Why Leading Businesses Thrive on Change (and How Yours Can Too)

Change is not an option; it is inevitable. Businesses that fear change are businesses that fear progress. This mindset doesn’t just hinder growth—it threatens survival. Industries are evolving faster than ever, and those who resist change will inevitably fall behind. Yet, why do so many organisations and their leaders cling to the old ways of doing things, even when the future demands innovation?

Perhaps the answer lies in the way we view change.

For many, it’s seen as a threat—an uncomfortable disruption that creates uncertainty. In a business environment that values predictability and stability, uncertainty feels dangerous. But here’s the truth: businesses don’t thrive by avoiding discomfort; they grow by navigating it.

Fear of change paralyses and leads to inaction, or worse, resistance. It convinces us that the current way is the only way, even when the market, technology, and customers tell us otherwise. When businesses operate from a place of fear, they focus on protecting what they have instead of exploring what they could gain. They forget that change isn’t about losing control—it’s about redefining it.

Think of some of the most transformative companies—Amazon, Netflix, Apple. They didn’t just change with the times; they led the change. What separates these companies from those that couldn’t keep up isn’t the absence of fear but the ability to channel it into action. When fear is acknowledged but not allowed to dominate, it becomes a powerful catalyst for innovation. In a competitive landscape, standing still is never a winning strategy.

To embrace change, businesses need to fundamentally reframe how they see it. Instead of viewing change as a disruption to be feared, we must see it as an opportunity to evolve. But it is more than a mindset shift alone. It requires a strategy. Change without direction is chaos. And if it’s not communicated well, it can destabilise even the strongest teams.

It’s essential to understand that change is not a one-size-fits-all process. Successful change management involves distinct phases, psychological factors, and strategic communication.

Phases of Change Management

Change in business is best viewed as a multi-phase journey, with each stage requiring a unique approach and tailored communication strategies. Understanding these phases is crucial for leaders who want to guide their organisations through a successful transformation.

1. Initiation Phase: Assessing Readiness for Change

In the initiation phase, the first priority is assessing the organisation’s readiness for change. Before implementation, leaders must ensure they have the necessary resources, stakeholder buy-in, and a workforce willing to adapt. This involves conducting a readiness assessment, which evaluates technical preparedness and emotional and psychological readiness.

Transparency is vital in this phase. Leaders should clearly communicate the ‘why’ behind the change, outlining the vision and its benefits for both the company and its employees. Opening the floor for feedback and addressing any early concerns will create a sense of involvement and build trust.

Once readiness has been assessed and initial buy-in secured, the next step involves moving from intention to action. However, it’s at this stage that organisations often encounter their most significant challenge—resistance.

2. Implementation Phase: Addressing Resistance and Adjusting

Resistance often arises during implementation due to employees’ fear of losing control, the unknown, or attachment to old practices. Kurt Lewin, a pioneer in social psychology, developed the Change Management Model—Unfreeze, Change, Refreeze—which suggests that businesses must first “unfreeze” existing mindsets before transitioning to a new state.

John Kotter, a professor at Harvard Business School and a renowned expert on change, outlines the 8-Step Process for Leading Change, which emphasises the importance of empowering employees and achieving short-term wins. Kotter’s process provides a framework for understanding how to lead change, including steps such as creating a sense of urgency, building a guiding coalition, and communicating the vision for change.

Understanding Resistance to Change: The Psychological Dimension

Resistance to change is often deeply rooted in psychological factors. Fear of losing control, comfort with the status quo, and anxiety about the unknown are common psychological barriers preventing employees from fully embracing change. Leaders need to recognise these underlying emotions to address them effectively.

Strong leadership is key during this phase. Leaders must embody vision, resilience, and communication skills to help navigate employees through uncertainty. Communicating a clear vision of the future is crucial, allowing teams to see the bigger picture. Empathy is equally important—understanding and acknowledging employee concerns can ease their fears about change. By fostering open communication and transparency, leaders create an environment where people feel secure in expressing their worries and ideas.

To overcome psychological barriers to change, leaders should provide clear direction and assurance. Techniques such as active listening, open feedback channels, and acknowledging employee concerns help build trust. These actions show that leaders are guiding the change and considering the personal impacts on employees. Offering regular updates and creating a space for open discussion encourages employees to engage with the change rather than resist it. This is about creating psychological safety—where people feel valued and understood rather than left in the dark.

Successfully implementing change requires overcoming resistance, but that’s only half the battle. To truly transform an organisation, change must be sustained, integrated, and reinforced over the long term.

3. Sustaining Change: Embedding New Practices into Culture

Once the change has been implemented, the final phase involves embedding the new practices into the company culture. Without long-term strategies, even well-executed changes can falter. This phase ensures that the new way of working becomes the norm rather than the exception.

Leaders should maintain an ongoing dialogue with employees, celebrating milestones and providing updates on how the change is progressing. Recognising success keeps morale high and reinforces the stability of the new practices.

Sustaining change ensures that progress continues, but what happens when change is resisted from the beginning? The cost of resistance can be high, both financially and operationally.

The Cost of Resistance to Change

Resistance to change comes at a steep price. According to McKinsey, 70% of change programs fail, primarily due to employee resistance and lack of management support. This failure can result in lost productivity, low morale, and, in some cases, the complete derailment of a company’s strategic vision.

To avoid these pitfalls, businesses must take a proactive approach to understanding and managing resistance, especially by improving communication and building trust from the outset.

The Impact of Resistance vs. Embracing Change

To illustrate the impact of resistance versus embracing change, let’s examine two companies—one that embraced change and thrived, and another that resisted it and faced significant challenges.

Kodak is one of the most famous examples of a company that failed to adapt to change. Despite inventing the first digital camera, Kodak resisted shifting away from its traditional film business, fearing it would hurt its profitable operations. By the time they embraced digital technology, it was too late. Kodak filed for bankruptcy in 2012, a stark reminder of the dangers of resisting change.

In contrast, Microsoft’s transformation under Satya Nadella, the company’s CEO since 2014, is a powerful example of embracing change. Nadella shifted Microsoft from a product-centric company to a cloud-first, services-oriented organisation, transforming both its culture and business model. Under his leadership, Microsoft adopted a growth mindset, embraced cloud computing, and regained its leadership position in the tech world.

These examples illustrate that long-term success requires change-readiness. But building a culture that’s prepared for change requires more than strategic decisions—it demands an organisation-wide mindset shift.

The Power of Communication in Change

When change happens—whether it’s a small process improvement or a large-scale transformation—there’s one universal truth: it must be communicated. Not just announced, but communicated in a way that creates alignment, trust, and buy-in. This is where so many businesses falter. Leaders often mistake delivering information for communication. They roll out memos, presentations, or town halls and expect everyone to understand, accept, and get on board. Without clear, consistent, and transparent communication, even the most well-thought-out change initiatives can fail.

Simon Sinek famously says, “Start with why.” This is at the heart of effective change communication. When leading change, you must first explain why it’s necessary. Why now? Why this direction? People need to see the purpose behind the transformation. It’s not enough to say, “This is the new strategy.” You must help them see how this change aligns with their roles and the bigger picture.

One of the most critical aspects of managing change is developing a change communication plan. This ensures that all stakeholders understand the reason behind the change, how it will impact them, and what is expected of them.

Creating a Change-Ready Culture

Research from Prosci, a leading change management consultancy, shows that organisations with a well-defined change management strategy are six times more likely to meet or exceed their project objectives.

However, creating a change-ready culture isn’t solely about strategies and plans. It’s about people. Keeping employees engaged and motivated throughout the change process is critical to success.

Change isn’t just a business decision—it’s a human experience. People fear the unknown, but they also crave growth and meaning. So, when communicating change, leaders must not only focus on the logical benefits but also acknowledge the emotional impact. Empathy is your most powerful tool. Show that you understand the uncertainty your team might be feeling but also that you believe in their ability to navigate it. The best leaders create a vision of the future that excites and energises their people.

Engaged employees are crucial to the success of any change initiative. Gallup research indicates that companies with engaged employees experience 21% greater profitability. However, uncertainty caused by poorly managed change can harm engagement, leading to reduced morale and lower productivity.

That’s why leaders must involve employees early and frequently in the change process. Employees who feel heard and valued are likelier to become champions of the transformation rather than detractors.

Beyond engagement, businesses need systems that enable continuous learning and adaptability to ensure that change becomes a permanent part of the organisation’s culture.

Building a Culture of Continuous Change

To thrive long-term, businesses need to embed continuous change into their DNA, not treat it as a one-off event. Two proven approaches are Agile Methodology and Kaizen, both of which promote a culture of constant innovation and adaptation.

• Agile: Agile methodology encourages frequent iterations and feedback, allowing teams to quickly adapt based on real-time data. Agile promotes flexible thinking and a willingness to pivot when necessary, making it especially valuable in fast-changing industries. For example, software development teams use Agile to release product updates in shorter cycles, enabling rapid adjustments to user feedback.
• Kaizen: Kaizen is a Japanese business philosophy of continuous improvement. By focusing on small, incremental changes, Kaizen integrates improvement into daily operations, making it part of the company’s fabric. The philosophy encourages employees to seek better ways to improve their work, ensuring that change is ongoing rather than reactive.

Sustaining continuous change is critical, but how do organisations measure its success? Key metrics and KPIs can help assess the progress and effectiveness of change initiatives.

Measuring Success: Change Metrics and KPIs

Measuring the success of change initiatives requires tracking relevant KPIs to ensure progress is measurable and adjustments can be made when necessary. Key metrics include:

Quantitative Metrics

• Employee Adoption Rates: This measures how many employees successfully use the new processes, tools, or systems introduced during the change. High adoption rates typically indicate that employees are adjusting well to the transformation.
• Time to Proficiency: This tracks how long it takes employees to become proficient in the new skills, tools, or processes. A shorter time to proficiency indicates successful training and adaptation, while longer times may suggest that further support or adjustments are needed.
• Operational Efficiency: This evaluates whether the change has improved operational processes, such as reduced process times or lower operational costs. These metrics are crucial in assessing whether the change has delivered tangible, bottom-line improvements.
• Return on Investment (ROI): For many change initiatives, calculating the ROI can be a powerful metric. This measures the financial gains from the change compared to the costs incurred during its implementation. If the initiative has led to significant cost savings or revenue generation, the ROI will reflect this.

Qualitative Metrics

While quantitative data provides hard numbers, qualitative metrics offer deeper insights into how employees feel about the change and how it has impacted the overall culture. These can help leaders understand the emotional and psychological aspects of change adoption. Key qualitative metrics include:

• Employee Satisfaction and Engagement Surveys: Surveys offer valuable feedback on how employees perceive the change process. Are they feeling supported? Do they understand the purpose behind the change? Engagement surveys can provide insights into whether employees feel motivated, included, and aligned with the new direction.
• Focus Groups and One-on-One Feedback: Organising focus groups or conducting individual interviews allows leaders to hear directly from employees. These sessions can uncover potential pain points, fears, or resistance that may not be captured in survey data alone. Listening to employee experiences can guide leaders in making necessary adjustments.
• Leadership and Manager Feedback: Middle and senior management feedback provides insight into how well the change is being executed across departments. Leaders can assess how well managers are supporting their teams, addressing concerns, and ensuring smooth implementation.
• Cultural Adaptation: This metric looks at how well the new practices or values introduced during the change are being integrated into the company culture. Are employees embracing the new mindset or working habits? Do they see the change as part of the company’s long-term vision? Cultural adaptation can be assessed through observation, feedback, and discussions with team leaders.

Conclusion: Change Isn’t Easy, but It’s Necessary

Let’s be honest: change is hard. It’s uncomfortable. It challenges what we know. But if business leaders can embrace the discomfort and communicate with purpose, they can turn change into their greatest asset.

The businesses that thrive in the future will be those that not only accept change but actively pursue it. Change is inevitable, whether driven by societal shifts, evolving consumer expectations, technological advancements, or industry disruption. If you want to grow, you must change. And if you want to lead that change effectively, you must communicate it.

The choice is clear: lead the change or risk being left behind. How will you ensure your organisation thrives in the face of change?

In the end, it’s not about avoiding the unknown—it’s about shaping it.

About Robin:

Robin is the Founding Partner of Manara Global , a strategic communication agency based in Abu Dhabi and Dubai in the UAE serving government, business, and other organisations to excel in their communications to deliver value and impact.