The Principles of the Three Step Change Model (VCE SSCE Business Management): Revision Notes
The Principles of the Three Step Change Model
Introduction to Lewin's Three Step Change Model
Kurt Lewin was a German-born social scientist who made significant contributions to understanding how businesses lead and implement change. In 1947, he presented the Three Step Change Model, which continues to be widely used by organisations today.
Definition: Lewin's Three Step Change Model is a change management framework with three sequential steps: unfreeze the status quo, move from the current to the new situation, and refreeze to embed the change.
The model uses the analogy of transforming a block of ice. Just as you must melt ice before reshaping it and then freeze it again in its new form, organisations must follow a similar process when implementing change.
Lewin developed this model alongside his other theories, including Force Field Analysis, group dynamics, and action research. He argued that successful change implementation requires all three steps to be completed in order.
Step 1: Unfreeze the status quo
Purpose and principles
The first step prepares the business for change by identifying what needs to be changed and why. Lewin argued that change cannot occur unless the current equilibrium is broken or destabilised first. This allows people to 'unlearn' their old behaviours before successfully adopting new ones.
Key activities during unfreezing
During this stage, businesses should:
- Challenge existing practices and explore new approaches
- Identify what needs to change and clearly communicate the reasons why
- Develop a strategy and communication plan to inform stakeholders about the need for change
- Motivate and prepare key stakeholders to support the change process
Connection to Force Field Analysis
Lewin developed Force Field Analysis as a tool to support the unfreezing stage. This technique examines how individual and group behaviour impacts change by analysing:
- Driving forces: Factors that push for change and support the new direction
- Restraining forces: Factors that resist change and maintain the status quo
Human behaviour exists in equilibrium (balance) between these competing forces. Conducting a Force Field Analysis ensures that driving forces outweigh restraining forces, creating the motivation needed for successful change implementation.
Why unfreezing matters
Without properly destabilising the current situation, employees will likely maintain their established routines and resist new ways of working. The unfreezing stage creates the necessary disruption and motivation for change to occur.
Step 2: Move
Understanding the transition phase
Simply unfreezing current behaviour does not guarantee that change will happen. Lewin stated that planned change is inherently difficult because of the complexity of forces involved. The move stage requires careful management to successfully transition from the old to the new situation.
The learning approach
Lewin believed that implementing change requires a 'learning approach' where managers:
- Consider all forces at work within the organisation
- Allow for trial and error as people adapt to new ways
- Conduct research to understand what works and what doesn't
- Reinforce the change to prevent it from being temporary
Critical success factors
Two key elements determine success during the move stage:
Time: Change cannot be rushed. Employees need adequate time to adjust to new behaviours, processes, and expectations.
Communication: Consistent, clear communication throughout the transition helps employees understand what is happening and why.
Management responsibilities
During this stage, managers should:
- Role-model the desired behaviours to demonstrate what success looks like
- Communicate consistently about the change and its progress
- Provide training and support to help employees develop new skills
- Offer counselling if needed to address concerns and anxieties
- Empower employees to raise possible solutions for new issues that arise
The move stage recognises that change is a process, not an event. Without proper support and reinforcement, any changes made are likely to be temporary.
Step 3: Refreeze
Stabilising the change
The final step requires the change and new group behaviours to be stabilised or 'frozen' and embedded within the business. Lewin found this step to be crucial because it prevents teams from reverting to their old ways of working.
Why refreezing is essential
Without this stage, the changes implemented may not become permanent. Employees might gradually drift back to familiar routines, especially when facing pressure or stress. Refreezing creates a new sense of stability, making employees confident and comfortable with the new way of operating.
Strategies for successful refreezing
To achieve successful implementation of this stage, businesses should:
Introduce new policies and procedures: Reinforce the changes by making them standard operating procedure. Document the new processes so they become the expected way of working.
Provide continued training: Depending on the nature of the change, ongoing training may be necessary to maintain competency and confidence.
Plan to sustain the change: Develop long-term strategies to ensure the change remains embedded in the organisational culture.
Acknowledge achievement and celebrate success: Recognition supports a positive mindset toward change in the workplace and motivates continued compliance.
Creating stability
Implementing the refreeze stage successfully means employees no longer see the new way as 'change' but as 'how we do things here'. The new behaviours, processes, or systems become the new normal, creating stability and confidence.
Case study: Australia Post and COVID-19 response
Background context
The COVID-19 pandemic created unprecedented challenges for businesses worldwide. For Australia Post, the crisis accelerated e-commerce growth dramatically, with five years' worth of growth occurring in just months. In 2020/21, e-commerce grew by 31.8%, with four in five Australian households shopping online.
Despite lockdowns and restrictions, Australia Post continued operating daily, with approximately 37,000 employees plus over 27,000 in the extended workforce. The organisation recorded revenue of $8.3 billion in 2021, representing 17.7% growth.
Worked Example: Applying the Three Step Change Model to Australia Post
Unfreeze stage:
- Australia Post recognised the need for change due to increased parcel volumes and safety concerns
- Management identified that existing processes would not cope with the surge in demand
- The need for change was communicated through recognition of the challenging circumstances
Move stage:
- Recruited over 5,000 new team members to meet demand
- Invested $20 million in personal protective equipment (PPE)
- Implemented new processes including zoning, staggered shifts, and temperature testing
- Provided training on new safety procedures and delivery methods
- Retrained 2,700 motorbike postal workers to deliver parcels
- Introduced route optimisation software for 3,700 drivers nationally
- Reduced signature on delivery requirements to improve first-time delivery success
Refreeze stage:
- Installed permanent protective screens and social distancing markers in post offices
- Established a dedicated contact tracing team for ongoing risk management
- Introduced an Employee Assistance Program offering free counselling services
- Invested in automation, infrastructure, and technology (reducing 93 million manual handling touchpoints)
- Implemented 60 new and repurposed facilities to increase processing capabilities
- Embedded delivery tracking information as standard practice
Key outcomes
The changes enabled Australia Post to maintain its market leadership position while protecting employee wellbeing. The organisation gave over 33,000 employees a $600 bonus in recognition of their efforts, demonstrating the importance of acknowledging achievement during the refreeze stage.
Exam technique: Applying the Three Step Change Model
Exam Strategy Tips
When answering exam questions about Lewin's model:
For 'describe' questions:
- Clearly outline each of the three steps in sequence
- Use the ice analogy to demonstrate understanding
- Keep explanations concise and focused
For 'explain' questions:
- Describe each step and explain why it is necessary
- Link steps together to show how they form a complete process
- Provide reasoning for why skipping steps would lead to unsuccessful change
For 'apply' questions:
- Identify which stage of the model relates to specific business actions
- Use business examples to demonstrate practical application
- Show how the model helps businesses manage change effectively
For 'evaluate' or 'assess' questions:
- Discuss the strengths and limitations of each step
- Consider whether all three steps are equally important
- Analyse whether the model would work in different business contexts
- Make a judgement about the model's overall effectiveness
Remember!
Key Points to Remember:
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The ice analogy: Change is like transforming ice—you must unfreeze (melt), move (reshape), and refreeze (solidify) for lasting change.
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All three steps are essential: Skipping any step, particularly the refreeze stage, risks the change being temporary or unsuccessful.
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Force Field Analysis supports unfreezing: Analysing driving and restraining forces helps create the motivation needed for change.
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Time and communication are critical: During the move stage, these two factors determine whether the transition will be smooth or chaotic.
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Refreezing creates stability: The final step ensures changes become 'the way we do things' rather than remaining temporary adjustments.
Key terms:
- Equilibrium: The balance between driving and restraining forces for change
- Unfreeze: Destabilising current practices to prepare for change
- Move: The transition phase where change is implemented
- Refreeze: Stabilising and embedding the change to make it permanent
- Force Field Analysis: A tool that examines how behaviour impacts change by analysing driving and restraining forces