Constant change is a common factor in every endeavor towards being a market leader in today's global economy. As such, experts on management issues are referring to change management as the one thing that can make or break a company. Change has been referred to as the unfreezing, changing, and refreezing of the ways of doing things, according to Lewin's model. This process sounds simple, but 'unfreezing' is difficult because people are used to doing things the way they always have been doing them. The change itself may be looked at as unnecessary or unfeasible. Convincing people that it is indeed necessary, and ensuring that it does change, is a major hurdle towards successful implementation of the change. Finally, it is critical that refreezing is done in such a way that people get used to a dynamic way of doing things and do not revert towards comfort zones.

Change management requires identifying needs of customers and the organization itself, changing the attitudes and beliefs of affected employees and managers, reviewing the process, and bringing about change that mirrors the end state desired. Empowering people, understanding the need for tolerance towards diversity to break the cultural barriers, and changing attitudes and beliefs are critical steps of the process of change. Finally, it must be determined if only a structural change is required to improve efficiency, or must a complete change management plan be proposed that transforms attitudes, structures and behaviors.

There are many reasons why a change management project fails. Firstly, a change may be implemented for the sake of change, implying no commitment from the leadership. This is where the management's leading capacities are tested to the extreme. If not steered with appropriate leadership, credibility is compromised and the organization loses. Secondly, the change must be compulsory for everyone. No opting out solutions should be encouraged. Thirdly, the change process could be affected if the management doesn't concentrate on the people itself who are directly affected by a change, and is task oriented. This destroys morale and employee loyalty.

Next, if the management doesn't involve the very people who are to be affected by the change in planning, decision making, and implementation of the process, the people do not understand why the change is necessary, and end up resisting it. Thus, a results oriented approach doesn't aid a change management programme.

A very important mistake that most companies make is to hire outside consultants to make changes. Change is supposed to originate from inside to be implemented successfully. Further, rewards and recognition are necessary to motivate employees towards change, and watching the leadership follow through further motivates employees to be committed to the change process. Finally, if the change is too big or not achievable employees will get overwhelmed and not respond to it.

Thus, successful implementation of a change requires commitment from the leadership and everybody within the organization, people must be made the focus of the change process instead of the task, the change should be internal, recognition and rewards must be given at appropriate inputs.

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