What is Effective Change Management?

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  • Written By: Osmand Vitez
  • Edited By: Jenn Walker
  • Last Modified Date: 11 August 2019
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Effective change management is a process companies use to successfully make changes to company operations by increasing employee communication, involvement and buy-in. Change management strategies may be employed to respond to changes in consumer behavior, the availability of economic resources, or the number of competitors in the business environment. Effective change management may also be helpful in responding to a change in the life cycle of goods or services produced by the company and changes in the financial stability of the company.

Effective change management usually involves changing the personal involvement of company managers and employees in business operations. Changing their attitudes and work behaviors can help ensure companies have the proper company culture for taking on change management projects. Leadership style, communication, ethics and the proper approach to management situations are a few of the effective change management principles companies may need to instill in their employees. These principles may be developed in company managers or employees through formal education classes, business seminars or informal training methods by the company. Companies may also employ a third-party change agent responsible for handling the major change management process in the company.


Managers may approach the effective change strategy from a proactive or reactive position. Proactive change management requires managers to actively review current economic markets and business environments scenarios to determine what shifts may occur in the near or long-term future. As managers review this information, they may choose to develop business strategies to improve or enhance business operations for responding to these changes once they occur. Managers may also review current government regulation or tax law to determine if any new changes will be made to these policies.

Reactive change management is a philosophy company’s use when they institute strategies for changing business operations after major shifts or changes have occurred in the economic market. Reactive change management may not lead to effective change management results, however. Reactive business strategies can be a dangerous management philosophy for companies to use when running a business. Allowing too many economic marketplace changes to occur before the company adjusts its business model or strategy may allow competitors to increase their market share and take business away from companies that cannot quickly respond to changes in the marketplace. Effective change management enables companies to plan ahead to avoid such reactive change issues.


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