Change Management vs. Change Leadership in Organizations

Change Management and Change Leadership Defined

Change management is a systematic method or process by which an organization implements change (Hao & Yazdanifard, 2015). It encompasses standardized techniques and procedures meant to support employees and leadership teams as they transition from one state to another. The change process has a discrete beginning and end, and the manager's role is to direct employees to follow standard processes in achieving the desired outcome (Hao & Yazdanifard, 2015). Change leadership, however, goes beyond standard practices and processes. It involves inspiring and influencing employees to agree on what needs to be done to collectively achieve shared objectives in times of uncertainty (Hao & Yazdanifard, 2015).

The change leader adopts a people-focused approach and thrives by integrating change among employees rather than imposing it (Hao & Yazdanifard, 2015). According to Kotter (n.d.), change leaders achieve this by helping employees understand why the change is necessary, encouraging them to take ownership of it, and then collaborating with them to develop a strategic shared vision. Unlike a change manager, a change leader removes barriers such as inefficient hierarchies and processes, and gives employees the freedom to exercise independent decision-making in pursuit of that shared vision. In change management, the leader single-handedly establishes the need for change and what needs to be done, then directs employees to work in line with the established plan (Hao & Yazdanifard, 2015). By contrast, a change leader guides employees through the change process and motivates them to commit to their roles and apply their talents toward achieving the shared vision (Hao & Yazdanifard, 2015).

Leadership Approaches in Evaluating and Sustaining Change

Evaluation of change involves analyzing what changed as a result of a particular initiative, and what the outcomes of that change have been. Sustaining change, on the other hand, involves ensuring that a change is adopted as the standard way of doing things (Hodges & Gill, 2014). For instance, a healthcare organization may decide to implement a quality improvement initiative — such as conducting initial risk assessments on elderly patients to minimize the risk of falls. Evaluating the change would involve determining the extent to which the initiative has reduced the incidence of falls among the target population. If the organization finds the change effective, initial risk assessment is sustained and adopted as standard procedure.

Available literature contends that different leadership approaches may be effective at different stages of the change process (Hodges & Gill, 2014). Transformational leadership — a people-focused approach — may be the most effective during the evaluation of change. The voice of the employee, as the chief implementer of change, is essential at this stage, as the leader assesses how well employees are meeting the demands of the change and what they could do to contribute more effectively (Hodges & Gill, 2014). At the evaluation stage, clarity of vision, employee commitment, satisfaction, and well-being are all crucial to ensuring that everyone gives their best effort.

At the level of sustaining change, however, it may be beneficial to combine transactional and transformational leadership approaches to help employees integrate the change into their standard operations. The transactional approach is task-oriented and focuses on delivering rewards to employees in exchange for good performance. A combined transactional-transformational approach to sustaining change would involve rewarding employees who demonstrate commitment to the new standard — through bonuses or other forms of recognition — while simultaneously offering training opportunities to help them improve their effectiveness in light of the change. Such an approach would reflect a commitment to both performance and employee well-being, providing a platform for employees to integrate the change more effectively (Hodges & Gill, 2014).

Conclusion

In summary, while change management and change leadership are related concepts, they differ significantly in their approach and scope. Change management relies on standardized processes directed by a manager, whereas change leadership is grounded in inspiration, collaboration, and shared vision. Effective leaders draw on both transformational and transactional approaches to evaluate and sustain change, shaping an organizational culture that empowers employees to embrace and maintain new standards. Ultimately, the quality of leadership determines whether change efforts succeed in the short term and endure over time.

References

Hao, M. J., & Yazdanifard, R. (2015). How effective leadership can facilitate change in organizations through improvement and innovation. Global Journal of Management and Business Research, 15(9), 1–7.

Hodges, J., & Gill, R. (2014). Sustaining change in organizations. Thousand Oaks, CA: SAGE.

Kotter, J. (n.d.). The 8-step process for leading change. Kotter Inc. Retrieved from https://www.kotterinc.com/8-step-process-for-leading-change/