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Change Management Case Study Examples: Lessons from Industry Giants

Explore some transformative journeys with efficient Change Management Case Study examples. Delve into case studies from Coca-Cola, Heinz, Intuit, and many more. Dive in to unearth the strategic wisdom and pivotal lessons gleaned from the experiences of these titans in the industry. Read to learn about and grasp the Change Management art!

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In the fast-paced world of business, staying ahead means being able to adapt. Have you ever wondered how some brands manage to thrive despite huge challenges? This blog dives into a collection of Change Management Case Studies, sharing wisdom from top companies that have faced and conquered adversity through effective Change Management Activities. These aren’t just stories; they’re success strategies.

Each Change Management Case Study reveals the smart choices and creative fixes that helped companies navigate rough waters. How did they turn crises into chances to grow? What can we take away from their successes and mistakes? Keep reading to discover these inspiring stories and learn how they can reshape your approach to change in your own business. 

Table of Contents  

1) What is Change Management in Business? 

2) Top Examples of Case Studies on Change Management 

    a) Coca-Cola 

    b) Adobe 

    c) Heinz  

    d) Intuit  

    e) Kodak 

    f) Barclays Bank 

3) Conclusion

What is Change Management in Business?  

Change management in business refers to the structured process of planning, implementing, and managing changes within an organisation. It involves anticipating, navigating, and adapting to shifts in strategy, technology, processes, or culture to achieve desired outcomes and sustain competitiveness.  

Effective Change Management entails identifying the need for change, engaging stakeholders, communicating effectively, and mitigating resistance to ensure smooth transitions. By embracing Change Management principles and utilizing change management tools , businesses can enhance agility, resilience, and innovation, driving growth and success in dynamic environments.

Top Examples of Case Studies on Change Management  

Let's explore some transformative journeys of industry leaders through compelling case studies on Change Management: 

1) Coca-Cola  

Coca-Cola, the beverage titan, acknowledged the necessity to evolve with consumer tastes, market shifts, and regulatory changes. The rise of health-conscious consumers prompted Coca-Cola to revamp its offerings and business approach. The company’s proactive Change Management centred on innovation and diversification, leading to the launch of healthier options like Coca-Cola Zero Sugar.  

Strategic alliances and acquisitions broadened Coca-Cola’s market reach and variety. Notably, Coca-Cola introduced eco-friendly packaging like the PlantBottle and championed sustainability in its marketing, bolstering its brand image. 

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2) Adobe  

Adobe, with its global workforce and significant revenue, faced a shift due to technological advancements and competitive pressures. In 2011, Adobe transitioned from physical software sales to cloud-based services, offering free downloads or subscriptions.  

This shift necessitated a transformation in Adobe’s HR practices, moving from traditional roles to a more human-centric approach, aligning with the company’s innovative and millennial-driven culture. 

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3) Heinz 

Berkshire Hathaway and 3G Capital’s acquisition of Heinz led to immediate, sweeping changes. The new management implemented cost-cutting measures and altered executive perks.  

Additionally, it introduced a more insular leadership style, contrasting with 3G’s young, mobile, and bonus-driven executive team. 

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4) Intuit  

Steve Bennett’s leadership at Intuit marked a significant shift. Adopting the McKinsey 7S Model, he restructured the organisation to enhance decision-making, align rewards with strategy, and foster a performance-driven culture. His changes resulted in a notable increase in operating profits. 

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5) Kodak  

Kodak, the pioneer of the first digital and megapixel cameras in 1975 and 1986, faced bankruptcy in 2012. Initially, digital technology was costly and had subpar image quality, leading Kodak to predict a decade before it threatened their traditional business. Despite this accurate forecast, Kodak focused on enhancing film quality rather than digital innovation.  

Dominating the market in 1976 and peaking with £12,52,16 billion in sales in 1999, Kodak’s reluctance to adopt new technology led to a decline, with revenues falling to £4,85,11,90 billion in 2011.  

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In contrast, Fuji, Kodak’s competitor, embraced digital transformation and diversified into new ventures. 

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6) Barclays Bank  

The financial sector, particularly hit by the 2008 mortgage crisis, saw Barclays Capital aiming for global leadership under Bob Diamond. However, the London Inter-bank Offered Rate (LIBOR) scandal led to fines and resignations, prompting a strategic overhaul by new CEO Antony Jenkins in 2012.  

Changes included rebranding, refocusing on core markets, altering the business model away from high-risk lending, fostering a customer-centric culture, downsizing, and embracing technology for efficiency. These reforms aimed to strengthen Barclays, improve shareholder returns, and restore trust. 

Dive into the detailed Case Study on Change Management

Conclusion  

The discussed Change Management Case Study examples serve as a testament to the transformative power of adept Change Management. Let these insights from industry leaders motivate and direct you as you navigate your organisation towards a path of continuous innovation and enduring prosperity. 

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Frequently Asked Questions

The five key elements of Change Management typically include communication, leadership, stakeholder engagement, training and development, and measurement and evaluation. These elements form the foundation for successfully navigating organisational change and ensuring its effectiveness. 

The seven steps of Change Management involve identifying the need for change, developing a Change Management plan, communicating the change vision, empowering employees, implementing change initiatives, celebrating milestones, and sustaining change through ongoing evaluation and adaptation. 

The Knowledge Academy takes global learning to new heights, offering over 30,000 online courses across 490+ locations in 220 countries. This expansive reach ensures accessibility and convenience for learners worldwide.  

Alongside our diverse Online Course Catalogue, encompassing 17 major categories, we go the extra mile by providing a plethora of free educational Online Resources like News updates, Blogs , videos, webinars, and interview questions. Tailoring learning experiences further, professionals can maximise value with customisable Course Bundles of TKA .

The Knowledge Academy’s Knowledge Pass , a prepaid voucher, adds another layer of flexibility, allowing course bookings over a 12-month period. Join us on a journey where education knows no bounds.  

The Knowledge Academy offers various Change Management Courses , including the Change Management Practitioner Course, Change Management Foundation Training, and Risk Management for Change Training. These courses cater to different skill levels, providing comprehensive insights into Change Management Metrics .   

Our Project Management Blogs cover a range of topics related to Change Management, offering valuable resources, best practices, and industry insights. Whether you are a beginner or looking to advance your Project Management skills, The Knowledge Academy's diverse courses and informative blogs have got you covered.  

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• Research article
• Open access
• Published: 14 November 2019

Organisational change in hospitals: a qualitative case-study of staff perspectives

• Chiara Pomare   ORCID: orcid.org/0000-0002-9118-7207 1 ,
• Kate Churruca 1 ,
• Janet C. Long 1 ,
• Louise A. Ellis 1 &
• Jeffrey Braithwaite 1  

BMC Health Services Research volume  19 , Article number:  840 ( 2019 ) Cite this article

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22 Citations

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Organisational change in health systems is common. Success is often tied to the actors involved, including their awareness of the change, personal engagement and ownership of it. In many health systems, one of the most common changes we are witnessing is the redevelopment of long-standing hospitals. However, we know little about how hospital staff understand and experience such potentially far-reaching organisational change. The purpose of this study is to explore the understanding and experiences of hospital staff in the early stages of organisational change, using a hospital redevelopment in Sydney, Australia as a case study.

Semi-structured interviews were conducted with 46 clinical and non-clinical staff working at a large metropolitan hospital. Hospital staff were moving into a new building, not moving, or had moved into a different building two years prior. Questions asked staff about their level of awareness of the upcoming redevelopment and their experiences in the early stage of this change. Qualitative data were analysed using thematic analysis.

Some staff expressed apprehension and held negative expectations regarding the organisational change. Concerns included inadequate staffing and potential for collaboration breakdown due to new layout of workspaces. These fears were compounded by current experiences of feeling uninformed about the change, as well as feelings of being fatigued and under-staffed in the constantly changing hospital environment. Nevertheless, balancing this, many staff reported positive expectations regarding the benefits to patients of the change and the potential for staff to adapt in the face of this change.

Conclusions

The results of this study suggest that it is important to understand prospectively how actors involved make sense of organisational change, in order to potentially assuage concerns and alleviate negative expectations. Throughout the processes of organisational change, such as a hospital redevelopment, staff need to be engaged, adequately informed, trained, and to feel supported by management. The use of champions of varying professions and lead departments, may be useful to address concerns, adequately inform, and promote a sense of engagement among staff.

Peer Review reports

Change is a common experience in complex health care systems. Staff, patients and visitors come and go [ 1 ]; leadership, models of care, workforce and governing structures are reshaped in response to policy and legislative change [ 2 ], and new technologies and equipment are introduced or retired [ 3 ]. In addition to these common changes experienced throughout health care, the acute sector in many countries is constantly undergoing major changes to the physical hospital infrastructure [ 4 , 5 ]. In New South Wales, Australia, several reports have described the increase in hospital redevelopment projects as a ‘hospital building boom’ [ 4 , 6 ], with approximately 100 major health capital projects (i.e., projects over AUD$10 million) currently in train [ 7 ]. In addition to meeting the needs of a growing and ageing population [ 8 ], the re-design and refurbishment of older hospital infrastructure is supported by a range of arguments and anecdotal evidence highlighting the positive relationship between the hospital physical environment and patient [ 9 ] and staff outcomes [ 10 ]. While there are many reasons why hospital redevelopments are taking place, we know little about how hospital staff prospectively perceive change, and their experiences, expectations, and concerns. Hospital staff encapsulates any employee working in the hospital context. This includes clinical and non-clinical staff who provide care, support, cleaning, catering, managerial and administrative duties to patients and the broader community.

One reason as to why little research has explored the perspectives of hospital staff during a redevelopment may be because hospital redevelopment is often considered a physical, rather than organisational change. Organisational change means that not only the physical environment is altered, but also the behavioural operations, structural relationships and roles, and the hospital organisational culture may transform. For example, changing the physical health care environment can affect job satisfaction, stress, intention to leave [ 11 ], and the way staff work together [ 12 ].

Redeveloping a hospital can be both an exciting and challenging time for staff. In a recent notable example of opening a new hospital building in Australia, staff attitudes shifted from appreciation and excitement in the early stages of change to frustration and angst as the development progressed [ 13 ]. Similar experiences have been reported elsewhere, such as in a study describing the consequences for staff of hospital change in South Africa [ 14 ]. However, these examples explored staff attitudes towards change retrospectively and considered the change as a physical redevelopment, rather than organisational change. Such retrospective reports may be limited in validity [ 15 ] as prospective experiences and understanding of change reported by staff may be conflated with the final outcome of the change. The hospital redevelopment literature has also prospectively assessed health impacts of proposed redevelopment plans as a means to predetermine the impact of a large change on the population [ 16 ]; while prospective, this research again considers redevelopment as a physical modification, rather than an organisational change. Thus, while the literature has reported retrospective accounts of staff experiences in large hospital change and prospective assessment of the impact of the change, there is little research examining the understanding and experiences of staff in the early stages of redevelopmental change in hospitals through a lens of organisational change.

Seminal research in the organisational change literature highlights that the role of frontline workers (in this case hospital staff) is crucial to implementation of any process or change [ 17 , 18 ]. Specifically, that the support of actors (understanding, owning, and engaging) can determine the success of a change [ 19 ]. This is consistent with complexity science accounts which suggest that any improvement and transformation of health systems is dependent upon the actors involved, and the extent and quality of their interactions, their emergent behaviours, and localised responses [ 1 , 20 ]. In health care, change can be resisted when it is imposed on actors (in this case, hospital staff), but may be better accepted when people are involved and adopt a sense of ownership of the changes that will affect them [ 21 ]. This may include being involved in the design process. For this reason, it is important to examine the understanding and experiences of actors involved in a change (i.e., hospital staff in a redevelopment), in order to understand and potentially address their concerns, alleviating negative expectations prior to the change.

This study is part of a larger project exploring how hospital redevelopment influences the organisation, staff and patients involved [ 22 ]. The present study aimed to explore the understanding and experiences of staff prior to moving into a new building as one stage in a multidimensional organisational change project. The research questions were: How do staff make sense of this organisational change? How well informed do they feel? What are their expectations and concerns? What are the implications for hospitals undergoing organisational change, particularly redevelopment?

The study protocol has been published elsewhere [ 22 ]. The Consolidated criteria for reporting qualitative research (COREQ) guidelines were used to ensure comprehensive reporting of the qualitative study results (Additional file 1 ) [ 23 ] .

Study setting and participants

This study was conducted at a large metropolitan, publicly-funded hospital in Sydney, Australia. The facility is undergoing a multimillion-dollar development project to meet the growing needs of the community. This hospital has undergone a number of other changes over the last two decades, including incremental increases in size. Since its opening in the mid 1990s (with approximately 150 beds), several buildings have been added over the years. The hospital now has multiple buildings and over 500 beds.

During the time of this study, the hospital was in the second stage of the multi-stage redevelopment. This stage included: the opening of a new acute services building, the relocation of several wards to this new building (e.g., Intensive care unit (ICU) and Maternity), increases in resources (e.g., equipment, staffing), and the adoption of new ways of working (e.g., activity-based workspaces for support staff). Essentially, the redevelopment involves the opening of a new state-of-the-art building which will include moving services (and staff) from the old to the new building, with some wards staying in the old building. For the wards moving into the new building, this change does not initially involve more patients in existing services, but is intended to increase the number of staff because there will be more physical space to cover and new models of care introduced (e.g., ICU changing to single-bed rooms, more staff needed to individually attend to patients). The current redevelopment includes space for future expansion to account for the growing population. In addition to the redevelopment of the physical infrastructure, the way staff work together is also planned to change. Hospital leadership is aiming to foster a cultural shift towards greater cohesion and unity; highlighting that the hospital redevelopment can be conceptualised as an organisational change of considerable importance and magnitude.

Participants were hospital staff (clinical and non-clinical) working at the hospital under investigation. Staff working on four wards were targeted for interviews, with the intention to capture diverse experiences of the redevelopment and the broader organisational change; two of these wards would be moving into the new building (ICU and Maternity), one ward was not moving (Surgical), and one ward had moved into a new building two years prior (Respiratory). Interviews were also conducted with staff who held responsibilities across wards (e.g., General Services Department: cleaners, porters). The hospital staff were purposively recruited by department heads and snowballed from participants. Fifty staff members were approached (until data saturation was met) with four refusing to participate because they did not have the time.

Semi-structured interviews

Semi-structured interviews were conducted in private settings at the participants’ place of work (e.g., ward interview rooms, private offices). In the event a participant was unable to meet the researcher in person, interviews were conducted over the phone. A semi-structured interview guide was created in collaboration with key stakeholders from the hospital under investigation and following a literature review. The guide (Additional file 2 ) included questions aimed at exploring participants’: (1) understanding of the hospital’s culture and current ways of working; (2) understanding of the redevelopment and other hospital changes; and (3) concerns or expectations about the organisational change. The interviews were audio-taped and transcribed verbatim by the first author who is trained and experienced in conducting semi-structured interviews. No field notes were made during the interview nor were transcripts returned to participants for comment or correction due to the time poor characteristics of the study participants (hospital staff). Participants were informed that the research was part of the first author’s doctoral studies.

Interview data were analysed via thematic analysis [ 24 ] using NVivo [ 25 ]. This approach followed Braun and Clarke’s (2006) six phases of thematic analysis: familiarise, generate initial codes, develop themes, review potential themes, define and name themes, produce the report. Data were initially read multiple times by the first author, then descriptively and iteratively coded according to semantic features. The analysis included the use of inductive coding to identify patterns driven by the data, together with deductive coding, keeping the research questions in mind. Through examination of codes and coded data, themes were developed. The broader research team (KC, LAE, JCL) were included throughout each stage of the analysis process, with frequent discussions concerning the categorization of codes and themes. This process of having one researcher responsible for the analysis while other researchers then checked and clarified emerging themes throughout contributes to the trustworthiness of the findings [ 26 ].

In presenting the results, extracts have been edited minimally to enhance readability, without altering meaning or inference. Where extracts are presented, staff are coded according to their department (G: General – works across several wards; ICU: Intensive care unit; MAT: Maternity ward; RES: Respiratory ward; SUR: Surgical ward) and profession (AD: Administrative staff; CHGTEAM: Change management team staff; DR: Medical staff; GS: General services staff; MW: Midwifery staff; N: Nursing staff; OTH: Other profession).

Forty-six staff members participated in the semi-structured interviews. Interviews were typically conducted face-to-face ( n  = 41; 89.1%), with five interviews conducted over the phone. No differences were discerned in content between these different mediums. Hospital staff taking part in interviews included those from: nursing and midwifery, medical, general services, administrative, and change management (Table  1 ). Change management staff are external to the hospital staff, and do not report to hospital executives. Interviews ranged from seven to 33 min in length ( M  = 17 min). Participating staff had worked at the hospital for on average 10.5 years (range 5 months and 30 years).

Five themes were identified related to hospital staff’s understanding and experiences (i.e., expectations and concerns) of the change: staffing; benefits to patients; collaboration; fatigue; and adaptability. These expectations and concerns are schematically presented in Fig.  1 , with shades of red indicating negative expectations and concerns associated with the theme, and green representing positive expectations. Intensity of the colour demonstrated the frequency of positivity or negativity associated with that theme (i.e., deeper shades of red indicate frequency of negative discussion of this theme by different hospital staff). This figure also highlights the complexity and interrelatedness of these themes (e.g., the concern of inadequate staffing for the new building was linked with concerns about patient care, which could possibly impede the way the team work together, leading to staff feeling overworked and worn out; these expectations were all mitigated by the staff member’s understanding and awareness of the change). Explanations and examples are presented below.

Thematic visualisation of staff understanding and expectations of the change

Hospital staff consistently held staffing to be a major concern in this redevelopment. To them, the opening of the new building, and with it the increase in physical size and addition of new services, meant that an increase in staff was crucial to successfully implement the change: “ My biggest uncertainty at the moment is the fact that I’m really concerned about whether I’m actually going to get enough staff ” (GS1). Many participants suggested that this issue would determine the success of the new hospital building. This was particularly important for staff moving into the new building with a bigger work space: “ We just need more staff. Yeah I think that’s the main issue - if we fix that then I believe everything should be smooth ” (ICUN4). For the most part, staff were unaware about how many new staff they would have in the new building. This uncertainty involved two related issues: (1) will we get the budget for new staff that we need? And if so, (2) where will we find all these new staff to employ?

On the first point, staff reported concerns that they would not have enough staff to cover the increased physical space and new ways of working within the new building. This lingering uncertainty was the result of external factors, specifically unresolved budget issues: “ But I suppose some of the issues stem from the fact that you never know how many beds we are able to open based on the funding from the government, and that is what is still up in the air ” (ICUDR1).

Regarding the second point, staff noted that even if budgetary issues were resolved, and there was enough money to hire new staff to fill the new building, a challenge would be finding the staff to recruit: “ I don’t know where these new staff are going to come from” (GN3). Some participants suggested that they already encountered difficulties with employing enough appropriately qualified staff and reported concerns that this issue would be compounded when they moved into the new building: “ Excitement will be way gone. It’s more to deal with that stress and the workload of other staff ” (ICUN4). Participants working on wards that were not moving into the new building also reported concerns about staffing. They noted that, despite not being directly involved in previous stages of the redevelopment, they had still been affected by these changes, because their colleagues were taken from their ward without consultation and moved into a new area. Hence, even staff not moving in the next stage of the redevelopment had concerns that their staffing levels would be affected: “ We have been told that we are not moving in there. And hopefully they don’t take our staff there ” (SURN5).

Benefits to patients

Many hospital staff expressed a positive expectation of the move related to benefits for patients. This was consistent across wards, departments and professions. Staff expected patients to experience benefits including reductions in infection rates and improved satisfaction, due to staying in a well-controlled and physically appealing environment with natural light: “ Any new place will give some joy or some happiness to people… The major change will be that because there are individual rooms, the infection rate will be lower and that I’m very pleased with” (ICUDR1).

Despite these participants reporting the improved physical environment was expected to positively affect patients, they also raised concerns that being in the new building might negatively affect patient safety because the increased physical space could introduce more room for error with the greater workload: “ Brings with it the fear, of how will we treat so many patients with nursing when you have one to one and the rooms are closed. That is a constant worry ” (ICUDR1). Participants indicated that this issue would be compounded if staffing levels were not increased.

Collaboration

Staff expressed multiple negative expectations or concerns about how their ways of working together would be affected by moving into the new building. Staff understood the change as more than just a physical expansion, but as an organisational change that would affect their ways of working. This understanding led to concern regarding how to work together in the new building. Specifically, staff moving into the new building were worried about the new layout of ICU, where nurses would be working alone in rooms with single patients. This would disrupt their ability to easily ask for support currently done by asking the nurse at an adjacent bed, or signalling to someone visible across the room: “ Single rooms are great for patients and everything but I think it becomes a bit more isolated for staffing ” (ICUOTH1). These concerns were also recognised among staff working in the change management team, who may not be directly affected by the change, but acknowledged that this is a major consequence of the move into the new building: “ All the beds, they were able to see each other all the time whereas now it’s a different work environment. They’re a bit more isolated… So that’s what we find is the challenge” (CHGTEAM2). Further, staff were concerned about working in open plan spaces that limit opportunity for private discussions, for example with other staff about workplace conflict or personal matters: “ I’m very concerned about insufficient space for private stuff ” (ICUAD1).

Staff reported negative expectations of collaboration breakdown not only within wards, but across the hospital. The organisational change will include far-flung staff and expanded infrastructure, which may decrease opportunity to collaborate directly. For several participants, the growing size of the hospital was seen as a fracturing of the positive, cohesive culture of what was once a smaller hospital—“ It used to be that the general manager would walk through and know everybody by name, the cleaner, maintenance crew, everybody knew everybody’s name ” (GN1)—into more disconnected, subunits: “ Now we’re very separate ” (ICUOTH1).

During interviews, many participants reported feeling over-worked and under-resourced. While some described being fatigued and unhappy at work, the redevelopment was, nevertheless, clearly a positive: “ We’re not happy because we’re under so much pressure and stress. But, you know, we are looking forward to the new build, it’ll be a beautiful building” (GN3). For others, there were concerns that their feelings of being over-worked would not subside with the opening of the new hospital building and that there was a lack of time to even consider the change. This was expressed by staff moving in to the new building, as well as those not moving:

Who has got the time to go and look at those decorative things ! (SURN5).

I can’t see how it will make a big difference to me… I don’t pay a lot of attention to the looks (MATDR1).

It doesn’t really matter… I could be providing it [patient care] in a tent or a building . (MATMW2).

Further, hospital staff expressed frustration in having to endure poor resourcing, which tempered their excitement for the new building: “We’ve all put up with whatever since whenever and I’m done, I’m so done” (ICUAD1). Some participants reported negative expectations related to the increase in physical space in the new building, as adding to the work load of clinical staff and requiring they travel further to get supplies and attend to patients: “They are worried about, hang on I’m going to have to do so many more laps” (ICUAD1). Similarly, an issue expressed on behalf of staff in the General Services Department was whether they will be able to adequately clean and cater for physically larger areas: “ I’m sitting here and looking at [a previous building that was opened] and seeing how filthy it is ” (CHGTEAM3). Concerns about being over-worked in the face of the redevelopment were further emphasised by some interviewees who discussed a problem with turnover: “ We’ve actually had a few people, I have had three people, which is unusual for us, who have looked for other jobs and are probably resigning. You know which is sort of the opposite of what we’d expect at this time, we’d expect they’d be excited for the new building ” (ICUN5). However, most staff in more junior positions had not seen the new building and thus were unaware of the layout and the degree to which it may impact their work: “ Because I have not seen the actual structure of the area, and I don’t know what they based it on and how they figured out a way to be friendly for both staff and patients at the same time ” (ICUN3). The unawareness and lack of understanding accentuated concerns and negative expectations among staff as they expected the worst.

Also contributing to reports of experiencing fatigue, staff described numerous other large changes taking place at the hospital over the years, in addition to the redevelopment: “ Basically for seven years we’ve been undergoing changes since I’ve been here. It is utterly exhausting having this many changes all the time ” (GS1). This highlights that while this study captures prospective insights to the change, change is constant in health care. While the move into the new building has not yet occurred, the move is part of a broader organisational change grander than the physical expansion of infrastructure. While this was a major concern for many staff, some of the senior medical staff dismissed this as being an issue, suggesting constant change is part of health care and should not lead to staff feeling worn out: “ I think once you get to my level you get good at kind of jumping through hoops… As you get more experienced, you just go with the flow a bit more” (SURDR2).

Adaptability

An additional theme involved staff’s positive expectation that they would be able to adapt to the changes brought about by the move into the new building. Reflecting on past experiences of organisational and infrastructure changes at the hospital, staff expressed that it could take time to adapt and see the benefits of the change: “ At the beginning, of course, everybody was scared of the changes and stuff like that, but eventually we got used to it. ” (SURN3). However, some staff reported that they saw adapting to the new building as a concern, potentially because of a lack of knowledge pertaining to what the new building entails: “ I just don’t know. I’m worried because I don’t know what we’re walking in to ” (ICUN2). In general, staff expressed an understanding of the change as one of physical growth (hospital redevelopment) and changes in ways of working (organisational change): “Getting bigger. So, basically taking all of our acute services and putting it in a brand spanking new building where they’re significantly expanding” (GN1); “ The biggest change is changing the way they work. Changing the way they deliver care .” (CHGTEAM2). When asked why the change was happening, hospital staff were consistent in attributing the need for redevelopment to population growth: “ To develop more resources to accommodate for the growing number of patients ” (SURDR3).

Feeling uninformed and uncertain about the change was expressed by staff of different professions and different levels throughout the hospital. In fact, even wards that were not moving to the new building were unsure if this was the case: “ There’s been no communication from anyone really. I hear from different people yes we are moving and then somebody says no we’re not. We’re staying here in the old building. So, I’m not sure exactly who’s going” (SURN1).

Our findings suggest that in the early stages of hospital redevelopment, staff experience both positive and negative expectations that are dependent upon the level of personal understanding, awareness of the change to come, and how well-resourced they already feel. Interviews with hospital staff highlighted a general understanding of the change as involving physical expansion of the hospital. However, participants also reported feeling inadequately informed about what is to come and described a range of sometimes differing expectations about the organisational effects of this change (e.g., on collaboration, for patients). This supports the conceptualisation of hospital redevelopment as not only a physical change, but an organisational one too.

The present study is the first to empirically explore the experiences and understanding of staff in the early stages of a hospital redevelopment, and conceptualised this as an organisational change. This conceptualisation is an important contribution to the organisational change literature because we show that change, even when based on the best evidence-based design, can be disappointing and bring about negative experiences for staff. The concerns and negative expectations of the change expressed by staff in the present study echo past research that retrospectively explored the experiences of staff during a hospital change, in Australia [ 13 ], and elsewhere [e.g., 14]. In the present study, staffing was a major concern reported by hospital staff. This is consistent with other reports of hospital redevelopment in the Australian context. For example, in a report into the opening of a new children’s hospital, staff were frustrated about the progression of the change and that a lack of staffing impacted on service planning. Staffing was also emphasised as an issue in another Australian hospital redevelopment project, where the building opened with insufficient staffing and resources [ 27 ]. Additionally, hospital staff in the present study indicated that they felt fatigued, so much so that excitement for the opening of the new building was diminishing. Reports of low staff morale in hospital redevelopment projects has also been documented in other Australian and international studies [ 13 , 14 ]. Further, participants in this study reported a lack of awareness of the redevelopment, something that appears to be common with a report of hospital revitalisation in the United States reporting a similar finding [ 28 ].

One source of many of the issues expressed by staff was uncertainty, a common and often inevitable experience in health care [ 29 ], for example, systems uncertainty about staffing levels and uncertainty about whether collaboration and support would break down as the hospital expands. While some types of uncertainty cannot be eradicated, it is important to manage uncertainty in times where information is available. One way to do this is to make sure front-line actors have a platform to seek information and ask questions during organisational change; having access to information is a predictor of success for organisational change in healthcare [ 30 ]. This may help alleviate stress associated with change and make the transition period less uncertain for staff, particularly in early stages where uncertainty may be greater. While it is not always possible for all the concerns and expectations of staff to be individually acknowledged and addressed by those coordinating the change (e.g., change management team or hospital executives), an alternative is through the use of ‘champions’ or ‘opinion leaders’. Opinion leaders are actors with a brokerage role; they carry information across social boundaries, such as between groups of professionals or different hospital wards [ 31 ]. Otherwise referred to as a ‘champion’, by virtue of their trustworthiness and connectedness, these actors are able to lead the opinions of others and are integral in the adoption and diffusion of new phenomena. Successful champions are enthusiastic and motivated about the change they are promoting [ 32 ]. In this case, a successful champion in a hospital undergoing organisational change is a staff member who can inform others and influence acceptance, and provide a positive frame for the change.

Implications

While findings may be localised to the hospital we researched, it is important to note that the hospital redevelopment under investigation is similar to other hospital redevelopments in metropolitan cities in Australia [ 7 ] and worldwide [ 5 ]. Specifically, the redevelopment is an expansion of infrastructure to meet the growing needs of the community which the hospital serves. The perceptions and experiences maintained by hospital staff will differ dependent on the state of the new facilities; these findings broadly generalise to any hospital redevelopment where a newer, larger building is opened. The implications of this study provide broad suggestions for other hospitals undergoing this type of hospital redevelopment.

Firstly, hospital redevelopment should be considered as more than physical change, but as an organisational change, in order to recognise the ripple effects of changing the infrastructure and how this may influence social and behavioural processes. From this study’s findings of the expectations and present experiences of organisational change, we recommend four strategies to aid in the early stages of hospital redevelopment: engage actors; plan and train; learn from the past; and increase managerial engagement (see Table  2 ). These recommendations correspond with suggestions from a past review examining transforming systems in health care [ 33 ]. Effort must be taken to ensure staff are informed of the change and rectify any confusions about who, what, when, and how the change is taking place. This is consistent with organisational change theory that maintains that large scale change requires significant effort and planning to ensure its success [ 19 ]. Therefore, an implication of this study lies in the importance of exploring the understanding and expectations of staff preceding a large organisational change in order to aid in the acceptance of, rather than resistance to, the change [ 21 ]. Further, this study also highlights the importance of studying the experiences of actors not directly involved in the organisational change but who are a part of the broader system (i.e., wards not moving implied they will be affected).

Strengths and limitations

A strength of this study lies in the number of participants and variability in the professions that contribute to the transferability of the study findings. Further, checking and clarifying themes with other researchers throughout the coding process increases the trustworthiness of the findings [ 26 ]. As to limitations, interviews were on average 17 min long, with the shortest interview lasting seven minutes. While this may be perceived as a short duration for collecting interview data it was appropriate for participants who were incredibly time poor (e.g., nurses on shift who could only get a 10 min break to talk to the researcher). It is important that the opinions of these busy staff are captured to reflect the true nature of a sample of varied hospital staff. Further, the findings may not be generalisable to other instances of organisational change and may be specific to the four wards and hospital examined in this study. Wards were purposively chosen rather than randomised. While findings may be specific to the hospital under investigation, the research has been designed to optimise research credibility in this qualitative analysis. Further, considerable context was provided to help readers infer relevance to different settings. This in-depth analysis of how staff understand and interpret organisational change in hospitals provides the opportunity to uncover theoretical insights into the processes of change in the health care system and the perspectives of staff during times of organisational change.

This study explored the prospective understanding and experiences of staff in organisational change in hospitals, using an Australian hospital redevelopment as a case exemplar. Findings indicated that staff were concerned about staffing levels, fatigue, and the potential for a breakdown of current collaborative working. These concerns are similar to past reports of redevelopment in hospitals. This paper presents recommendations for the early stages of organisational change in hospitals. For present and future hospital organisational change projects, it is important that staff concerns are addressed and that staff are informed adequately about the ongoing changes in order to improve their engagement and ownership of the change.

Availability of data and materials

The datasets analysed during the current study are not publicly available due to individual privacy, but are available from the corresponding author on reasonable request.

Abbreviations

Administrative staff

Change management team staff

Medical staff

General – works across several wards

General services staff

Intensive care unit

Maternity ward

Midwifery staff

Nursing staff

Other profession

Respiratory ward

Surgical ward

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Acknowledgements

We thank the hospital executives, ward directors and nursing unit managers for their support in recruitment of interview participants. The authors also thank and acknowledge the interview participants.

CP was funded by the Australian Government Research Training Program (RTP) PhD Scholarship. JB is supported by multiple grants, including the National Health and Medical Research Council (NHMRC) Partnership Grant for Health Systems Sustainability (ID: 9100002). The funders had no role in the design, analysis and drafting of the manuscript.

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CP and JB conceptualised the project. CP collected and analysed the data, and drafted the manuscript. KC, LAE and JCL assisted in the coding and interpretation of data. All authors read and approved the final manuscript.

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Consolidated criteria for reporting qualitative studies (COREQ): 32-item checklist.

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Semi-structured interview guide.

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Pomare, C., Churruca, K., Long, J.C. et al. Organisational change in hospitals: a qualitative case-study of staff perspectives. BMC Health Serv Res 19 , 840 (2019). https://doi.org/10.1186/s12913-019-4704-y

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Explore the Levels of Change Management

9 Successful Change Management Examples For Inspiration

Updated: September 6, 2024

Published: January 3, 2024

Welcome to our guide on change management examples, which are pivotal for steering through today's dynamic business terrain. Immerse yourself in the transformative power of change management, a tool for resilience, growth, innovation, and employee morale enhancement.

This guide equips you with strategies to promote an innovative, adaptable work environment and boost employee morale for lasting organizational success.

Uncover diverse types of change management with Prosci's established methodology and explore real-world examples that illustrate these principles in action.

What is Change Management?

Change management is a strategy for guiding an organization and its people through change. It goes beyond top-down orders, involving employees at all levels. This people-focused approach encourages everyone to participate actively, helping them adapt and use changes in their everyday work.

Effective change management aligns closely with a company's culture, values, and beliefs.

When change fits well with these cultural aspects, it feels more natural and is easier for employees to adopt. This contributes to smoother transitions and leads to more successful and lasting organizational changes.

Why is Change Management Important?

Change management is pivotal in guiding organizations through transitions, ensuring impactful and long-lasting results.

For example, a $28B electronic components and services company with 18,000 employees realized the importance of enhancing its processes. They knew to adopt more streamlined, efficient approaches, known as Lean initiatives .

However, they encountered challenges because they needed a more structured method for effectively managing the human aspects of these changes.

The company formed a specialized group focused on change to address their challenges and initiate key projects. These projects aligned with their culture of innovation and precision, which helped ensure that the changes were well-received and effectively implemented within the organization.

Matching change management to an organization's unique style and structure contributes to more effective transformations and strengthens the business for future challenges.

What Are the Main Types of Change Management?

Discover Prosci's change management models: from individual application and organizational strategies to enterprise-wide integration and effective portfolio management, all are vital for transformative success.

Individual change management

At Prosci, we understand that change begins with the individual.

The Prosci ADKAR ® Model ( Awareness, Desire, Knowledge, Ability and Reinforcement ) is expertly designed to equip change leaders with tools and strategies to engage your team.

This model is a framework that will guide and support you in confidently navigating and adapting to new changes.

Organizational change management

In organizational change management , we focus on the core elements of your company to fully understand and address each aspect of the change.

Our approach involves creating tailored strategies and detailed plans that benefit you and manage you to manage challenges effectively, which include:

• Clear communication
• Strong leadership support
• Personalized coaching
• Practical training

Our strategies are specifically aimed at meeting the diverse needs within your organization, ensuring a smooth and well-supported transition for everyone involved.

Enterprise change management capability

At the enterprise level, change management becomes an embedded practice, a core competency woven throughout the organization.

When you implement change capabilities:

• Employees know what to ask during change to reach success
• Leaders and managers have the training and skills to guide their teams during change
• Organizations consistently apply change management to initiatives
• Organizations embed change management in roles, structures, processes, projects and leadership competencies

It's a tactical effort to integrate change management into the very DNA of an organization—nurturing a culture that's ready and able to adapt to any change.

Change portfolio management

While distinct from project-level change management, managing a change portfolio is vital for an organization to stay flexible and responsive.

9 Dynamic Change Management Success Stories to Revolutionize Your Business

Prosci case studies reveal how diverse organizations spanning different sectors address and manage change.  These cases illustrate how change management can provide transformative solutions from healthcare to finance:

1. Hospital system

A major healthcare organization implemented an extensive enterprise resource planning (ERP) system and adapted to healthcare reform. This case study highlights overcoming significant challenges through strategic change management:

Industry: Healthcare Revenue: $3.7 billion Employees: 24,000 Facilities: 11 hospitals

Major changes:

• Implemented a new ERP system across all hospitals
• Prepared for healthcare reform

Challenges:

• Managing significant, disruptive changes
• Difficulty in gaining buy-in for change management
• Align with culture: Strategically implemented change management to support staff, reflecting the hospital's core value of caring for people
• Focus on a key initiative: Applied change management in the electronic health record system implementation
• Integrate with existing competencies: Recognized change leadership as crucial at various leadership levels

This example shows that when change management matches a healthcare organization's values, it can lead to successful and smooth transitions.

2. Transportation department

A state government transportation department leveraged change management to effectively manage business process improvements amid funding and population challenges. This highlights the value of comprehensive change management in a public sector setting:

Industry: State Government Transportation Revenue: $1.3 billion Employees: 3,000 Challenges:

• Reduced funding
• Growing population
• Increasing transportation needs

Initiative:

• Major business process improvement

Hurdles encountered:

• Change fatigue
• Need for widespread employee adoption
• Focus on internal growth
• Implemented change management in process improvement

This department's experience teaches us the vital role of change management in successfully navigating government projects with multiple challenges.

3. Pharmaceuticals

A global pharmaceutical company navigated post-merger integration challenges. Using a proactive change management approach, they addressed resistance and streamlined operations in a competitive industry:

Industry: Pharma (Global Biopharmaceutical Company) Revenue: $6 billion Number of employees: 5,000

Recent activities: Experienced significant merger and acquisition activity

• Encountered resistance post-implementation of SAP (Systems, Applications and Products in Data Processing)
• They found themselves operating in a purely reactive mode
• Align with your culture: In this Lean Six Sigma-focused environment, where measurement is paramount, the ADKAR Model's metrics were utilized as the foundational entry point for initiating change management processes.

This company's journey highlights the need for flexible and responsive change management.

4. Home fixtures

A home fixtures manufacturing company’s response to the recession offers valuable insights on effectively managing change. They focused on aligning change management with their disciplined culture, emphasizing operational efficiency:

Industry: Home Fixtures Manufacturing Revenue: $600 million Number of employees: 3,000

Context: Facing the lingering effects of the recession

Necessity: Need to introduce substantial changes for more efficient operations

Challenge: Change management was considered a low priority within the company

• Align with your culture: The company's culture, characterized by discipline in projects and processes, ensured that change management was implemented systematically and disciplined.

This company’s experience during the recession proves that aligning change with company culture is key to overcoming tough times.

5. Web services

A web services software company transformed its culture and workspace.  They integrated change management into their IT strategy to overcome resistance and foster innovation:

Industry : Web Services Software Revenue : $3.3 billion Number of employees : 10,000

Initiatives : Cultural transformation; applying an unassigned seating model

Challenges : Resistance in IT project management

• Focus on a key initiative: Applied change management in workspace transformation
• Go where the energy is:  Establishing a change management practice within its IT department, developing self-service change management tools, and forming thoughtful partnerships
• I ntegrate with existing competencies:  "Leading change" was essential to the organization's newly developed leadership competency model.

This case demonstrates the importance of weaving change management into the fabric of tech companies, especially for cultural shifts.

6. Security systems

A high-tech security company effectively managed a major restructuring.  They created a change network that shifted change management from HR to business processes:

Industry : High-Tech (Security Systems) Revenue : $10 billion Number of employees: 57,000

Major changes : Company separation; division into three segments

Challenge : No unified change management approach

• Formed a network of leaders from transformation projects
• Go where the energy is:  Shifted change management from HR to business processes
• Integrate with existing competencies:  Included principles of change management in the training curriculum for the project management boot camp.
• Treat growing your capability like a change:  Executive roadshow launch to gain support for enterprise-wide change management

This company’s innovative approach to restructuring shows h ow reimagining change management can lead to successful outcomes.

7. Clothing store

A major clothing retailer’s journey to unify its brand model.  They overcame siloed change management through collaborative efforts and a community-driven approach:

Industry : Retail (Clothing Store) Revenue : $16 billion Number of employees : 141,000

Major change initiative : Strategic unification of the brand operating model

Historical challenge : Traditional management of change in siloes

• Build a change network :  This retailer established a community of practice for change management, involving representatives from autonomous units to foster consensus on change initiatives.

The story of this retailer illustrates how collaborative efforts in change management can unify and strengthen a brand in the retail world.

A major Canadian bank initiative to standardize change management across its organization.  They established a Center of Excellence and tailored communities of practice for effective change:

Industry : Financial Services (Canadian Bank) Revenue : $38 billion Number of employees : 78,000

Current state : Absence of enterprise-wide change management standards

Challenge :

• Employees, contractors, and consultants using individual methods for change management
• Reliance on personal knowledge and experience to deploy change management strategies
• Build a change network:  The bank established a Center of Excellence and created federated communities of practice within each business unit, aiming to localize and tailor change management efforts.

This bank’s journey in standardizing change management offers valuable insights for large organizations looking to streamline their processes.

9. Municipality

You can learn from a Canadian municipality’s significant shift to enhance client satisfaction. They integrated change management across all levels to achieve profound organizational change and improved public service:

Industry : Municipal Government (Canadian Municipality) Revenue : $1.9 billion Number of employees : 3,000

New mandate:

• Implementing a new deliberate vision focusing on each individual’s role in driving client satisfaction

Nature of shift : 

• A fundamental change within the public institution

Scope of impact :

•  It affected all levels, from leadership to front-line staff

Solution : 

• Treat growing your capability like a change: Change leaders promoted awareness and cultivated a desire to adopt change management as a standard enterprise-wide practice.

The municipality's strategy shows us how effective change management can significantly improve public services and organizational efficiency.

6 Tactics for Growing Enterprise Change Management Capability

Prosci's exploration with 10 industry leaders uncovered six primary tactics for enterprise change growth , demonstrating a "universal theme, unique application" approach.

This framework goes beyond standard procedures, focusing on developing a deep understanding and skill in managing change. It offers transformative tactics, guiding organizations towards excelling in adapting to change.  Here, we uncover these transformative tactics, guiding organizations toward mastery of change.

1. Align with Your culture

Organizational culture profoundly influences how change management should be deployed.

Recognizing whether your organization leans towards traditional practices or innovative approaches is vital. This understanding isn't just about alignment; it's an opportunity to enhance and sometimes shift your cultural environment.

When effectively combined with an organization's unique culture, change management can greatly enhance key initiatives. This leads to widespread benefits beyond individual projects and promotes overall growth and development within the organization.

Embrace this as a fundamental tool to strengthen and transform your company's cultural fabric.

2. Focus on key initiatives

In the early phase of developing change management capabilities, selecting noticeable projects with executive backing is important.

This helps demonstrate the real-world impact of change management, making it easier for employees and leadership to understand its benefits. This strategy helps build support and maintain the momentum of change management initiatives within your organization.

Focus on capturing and sharing these successes to encourage buy-in further and underscore the importance of change management in achieving organizational goals.

3. Build a change network

Building change capability isn't just about a few advocates but creating a network of change champions across your organization.

This network, essential in spreading the message and benefits of change management, varies in composition but is universally crucial. It could include departmental practitioners, business unit leaders, or a mix of roles working together to enhance awareness, credibility, and a shared purpose.

Our Best Practices in Change Management study shows that 45% of organizations leverage such networks. These groups boost the effectiveness of change management and keep it moving forward.

4. Go where the energy is

To build change capabilities throughout an organization effectively, the focus should be on matching the organization's current readiness rather than just pushing new methods.

Identify and focus on parts of your organization that are ready for change. Align your change initiatives with these sectors. Involve senior leaders and those enthusiastic about change to naturally generate demand for these transformations.

Showcasing successful initiatives encourages a collaborative culture of change, making it an organic part of your organization's growth.

5. Integrate with existing competencies

Change management is a vital skill across various organizational roles.

Integrating it into competency models and job profiles is increasingly common, yet often lacks the necessary training and tools.

When change management skills expand beyond the experts, they become an integral part of the organization's culture—nurturing a solid foundation of effective change leadership.

This approach embeds change management deeper within the company and cultivates leaders who can support and sustain this essential practice.

6. Treat growing your capability like a change

Growing change capability is a transformative journey for your business and your employees. It demands a structured, strategic approach beyond telling your network that change is coming.

Applying the ADKAR Model universally and focusing on your organization's unique needs is pivotal. It's about building awareness, sparking a desire for change across the enterprise, and equipping employees with the knowledge and skills for effective, lasting change. 

Treating capability-building like a change ensures that change management becomes a core part of your organization's fabric, benefitting every team member.

These six tactics are powerful tools for enhancing your organization's ability to adapt and remain resilient in a rapidly changing business environment.

Comprehensive Insights From Change Management Examples

These diverse change management examples provide field-tested savvy and offer a window into how varied organizations successfully manage change.

Case studies , from healthcare reform to innovative corporate restructuring, exemplify how aligning with organizational culture, building strong change networks, and focusing on tactical initiatives can significantly impact change management outcomes.

This guide, enriched with real-world applications, enhances understanding and execution of effective change management, setting a benchmark for future transformations.

To learn more about partnering with Prosci for your next change initiative, discover Prosci's Advisory services and enterprise training options and consider practitioner certification .

Founded in 1994, Prosci is a global leader in change management. We enable organizations around the world to achieve change outcomes and grow change capability through change management solutions based on holistic, research-based, easy-to-use tools, methodologies and services.

See all posts from Prosci

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How the implementation of organizational change is evolving

Companies face different challenges today when implementing large-scale changes than they did in 2014, according to a new McKinsey Global Survey on the subject. 1 1. The online survey was in the field from April 18 to April 28, 2017, and garnered responses from 1,528 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Of them, 1,420 have personal experience with major change efforts in the past five years, at either their current or previous organizations—and 878 say the most recent change effort that they are familiar with involved the implementation of a digital solution. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP. In particular, digitization poses new obstacles to implementation, and digital transformations require executives to focus on different priorities and capabilities.

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Across all types of transformations, few survey respondents say their organizations’ change efforts have both improved performance and sustained those improvements. Since the previous survey, organizations have not become much better at executing the core capabilities and practices that support success in large-scale change programs. But in the case of digital transformations—which over half of respondents report as their organizations’ most recent change efforts—the results point to key practices that can improve the odds of success.

The changing face of transformations

The latest survey results indicate that success remains elusive. Only 37 percent of respondents report successful implementations; we call this group “top implementers.” 2 2. We asked respondents about the most recent major change effort at their organizations, and successful implementations are those that respondents describe as moderately or very successful at improving performance (measured by, for example, profitability, return on capital, market value, and/or lead-time reduction) and moderately or very successful at sustaining improvements over time, following the full implementation of the change initiatives. The most common practices for supporting successful change efforts remain the same as in 2014. These include leaders owning and committing to the change being made, role modeling new behaviors, and devoting appropriate time and energy to supporting the change. But compared with the previous survey, smaller shares of respondents report leaders’ ownership of and commitment to change, effective processes for prioritizing change initiatives, and regular tracking of change efforts’ progress (Exhibit 1). When asked about organizational practices more broadly—beyond change efforts—respondents also report declining employee commitment . Fifty-five percent of respondents say employees spend most of their time on organizational priorities and value-adding activities associated with the transformation, down from 68 percent of respondents who said so previously.

These individual practices (out of 30 the survey tested) support seven core implementation capabilities that, in our experience and past research, are most critical to the successful implementation of change. Among top implementers, 85 percent agree that the change effort included all seven core capabilities, while only 41 percent of other respondents say the same.

The digital challenges ahead

Over two-thirds of all respondents agree that implementation capabilities are more important to the outcomes of major change efforts than they were three years ago. But to complicate matters, the results suggest that the very nature of change efforts is evolving. More than half of respondents say their organizations’ most recent major transformations involved the implementation of digital solutions. 3 3. In the survey, we defined a digital solution as any changes—either internal or externally facing—that involve the use of digital tools or technologies, such as automating formerly manual work, improving methods to track work with digital tools, or expanding the functionality of digital customer interfaces. The results suggest that digitization poses new, and meaningful, disruptions to implementing organizational change. One such challenge is the scope and scale of digital transformations . Seventy-five percent of respondents whose companies have undertaken them say their change efforts span more than one business unit or function, compared with 64 percent who say the same about traditional transformations.

Digital transformations also require new skill sets and resources, but finding the right people for this work is a major hurdle. Just one in three respondents say it has been easy for their organizations to internally source the necessary piloting and rapid-prototyping skills for digital solutions. Even respondents from the top implementers are more likely to say their organizations struggle with sourcing skills than with any of the other digital-implementation practices we asked about. 4 4. The survey asked about 28 practices related to the implementation of digital changes across four phases—setup, piloting, scaling and implementation, and sustaining changes—and the extent to which respondents agreed that each practice was followed by their own organizations. Yet only 57 percent of respondents say that if their companies did not have the right skills in-house, they had a process for sourcing them externally.

Last, digital change efforts necessitate new approaches , particularly for assessment. Respondents are less likely now than in 2014 to say that their organizations regularly assess the impact of initiatives and changes once they have been implemented. But among the top implementers, those undergoing digital transformations are more likely to report this practice—along with testing major changes in smaller, controlled environments—than their peers involved in conventional change efforts. This result suggests that assessment is even more critical to the outcome of a transformation that involves digital solutions.

Of the seven capabilities, successful digital implementers most often report that their organizations plan for long-term sustainability and demonstrate commitment to the changes (Exhibit 2). The top digital implementers are more than three times likelier than others reporting digital transformations to say that from day one, their organizations planned for the long-term sustainability of the changes they made. Across the core capabilities, the top digital implementers are furthest ahead of their peers in effective program management.

The keys to success in digital transformations

In addition to assessing the outcomes of the overall transformations, respondents whose organizations have implemented a digital solution were asked to evaluate their organizations’ execution of four phases of a digital transformation: setup, piloting, scaling and implementation, and sustaining changes . Notably, while following every practice within each phase correlates with more successful outcomes, the responses suggest that some practices in each stage are particularly critical.

During the setup of a digital transformation, the results suggest that communicating clearly and establishing priorities are the most important practices for the successful management of that effort (Exhibit 3). When respondents agree that their organizations’ desired outcome for the digital solution was clearly communicated prior to its launch, they are 3.5 times likelier than others to report a successful transformation. When potential ideas for the digital solution are prioritized clearly, success is 2.7 times more likely. Expertise is also a success factor. Forty-seven percent of respondents report that implementation is successful when people with the most relevant expertise develop the business case for the digital solutions. When the business case was developed by others in the organization, such as the program-management office, just 18 percent of respondents report success.

Communication also is a differentiator for success among the piloting practices. Half of respondents report success when the timeline for implementation is communicated clearly; only 16 percent report success when it isn’t. Likewise, skills management has a strong bearing on transformation outcomes. Respondents are three times more likely to report success when piloting and rapid prototyping help to identify necessary new skills, and more than two times likelier to report it when their organizations have clear processes for identifying the necessary external skills.

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Scaling and implementation.

In 2014, respondents cited scaling and implementing as the phase most critical to a major change effort’s success. In the newest survey, responses point to the importance of key performance indicators (KPIs) to ensure that the solution is having the desired effects (Exhibit 4). Among respondents who say that their organizations monitor KPIs as part of implementation, 51 percent report success, compared with only 13 percent who report it where KPIs are not monitored. Success is also over three times more likely when organizations train employees to use the digital solution, establish clear processes for handing off solutions to specific business units, and enable employees to master solutions as soon as they are implemented.

Sustaining changes

Finally, once a digital solution has been implemented, the most important practice for sustaining changes is embedding the solution’s KPIs (developed during setup and tracked during scaling and implementation) into the organization’s long-term processes. The responses suggest that organizations following this practice are seven times more likely than others to see successful transformations. Further, success is more than four times likelier when the organization focuses on two other practices: ensuring meaningful change in how the organization operates after the solution is implemented and allowing employees across the organization to improve and refine the new solution continually.

Looking ahead

In response to challenges the survey results revealed, here are some steps executives and their companies can take to improve the implementation of major change efforts—and digital change efforts in particular:

• Stay engaged and be aware of blind spots. Given the importance of effective implementation, leaders of companies undergoing both traditional and digital transformations must be fully engaged in the effort. A lack of leadership engagement can put the success of any major change effort at risk. The most senior people can lead the way in a change effort by role modeling new behaviors the transformation requires, for example, and by being conscious of the organization’s ability—or inability—to execute in priority areas. It’s just as important to mind the blind spots and potential problems as it is to know an organization’s strengths of execution.
• Allocate time to finding the right skills. One challenge, even for the best organizations, is sourcing the right resources and capabilities for implementation. It’s critical that companies spend more time deciding which resources, skills, and even individual employees can best support the changes at hand. Once the right teams are on the ground, leaders and managers must allocate time to helping employees prioritize their work. With digital transformations spanning more business units (and often involving more initiatives) than traditional change efforts, it is even more difficult for employees to focus on the right activities. Leaders should be clear about their objectives and communicate early and often with employees to confirm that people focus on the right activities and that their work adds value to the broader transformation.
• Lead with agility. A digital transformation in particular calls for flexibility and agility from both leaders and teams. It’s critical that employees have targeted actions to take, but leaders need to assess progress more effectively and to make adjustments as needed. The reason to focus on KPIs during scaling, implementing, and sustaining changes in a digital transformation stems from the need to respond quickly to a rapidly changing environment. Leaders must be able and willing to assess their change programs continually and not be afraid to pivot to higher-value work when the KPIs tell them to do so.

The contributors to the development and analysis of this survey include Blake Lindsay, a senior implementation leader in McKinsey’s Denver office, as well as Eugéne Smit , a partner, and Nick Waugh, a senior implementation leader, in that office.

They would like to thank Mehmet Baser and Bruce Delteil for their contributions to this work.

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IBM Change Management Case Study

Change is a constant in the business world, and organizations that can effectively manage change are more likely to succeed. 

Change management is the process of planning, implementing, and controlling change within an organization to minimize negative impacts and maximize benefits. 

One company that has successfully implemented change management is IBM.

With a history spanning over a century, IBM has undergone significant changes over the years, including the implementation of change management to ensure a smooth transition. 

In this blog post, we will take a closer look at IBM’s change management case study, examining its background, change management strategy, and results. 

Brief History and Growth of IBM 

IBM, also known as International Business Machines Corporation, is an American multinational technology company that was founded in 1911. 

The company was initially formed as the Computing-Tabulating-Recording Company (CTR) through the merger of four separate companies: the Tabulating Machine Company, the Computing Scale Company, the International Time Recording Company, and the Bundy Manufacturing Company. 

In 1924, the company was renamed International Business Machines Corporation (IBM). IBM’s early products included tabulating machines, time clocks, and punched card equipment, which were used for data processing and information management. 

Over the years, IBM has evolved into a leading provider of enterprise technology solutions, including hardware, software, and services, serving clients in over 170 countries around the world.

IBM experienced significant growth in the mid-20th century, as it became a leading provider of computers and data processing equipment. 

In the 1950s, IBM introduced its first electronic computer, the IBM 701, which was followed by a series of other computer models that became increasingly advanced and sophisticated. 

IBM also played a key role in the development of the personal computer, releasing its first PC in 1981, which quickly became a standard in the industry. 

In the 1990s and early 2000s, IBM shifted its focus to software and services, becoming a leader in areas such as cloud computing, artificial intelligence, and cybersecurity. 

Today, IBM is a major player in the technology industry, with a global workforce of over 350,000 employees and revenue exceeding $70 billion in 2020.

Key drivers of change for IBM  

There were three dominant factors that created a need for IBM to implement effective change management processes to successfully navigate the challenges and opportunities it faced.

1. Technological advancement 

Technological advancements have been a key driver of change in the technology industry, and IBM was no exception. In the 1980s and 1990s, IBM faced significant disruption as the market shifted from mainframe computers to personal computers, which were smaller, cheaper, and more accessible to individuals and small businesses. 

This shift threatened IBM’s dominance in the computer industry, as it had built its reputation on large-scale mainframe computers. To adapt to this changing market, IBM had to shift its focus to services and software, invest in research and development to create new technologies and innovations, and develop new partnerships and alliances to expand its offerings. 

Additionally, the emergence of cloud computing and artificial intelligence in the 2000s and 2010s further pushed IBM to adapt and innovate to stay ahead of the competition. These technological advancements required IBM to adopt a more agile and flexible approach to business, with a greater focus on innovation, speed, and collaboration.

2. Globalization 

As IBM expanded its operations globally, it faced a range of challenges related to cultural and regulatory differences across different countries and regions. In order to effectively navigate these differences, IBM had to develop a more flexible and adaptable approach to business, one that was able to respond to local market conditions and customer needs while also maintaining a consistent global brand and corporate identity. 

This required IBM to invest in building a diverse and multicultural workforce, to establish strong local partnerships and alliances, and to develop a deep understanding of local cultures, languages, and customs. 

Additionally, IBM had to comply with local regulations and laws in each country it operated in, which often required significant resources and expertise to navigate. By embracing globalization and developing a more flexible and adaptable approach to business, IBM was able to successfully expand its operations globally and establish a strong global presence.

3. Market competition 

IBM faced intense competition from emerging tech companies in the 1990s, particularly in the areas of personal computing and software development. 

Companies like Microsoft and Intel were challenging IBM’s dominance in the industry, and IBM had to adapt quickly to remain competitive. 

To address this challenge, IBM shifted its focus to services and software, investing heavily in research and development to create new products and innovations that could compete with emerging technologies. 

IBM also streamlined its operations to improve efficiency and reduce costs, while exploring new markets and opportunities for growth. 

This required IBM to be more agile and responsive to market conditions, and to take calculated risks in pursuing new ventures and partnerships. Ultimately, these efforts enabled IBM to remain a major player in the technology industry and to continue innovating and expanding its offerings.

Change management strategy of IBM 

IBM responded to these three drivers of change in several ways, as explained below:

1. Technological advancements

To adapt to rapid technological advancements, IBM invested heavily in research and development to create new products and innovations. It also embraced emerging technologies such as cloud computing and artificial intelligence and developed new partnerships and alliances to expand its offerings.

IBM also shifted its focus to services and software, which helped it to stay competitive as the market shifted away from mainframe computers. Additionally, IBM adopted a more agile and flexible approach to business to enable it to respond quickly to changing market conditions and customer needs.

2. Globalization

To effectively navigate different cultural and regulatory environments, IBM invested in building a diverse and multicultural workforce, established strong local partnerships and alliances, and developed a deep understanding of local cultures, languages, and customs.

IBM also complied with local regulations and laws in each country it operated in, which required significant resources and expertise to navigate. Additionally, IBM developed a consistent global brand and corporate identity while also maintaining the flexibility to respond to local market conditions and customer needs.

3. Market competition

To remain competitive in the face of intense market competition, IBM explored new markets and product offerings while streamlining its operations to improve efficiency and reduce costs. IBM also invested heavily in research and development to create new products and innovations that could compete with emerging technologies.

IBM adopted a more agile and responsive approach to business, which enabled it to take calculated risks in pursuing new ventures and partnerships. Additionally, IBM developed a culture of innovation and collaboration to foster creativity and agility, which helped it to stay ahead of the competition.

Positive outcomes and results of IBM successful change management implementation

IBM’s successful implementation of change management led to several positive outcomes and results, including:

Increased profitability: IBM’s shift to services and software helped to increase its profitability by creating new revenue streams and reducing costs. By focusing on high-margin businesses such as consulting and software development, IBM was able to improve its financial performance and profitability.

Improved competitiveness: IBM’s investments in research and development, partnerships, and new markets helped it to remain competitive in the face of rapid technological advancements and intense market competition. By adopting an agile and responsive approach to business, IBM was able to adapt quickly to changing market conditions and customer needs, which helped it to stay ahead of the competition.

Enhanced customer satisfaction: IBM’s focus on innovation, collaboration, and customer service helped to enhance customer satisfaction and loyalty. By developing new products and services that met customer needs and expectations, and by providing excellent customer service and support, IBM was able to build strong relationships with its customers and earn their trust and loyalty.

Increased employee engagement and retention: IBM’s culture of innovation, collaboration, and diversity helped to increase employee engagement and retention. By fostering a culture of creativity and agility, and by valuing and supporting its employees, IBM was able to attract and retain top talent, which helped it to drive innovation and growth.

Strong brand reputation: IBM’s successful implementation of change management helped to strengthen its brand reputation and identity. By maintaining a consistent global brand while also remaining flexible and responsive to local market conditions and customer needs, IBM was able to build a strong and respected brand reputation that is recognized around the world.

Final Words 

IBM’s successful implementation of change management serves as a powerful case study for businesses facing rapid technological advancements, intense market competition, and globalization. By adopting an agile and responsive approach to business, investing in research and development, exploring new markets and partnerships, and fostering a culture of innovation and collaboration, IBM was able to remain competitive and relevant in the technology industry. 

About The Author

Tahir Abbas

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Please note you do not have access to teaching notes, a case study in organisational change: implications for theory.

The Learning Organization

ISSN : 0969-6474

Article publication date: 1 February 2003

Organisational change is typically conceptualised as moving from the status quo to a new, desired, configuration to better match the environment. Change could, therefore, be seen as a departure from the norm, or alternatively as normal and simply a natural response to environmental and internal conditions. Static models of organisations are being displaced by dynamic models, which reflect the discontinuous nature of organisational change. Developments in theory suggest limitations to contingency approaches, which carry the assumptions of static models of change. Analysis of this case at PowerCo in Australia reveals a number of issues related to changes aimed at achieving a more commercial, profit‐oriented, focus. Points out that the contextualist approach is holistic, in which these aspects interact with each other as change unfolds temporally. A contextualist framework permits models of change to be visualised as dynamic rather than static, having a temporal setting which has multiple causes acting as loops rather than simple lines. This enables change to be understood as a discontinuous phenomenon having the benefits, without the limitations, of rational contingency models.

• Organizational change
• Management attitudes

Nelson, L. (2003), "A case study in organisational change: implications for theory", The Learning Organization , Vol. 10 No. 1, pp. 18-30. https://doi.org/10.1108/09696470310457478

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• Vale going global (A)

This case sets up the context of a push for changing the culture of Vale, the Brazilian iron ore mining company. In 2001, Vale began a journey to change from being an iron ore mining company, with a “state-owned” Brazilian mindset, to one that is characterized as a “global, diversified mining” company.

Changing organizational culture in a large, diversified company.

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