Impulses

Change Management as a Leader or as a Manager?

By Fruzsina Dénes

Change is now a natural part of corporate life. Reorganizations, digitalization, cultural shifts, and new operating models follow one another, and although almost everyone talks about change, most organizations still run into the same wall again and again. They modify the structure, fine-tune processes, introduce new metrics—yet a few months or years later everything slides back to the old ways.

So how should a leader act if they want to achieve lasting change?

International research shows that only about 30% of organizational changes fully reach their goals, while 60–70% of initiatives eventually stall or revert to previous patterns. This does not happen because leaders make bad decisions, but because most changes affect only the surface—the structure, not the human beings and the underlying thinking patterns.

Change is not only an external event, but an internal process as well. At the organizational level, it means the rearrangement of structure, processes, and strategy; at the individual level, it is a psychological transition, where one lets go of an old identity and slowly begins to identify with the new one. The two rarely happen at the same time. This is why we see so much “apparent adaptation,” where everything looks fine on the surface, but internally the old patterns continue to run.

Biologically, change is straining. Our brain is a predictive system: it constantly creates forecasts about what to expect. A lack of predictability triggers stress—the body uses more energy, the sense of safety decreases, and focus narrows.

Change is therefore not only an emotional but a neurological energy-management issue: we must build new patterns while the old ones are still running in the background.

The process of change is also non-linear. It’s not that after some initial uncertainty we suddenly arrive at understanding and acceptance. It’s much more a wave-like movement—an oscillation. Enthusiasm, doubt, hope, anger, and fatigue alternate within us—sometimes over days, other times within minutes. This is the nervous system’s natural regulation mechanism: the system searches for a new equilibrium while the need for safety continually collides with the desire for novelty.

For leaders, understanding this is crucial, because it’s not the “depressed phase” that needs managing, but the oscillation itself. If we allow room for this movement, people don’t feel inadequate for becoming uncertain—and they can return to balance faster.

The Role of Inner Architecture

Organizational transformations succeed only when we work not just with the “hard” but also with the “soft” factors—that is, the human dimension—in fact, this is the tougher part. I call this internal, platinum layer the inner architecture: the interconnected system of the nervous system, emotions, thoughts, beliefs, values, schemas, and behaviors.

If this system does not reorganize, the external change will not last.

The type of change also matters. In organizational life, simple behavioral modification is common—when the goal is “how do we do this better”—this is single-loop learning. Deeper work begins when we examine the thinking frame itself—“why do we do it this way?”—this is double-loop learning, which creates a genuine shift in mindset. Most transformations fail here: new expectations appear at the level of behavior, but underlying assumptions, beliefs, and identity do not change.

A complex environment makes this even harder. While complicated situations have predictable cause-and-effect patterns, in a complex world there is no single right solution—only sensing, experimenting, and learning. The leadership reflex of “I need to solve this” does not work here: the task is to create a safe space for exploration.

Many changes still begin by insufficiently considering the people. Decisions are made, plans are presented, communication materials are produced, and implementation starts. Leaders often feel: “We’ve never shared so much information,” while teams experience that they are not being heard. Communication at the cognitive level does not reach the emotional reality.

People often don’t resist the change itself, but the perceived loss of what it takes away: familiar roles, routines, relationships, or their sense of identity. Many feel: “Does this mean that what we did before suddenly became bad?” The unspoken message is interpreted as: “The old is not good anymore; the new will be good.”

Yet the organization’s past holds enormous value, knowledge, and commitment.
If we fail to acknowledge this, loyalty and self-esteem suffer. Change is not the denial of the past but its continuation—and one of the leader’s most important tasks is to say this explicitly.

During change, people do not primarily need new information but help in understanding what all this means for them. They need anchors, frames of interpretation—a narrative that helps make sense of what is happening.

Change—like crisis or loss—requires a new story: the old interpretive frame no longer works, and people need help to find new meaning. This is also the key to post-traumatic growth: not forgetting but placing events into a new context. A leader can help ensure that the shared narrative is not about loss, but about development.

What do employees need to live - not merely survive - change?

They need regular, predictable communication—not campaign-like, but an ongoing dialogue about the change. Not in the last five minutes of a meeting, but in a separate space dedicated to it. It doesn’t have to be long, only intentional: the leader repeatedly says where they are, what remains uncertain, and what is becoming clearer.

They need their emotions acknowledged, because fear, anger, or uncertainty are not obstacles but information about what is happening inside. Emotional validation does not mean allowing unrestrained venting—it means giving space to feelings while helping people handle them constructively.

It is important to reinforce the continuity of values: to make clear that what used to be a strength remains useful in the new operating model as well. When we articulate that the values of the past are not disappearing but taking new forms, it reduces the sense of loss and increases commitment.

And finally: they need permission to experiment and make mistakes. In a complex world, learning is non-linear, and trial-and-error is the only path to new patterns. Mistakes do not mean giving up performance; they mean that the learning process itself has value. The leader’s task is to make it clear: development is not the absence of mistakes but the presence of learning.
These are all elements of the inner architecture—the psychological and emotional structural points that determine how we relate to change. And just as a building cannot stand if its internal supporting structure is weak, an organization cannot renew itself sustainably without strengthening its internal human layers.

Leaders, however, do not have it easy. They, too, are part of the change: pressure, expectations, uncertainty, and fatigue affect them simultaneously. They are expected to hold the space while they too experience loss and learning. The classic leadership reflex is to solve, fix, and close the situation. But in today’s world, the leader’s task is not to maintain order but to hold the space for learning. Not to offer control, but connection.

Today, the greatest sense of safety no longer comes from “knowing everything,” but from authentic presence. When a leader can say: “I don’t see this fully yet either, but I’m paying attention, and together we’ll find the next step.” This sentence gives the team far more strength than any ready-made answer.

Change is therefore not only a structural matter but also a neurological, emotional, and cognitive reorganization. An organization can renew itself only if its people can reorganize internally. The leader of the future is not just a project manager but an inner architect: someone who understands how humans function in uncertainty and can hold space for learning, experimenting, making mistakes, and developing.

Most changes eventually fail not because of the plan, but because of the lack of space.
The space in which people can give new meaning to what is happening.
The space in which they can remain authentic while changing.
This space is the inner architecture: the human side of change, without which everything else remains merely organizational stage design.
 

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