Fluent Essays

summary of article Research Article The determinants of organizational change management success: Literature review and case study Abdelouahab Errida 1 and Bouchra Lotfi 2 Abstract The main purpose of this study is identifying the various factors affecting change management success, as well as examine their relevance in the case of a Moroccan construction company. A combination of a literature review and research action was employed to this end. Specifically, an in-depth review of 37 organizational change management models was conducted to identify the factors that affect change management success. Additionally, a research action approach validated the identified factors. Several factors that affect organizational change management success were identified and categorized into 12 categories relevant to the successful implementation of organizational change initiatives within the case company. While further research is needed to explore the relevance of the identified factors in other organizations and sectors, this study provides an integrated understanding of change management success based on the analysis of various organizational change models. Understanding success factors can help managers implement change initiatives in their organizations effectively. Keywords Organizational change, change management models, change management success, success factors Date received: 21 September 2020; accepted: 14 April 2021 Introduction In an increasingly complex and dynamic business environ- ment, organizations are continually striving to change and adapt their operations to circumstances as they evolve. 1,2 Organizations are, therefore, required to make significant investments for implementing various changes to adapt to the changing context. However, managing change is a com- plex process and risky endeavour. 3 Hence, many compa- nies struggle with organizational change projects and fail to realize expected outcomes. 4 Several studies have highlighted that most organiza- tional change initiatives fail, with an estimated failure rate of 60–70%.1,5,6 High failure rate raises the sustained con- cern and interest about the factors that can decrease failure and increase the success of organizational change. 7 Researchers and consultancy firms have developed several change management models that can improve the success rate of change projects. Despite many models, there is still a need to identify these factors comprehensively and to bridge the gaps in understanding how to succeed in orga- nizational change management. 1,6 Indeed, existing models do not fully explore or display all factors that influence the success of organizational change. 6 Some models place emphasis on specific factors that are not major success 1 Hassan First University of Settat, Faculty of Sciences and Technology of Settat, IMII, Settat, Morocco 2 Hassan First University of Settat, National School of Applied Sciences of Berrechid, IMII, Berrechid, Morocco Corresponding author: Abdelouahab Errida, Hassan First University of Settat, Faculty of Sciences and Technology of Settat, IMII, Settat 26000, Morocco. Email: [email protected] International Journal of Engineering Business Management Volume 13: 1–15 ª The Author(s) 2021 DOI: 10.1177/18479790211016273 journals.sagepub.com/home/enb Creative Commons CC BY: This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/ open-access-at-sage). https://orcid.org/0000-0002-8350-8058 https://orcid.org/0000-0002-8350-8058 mailto:[email protected] https://doi.org/10.1177/18479790211016273 http://journals.sagepub.com/home/enb https://creativecommons.org/licenses/by/4.0/ https://us.sagepub.com/en-us/nam/open-access-at-sage https://us.sagepub.com/en-us/nam/open-access-at-sage http://crossmark.crossref.org/dialog/?doi=10.1177%2F18479790211016273&domain=pdf&date_stamp=2021-05-10 factors as demonstrated in other models, while some mod- els incorporate factors not included in others. Therefore, the use of a single model or few models is not sufficient to cover various change situations 8 and certain factors may be omitted or neglected, which could result in failure if the model is inappropriate to the change context. 9 Consequently, integrating existing models may lead to an integrated understanding of how to ensure successful orga- nizational change and help develop a comprehensive approach for managing change. This study is conducted within this framework, with the aim of investigating various organizational change man- agement models and to identify the most important factors influencing change management success, which is tested in a selected Moroccan construction company that recently implemented several organizational changes. Construction companies have frequent organizational changes at the project and business levels. 10,11 These firms need to continually implement changes initiatives to adopt new methods and technologies to improve performance and ensure operational excellence. Some initiatives include implementing lean construction, 12 increasing digitalization and implementing building information modeling (BIM), 13 integrating supply chains, 14 and improving project man- agement practices. 15 Due to the multidisciplinary nature, the geographical dis- persion of organizational structures, the complexity of pro- cesses 10,16 and the nature of projects, 17,18 construction companies have difficulty implementing change manage- ment processes. However, these factors make the construc- tion sector an interesting industry for analyzing organizational issues. 11 Specifically, the industry is of partic- ular interest for organizational change management, which is a developing and emerging research topic in this sector. 19 The paper is divided into four main sections. First, a literature review on organizational change models, includ- ing commonly used models, is presented. Second, an in- depth analysis of 37 organizational change models is conducted, providing an integrated understanding of fac- tors affecting organizational change success. Third, the study examines an empirical case study within a Moroccan construction company to outline critical factors for success of two change initiatives. Finally, the conclusion details the limitations of the study and areas for future research. Literature review Organizational change models A change management model serves as a compass that can facilitate or lead change efforts 20 by determining the spe- cific processes and steps to follow, by illustrating the var- ious factors influencing change, or by determining the levers used to succeed in the change management pro- cess. 21–23 Several change management models have been developed over the years using various theories and prin- ciples from different disciplines. 24,25 Parry et al. 21 distinguish between two categories of change management models: processual and descriptive models. A processual model determines the steps for con- ducting and managing change: for example, Lewin’s 26 3- stage model of change, Kotter’s 27 8-step model, Kanter’s 28 change wheel, IMA’s 29 10 steps, and Luecke’s 30 7-step model. A descriptive model specifies the main variables and factors that affect organizational performance and organizational change success: for example, Parry et al.’s 21 change tracking model, Cummings and Wor- ley’s 31 change management model, Burke and Litwin’s 32 model of organizational change, and Nadler and Tush- man’s 33 congruence model. Processual models Lewin’s 26 three-stage model is considered the theoretical foundation of planned change management. 34,35 This model involves three main steps for managing planned change: unfreezing, transition, and refreezing. “Unfreezing” consists of destabilizing the status quo by creating the need and buy-in for change and preparing for the upcoming change. “Transition” involves moving to the desired future state. “Refreezing” takes place after the implementation of the change, resulting in a new culture, behaviors, and practices. The second notable change man- agement processual model is the one proposed by Kotter, 27 consisting of eight steps to ensure a successful change pro- cess: (1) establish a sense of urgency about the need to achieve change, (2) create a guiding coalition, (3) develop a vision and strategy, (4) communicate the change vision, (5) empower broad-based action, (6) generate short-term wins, (7) consolidate gains and produce more change, and (8) anchor new approaches in the corporate culture. While other processual models exist, many of these models are extensions of Lewin’s 26 model by dividing its three stages into more steps. For example, “unfreezing” corresponds to the first four steps in the Kotter’s 27 model, “moving” corresponds to the following three steps and “refreezing” to the eighth step, as presented in the Table 1. Similar to Kotter’s 27 model, Jick 37 developed a tactical change model involving 10 steps: (1) analyze the need for change, (2) create a shared vision, (3) separate from the past, (4) create a sense of urgency, (5) support a strong leader role, (6) line up political sponsorship, (7) establish an implementation plan, (8) develop enabling structures, (9) communicate and involve people, and (10) reinforce and institutionalize change. The seven-step change acceleration process model developed by the General Electric Company (GE) and reported by Garvin 38 aligns with Lewin’s 26 model and fol- lows its three steps. In essence, this model focuses on the role of the change leader in creating a shared need for change, developing a vision for change, mobilizing the 2 International Journal of Engineering Business Management commitment, making change lasts by developing longer- term plans, monitoring and measuring the progress of change including the use of appropriate metrics and mile- stones, and reinforcing and integrating change into the organization’s culture. By combining Jick’s 37 model with GE’s change model 38 and Kotter’s 27 model, Mento et al. 36 proposed a 12-phase approach to implement and manage change efforts success- fully: (1) determine the idea and its context, (2) define the change initiative, (3) evaluate the climate for change, (4) develop a change plan, (5) identify a sponsor, (6) prepare the recipients of change, (7) create cultural fit, (8) develop and choose a change leader team, (9) create small wins for motivation, (10) constantly and strategically communicate the change, (11) measure progress of the change effort, and (12) integrate lessons learned. Whelan-Berry and Somerville 39 proposed a summarized approach consisting of five steps, starting with establishing the vision, moving change to the entire organization, enabling individuals to adopt change, sustaining the momentum, and institutionalizing change. A few models provide a more detailed process list for these three steps. For example, the ACMP 40 model deter- mines 33 processes, organized into five process groups: (1) evaluate change impact and organizational readiness, (2) formulate the change management strategy, (3) develop the change management plan, (4) execute the change manage- ment plan, and (5) close the change management effort. Descriptive models There are several descriptive models that explain and iden- tify the various determinants of the outcomes of organiza- tional change initiatives. These models have different emphases and view change from various angles. The 7-S Model was developed by former McKinsey consultants Thomas Peters and Robert Waterman in the late of 1970s and serves as a framework to assess changes necessary to ensure organizational effectiveness by analyz- ing seven interrelated elements: strategy, structure, sys- tems, staff, style, skills, and shared values. These seven elements interact to create different organizational patterns but does not explain how these factors are affected by the external environment or how each factor affects others. The model of Burke and Litwin 32 is a framework that hypothesizes how organizational performance and effec- tiveness can be influenced and identifies the factors influ- encing organizational change and explains how they are interrelated. This framework establishes cause and effect relationships between 12 dimensions that determine orga- nizational change within an organization: external environ- ment, leaderships, mission and strategy, organizational culture, management practices, structure, systems (policies and procedures), work unit climate, motivation, task requirements and individual skills/abilities, individual needs and values, and individual and organizational perfor- mance. In this model, change is represented in terms of both process and content, with a comparison between trans- actional and transformational factors. Transformational change occurs in response to the external environment and directly impacts the mission, strategy, leadership, and cul- ture of the organization. Similarly, transactional factors (management practices, structure, systems and work cli- mate) are directly affected. Both factors together affect motivation, which in turn impacts individual and organiza- tional performance. 32 Based on the open systems paradigm, Nadler and Tush- man 33 designed the congruence model, which focuses on the transformation process and emphasizes the role of con- gruence between organizational components in producing effective behavior patterns. This model seeks to explain Table 1. Change management steps according to Kotter, 27 Mento et al., 36 and Cummings and Worley. 31 Lewin Kotter27 Mento et al.36 Cummings and Worley31 Unfreezing Step 1: establish a sense of urgency Step 1: determine the idea and its context Step 1: motivating change Step 2: create a guiding coalition Step 2: define the change initiative Step 2: creating a vision Step 3: develop a vision and strategy Step 3: evaluate the climate for change Step 3: developing political support Step 4: communicate the change vision Step 4: develop a change plan Step 5: identify a sponsor Moving (transition) Step 5: empower broad-based action Step 6: prepare the recipients of change Step 4: managing the transitionStep 6: generate short-term wins Step 7: create the cultural fit Step 7: consolidate gains and produce more change Step 8: develop and choose a change leader team Step 9: create small wins for motivation Step 10: constantly and strategically communicate the change Step 11: measure progress of the change effort Refreezing Step 8: anchor new approaches in the corporate culture Step 12: integrate lessons learned Step 5: sustaining momentum Errida and Lotfi 3 how congruence and fit among the four components of the transformation process of an organization (i.e., work and tasks, individuals, formal organizational arrangements, and informal organization) affect and produce organizational behaviors and impact change and performance. The Beckhard and Harris 41 change model describes the conditions necessary for overcoming resistance to change within an organization, by indicating that for change to occur, the product of three variables (dissatisfaction with the current state, vision, and first steps) must be higher than the resistance to change. Carnall 42 highlighted the importance of competencies and skills during change and stated that effective change management depends on three managerial skill areas: man- aging transitions, dealing with organizational culture, and establishing the politics of organizational change. The critical factors of change management success are important. The Change First methodology 43 has identified six critical factors to ensure successful organizational imple- mentation of change: shared change purpose, effective change leadership, powerful engagement processes, com- mitted local sponsors, strong personal connection, and sus- tained personal performance. Similarly, Knoster 44 identified five elements that must be in place for successful implemen- tation: vision for change, availability of resources, skills, change plans, and incentives for motivation. Further, Kanter 28 conceptualized an approach through “the change wheel model,” incorporating 10 key factors to ensure successful change: (1) common theme and shared vision; (2) rewards and recognition; (3) measures mile- stones and feedback; (4) guidance, management structure, and process; (5) communication and best practice; (6) quick wins; (7) champions and sponsors; (8) training; (9) approach of change; and (10) symbols and signals. Necessity for a holistic analysis There are many similarities and differences between change management models. Although there is an abundant literature on organizational change models, there are still few studies that compare the various existing models. For instance, Galli 24 compares five models: Lewin’s, Kotter’s, Prosci, ADKAR, McKinsey 7-S, and GE’s change model and concludes that, although these models share many similarities, they have differences and various advantages, disadvantages, and perspectives. Previously, Brisson- Banks 45 compared five models (Lewin, Beckhard, Thurley, Bridges, and Kotter) and found significant commonalities between them. Additionally, Mento et al. compared Kot- ter’s, Jick’s, and GE’s models. Furthermore, some models focus more on certain aspects. For example, ADKAR places particular emphasis on team members and employee change adaptation, 24 Car- nall’s 42 model focuses on the managerial skills and abilities required for change, the Beckhard and Harris 41 change model comprises a formula that may help overcome resistance to change, and Lewin’s 26 change model focuses on the reduction of the resisting force. 46 Some processual models provide substantial details con- cerning the steps to be followed for initiating, managing, and sustaining change, while others do not separate the steps enough (e.g., Cummings and Worley’s, 31 Lewin’s, 26 Whelan-Berry and Somerville’s 39 models). Additionally, some steps are incorporated in some models but do not appear in others, while some descriptive models place more emphasis on specific factors that may not be considered as major success factors in other models. Furthermore, there is a disagreement concerning the choice of the most appropriate model to guide change within an organization. 24,47 It is argued that one or even two change models cannot be appropriate tools to cover the different change situations. 8 Indeed, a change model would not be suitable for all change situations, as change and its context vary significantly from one organization to another. 2,48 Using only one model may not provide a full description of the change management process, may neglect or omit certain important success factors, or may be inappropriate to the particularity of a change. Therefore, several change models could be combined to best fit the particular situation of change or the circumstances of an organization. 24,45,49 Therefore, considering the complex nature of organiza- tional change, understanding and controlling change requires a holistic approach that includes all relevant fac- tors and steps. Categorization and descriptions of success factors This study conducted an extensive literature review, including a review of books, journals, databases, and sev- eral publications from world-renowned consulting firms specializing in change management. This review yielded the list of models of organizational change management shown in Table 2. An in-depth analysis of the selected models was con- ducted to identify the factors influencing change manage- ment success. All models were independently examined and intensively studied. Following this analysis, 77 sub- factors were identified (Appendix 1). For example, the first sub-factor, “clear definition of change,” was suggested by four models. In its framework for managing organizational changes, “Accelerating Imple- mentation Methodology,” IMA 29 considers the definition of change as the necessary first step. Likewise, in their 12- step model, Mento et al. 36 dedicated the second step to the definition of change. ACMP 40 considers “the definition of change” as a key process for managing change and stated that a clearly defined change is needed to determine the approach necessary to implement change successfully. The change management body of knowledge 61 considers the full definition of change as a key factor of change manage- ment success. 4 International Journal of Engineering Business Management The models analyzed include many similarities. Some factors are suggested by several models while others are mentioned by only one or few models. Considering these similarities and redundancies of meaning, sub-factors that seemed to be related to the same phenomenon were cate- gorized into 12 categories as presented below. For exam- ple, the four sub-factors (clear definition of change, clear and shared change vision, change strategy and objectives, alignment with mission and strategy) were grouped into the same category “Clear and shared vision and strategy of change”. 1. Clear and shared vision and strategy of change Several of the reviewed change models have stressed the importance of clearly defining change 29,36,40,61 and estab- lishing a vision and strategy for change. 27,28,31,38,41,44,40 The vision should be aligned with the organizational strat- egy 61 and describe the characteristics of the future state, the reasons the change is needed, and the expected outcomes of the change. According to several processual models, creat- ing a clear and shared vision is considered a critical early step of a change process. Moreover, the acceptance of the vision by all employees and stakeholders is a prerequisite for change success. 39 Indeed, successful changes require leaders to develop an appropriate and accepted vision, with measurable objectives and a strategy that guide the organi- zation to the realization of expected benefits. 40 2. Change readiness and capacity for change The AIM roadmap change management methodology 29 identifies readiness to change as one of the 10 stages of any successful change process. Organizational change readiness represents an organization’s willingness and pre- paredness to adapt to change. 68 Change readiness needs to be prepared at two levels: organizational and individual readiness. 69 Individual readiness focuses on employees’ skills and abilities, in addition to their motivation, percep- tions, and behaviors toward change projects. 69,70 Organiza- tional readiness focuses on the readiness of the organizational environment, in which change is to be implemented and can be seen in three aspects: cultural, commitment, and capacity readiness. 70 Furthermore, some models 44,59,65,67 emphasized the importance of the availability of change resources as a precursor to change readiness. Moreover, Prosci 59 reveals that change management is likely to be more effective in change projects with dedicated resources than in those without them. To sustain change, it is not sufficient for organizations to be ready for implementing single change initiatives, but they must also have the capacity to maintain daily operations and manage and implement multiple changes. 71 In this respect, organizations need to develop and build sustainable capacity for change. According to Klarner et al. 72 and Judge and Douglas, 73 organizational change capacity is a combination of managerial and orga- nizational capabilities that allows an organization to develop and implement appropriate changes to constantly adapt to environmental and organizational evolutions. However, one of the most important capabilities required for coping with change is resilience. 74 It helps people and organizations to increase their abilities to execute a greater number of changes more efficiently and effectively. In this context, some authors 75,76 have highlighted the role of the governance reflexive as a tool that can enable a successful path towards resilience and sustainability. Table 2. List of organizational change management models. Processual models Descriptive models 1. Kotter’s 27 8-Step Change Model 2. Lewin’s26 three step change model 3. Lippitt et al.’s 50 change theory 4. Bullock and Batten’s51 change model 5. Bridges’ 52 model of transition 6. Luecke’s30 seven steps 7. Mento et al.’s 36 change model 8. Jick’s37 10 steps model 9. Judson’s 53 five-phase model 10. The change leader’s roadmap54 11. ADKAR55 12. Accelerating Implementation Methodology (AIM)29 13. ACMP’s40 Standard for Change Management 14. Whelan-Berry and Somerville39 15. Kanter et al.28 16. Galpin’s56 wheel of nine wedges 17. Model of Fernandez and Rainey57 18. Kickert58 19. Cummings and Worley’s 31 change management model 20. Burke and Litwin’s32 model of organizational change 21. Congruence model 33 22. Change formula of Beckhard and Harris41 23. Carnall’s 42 change management model 24. Knoster’s44 change model 25. GE’S change acceleration 38 26. Prosci’s59 change management methodology 27. Best practice model for change management 60 28. Change tracking model21 29. Change management body of knowledge61 30. BCG’s change delta62 31. McKinsey’s 7-S63 32. Armenakis et al.64 33. Greer and Ford65 34. Cawsey et al.66 35. CMI’s change Management maturity67 36. Fernandez and Rainey57 37. Change first’s model43 Errida and Lotfi 5 3. Change team performance One of the first steps to successfully manage change is to create a guiding coalition, by putting together a group of selected individuals with enough expertise, position power, credibility, and leadership skills. 27 These individuals are generally called change agents and are responsible for the formulation and implementation of change. Many models 27,28,29,59 have outlined the importance of building and preparing a change management team by identifying its members, clarifying their roles and responsibilities, 40 developing their capacity to change 29,50 and equipping them with the skills, knowledge and competencies needed for managing change. 59 4. Activities for managing change management Various change management models have highlighted the necessity of using a set of tools to support individuals through all phases of the change process. 28,38,40,59 The training, coaching, and empowerment of employees have been broadly cited among these tools. It is argued that training facilitates change efforts by developing technical capabilities and influencing the mind-set of employees, thus improving their readiness and involvement in change. Similarly, the coaching of employees aims to liberate their full potential by helping them develop intrapersonal skills such as self-awareness and self-motivation. 71 The coaching process must be part of an integrated approach for empow- ering employees by preparing them, understanding what they do and do not know, working with them, watching their performance, giving them feedback, and creating an ongoing dialogue with them. 77 This environment allows employees to explain their beliefs and specific worries and concerns about change. It can also be an opportunity to gather feedback about the change progress and to be aware of the obstacles and difficulties encountered when imple- menting a new methodology. 78 5. Resistance management Judson 53 considers people’s resistance as the biggest barrier that can make change difficult, if not impossible. Therefore, change management is traditionally used to identify the sources and causes of resistance and provide tools and ways to overcome them. 31 Therefore, failing to overcome resistance is a big failure for change manage- ment teams and successfully managing resistance is a key factor for effective change management. 59 6. Effective communication Effective and constant communication is a key factor for change success and plays a major role in creating change readiness, reducing resistance to change, and in obtaining the buy-in of individuals. 79 Among the objectives of the communication process is communicating the strategy, the desired future state, the vision, and the scope of the change project to all relevant stakeholders. Effective communica- tion starts with an assessment of the communication needs of all stakeholders 40 and continues with the development of a communication strategy and detailed plan. 29,59,61 To achieve the goals in this plan, it is highly recommended to ensure regular monitoring and evaluation of the commu- nication process. 61 7. Motivation of employees and change agents The majority of …