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Flevy Management Insights Q&A
How can resistance to change, inherent in BMI implementation, be effectively managed within an organization?


This article provides a detailed response to: How can resistance to change, inherent in BMI implementation, be effectively managed within an organization? For a comprehensive understanding of BMI, we also include relevant case studies for further reading and links to BMI best practice resources.

TLDR Effective management of resistance to Business Model Innovation involves understanding its roots, strategic communication, fostering a culture of Continuous Improvement, and leveraging Change Agents.

Reading time: 5 minutes


Managing resistance to change during Business Model Innovation (BMI) implementation is a critical challenge for organizations aiming to stay competitive in today's rapidly evolving market landscape. Effective management of this resistance is not just about overcoming obstacles but about leveraging the process to foster a culture of innovation and adaptability. Below are specific, detailed, and actionable insights into how organizations can navigate the complexities of change resistance within the context of BMI.

Understanding the Roots of Resistance

Before addressing resistance, it's crucial to understand its origins. Resistance to change often stems from fear of the unknown, loss of control, and concerns over competence. Employees might worry about how changes will affect their roles, job security, and ability to meet new expectations. A study by McKinsey & Company highlights that successful change programs involve clear communication and engagement strategies that address these fears by making the unknown known.

To effectively manage resistance, leaders must engage in active listening, creating forums for dialogue where concerns can be openly discussed. This approach not only helps in identifying specific resistance points but also in fostering a sense of ownership among employees over the change process. By involving employees in the BMI process from the outset, organizations can mitigate fears and build a collaborative environment conducive to change.

Moreover, education and training play a pivotal role in managing resistance. Providing employees with the skills and knowledge needed to navigate new processes or technologies reduces anxiety and builds confidence. Tailored training programs that address specific gaps can help smooth the transition, ensuring that employees feel supported throughout the change journey.

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Strategic Communication and Engagement

Communication is the linchpin of effective change management. A study by Prosci indicates that projects with excellent change management effectiveness are six times more likely to meet objectives than those with poor change management. Strategic communication involves not just disseminating information but ensuring that it is meaningful and relevant to all stakeholders. This means articulating the 'why' behind the BMI, the benefits it brings, and how it aligns with the organization's overall vision.

Engagement strategies should be multi-faceted, incorporating regular updates, feedback loops, and opportunities for employees to voice concerns and suggestions. Leadership must be visibly committed to the change, demonstrating through actions and decisions that the BMI is a priority. This visible commitment, coupled with consistent messaging, helps to align the organization and reduce resistance.

Real-world examples underscore the importance of strategic communication. Companies like GE and IBM have successfully navigated BMI by fostering open lines of communication and engaging employees at all levels in the change process. By making change a part of the organizational narrative, they were able to minimize resistance and harness employee energy towards innovation and growth.

Explore related management topics: Change Management

Creating a Culture of Continuous Improvement

Resistance to change is less daunting in organizations that cultivate a culture of continuous improvement. Such cultures are characterized by a shared belief in the value of adaptability and the pursuit of excellence. A report by Deloitte highlights that organizations with a strong culture of innovation are more resilient to market disruptions and better positioned to capitalize on new opportunities.

To build this culture, leaders should recognize and reward behaviors that align with the organization's strategic goals. Celebrating small wins and learning from failures encourages a mindset of experimentation and learning. This not only helps in managing resistance in the short term but also builds the organizational agility needed for long-term success.

Implementing structured frameworks like Lean and Agile can also support a culture of continuous improvement. These methodologies emphasize iterative development, customer feedback, and cross-functional collaboration, principles that are essential for successful BMI. By embedding these frameworks into the organizational DNA, companies like Toyota and Spotify have demonstrated how a culture of continuous improvement can drive innovation and growth.

Explore related management topics: Continuous Improvement Agile

Leveraging Change Agents and Influencers

Change agents and influencers within the organization can play a critical role in managing resistance. These individuals, whether they are formal leaders or not, have the respect and trust of their peers and can significantly impact the attitudes and behaviors of others. A study by Accenture shows that leveraging influencers can accelerate the adoption of new behaviors and practices, making the change process more efficient.

Identifying and empowering these change agents involves recognizing those who are already demonstrating a positive attitude towards the BMI and those who have a broad network within the organization. Training these individuals to be champions of change, equipped with the tools and knowledge to support their peers, can create a multiplier effect, spreading enthusiasm and reducing resistance across the organization.

Real-world examples include companies like Adobe, which implemented a change ambassador program during its transition to a cloud-based service model. These ambassadors were instrumental in addressing concerns, providing support, and modeling the behaviors needed for the new business model. Their efforts were key in minimizing resistance and ensuring a smooth transition for the organization.

Managing resistance to change in the context of BMI implementation requires a multifaceted approach that addresses the emotional, informational, and practical needs of employees. By understanding the roots of resistance, engaging in strategic communication, fostering a culture of continuous improvement, and leveraging change agents, organizations can navigate the complexities of change more effectively. This not only ensures the successful implementation of the BMI but also strengthens the organization's capacity for ongoing innovation and adaptation.

Best Practices in BMI

Here are best practices relevant to BMI from the Flevy Marketplace. View all our BMI materials here.

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BMI Case Studies

For a practical understanding of BMI, take a look at these case studies.

Customer-Centric Strategy for Financial Services in Digital Banking

Scenario: A leading digital bank, known for its innovative approach to financial services, is at a crossroads requiring business model innovation to stay ahead.

Read Full Case Study

Digital Transformation Strategy for Oil & Gas Supply Chain Optimization

Scenario: A mid-sized organization in the oil and gas industry is facing significant challenges in adapting its business model innovation to meet the digital age demands.

Read Full Case Study

Revenue Model Redesign for Industrial 3D Printing Firm

Scenario: The organization is a mid-sized player in the industrial 3D printing space, grappling with the challenge of transitioning from a product-centric to a service-oriented business model.

Read Full Case Study

Business Model Innovation for a Digital Healthcare Provider

Scenario: A mid-sized digital healthcare provider in North America is grappling with a saturated market and declining profitability.

Read Full Case Study

Business Model Innovation for Ecommerce in Beauty Sector

Scenario: A firm operating within the ecommerce beauty sector is grappling with the challenge of differentiating its business model in a rapidly saturating online market.

Read Full Case Study

Telecom Business Model Transformation in Digital Services

Scenario: The organization, a mid-sized telecommunications player specializing in traditional voice and data services, is facing stagnation in a highly competitive and saturated market.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What role does cross-industry collaboration play in accelerating business model innovation?
Cross-industry collaboration is crucial for Business Model Innovation, leveraging diverse perspectives and expertise to stimulate creativity, drive growth, and mitigate risks. [Read full explanation]
In what ways can businesses leverage data analytics and AI to drive business model innovation?
Data analytics and AI drive Business Model Innovation by identifying new revenue streams, improving Operational Efficiency, and enabling Customer-Centric Innovation, as seen with Netflix, Amazon, Spotify, and Nike. [Read full explanation]
How do emerging market dynamics influence business model innovation strategies?
Emerging market dynamics, including technological advancements, changing consumer behaviors, and regulatory shifts, necessitate organizations to adapt and innovate their business models for sustained growth and relevance. [Read full explanation]
How will the increasing importance of sustainability shape business model innovation strategies in the future?
The increasing importance of sustainability is fundamentally transforming Business Model Innovation by integrating ESG criteria into Strategic Planning, leveraging Strategic Partnerships, and embedding sustainability into Corporate Culture for long-term resilience and value creation. [Read full explanation]
What role will artificial intelligence play in the evolution of Business Model Innovation strategies?
Artificial Intelligence is revolutionizing Business Model Innovation by enhancing Customer Insights, Operational Excellence, and fostering new Value Propositions, driving agility and long-term growth. [Read full explanation]
What metrics should be used to evaluate the success of a newly implemented business model innovation?
Evaluating a new business model innovation's success involves analyzing Financial Performance (Revenue Growth, Profit Margins, ROI, Cash Flow), Customer-centric (NPS, CLV, CAC), and Operational Efficiency Metrics (Process Efficiency, Time to Market, Quality Indicators) for comprehensive insights into impact and growth. [Read full explanation]
What role does customer feedback play in the iterative process of business model innovation?
Customer feedback is crucial in Business Model Innovation, providing insights for alignment with market demands, enhancing product value, and driving sustainable growth through customer-centric strategies. [Read full explanation]
How does value innovation challenge traditional industry boundaries and create new market spaces?
Value Innovation challenges traditional industry boundaries by focusing on breakthrough value propositions, creating new demand in untapped markets, and making competition irrelevant, exemplified by Cirque du Soleil, Apple, and Netflix. [Read full explanation]

Source: Executive Q&A: BMI Questions, Flevy Management Insights, 2024


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