The Four Stages of ‘Change Curve’ Small Business Owners ought to know
                     The Four Stages of ‘Change Curve’ Small Business O
wners ought to know
Jenny Knight
Writes for 
Small and Medium Business Corner & 
SMB Corner
The ‘Change Curve’ is a very helpful tool for small businesses to understand the 
stages of personal transition each employee goes through. It was a model 
developed by Kubler Ross to explain the grieving process (Shock and Denial, 
Anger and Fear, Acceptance, Commitment).
This model helps small business owners predict how employees will react to 
change, in order for them to help and support the employees through their 
personal transitions.
The fact is, an organization does not change just because of new systems or 
processes. They change because people within the organization adapt and 
change. Only when people within the organization make their own personal 
transitions can the organization benefit from the change.
• The Change Curve model
• The ‘Change Curve’ model helps small business owners understand 
the stages of personal transition and organization change. This model 
comprises four stages that most employees go through as they adjust 
to change.
• Stage – 1: Shock and Denial
• Stage – 2: Anger and Fear
• Stage – 3: Acceptance
• Stage – 4: Commitment
•  
• Stage – 1: Shock and denial
• This is the first reaction that small business owners notice in their 
employees, as they react to the challenges to the status quo. This 
reaction is seen more in experienced and established employees, as 
these employees are more indifferent to new systems and procedures. 
The fear of the unknown, fear of doing something wrong and lack of 
information make them uncomfortable. They get a feeling of being 
threatened and fear of failure. Under these circumstances, they 
normally take it as a friction rather than an opportunity.
• What do the employees need here?
• Employees may have experienced this stage multiple times. To get 
over it, employees need information, need to understand what is 
happening in the organization and need to know how to get help from 
the organization.
• Note: This stage affects particularly those employees who have not 
experienced any major change before.
• What should the organization do?
• At this stage, it is the responsibility of the owners to communicate with 
their employees and educate them about the benefits that they will 
gain by adapting new systems, personally and professionally. 
Remember, do not overwhelm your employees by flooding them with 
loads of information at a time or they may become even more 
confused. It’s always better to plan a schedule and follow it.
• Stage – 2: Anger and fear
• This is the second stage that is seen in the employees. As employees 
react to change, they start expressing their anger, concern, 
resentment or fear. They may resist the change actively or passively. 
This stage could be a danger zone and if the organization does not 
manage it carefully, it might result in chaos.
• What should the organization do?
• At this stage, small business owners should handle the employees’ 
objections carefully. Since reaction to change is personal and 
emotional, it’s impossible to prevent it from happening. Therefore, the 
organization should try to address the employees’ experience and sort 
of the issues as early as possible.
• Note: As long as employees remain at Stage 2 of the Change Curve, 
by escaping progress, the change will be unsuccessful.
• Stage – 3: Acceptance
• This is a turning point for employees as well as the organization, 
because the employees have stopped focusing on what they have lost 
and have started accepting changes. They begin exploring changes, 
and get a real idea of what’s good and what’s not and how to adjust 
themselves accordingly.
• What should the organization do?
• This stage is critical, it takes time for the employees to learn and 
accept things. So, don’t expect your employees to be 100% productive 
during this stage. Give them time so that they learn and explore 
without much pressure.
•  
• Stage – 4: Commitment
• At this stage, there will be a commitment from the employees in 
analyzing and embracing the change. They start rebuilding the way 
they work and this is the stage at which the organization starts to see 
the benefits of the change.
• Benefits of the change
• At this stage the organization will see the benefits of putting in effort 
for the welfare of their employees when they were in a grieving stage. 
The positive effects of the change curve are now more evident through 
its productivity and profit.
• The Change Curve is an effective model for small business owners 
while managing employees. Locating an employee on the change 
curve will help business owners decide on how to effectively 
communicate information to employees and to know what kind of 
support they require. This helps them take necessary measures and 
protect both the business and the employees. 
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