10 Ways SMEs Can Compete with Giants in 2025

The business landscape in 2025 is fierce, with multinational corporations holding deep pockets and vast resources. But here’s the good news—small and medium-sized enterprises (SMEs) don’t have to sit on the sidelines. Agility, innovation, and a people-first approach can help SMEs punch well above their weight.

Think of David versus Goliath: size matters, but strategy wins the battle. This article explores ten powerful ways SMEs can outsmart the giants and carve out a competitive edge.

1. Leverage Agility as a Superpower

Unlike large corporations weighed down by bureaucracy, SMEs can pivot quickly. In 2025, speed in decision-making and execution is a crucial differentiator.
Pro tip: Regularly review market shifts and be ready to adjust your offerings faster than big players.

2. Double Down on Customer Experience

Customers today want personalisation, not a one-size-fits-all approach. SMEs can deliver tailored service that giants struggle to replicate.
Stat: According to Gestaldt Marketing Consultants, 74% of consumers say customer experience is a key factor in their purchasing decisions.

3. Embrace Niche Markets

Rather than competing everywhere, SMEs can thrive by dominating a specialised niche. Focus on solving unique problems for a specific audience.
Example: African fintech start-ups are winning by targeting underbanked communities overlooked by traditional banks.

4. Harness Technology & AI Tools

Affordable AI platforms in 2025 allow SMEs to automate customer service, analyse data, and even predict trends. Giants have scale, but SMEs have speed in adopting tech.
Pro tip: Start small with AI-driven chatbots or predictive analytics to streamline operations.

5. Build Strategic Partnerships

SMEs can expand reach by collaborating with other businesses, start-ups, or even larger firms. Partnerships reduce costs and open new markets.

6. Leverage Digital Marketing Smartly

Digital channels level the playing field. SMEs can use hyper-targeted campaigns, influencer collaborations, and social media storytelling to attract loyal customers.
Stat: HubSpot reports that companies using blogs see 55% more website visitors than those that don’t.

7. Attract & Retain Top Talent with Culture

Giants can offer bigger salaries, but SMEs can attract talent with flexibility, growth opportunities, and purpose-driven work.
Quote: “Culture eats strategy for breakfast.” – Peter Drucker.

8. Prioritise Sustainability

Consumers increasingly choose brands that align with their values. SMEs can integrate eco-friendly practices faster than larger competitors burdened by legacy systems.

9. Be Financially Lean and Creative

SMEs must embrace lean models, reducing waste and focusing on high-ROI activities. Creative financing options like crowdfunding are also more accessible in 2025.

10. Tell an Authentic Story

People buy into people. SMEs can connect through authenticity, something giants often lose in corporate layers. Storytelling builds trust, brand loyalty, and emotional connection.

Conclusion: Competing on Your Own Terms

In 2025, SMEs don’t need to outspend or outmuscle the giants. By leveraging agility, authenticity, technology, and customer-centric strategies, they can not only compete but win. The playing field may not be equal, but the opportunities are real for businesses bold enough to seize them.

Unlocking Shared Value: Lessons from Leading African Companies

In today’s competitive landscape, companies can no longer measure success purely in profit margins. Across Africa, leading businesses are proving that the path to sustainable growth lies in creating shared value—business strategies that deliver economic returns while solving pressing social and environmental challenges.

Think of it as planting a tree: while the company enjoys the fruits, communities benefit from the shade, oxygen, and fertile soil it creates. In this article, we’ll explore how African companies are unlocking shared value, the lessons we can learn from their journeys, and how your business can follow suit.

1. Redefining Profit: Why Shared Value Matters

For too long, corporate success was defined by shareholder returns alone. But in Africa, where social challenges and growth opportunities are deeply intertwined, businesses are realising that creating solutions for communities also drives profitability.

💡 Tip: Align your corporate strategy with national development priorities and the UN Sustainable Development Goals. According to Harvard Business School, companies with shared value strategies see innovation rates rise by up to 30%.

“The business of business should not just be about money, it should be about responsibility. It should be about public good.” – Strive Masiyiwa

2. MTN: Connecting Growth with Inclusion

Telecom giant MTN has invested heavily in expanding mobile and internet access across Africa, bridging the digital divide. Beyond connectivity, its mobile money platforms empower millions of unbanked individuals with financial inclusion.

💡 Lesson: Shared value thrives when companies identify systemic barriers—like access to finance—and turn them into opportunities for growth.

3. Safaricom: Building Prosperity Through M-Pesa

Safaricom’s M-Pesa revolutionised mobile payments in Kenya, lifting households out of poverty by enabling secure transactions and small business growth. A World Bank study found that M-Pesa helped reduce extreme poverty in Kenya by 2%.

💡 Lesson: Innovating with purpose creates lasting economic and social impact while strengthening customer loyalty.

4. Dangote Group: Investing in Communities

As one of Africa’s largest conglomerates, Dangote Group links industrial growth with community development. From building schools and hospitals to supporting local farmers, it demonstrates how large-scale business can directly improve livelihoods.

💡 Lesson: Embedding corporate social investment into core business operations magnifies impact and builds trust.

5. Standard Bank: Financing a Sustainable Future

Standard Bank is actively funding renewable energy and green infrastructure projects across the continent. This not only supports Africa’s transition to cleaner energy but also creates long-term economic resilience.

💡 Lesson: Shared value can emerge from financing solutions that balance profitability with long-term sustainability.

6. How Your Business Can Unlock Shared Value

The examples above show that shared value isn’t limited to multinationals. Even small and medium-sized enterprises can create impact by aligning business goals with social needs.

💡 Tip: Start by asking: Where do our business strengths intersect with community challenges? Whether it’s skills training, supply chain localisation, or green innovation, there’s always a path to shared value.

Conclusion: Profit with Purpose

Leading African companies are showing the world that profitability and social impact aren’t mutually exclusive—they are deeply connected. By embedding shared value into core strategy, businesses can achieve sustainable growth while empowering the communities they serve.

The future of African business lies in this balance: creating wealth, building trust, and leaving a legacy that uplifts generations.

How to Keep Employees Engaged in Times of Economic Uncertainty

When the economy wobbles, so does employee confidence. Job security fears, tighter budgets, and shifting priorities can all dampen morale. Yet, history shows that companies investing in employee engagement during turbulent times not only weather the storm but often emerge stronger.

Think of employee engagement like the anchor of a ship. Even in rough waters, it steadies the organisation, keeping talent focused, motivated, and committed to the journey ahead. In this article, we’ll explore practical ways to keep employees engaged when uncertainty is at its peak.

1. Communicate with Clarity and Consistency

Silence breeds fear. When leaders fail to communicate, employees often assume the worst. Regular, transparent updates help employees feel informed and valued—even if the news isn’t always positive.

💡 Tip: Hold weekly check-ins, publish internal newsletters, or use digital platforms to keep teams updated. A Gestaldt Business Review study found that 75% of employees feel more engaged when leadership communicates openly during crises.

“In times of turbulence, the biggest danger is not the turbulence—it’s to act with yesterday’s logic.” – Peter Drucker

2. Prioritise Employee Wellbeing

Stress and burnout escalate when uncertainty rises. Companies that proactively support employee wellbeing—mental, physical, and financial—strengthen loyalty and resilience.

💡 Tip: Introduce wellbeing initiatives like virtual wellness sessions, flexible work policies, or access to counselling. According to Gallup, employees who feel cared for are 69% less likely to actively seek another job.

3. Empower Through Involvement

When employees feel powerless, disengagement grows. By involving teams in problem-solving and decision-making, leaders build trust and ownership.

💡 Tip: Create cross-functional task forces or hold brainstorming sessions where employees can contribute ideas. Research from Gestaldt shows that companies with highly inclusive cultures are twice as likely to meet or exceed financial targets.

4. Recognise and Celebrate Small Wins

During tough times, big milestones may feel scarce. Recognising everyday contributions can keep morale high and reinforce a sense of progress.

💡 Tip: Implement peer-to-peer recognition programs or highlight achievements in team meetings. A Workhuman study revealed that regular recognition leads to a 31% increase in employee engagement.

5. Offer Growth Opportunities Despite Constraints

Even with limited budgets, employees still value learning and development. Career growth signals that the organisation sees a future beyond the crisis.

💡 Tip: Provide access to online courses, mentorship, or job rotations. LinkedIn’s Workplace Learning Report shows that 94% of employees would stay longer at a company that invests in their career development.

Conclusion: Turning Crisis Into Commitment

Economic uncertainty doesn’t have to mean disengaged employees. By focusing on communication, wellbeing, empowerment, recognition, and growth, organisations can transform uncertainty into opportunity. Engaged employees become advocates, problem-solvers, and the driving force behind long-term resilience.

In challenging times, remember: it’s not just about surviving—it’s about keeping your people inspired to thrive.

The Future of State-Owned Enterprises: Reform or Reinvention?

State-owned enterprises (SOEs) are often described as the backbone of a nation’s economy, but in many countries, their pulse is irregular. Burdened with inefficiencies, corruption scandals, and mounting debt, SOEs stand at a crossroads: should they be reformed within their current structures, or does the future call for full reinvention? For governments, businesses, and citizens alike, the answer carries high stakes.

In this article, we’ll unpack the current state of SOEs, explore global case studies of reform and reinvention, weigh the pros and cons of each path, and outline what the future could look like. By the end, you’ll have a clear sense of the opportunities and risks tied to SOE transformation.

1. The Current Reality of SOEs

SOEs play a critical role in sectors like energy, transport, and finance. Yet, many are underperforming, becoming fiscal burdens rather than growth drivers. Mismanagement, political interference, and lack of accountability often plague them.

Stat: In South Africa, SOEs such as Eskom and Transnet together account for over R1 trillion in government guarantees, straining public finances.

Quote: “SOEs were designed to be strategic assets, but too many have become liabilities.” – Economist at the World Bank

Tip for leaders: Understand the health of SOEs in your industry, as their performance can directly impact supply chains, infrastructure, and investment.

2. Reform: Fixing the Foundations

Reform means repairing the existing structure of SOEs without fundamentally changing their role. This can include better governance, improved oversight, and stronger financial controls.

Case example: Singapore’s Temasek Holdings shows how effective governance and transparency can turn SOEs into globally competitive companies.

Stat: Countries that implemented SOE reforms saw productivity gains of up to 15% within a decade (OECD).

Practical tip: Governments considering reform should prioritise professionalising boards, separating politics from operations, and enhancing accountability.

3. Reinvention: Redefining the Role of SOEs

Reinvention goes beyond tweaks – it reimagines the role of SOEs in the economy. This could mean partial privatisation, public-private partnerships (PPPs), or transitioning SOEs into entirely new models.

Case example: Brazil’s Embraer shifted from being a state-owned enterprise to a privatised aerospace leader, now competing globally.

Quote: “Reinvention requires courage. It’s about asking whether the state should be doing this at all.” – Former UK Treasury Official

Tip for policymakers: Reinvention works best when SOEs operate in competitive markets where private players can drive innovation and efficiency.

4. Risks and Challenges on Both Paths

Neither reform nor reinvention is a silver bullet. Reform may fail if political will is lacking, while reinvention risks social backlash if jobs and public access are disrupted.

Stat: The African Development Bank notes that over 60% of SOE reform efforts stall due to political resistance or lack of capacity.

Practical tip for businesses: Stay agile by scenario-planning. Anticipate how SOE reform or reinvention could impact pricing, supply, and regulation in your sector.

5. The Future Outlook: Hybrid Models

The likely future of SOEs lies in hybrid approaches – blending reform and reinvention. Governments may retain strategic control while opening space for private investment and innovation.

Case example: Ethiopia’s decision to partially privatise its telecom giant Ethio Telecom illustrates how governments can unlock capital while keeping oversight.

Quote: “The future of SOEs is not about choosing between reform or reinvention, but about designing models fit for purpose.” – IMF Policy Paper

Tip for leaders: Advocate for public-private collaboration that balances accountability with innovation.

Conclusion: Reform or Reinvention?
The debate over SOEs isn’t just academic – it’s about economic resilience, fiscal health, and national competitiveness. Some SOEs will benefit from reform, others will require reinvention, and many will follow a hybrid path. What matters most is building governance, transparency, and accountability into whatever model emerges.

For businesses, this means staying alert to shifts in policy, anticipating ripple effects, and seeking opportunities to collaborate in reshaping critical industries. The future of SOEs won’t be defined by reform or reinvention alone, but by the willingness to adapt boldly to a changing economic landscape.

5 Practical Leadership Habits That Boost Organisational Value

Great leadership isn’t just about big-picture vision – it’s also about the small, consistent habits that create lasting impact. Just like compound interest, these daily actions add up over time, driving team performance, shaping culture, and ultimately boosting organisational value. In today’s fast-changing business environment, leaders who cultivate the right habits can transform challenges into opportunities and ensure sustainable success.

In this article, we’ll explore five practical leadership habits that strengthen both people and performance. Each habit is actionable, rooted in research, and designed to help leaders add measurable value to their organisations.

1. Practicing Transparent Communication

Clear, honest communication builds trust – the foundation of any high-performing organisation. When leaders openly share goals, challenges, and progress, they reduce uncertainty and foster alignment.

Stat: A Gallup study shows that organisations with open communication are 3.5 times more likely to engage employees effectively.

Quote: “Transparency fosters trust, and trust is the foundation of great teamwork.” – Joel Gascoigne, CEO of Buffer

Practical tip: Hold regular town halls or team updates where employees can ask questions and share feedback. Consistency is more valuable than perfection.

2. Leading by Example

Leaders set the tone. Teams mirror what they see. Demonstrating accountability, resilience, and ethical behaviour signals to employees what’s expected and valued.

Stat: Research from Gestaldt found that 83% of employees are more likely to trust leaders who “walk the talk.”

Practical tip: Align actions with stated values. If innovation is a priority, leaders should actively participate in brainstorming and risk-taking efforts.

3. Empowering Decision-Making at All Levels

Micromanagement stifles creativity, while empowerment fosters ownership. Leaders who delegate authority enable employees to contribute meaningfully and unlock untapped potential.

Stat: Companies that empower employees show 23% greater profitability (Gestaldt).

Quote: “The best executive has enough sense to pick good men to do what he wants done, and self-restraint to keep from meddling with them while they do it.” – Theodore Roosevelt

Practical tip: Establish clear decision-making frameworks so employees know their boundaries but also their freedoms.

4. Investing in Continuous Learning

In a rapidly changing economy, the organisations that thrive are those that learn fastest. Leaders who promote and model continuous learning create a culture of adaptability.

Stat: LinkedIn’s Workplace Learning Report found that 94% of employees would stay longer at a company that invests in their career development.

Practical tip: Create cross-training opportunities and encourage mentorship programmes to spread knowledge and build resilience.

5. Recognising and Rewarding Contributions

Recognition is a low-cost, high-impact leadership habit. When employees feel valued, they are more engaged, motivated, and loyal.

Stat: According to Gestaldt Management Consultants, 78% of employees quit their jobs because of a lack of appreciation.

Quote: “People work for money but go the extra mile for recognition, praise, and trust.” – Dale Carnegie

Practical tip: Develop a recognition system that highlights both individual achievements and team efforts, from small wins to big milestones.

Conclusion: Leadership Habits That Compound Value
Great leadership isn’t about one-off acts of brilliance – it’s about small, deliberate habits practiced consistently. Transparent communication, leading by example, empowering teams, investing in learning, and recognising contributions are habits that compound over time, building trust, resilience, and value. Leaders who embrace these practices won’t just guide their teams – they’ll elevate their organisations.

South Africa’s Economic Pulse: What Q3 Means for Businesses

The economy is like a heartbeat – when it speeds up, we feel the rush; when it slows, everything around it reacts. South Africa’s Q3 economic performance sends strong signals about where opportunities and risks lie for businesses. For leaders and entrepreneurs, understanding these shifts isn’t just about staying informed – it’s about positioning for survival and growth.

In this article, we’ll break down South Africa’s economic performance in Q3, explore the sectors driving momentum, highlight risks lurking in the background, and share practical strategies for businesses to adapt. By the end, you’ll have a clear roadmap to navigate the challenges and tap into growth pockets.

1. Q3 at a Glance: Growth Signs and Red Flags

South Africa’s economy showed mixed signals in Q3. On one hand, certain industries gained traction, while on the other, lingering structural challenges dampened momentum. GDP growth remained modest, underscoring both resilience and vulnerability.

Key stat: According to Stats SA, GDP edged up by around 0.6% quarter-on-quarter, driven mainly by finance, mining, and trade, while sectors like manufacturing and construction lagged.

Quote: "South Africa’s economy continues to reflect a push-and-pull dynamic, with global headwinds and domestic constraints shaping performance." – Economist at Nedbank

Tip for businesses: Keep an eye on sector-specific data rather than broad GDP figures – growth opportunities often hide in niche markets.

2. Winners of the Quarter: Sectors Driving Momentum

Certain industries pulled ahead in Q3, offering clues about where opportunities may lie:

• Finance & Business Services: Strong demand for digital banking and insurance products.

• Mining: Rising global commodity prices boosted exports.

• Trade & Tourism: Increased consumer activity and tourism recovery contributed positively.

Practical insight: Businesses in or connected to these sectors should leverage partnerships, expand offerings, or invest in efficiency tools to ride the growth wave.

Stat: Tourism arrivals rose by nearly 20% year-on-year, providing a boon for hospitality and retail.

3. Sectors Under Pressure: Where Risks Remain

Not all industries shared in the momentum. Manufacturing, construction, and agriculture faced persistent challenges.

• Manufacturing: Power outages and supply chain bottlenecks restricted growth.

• Construction: Weak demand for new projects slowed activity.

• Agriculture: Drought conditions and input cost pressures hit production.

Quote: "Load shedding remains the single biggest constraint on South Africa’s manufacturing competitiveness." – Business Leadership SA

Tip for businesses: Diversify operations where possible and invest in energy resilience – solar, backup generators, or efficiency upgrades.

4. Inflation, Rates, and Consumer Behaviour

The cost-of-living crisis continued to bite in Q3, with inflation hovering above 5%. Higher borrowing costs also dampened consumer and business spending.

Stat: South Africa’s repo rate stood at 8.25%, the highest in over a decade.

Consumers tightened their belts, prioritising essentials over discretionary spending. Retailers felt the pinch, though discount brands and value-focused offerings gained traction.

Tip for businesses: Reframe pricing strategies, emphasise value, and adopt flexible payment models to attract cautious consumers.

5. Policy Moves and Global Pressures

Government interventions and global factors also shaped Q3 dynamics. Ongoing fiscal consolidation efforts, public sector wage negotiations, and global oil price volatility all fed into business planning.

Quote: "The interplay between domestic reforms and global uncertainty will determine South Africa’s medium-term outlook." – IMF regional report

Tip for businesses: Build flexibility into budgets and scenario-plan around currency swings, interest rates, and global demand shifts.

6. What Q3 Signals for Q4 and Beyond

Looking forward, businesses should prepare for continued volatility. While opportunities exist in tourism, digital finance, and mining, risks from energy insecurity, inflation, and global uncertainty remain.

Action points for businesses:

• Double down on efficiency and resilience investments.

• Explore regional and global export markets.

• Strengthen risk management and financial planning.

Final thought: South Africa’s Q3 economy is a reminder that turbulence and opportunity often come hand in hand. Businesses that stay agile, informed, and innovative can not only weather the storm but also chart new growth paths.

Conclusion: Turning Insights into Action South Africa’s Q3 results provide a mixed bag – modest growth, resilient sectors, and persistent risks. For businesses, the lesson is clear: don’t wait for the economy to stabilise; instead, adapt proactively. By focusing on resilience, leveraging sector-specific opportunities, and staying alert to global and local trends, companies can find stability and success in uncertain times.

Embracing Data-Driven Decision Making: Unlocking Business Success

In today’s information age, data has become the new currency of business success. From customer behaviour to shifting market trends, every data point holds the potential to guide smarter, faster, and more profitable decisions. Companies that embrace data-driven decision making (DDDM) are not just keeping up with change — they’re shaping the future.

Just like a compass guides sailors through rough seas, data helps leaders navigate uncertainty, reduce risks, and discover hidden opportunities. This article explores the importance of data-driven decision making, its benefits, challenges, real-world applications, and how your business can cultivate a data-first culture for long-term growth.

Why Data-Driven Decision Making Matters

Gut feelings and guesswork are no longer enough in today’s hyper-competitive market. Data-driven decision making empowers organisations to act on evidence rather than assumptions. Research by Gestaldt shows that companies using analytics are 5x more likely to make faster decisions than competitors who don’t.

When leaders ground their choices in data, they:

• Anticipate market shifts before competitors

• Understand customers on a deeper level

• Improve operational efficiency

• Drive sustainable growth

📌 As Andrew McAfee of MIT puts it: “The world is one big data problem.”

What Is Data-Driven Decision Making?

At its core, data-driven decision making is the practice of collecting, analysing, and applying insights from data to inform business strategies. It’s not about drowning in numbers — it’s about finding the signals in the noise.

The process typically follows these steps:

1. Identify the business problem or opportunity

2. Define the relevant data sources

3. Collect and clean the data

4. Analyse patterns and insights

5. Make evidence-based decisions

6. Monitor outcomes and refine

This structured approach ensures businesses stay aligned with their goals while adapting quickly to change.

Key Benefits of Data-Driven Decision Making

When implemented effectively, DDDM delivers measurable advantages:

• Reduced risk: Decisions based on factual data lower the chance of costly mistakes.

• Increased innovation: Data reveals unmet customer needs and market gaps.

• Greater efficiency: Analytics streamline workflows, saving time and money.

• Competitive advantage: According to Gestaldt, data-driven organisations are 23x more likely to acquire customers and 19x more likely to be profitable.

👉 Tip: Start small by applying data insights to one critical decision, then scale across the organisation.

Common Challenges to Overcome

Despite its promise, building a data-driven organisation isn’t without hurdles. Some of the most common barriers include:

• Poor data quality or inaccessible data silos

• Lack of data literacy among employees

• Resistance to changing traditional decision-making habits

• Insufficient investment in infrastructure and tools

Overcoming these requires strong data governance, leadership buy-in, and continuous training to build confidence across teams.

Steps to Implement Data-Driven Decision Making

To successfully integrate DDDM into your business, follow a structured roadmap:

1. Define a data strategy aligned with business goals

2. Audit your data landscape to identify gaps and opportunities

3. Invest in technology such as BI tools (Power BI, Tableau) and predictive analytics

4. Establish governance practices to ensure data accuracy and security

5. Build a data-first culture through training and leadership role-modelling

6. Measure, learn, and improve by tracking outcomes and iterating

Tools and Technologies Powering Data-Driven Insights

Modern businesses rely on advanced technologies to transform raw data into actionable insights:

• Data warehouses for centralised storage

• Business Intelligence (BI) platforms for visualisation

• Predictive analytics powered by AI and machine learning

• Real-time streaming analytics for fast decision-making

• Natural Language Processing (NLP) to analyse unstructured feedback

📌 Ginni Rometty, former IBM CEO, said it best: “The only way you survive is you continuously transform into something else. It’s this idea of continuous transformation that makes you an innovation company.”

Real-World Case Studies

• Netflix: Uses viewer data to shape content strategy, increasing customer retention.

• Walmart: Optimises its supply chain through data analytics, cutting costs and boosting efficiency.

• Airbnb: Applies predictive analytics for pricing and personalised recommendations, increasing profitability.

These success stories prove that data-driven decision making isn’t a trend — it’s a competitive necessity.

Building a Data-Driven Culture

Technology alone won’t make a company data-driven — culture does. Leaders must set the tone by:

• Championing data-backed decisions

• Encouraging data literacy at all levels

• Rewarding data-informed innovation

• Embedding analytics into daily workflows

When employees see data as a strategic ally rather than a technical burden, true transformation happens.

Conclusion: Data as a Growth Catalyst

The digital era rewards organisations that treat data as a core business asset. By embracing data-driven decision making, companies can future-proof themselves, uncover hidden opportunities, and thrive in an uncertain market.

In a world where information is abundant, the winners will be those who not only collect data but also act intelligently on it. Start today — your next breakthrough may already be hidden in the data you own.

The ADKAR Model: A Proven Framework for Lasting Organisational Change

Are you frustrated by change initiatives in your business that start strong but quickly lose steam? You’re not alone. Many organisations struggle to make change stick. That’s where the ADKAR model for change management comes in—a step-by-step framework designed to help businesses not just implement change, but sustain it for the long haul.

The ADKAR model—developed by Prosci—stands for Awareness, Desire, Knowledge, Ability, and Reinforcement. Each stage addresses a critical milestone in the change journey, guiding individuals and organisations through transformation with clarity and structure.

In this guide, we’ll break down each step of the ADKAR change model, show you how it works in real-life situations, and explore common challenges you might face when implementing it.

What Is the ADKAR Model?

At its core, the ADKAR model recognizes that successful change happens at the individual level first. It’s not just about leadership mandates—it’s about employees understanding, committing to, and practicing new behaviours until they become part of the culture.

The five steps of ADKAR—Awareness, Desire, Knowledge, Ability, and Reinforcement—act as building blocks. Each one must be achieved before moving forward, making it one of the most practical and widely used change management models today.

Step 1: Awareness – Why Change Is Necessary

Ever tried rolling out a big initiative only to be met with blank stares or resistance? That’s what happens when there’s no awareness of the need for change.

This first step focuses on answering why the change is happening. Without this, people won’t see the urgency or relevance. Leaders should share data, case studies, or stories that highlight the risks of not changing and the benefits of moving forward.

💡 Pro tip: Use both logic (facts, figures) and emotion (personal stories, customer experiences) to connect with your team.

📊 A Gestaldt study found that 75% of change programmes fail, often due to lack of employee buy-in—making this step critical.

Step 2: Desire – Building Motivation and Buy-In

Even if people understand the why, they won’t automatically want to jump on board. The Desire stage focuses on motivation—turning awareness into personal commitment.

Here, leaders must address concerns: Will the change affect job security? Workload? Career opportunities? By linking benefits directly to employees’ goals and well-being, you create a personal stake in the outcome.

💡 Pro tip: Involve employees early—give them a voice in shaping the process. This increases ownership and reduces resistance.

“People don’t buy what you do; they buy why you do it.”

— Simon Sinek

Step 3: Knowledge – Equipping People for Success

Knowing change is necessary and wanting it isn’t enough—people also need the skills and knowledge to put it into action.

This stage is all about training, resources, and clear guidance. It might include hands-on workshops, e-learning, or mentoring. The goal is to close skill gaps and give employees confidence to adopt new systems or processes.

💡 Pro tip: Create job aids or quick-reference guides employees can use in the flow of work.

📊 According to LinkedIn’s 2024 Workplace Learning Report, 94% of employees say they’d stay longer at a company that invests in their development.

Step 4: Ability – Turning Knowledge Into Action

Here’s the kicker: just because someone knows how to do something doesn’t mean they can do it confidently. The Ability phase focuses on practice, feedback, and real-world application.

Pilot programmes, simulations, or shadowing opportunities allow employees to test their skills in safe environments before going all-in. Ongoing coaching and feedback are crucial here.

💡 Pro tip: Celebrate small wins to build momentum. When employees see their progress recognised, confidence grows.

“You have to expect things of yourself before you can do them.”

— Michael Jordan

Step 5: Reinforcement – Making Change Stick

The final step, Reinforcement, ensures the change becomes part of your culture rather than fading out. Recognition, incentives, and consistent feedback keep new behaviors alive.

This may involve integrating the change into performance reviews, offering rewards, or sharing success stories across the organization. The idea is to prevent backsliding and keep people motivated.

💡 Pro tip: Track progress with measurable KPIs—what gets measured gets reinforced.

📊 Research from Prosci shows that reinforcement activities can increase the likelihood of change success by up to 70%.

Real-Life Example: ADKAR in Action

A financial services company used the ADKAR model to roll out a new CRM system.

• Awareness: Leaders communicated how the system would improve customer service and streamline sales.

• Desire: Teams were reassured the CRM would make their jobs easier, not harder.

• Knowledge: Employees received hands-on workshops and job aids.

• Ability: The rollout was phased, allowing time to practice with support.

• Reinforcement: The CRM was tied to performance metrics and adoption was rewarded.

The result? Improved customer service, higher sales productivity, and stronger employee engagement.

Common Challenges with the ADKAR Model

While the ADKAR framework is powerful, leaders often face hurdles, such as:

• Resistance to change – Employees may fear loss of control or disruption.

• Sustaining momentum – Without reinforcement, old habits creep back.

• Poor communication – Failing to explain why and what’s in it for me leads to disengagement.

• Limited resources – Training and reinforcement take time and investment.

Overcoming these requires patience, strong leadership, and consistent communication.

Final Thoughts: Unlocking Lasting Change with ADKAR

In today’s fast-paced business world, adaptability is everything. The ADKAR change management model offers a practical, people-first framework for navigating transformation.

By moving through Awareness, Desire, Knowledge, Ability, and Reinforcement, organizations not only roll out new initiatives successfully but also embed them into culture for long-term impact.

Change may be tough, but with ADKAR, it’s absolutely achievable. Or as management expert Peter Drucker put it: “The greatest danger in times of turbulence is not the turbulence—it is to act with yesterday’s logic.”

Embracing Organisational Change: Strategies for Success

Change in business is like the tide—you can’t stop it, but you can learn to ride the wave. For organisations, change is often daunting, yet it holds the key to growth, innovation, and long-term success. Still, many companies stumble when it comes to transformation.

In fact, research by Gestaldt Consultants shows that only 25% of organisational change initiatives succeed—a sobering reminder of just how challenging the process can be.

This article will walk you through the importance of embracing change, the barriers organisations face, and proven strategies to overcome resistance and drive successful transformation.

Why Embracing Change Is Crucial for Business Growth

Every successful organisation has one thing in common: adaptability. From technological advancements to shifting market demands, change is no longer optional—it’s a survival strategy.

As Jack Welch, former CEO of GE, famously said:
“If the rate of change on the outside exceeds the rate of change on the inside, the end is near.”

Whether it’s adopting new technology, restructuring teams, or innovating services, companies that embrace change thrive. Those that resist risk being left behind.

​👉 Tip: Frame change as an opportunity, not a threat. Highlight how it supports growth and benefits employees directly.

The Hidden Barriers Holding Organisations Back

Resistance to change is natural. Employees often fear the unknown, worry about job security, or feel disconnected from leadership’s vision.

Organisational culture also plays a major role. Rigid hierarchies or a “we’ve always done it this way” mindset can stifle progress. Add limited resources into the mix—such as lack of training or technology—and change initiatives often lose momentum.
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👉 Tip: Conduct an internal audit to identify cultural and structural barriers before launching a change programme.

Winning Hearts and Minds: Overcoming Resistance

One of the biggest mistakes organisations make is underestimating the power of communication. Employees need to know why change is happening, how it will benefit them, and what their role will be in the process.

Harvard Business Review reports that effective communication makes employees 3.5x more likely to be engaged during transformation.
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👉 Tip: Use storytelling in communication—paint a picture of the “before and after” to help employees emotionally connect with the vision.

Building a Culture of Innovation and Adaptability

Organisations that thrive on change don’t just adapt—they innovate. Creating a workplace where employees feel safe to share ideas, take risks, and learn from failure is key.

As Satya Nadella, CEO of Microsoft, put it:
“Our industry does not respect tradition—it only respects innovation.”

When leaders model adaptability themselves, employees follow suit. A culture that values curiosity and experimentation will always be better positioned to navigate change.

​👉 Tip: Celebrate small wins and innovations to reinforce an adaptable culture.

Upskilling: The Secret Weapon for Change Success

Change without training is like sending a team into battle without armour. Employees must have the skills to succeed in new environments.

According to the World Economic Forum, 50% of employees will need reskilling by 2025 due to technological disruption. Companies that invest in up-skilling are not just preparing for change—they’re securing their future.

👉 Tip: Tailor training programmes to match specific change initiatives—whether it’s digital skills, leadership training, or agile project management.

Empowering Employees to Lead the Charge

Change works best when employees feel they are part of the solution, not just passive recipients of new rules. Empowerment builds ownership, accountability, and motivation.

Involving employees in decision-making and recognising their contributions fosters loyalty and increases buy-in. When individuals drive the change themselves, the results are stronger and more sustainable.

👉 Tip: Create cross-functional change teams to give employees a voice in shaping new processes.

Measuring and Refining Change Initiatives

What gets measured, gets improved. Without clear metrics, organisations can’t track progress or identify what needs adjustment.

Regular evaluations, employee feedback sessions, and performance tracking ensure that change initiatives remain aligned with organisational goals.
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👉 Tip: Establish both short-term milestones and long-term KPIs to measure success and maintain momentum.

Case Study: IBM’s Bold Transformation

A classic example of successful change is IBM’s transformation from a hardware-focused company to a global leader in software and services.

IBM invested heavily in employee training, embraced innovation, and reorganised its structure to stay relevant in a digital-first world. The result? A business turnaround that secured IBM’s position as a tech giant in a rapidly evolving market.

Conclusion: Change Is the Path to Thriving, Not Just Surviving

Change is no longer something organisations can avoid—it’s the very fuel of progress. By overcoming resistance, fostering innovation, investing in training, empowering employees, and tracking results, companies can turn disruption into opportunity.

Remember, embracing change isn’t about surviving today—it’s about thriving tomorrow. The businesses that adapt fastest will be the ones shaping the future.