“Change or die!” is the rallying cry among today’s managers worldwide. Change often occurs along one (or more) of six dimensions:

1. The changing nature of the workforce. Almost every organization must adjust to a multicultural environment, demographic changes, immigration, and outsourcing.

2. Technology is continually changing jobs and organizations. It is not difficult to imagine the idea of an office becoming an antiquated concept in the near future.

3. Economic shocks also have a huge impact on organizations. During the great recession of 2007 to 2009, millions of jobs were lost worldwide, home values dropped dramatically, and many large, well-known corporations like Merrill Lynch, Countrywide Financial, and Ameriquest disappeared or were acquired. Recovery has occurred in many countries, and with it, new job prospects and investments. Other countries, like Greece and Spain, struggle to regain their economic footing, limiting the economic viability of many Greek and Spanish organizations.

4. Competition is changing. Competitors are as likely to be across the ocean as across town. Successful organizations are fast on their feet, capable of developing new products rapidly and getting them to market quickly. In other words, they are flexible and require an equally flexible and responsive workforce.

5. Social trends don’t remain static. Consumers who were strangers now meet and share product information in chat rooms and blogs. Organizations must therefore continually adjust product and marketing strategies to be sensitive to changing social trends. Consumers, employees, and organizational leaders are increasingly sensitive to environmental concerns. “Green” practices are quickly becoming expected rather than optional.

6. Not even globalization’s strongest proponents could have imagined the change in world politics in recent years. We’ve seen a major set of financial crises that have rocked global markets, a dramatic rise in the power and influence of China, and intense shakeups in governments across the Arab world. Throughout the industrialized world, businesses—particularly in the banking and financial sectors—have come under new scrutiny.

Change is simply making things different. However, only proactive situations describe planned change. Many changes are in direct reaction to, say, employee demands. Some organizations treat all change as an accidental occurrence. In this chapter, we address change as an intentional, goal-oriented activity.

What are the goals of planned change? First, it seeks to improve the ability of the organization to adapt to changes in its environment. Second, it seeks to change employee behavior.

Who is responsible for managing change activities in organizations? The answer is change agents.1 They see a future for the organization others have not identified, and they are able to motivate, invent, and implement this vision. Change agents can be managers or non-managers, current or new employees, or outside consultants.