Change management involves a structured approach to transitioning individuals, teams, and organizations from their current state to a desired future state. It includes identifying the effects of changes, mitigating risks, and maximizing benefits for stakeholders. Effective change management ensures that changes are implemented smoothly and successfully.

For instance, during a merger, a company might use change management strategies to communicate the changes to employees, provide training for new systems, and address any concerns promptly. This helps minimize resistance and ensures a smooth transition.