Organisational change is a process of adapting structures, strategies, operations, technologies, or culture to address changing market needs, fix internal problems, or capitalise on new opportunities. It is not an indicator of instability, but rather a critical mechanism for long-term success.
For managers and leaders, it is a matter of knowing the appropriate approach for each situation. The wrong solution leads to employee resistance, lost opportunities, and disruptive operations. The correct solution generates commitment, stimulates innovation, and strengthens the competitive position of the organisation.
Whatever the change is, whether a digital organisational transformation, a restructure, or a subtle cultural shift, establishing what kind of change it is early on allows you to implement appropriate change management models, create suitable change communication strategies, and prepare for where employee resistance to change is likely to occur.
12 Primary Types of Organisational Change
1. Strategic Change
Strategic change is a major change in organisational direction, priorities, or competitive position. It typically occurs due to market changes, technological disruptions, or shifting customer expectations.
- Example: Ford and Volkswagen in the automobile sector have changed their focus from petrol-powered models to electric vehicle (EV) strategies to address sustainability objectives and customer pressure.
- Industry variation: Retail brands can switch from brick-and-mortar domination to online-first models, whereas healthcare providers can emphasise more on proactive care than reactive treatment.
2. Structural Change
Structural adjustments alter the reporting, hierarchy, or departmental structure of an organisation. They may be due to mergers, acquisitions, or domestic efficiency initiatives.
- Example: Following its acquisition of Whole Foods, Amazon reshaped operating groups, integrating logistics systems and reconfiguring management hierarchies to unite supply chains.
- Industry variation: In start-ups, technological change tends to involve increases in middle management layers as staff expand. In government ministries, it can be a matter of restructuring units to fit new policy agendas.
3. Technological Change
Technological change is the process of adopting or replacing tools, systems, and digital processes. It is strongly associated with digital transformation in organisations.
- Example: Banks adopting AI-powered fraud-detection systems to increase security and customer confidence.
- Industry variation: In manufacturing, it can mean installing robots on production lines; in education, from physical classrooms to blended learning spaces.
4. People-Centred Change
This type centres on employees via reskilling, leadership changes, or workplace policy changes.
- Example: A consultancy introducing flexible work arrangements after employee surveys indicated a need for improved work-life balance.
- Industry variation: Customer-service training may be prioritised by hospitality industries, whereas IT companies prioritise software skill acquisition at a more advanced level.
5. Cultural Change
Cultural change reorganises the values, norms, and behaviours of an organisation.
- Example: Microsoft under Satya Nadella evolved from a competitive culture to a collaborative, growth mindset culture, reenergising innovation.
- Industry variation: In non-profits, culture change can focus on transparency to donors; in finance, on risk ethics and responsibility.
6. Remedial Change
Remedial change responds to performance deficiencies or critical organisational issues.
- Example: A transportation company revamping its delivery scheduling system after repeated customer complaints about delays.
- Industry variation: Remedial changes in hospitality may target guest satisfaction scores, while in technology, they might address chronic product bugs.
7. Transformational Change
Transformational change is extensive and impacts all aspects of the organisation—strategy, culture, and operations.
- Example: Unilever pledging a sustainability-first strategy, redesigning products, supply chains, and branding.
- Industry variation: Universities converting to models of lifelong learning; utilities moving from fossil fuels to alternative energy sources.
8. Developmental Change
Developmental change builds on the strengths of the existing capabilities without redoing the system.
- Example: A call centre enhancing customer service scripts and offering sophisticated communication training.
- Industry variation: In medicine, it might involve upgrading diagnostic equipment; in law firms, enhancing client relationship management systems.
9. Mergers and Acquisitions (M&A) Change
M&A change is the task of merging two organisations into one consistent entity.
- Example: Disney’s acquisition of Pixar resulted in a merging of creative teams while maintaining discrete brand identities.
- Industry variation: Operational synergies in manufacturing M&A changes tend to be emphasised, while client portfolio integration is at the core when it comes to the service industry.
10. Crisis-Driven Change
Such changes take place in response to emergencies or unexpected incidents.
- Example: Hospitality and tourism industries fast-tracking flexible cancellation policies during the COVID-19 pandemic.
- Industry variation: Farming could shift to substitute crops following climatic catastrophes; retailers could accelerate e-commerce following store closures.
11. Planned Change
Planned change adheres to a purposeful, systematic process.
- Example: An international business introducing a staged ERP system upgrade in 18 months.
- Industry variation: In education, multi-year curriculum change; in manufacturing, step-by-step automation.
12. Unplanned Change
Unplanned changes occur abruptly and tend to require instant reactions.
- Example: A cyberattack compelling a firm to rebuild its IT infrastructure within days.
- Industry variation: In health, this may be the response to an unexpected epidemic; in finance, coping to unexpected regulatory change.
How to Develop the Skills to Manage Organisational Change
- Master Change Management Models – Get familiar with Lewin’s Change Model, Kotter’s 8-Step Process, and the ADKAR framework.
- Improve Communication Skills – Employ several channels and formats to convey updates.
- Develop Emotional Intelligence – Acknowledge and act upon employees’ emotional signals.
- Use a Learning Mind – Invite feedback and adjust plans accordingly.
- Plan for Threats – Anticipate potential obstacles and have contingency actions in place.
Checklist: Determining the Type of Change
- What is prompting the change?
- Is the change proactive or reactive?
- Which aspects are impacted—strategy, structure, technology, people, or culture?
- What is the scope of influence?
- Short-term or long-term?
- Is the change permanent or temporary?
- Does it demand new resources or skills?
Conclusion
Change is unavoidable, but it should not be destabilising. Identifying the precise nature of organisational change and using the appropriate leadership approach will enable organisations to manage change with confidence and direction.
At WisdomCircle, we believe that experienced professionals possess the experience and vision needed to lead organisations through even the most transformative changes. By bringing business and industry into contact with this cohort of expertise, we make organisational change, whether strategic, cultural, or technological – become a force for expansion and innovation.
Frequently Asked Questions
1. What is the difference between planned and unplanned organisational change?
Planned change is deliberate, systematic, and chronological. Unplanned change is sudden and necessitates a need for quick adjustment.
2. How can organisations address resistance to change?
Through early employee engagement, communicating the reasons, providing support, and recognising progress.
3. What are the KPIs to assess successful organisational change?
Typical KPIs are employee engagement metrics, productivity rates, customer satisfaction, and attainment of strategic objectives.
4. How is organisational change different in different industries?
Industry regulations, customer demands, and operating models dictate how quickly and radically change can happen.
5. How do you effectively communicate organisational change to employees?
By regular, open communication through a variety of channels, supplemented by employee feedback and discussion.
