71. Five Phases of Change

Key Definitions

As outlined in the Mind the Gap Model (Meyer’s Management Models #1), organizational change is the process of transitioning an organization (or parts thereof) from a current state to an intended future state. Some organizational changes are incremental (small and gradual), others transformational (large and rapid), while most are somewhere in between.

Few organizational changes take place in a fixed number of orderly steps. Most processes are like rivers – messy streams of activities, occasionally speeding up and slowing down, flowing forward, but also curling back. Therefore, it is better to speak of generic phases or stages in a change journey, instead of thinking in terms of distinct change steps.

Conceptual Model

The Five Phases of Change model outlines the five general stages recognizable in any change journey, as the organization moves from the current state through mountainous ups and downs to the desired future state. The five phases overlap along the time-axis, visually conveying the message that a change journey doesn’t take place in neat sequential steps, but that change activities belonging to different phases can sometimes take place simultaneously and that the journey can occasionally even loop back to an earlier phase. The model is intended to be a simple map to plot complex change processes and to help recognize what type of interventions might be required given the phase that the organizational change is in.

Key Elements

The five generic phases of organizational change are the following:

1. Formulation: Strategy for Change. The first phase of any change journey is to determine where the voyage is going (change destination), who the voyagers will be (change stakeholders) and how the voyage will take place (change approach). The key challenge is to avoid the ambiguity hazard – the danger of not making clear choices. For a change journey to be successful, the definition of the future state must give a concrete sense of direction, while a viable path for getting there must be set. “We’ll see” is not a strategy.
2. Preparation: Readiness for Change. The second phase is to ensure that the organization is ready to embark upon the selected path, by taking away barriers to change (securing change ability) and resistance to change (securing change willingness). The key challenge is to avoid the contracting hazard – the danger of accepting a change strategy for which the organization is not ready. If the organization can’t be made willing and able to follow the selected change path, it might be necessary to loop back and reformulate the strategy.
3. Mobilization: Initiation of Change. The third phase is to get the ball rolling, by creating a virtuous cycle of engaging sufficient stakeholders to realize visible changes, thereby building confidence and commitment, that in turn will convince more stakeholders to jump on the bandwagon. The key challenge is to avoid the momentum hazard – the danger of not reaching take-off speed. If too many stakeholders are reluctant to commit themselves to the change journey, tangible results will be lacking, triggering a vicious downward spiral.
4. Realization: Dynamics of Change. The fourth phase encompasses all of the actual work of carrying out the required changes. In this, often long, leg of the change journey, the ball needs to keep rolling and a constant stream of activities needs to be completed, while results need to be achieved. The key challenge is to avoid the setback hazard – the danger of suffering a reversal of fortunes, leading people to question the feasibility of the changes. To be successful, organizations need to overcome such blows and carry on.
5. Consolidation: Securing of Change. The fifth phase is concerned with making sure that all of the changes are completed, even if resources are running low, people are getting tired and new change projects present themselves as even more urgent. The key challenge is to avoid the anchoring hazard – the danger of not securing all of the realized changes, with people backsliding into old systems and behaviors. Successfully finishing the change journey requires the diligent discipline of tightening up the last nuts and bolts.

Key Insights

• Change journeys are all different. Organizational changes come in many shapes and sizes. They can be broad or narrow in scope (breadth), large or small in scale (height), and rapid or slow in speed (length). Moreover, what is changed and who is involved can vary widely. Therefore, any model of change will necessarily be big picture and generic.
• Change journeys have phases, not steps. Almost all change journeys do not follow orderly steps but are messy, complex processes in which only general phases can be recognized. Yet even these phases can overlap, and looping back can take place.
• Change journeys have five phases. Each organizational change will pass through five phases: Formulation (determining the change strategy); preparation (getting ready to change); mobilization (initiating the change); realization (implementing the various changes); and consolidation (wrapping up and securing the changes).
• Change journeys are hazardous, not straightforward. Change is not only messy but also full of ups and downs, due to the difficulties that must be dealt with along the way.
• Change journeys have five hazards. Each phase has its own key danger that needs to be handled: The ambiguity hazard is the threat of a vaguely formulated change direction; the contracting hazard is taking on a change for which the organization is not ready; the momentum hazard is not reaching take-off speed; the setback hazard of giving up after a disappointment; and the anchoring hazard is not securing the almost completed change.