Nudge Theory of Change Management
Change management refers to a process of transitioning a business so that it can meet changing demands and objectives. Changes may need to be made to how the business functions or its operations, marketing, finance or the other aspects of the business. Change management involves the application of planned methods and frameworks to steer business from its current state to a desired state. The main benefit of using a change management method is that it helps to increase the chances that the business will complete the change while staying in budget and on schedule leading to better chance of realization of benefits.
The complex business environment makes it important for every organization to adapt by constantly changing and adopting to new technology along with other changes to meet customer demand.
Theories of Change Management
Change management is a process that takes time, expertise, dedication and efforts to implement and run. It requires the involvement of employees of the company and may also result in these people being affected by the changes too. Before adopting one of the management approaches and models, an organization must first figure out why it needs the changes and the anticipated benefits of the change. Some of the most popular change management models and theories used today, include; Lewins Change Management Model, McKinseys 7-S Framework Model, Kotters Theory, Nudge Theory, ADKAR Theory of Change, and Bridges Transition Model.
Lewins Change Management Model is an effective and popular model for structured organizational change. This model was created by Kurt Lewin in the 1950s is still used today. Lewin explained the organizational change through the changing states of a block of ice. His model consists of three main stages: unfreeze, change and refreeze.
McKinsey 7-S framework model was developed for use at McKinsey & Company in the 1980s and includes seven steps or stages for managing change. The seven stages included strategy, structure, systems, shared values, style, staff, and skills. The benefits of this model included methods to understand an organization and get a deep insight into the way it works. It integrates both the emotional, as well as, the practical components of change which helps create ways to enable employees to deal with transition more easily.
Kotters theory is one of the most utilized change management theories in the world. This theory was devised by John P. Kotter a Harvard Business School Professor and author of several books on change management. This change management theory is divided into eight stages and each one of them focuses on a principle that is associated with a response of people to change. This is a step by step model that is easy to follow and incorporate, however, because it is step by step no step can be skipped or incomplete making it very time-consuming. This models main focus is to accept the change and prepare for it.
Nudge Theory is credited to Cass R. Sunstein and Richard H. Thaler. Nudging someone or encouraging them to change is the foundation of this theory. Nudge theory is helpful in exploring and understanding existing influences and explaining them to either eliminate or change them to an extent that creates a positive outcome.
ADKAR theory of change is a model which makes it possible for the change management teams to focus on the steps or activities that are directly related to the goals they want to reach. The goals given in a specific order so this means that when using this model a person must reach each of the results in the correct order so that the change can be sustained and implemented. The model is often used by managers of change to determine if any holes or gaps exist in the process of change management so that effective training can be offered to the employees.
Bridges transition model was created by William Bridges who is a well-known change consultant. This model concentrates on transition and not change. The difference between transition and change is subtle, but it is important to understand it. Transition is internal, and it is something that happens to people when they are going through the change. Change can be instantaneous, but transition takes time.
Lewin’s Change Management Model
This model consists of three main stages; unfreeze, change, refreeze. The first stage of the process involves preparation for the change. This phase is important because most people try to resist change, and it’s important to prepare people as best as possible by explaining the need for change. The 2ND stage, change, is where the big transition or change takes place. This process may take some time as people become acclimated to the change. Good leadership and reassurance are vital in this stage.
Communication is critical for this stage to be successful. The final stage is called refreeze it is when the change starts to become accepted and embraced. Employees start to get comfortable and confident with the changes. The challenge of this model is that all of the pieces are interrelated so if you fail at one of the three parts of change, you will fail the entire change attempt.
Mckinsey 7-S Framework Model
Mckinsey 7-s framework model includes 7 stages that must be complete for successful change. The seven stages are strategy, structure, systems, shared values, staff, and skills.
Strategy: strategy is the plan to get ahead of the competition and reach the goals. This is the first stage of change and involves the creation of a step-by-step procedure or future plan.
Structure: structure is the stage of the model that relates to the way the organization is divided or structured.
Systems: systems is focused on the day-to-day activities that performed to make the change happen.
Shared values: shared values refer to the core values of the organization.
Staff: the employees and their working capacities and their part in the change.
Skills: the skills and competencies that all employees in the organization must possess for their various roles.
Kotter’s Change Management Theory
Increase urgency: focuses on creating a sense of urgency among the people to motivate them to move forward towards the new goals or other changes.
Build the team: getting the right people on the team by selecting the best mix of skills, knowledge, and commitment.
Get the vision correct: creating the correct vision by considering the strategy and creativity, emotional connect, and objectives.
Communicate: communication with people about the change is needed and important.
Get things moving: management needs to get things moving by empowering action, gaining support, removing roadblocks, and implementing feedback in a constructive way.
Focus on short term goals: diving the change into small achievable parts to alleviate stress and pressure.
Don’t give up: it is important to keep striving and not give up even when the change becomes difficult.
Incorporate change: it is important to consistently reinforce the change and make it part of the culture, even after the change takes place.
Nudge Theory of Change Management
Nudge Theory is radically different than the other theories, and more sophisticated in its approach. It focuses on understanding human nature and the design of choice which is responsible for directing our preferences and influencing the choices that we make. This theory says that choices must be designed in a way that aligns with the way people think and decide. This theory also eliminates traditional change methods like punishment as enforcement and specific instructions. One of the main benefits of this theory is that it considers the difference in feelings, opinions, and knowledge of people and considers the reality of the situation, as well as, the characteristics of human nature and behavior. Therefore, it minimizes resistance and well applied in some industries.
Adkar Change Model
The Adkar model can be used to provide help and support to employees going through the process of change. It is also helpful to diagnose and treat the resistance shown by employees towards change.
Adkar stands for:
Awareness of the need and requirement for change.
Desire to bring about change and participate in it. Knowledge of how to contribute to the change.
Knowledge of how to contribute to the change.
Ability to incorporate the change on a regular basis.
Reinforcement to keep the change implemented and going after the change process.
Bridges Transition Model
Ending, losing, and letting go: when people are first introduced to change, they may enter this stage with resistance and emotional discomfort. Some of the emotions experiences in this stage are fear, resentment, anger, denial, sadness, frustration, and disorientation. The employee has to accept the changes and new beginnings.
The neutral zone: this is the stage of uncertainty, impatience, and confusion. This stage is the bridge between the old and the new when people are still attached to the old but trying to adapt to the new. This stage can include low morale and reduced productivity, and one may experience anxiety and skepticism. However, this neutral zone can also include innovation, renewal, and creativity.
The new beginning: when the neutral phase is passed through the use of management support and guidance, the stage of acceptance and energy enters the picture. People will begin to embrace the change and understand its importance. They are starting to experience the benefits of change now, and are committed to learn.
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Nudge Theory of Change Management