Business Change: Concept, Types, Examples and Techniques
Business change is no longer an occasional project. Most organizations now run several change efforts at the same time, from new technology to reorganizations. This article sets out the concept of business change, the three main types of change, practical business change examples and the techniques leaders use to implement change in an organization.
The material is written for boards, chief executives and senior managers. It does not replace legal, financial or human resources advice. Each organization should check its own regulations and labor agreements when planning organizational change.
Key points on business change
- Business change is any deliberate shift in how a company works, not only large transformation programs.
- The three main types of change are strategic, operational and people related change, which often appear together.
- Business change management and simple techniques such as pilot testing, stakeholder mapping and clear metrics raise the chance that change will be adopted and kept in place.
Short answer on business change
Business change is the organized move from one way of working to another in order to improve results. It covers small adjustments such as a new approval step, as well as large shifts such as entering a new market, relocating operations or redesigning the structure of the company.
What is the concept of business change?
The concept of business change rests on a simple idea. Every company has a current state with certain products, processes, systems and habits. Business change defines a future state that should perform better and then sets up the work needed to move between the two.
Useful features of this concept are:
- A clear description of the current state, not only in charts but in how people actually work.
- A definition of the desired state that joins financial, operational and customer goals.
- A path that shows which projects will close the gap and who owns each step.
What is change in a business?
Change in a business shows up when the way money, information or decisions move through the company is altered. For example:
- A new sales model where teams sell subscriptions instead of one time products.
- A move from paper based paperwork to integrated digital workflows.
- New rules for how managers approve spending or hire staff.
Some changes are triggered by regulation or technology. Others are started by leaders who want better performance or lower risk.
What are the three main types of change?
Many taxonomies exist, but boards find it useful to group change into three main types.
Strategic change
Strategic change adjusts the direction of the business. Examples include entering new markets, shifting the product mix, exiting non core activities or changing the way the company competes.
Operational change
Operational change focuses on how work is done. This can mean new supply chain routes, automation of manual tasks or redesign of customer service processes.
People and cultural change
People and cultural change deals with behaviors and beliefs. It covers leadership styles, performance management, values in daily use and the skills people need for the future.
Types of business change and types of organizational change
Searches for types of business change and types of organizational change often mix similar ideas. A practical list for planning work includes:
- Process change such as lean projects and automation.
- Technology change including new core systems and digital tools.
- Structural change such as new business units, shared service centers or mergers.
- Policy change involving new rules, controls or compliance requirements.
- People change such as new role profiles, training programs or ways of working.
Leaders can tag each project with its main type so that they can see which parts of the organization carry the most pressure.
Business change examples
Business change examples help turn theory into practice. Three patterns appear frequently:
- A mid sized manufacturer closes a small local plant and opens a more automated facility closer to main customers. Strategic and operational change are combined with organizational change in how teams are structured.
- A services company introduces a new case management system and removes several manual spreadsheets. Business change management focuses on training, data quality and new service measures.
- A financial institution tightens its risk processes after a regulatory review. New controls, approvals and reporting are introduced across multiple departments.
Business change management explained
Business change management is the discipline that makes sure change is led rather than left to chance. It links goals, people, processes and communications in a repeatable way. Key elements are:
- A clear case for change that connects with strategy and performance.
- Visible sponsorship from senior leaders who make time to back the work.
- Planning that joins project management with communication and training.
- Simple measures that track progress in adoption as well as financial results.
Business change management is often paired with project management offices so that delivery and adoption are considered together.
Business change techniques for leaders
Leaders often ask which business change techniques are worth learning. Several low cost techniques work across many sectors.
- Stakeholder mapping to see who gains, who fears loss and who influences others.
- Change impact assessments that list what will be different for each role.
- Pilots and trials that test new methods on a small scale before wide rollout.
- Change stories that explain why and how change is happening in language that staff and partners use themselves.
- Simple feedback loops so people can report issues quickly and see responses.
Implementing change in an organization
Implementing change in an organization is where risk and value sit. It is not enough to design a new process on paper. Implementation steps usually include:
- Preparing leaders at every level so they can explain the change and answer basic questions.
- Updating procedures, systems, forms and scorecards in line with the new design.
- Training and support so people feel able to use new tools and rules.
- Cutover planning for key dates such as go lives, new organization charts or office moves.
- Post implementation reviews that check adoption and adjust where needed.
Organizational change that ignores implementation detail often leads to project fatigue and low trust. Careful follow through has the opposite effect and builds credibility for future change.
How NMS Consulting supports business change
NMS Consulting works with boards and senior teams on business change and organizational change that link directly to strategy and performance. Assignments include:
- Diagnostic reviews that show where change projects overlap or conflict.
- Design of business change portfolios for restructurings, mergers or digital programs.
- Support with business change management, including planning, coaching and benefit tracking.
Organizations that want to discuss business change management can outline their situation through the contact page.
Contact NMS Consulting
Frequently asked questions on business change
What is the concept of business change?
It is the planned move from a current state to a future state that should deliver better results for customers, staff and owners.
What is change in a business?
Change in a business means that processes, structures, systems or behaviors are adjusted in a deliberate way, not just through daily variation.
What are the examples of business changes?
Examples include new products, reorganizations, technology upgrades, policy changes and shifts in working patterns such as hybrid work.
What are the three main types of change?
Strategic change, operational change and people or cultural change. Most programs touch all three, but one will usually dominate.
How does business change management help?
It provides structure for planning, communication and support so that new ways of working take hold and the investment in change pays off.
