There has arguably never been a more important time to manage change in business. From global remote workforces, rapidly changing geopolitics, new emerging tech and unpredictable markets – it is crucial to manage change for business survival and success.

Whether you’re a business student learning how to manage change for the first time or a seasoned business owner looking for new tips for managing change, below are five effective strategies for change management.

Develop a clear vision and communicate it effectively

A clear vision is essential for running any sort of business and trickles down from the business owner to the newest employee, especially in times of change. Employees require clarity and agreement to embrace change, and this can be achieved by having a clear understanding of vision and psychological safety. Psychological safety within a workplace is a shared belief held by team members where they know it’s okay to take sensible risks, express new ideas and concerns, question processes and admit mistakes – all without the fear of negative consequences.

Research by Google known as Project Aristotle which aimed to understand the team’s effectiveness, used over 30 statistical models and hundreds of variables and found that psychological safety was an important factor in the team’s success. This shows its impact on communication, allowing your team to understand your vision and help you to implement your goals.

Build a culture of adaptability

Organisations with adaptable cultures are more resilient in the face of change, allowing them to pivot quickly and respond effectively to new challenges. Research by McKinsey shows that adaptability is a key to organisational agility, enabling businesses to thrive in uncertain environments. Similarly, Deloitte’s studies emphasise that adaptability enhances resilience, helping organisations mitigate risks and leverage opportunities.

To foster adaptability, organisations should encourage collaboration through teams and different departments and promote knowledge sharing. Creating a learning culture is equally vital and leaders should prioritise initiatives which help employees learn and develop new skills. Providing opportunities for continuous development helps build a more adaptive and resilient workforce. For 18-34-year-olds in the workplace, a Linkedin Workplace Learning Report in 2023 found that the top two priorities for this age group when considering a new job are opportunities for career growth within the company, and opportunities to learn and develop new skills. This shows just how important offering new training and continued development is to create an adaptive workforce.

For example, at Oxford Business College, we’ve prioritised this through the Oxford Business Innovation and Incubation Centre which supports students, local businesses and budding entrepreneurs with the tools needed to start a successful business. Entrepreneurs are aided in developing skills to work within a dynamic workforce, which is pivotal for the transformative growth we all aim to achieve.

Organisations must also view failure as an opportunity for growth, encouraging experimentation and innovation. Netflix offers a prime example, successfully transitioning from a DVD rental model to a global streaming platform by embracing adaptability and recognising the need to evolve.

Empower and engage employees

Change initiatives often fail when employees feel excluded or undervalued. Engaging employees throughout the change process builds trust, reduces resistance, and fosters a sense of ownership. Research by Gallup reveals that organisations with high levels of employee engagement are significantly more likely to succeed in implementing change. The CIPD’s UK Working Lives Survey 2024 also highlights the strong link between employee engagement and a high sense of achievement in their work.

Practical steps to empower employees include providing comprehensive training to equip them with the skills needed for new processes and involving them in decision-making. Listening to employee feedback ensures their views are considered, creating a collaborative environment. Identifying change champions, such as employees who advocate for new initiatives, can also generate enthusiasm and inclusivity across the workforce. For example, Unilever involves employees directly in its sustainability initiatives through its Sustainable Living Plan, creating a sense of purpose and alignment with the company’s vision.

Leverage digital transformation to drive change

In this age of digital transformation, whether it be developments in data decision making, AI or cloud computing, technology enables efficient and scalable transformation. PwC CEO Survey revealed 22 per cent of chief executives in the UK believe their business model will not survive the decade in its current form, they added that the right balance between ‘talent’ and ‘technological transformation’ must be found for business survival.

McKinsey reports that a key to digital transformation success is giving employees a say on where digitisation could and should be adopted. They found that “when employees generate their own ideas about where digitisation might support the business, respondents are 1.4 more likely to report success.”

To apply this strategy, organisations can use predictive analytics to anticipate potential resistance and identify opportunities for improvement. Change management platforms allow leaders to track progress, measure outcomes, and facilitate real-time communication. Equally, asking employees how to implement digital transformation and where it is most needed, creates a better process for success in times of change.

Monitor progress and adapt continuously

Change management is a continuous process that requires regular assessment and adjustment. Monitoring progress ensures that initiatives stay aligned with organisational goals, while flexibility allows organisations to respond effectively to unexpected challenges. Frameworks such as Kotter’s 8-Step Model and PDCA (Plan-Do-Check-Act) highlight the importance of continuous monitoring and improvement.

Organisations should establish measurable key performance indicators to track the success of change initiatives and gather regular employee feedback to identify barriers and areas for improvement. This approach allows organisations to refine their strategies when necessary and adapt to new industry challenges. For example, Marks & Spencer’s published a report into their change management strategy, showing how they used employee representatives to raise questions and concerns to the executive directors, ultimately achieving success with their new scan and shop and mobile pay and go services.

Managing change effectively requires a comprehensive and strategic approach, while change often presents challenges, it also offers opportunities for growth and innovation. Continuous and well-thought-out change management ultimately sets up businesses for long-term success. Whether it’s for budding entrepreneurs or established business leaders who want to refine their skills, higher business education can also play a critical role in equipping leaders with the skills needed to navigate change effectively.

Business schools offer access to cutting-edge frameworks, case studies, and research that highlight best practices in change management, enabling leaders to develop strategic thinking, agility, and resilience. Through programmes that focus on leadership, innovation, and data-driven decision-making, higher education empowers individuals to respond proactively to industry shifts and disruptions.

Reflecting on these approaches prepares individuals to drive transformation within their organisations and positions them to seize opportunities in a constantly changing environment.

Sarwar Khawaja is chairman of the executive board at Oxford Business College.

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