Change Management: Step-by-Step Process, Types, and Careers

Change management is the strategic process of implementing organizational adjustments, such as employee promotions and company mergers, to help businesses stay competitive and grow. As companies face increasing pressure to adapt to new technologies, regulations, and market conditions, effective change management has become crucial for maintaining operational efficiency while minimizing workplace disruption.

A successful change management process requires careful planning and execution. Learn more about change management, how it works, and different careers you can explore if you're interested in this type of work. Afterward, expand your knowledge of change management with Macquarie University's Leading Transformations: Manage Change.

What is change management?

Change management is the structured approach to implementing organizational transformations while minimizing disruption. This can be something small, like updating standard procedures, or something larger, like a major company restructuring. Change management encompasses the strategies, tools, and processes used to help employees and stakeholders adapt to new ways of working, ensuring changes align with business objectives and are successfully adopted across the organization.

Situations that require a change management process

There are many reasons why a business might implement a change management process. Common situations include:

• Implementing new technology

• Leadership or management turnover

• Change in work culture

• Mergers and acquisitions

• Current processes not working

• Changes in staff and structure

• A time of crisis

4 types of change management

There are different approaches to the change management process. The four main types of change include:

1. Anticipatory

Anticipatory change is when an organization makes changes in response to something expected to happen. For example, environmental concerns or new trends the organization wants to capitalize on can cause stakeholders to anticipate the need for change. 

2. Reactive

Reactive change happens in response to an event that impacts the business. This could be new industry regulations or changes to deal with a pandemic like COVID-19. 

3. Incremental

Incremental change is a series of changes, usually at a micro level, that adds up to wider overall changes. Examples include implementing a reward system, introducing new flexible working policies, or changing office hours. 

4. Strategic

Strategic changes are made at a higher level and filtered down to impact the whole organization. An example of this would be a change in leadership or organizational structure. 

Change management process: step-by-step

The change management process refers to the different stages that need to be outlined and implemented to enact a change management strategy successfully.  For example, implementing new technology into a business will not just involve the technology change itself. It may require resources for training, which impact business costs, or even structural changes.

There are five common steps in a change management process.

1. Prepare for change.

This step involves understanding the necessary changes and preparing staff members and stakeholders for what’s to come. It’s an important part of the process, ensuring the change manager supports staff through any concerns and manages resistance by communicating the process and getting buy-in from employees.

2. Create a vision for change.

This stage is about creating the strategy to achieve transformation once stakeholders have agreed to change. Those involved set goals and delegate key performance indicators (KPIs) and tasks to the relevant parties. The change management team makes plans to account for possible problems and helps everyone understand their role in managing processes at each level. 

3. Implement changes. 

This step implements the change plans. Excellent management and communication are key here. Change managers must ensure that everyone is performing their duties and that employees are still happy and empowered to ensure everything runs smoothly. 

4. Embed and solidify changes.

Once the changes have been made, it’s vital to make sure the transformation is in place so that staff members don’t slip back into old ways. This step ensures systems are in place to train staff and clarify new structures, workflows, and rewards. 

5. Review and analyze.

The final stage of the process is important to ensure that changes continue and are beneficial. Change managers review what worked and what didn’t work and make adjustments accordingly. 

Watch the following video from the University of Pennsylvania's Removing Barriers to Change course to learn more about inspiring change:

Careers in change management

Working in change management requires excellent problem-solving abilities and workplace skills such as communication. If you enjoy collaborating with others, thinking critically to address problems, and project management, then change management could be a rewarding career choice.

If you're interested in change management, there are various opportunities to consider, and the available roles can differ by company type and size. Smaller companies may only have one or two people assigned to these responsibilities, while larger companies may hire a large team with specific roles.

Popular change management roles:

• Change management analyst: $95,760 [1] 

• Change manager: $113,229 [2]

• Organizational development consultant: $105,098 [3] 

• Organizational change manager: $119,468 [4]

*All average base salaries from Glassdoor as of May 2025.

Why choose a career in change management?

Change management roles offer challenges, flexibility, and excellent job prospects. Jobs in management analytics, which includes change management positions, are expected to grow by 11 percent between 2023 and 2033, according to the US Bureau of Labor Statistics (BLS) [5].

Change management skills

Whether you’re looking for change management roles as an employee or a self-employed consultant, you need certain transferable skills and some specialist skills. These include:

• Business management

• Detail-oriented

• Excellent communication with people at all levels

• Leadership and management

• Negotiation

• Organization

• Process improvement 

• Proficiency with business management software 

• Project management

• Time management 

• Training and coaching 

• Trust and relationship-building

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