders who nominate themselves to champion the
project, remove obstacles, and advocate for the intervention (Ginsburg et al., 2025). Effective
sponsors use their social capital and influence to prioritize the change and engage with frontline
staff (Ginsburg et al., 2025).
5.2 Building Change Capability in Leadership Teams
To sustain change, organizations must develop internal "change capability." This involves
building the skills and processes needed to manage transitions within the existing leadership
team (Miller, 2004). Modern leaders must operate within VUCA environments, where they must
continuously sense environmental shifts and adapt organizational structures and routines
accordingly (Jenni, 2025).
6. Organizational Change Capacity and Its Limits
Organizational Change Capacity is the ability of an organization to allocate and develop
capabilities that sustain long-term performance through multiple changes (Meyer & Stensaker,
2006). However, this capacity has limits:
Operational Strain: Extensive participation and rapid pacing of change can have
adverse effects on daily operations (Meyer & Stensaker, 2006).
Resource Constraints: Existing processes and limited resources often fail to keep up
with the demands of a dynamic environment (Jenni, 2025).
Change Fatigue: Frequent transformations can drain organizational energy, making it
difficult to maintain the momentum needed for subsequent changes (Meyer & Stensaker,
2006).
7. Conclusion
Successful change management requires a balance between structured models, such as those by
Lewin and Kotter, and a deep understanding of the human elements of transition. By
empowering change sponsors, building leadership capability, and respecting the organization's
capacity limits, leaders can move past the high failure rates and achieve sustainable growth.
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