Change Management for Startups & SMEs (Part 2):When to Change and When Not To

By: Nhi Hong

Many founders assume that change is mainly about what to change.

In reality, timing often matters more than design.

You can have the right strategy, the right framework, and the right intentions....but if you introduce change at the wrong moment, it can slow execution, exhaust your team, and create resistance that didn’t need to exist.

In startups and SMEs, this risk is amplified.

• Resources are limited.

• Teams are small.

• Founders are deeply involved in daily operations.

That’s why knowing when to change is just as important as knowing how.

Why Founders Often Change at the Wrong Time

Most change initiatives don’t start from structured diagnosis.

They start from emotion or pressure:

• A frustrating week

• A bad sales month

• Feedback from an investor or advisor

• Seeing competitors move faster

• Feeling overwhelmed by operations

These triggers are understandable.

But reacting too quickly often leads to:

• half-designed changes

• unclear priorities

• exhausted teams

• and inconsistent follow-through

Change launched from urgency alone rarely sticks.

Four Situations Where Change Usually Works Better

Let’s start with moments when change tends to be more effective.

These are not perfect conditions but they give you leverage.

1. After a clear operational or business pain

Examples:

• customer complaints increase

• delivery timelines slip

• sales pipeline becomes unpredictable

• founders are permanently firefighting

In these moments, the problem is visible to everyone.

This creates natural alignment.

People are more open to new ways of working because the current situation already feels uncomfortable.

This is often the best time to introduce:

• process improvements

• role clarification

• performance management structures

Pain creates readiness.

2. Before a scaling phase

Common scenarios:

• you’re about to hire aggressively

• revenue is starting to grow

• new markets or products are coming

If you wait until after growth accelerates, chaos usually grows with it.

Introducing structure (early even if imperfect) is far easier than retrofitting it later.

This is a strong moment to work on:

• operating models

• ownership frameworks

• core processes

  
  

3. When onboarding new leaders or key hires

New managers and senior hires haven’t developed attachment to old habits yet.

They often bring fresh perspective and credibility.

This creates a natural opening for:

• redefining responsibilities

• introducing new standards

• resetting expectations

Change feels less personal when it coincides with new leadership energy.

4. After external triggers

Examples:

• regulatory changes

• market shifts

• new competitors

• major customer requirements

External forces provide neutral justification.

Instead of “management wants this,” the narrative becomes:

“This is what the market now requires.”

This reduces internal friction.

Four Situations Where You Should Be Careful About Changing

Equally important: knowing when to pause.

1. During peak operational periods

If your team is already stretched:

• sales peak

• major deliveries

• critical launches

Adding change on top usually results in:

• superficial adoption

• mistakes

• growing frustration

In these moments, stabilization is often more valuable than transformation.

2. When the team is emotionally exhausted

Burnout is not a good foundation for change.

Signs include:

• constant overtime

• increased mistakes

• low energy in meetings

• withdrawal from discussions

In this state, even well-designed changes feel overwhelming.

Sometimes the right move is to slow down, stabilize, and rebuild capacity first.

3. When cash runway is very tight

Change requires time, attention, and sometimes short-term productivity dips.

If survival is your primary concern, focus on:

• core revenue

• essential execution

Major transformation can wait.

4. When founders don’t have bandwidth

This is often overlooked.

If you, as a founder, are:

• overloaded

• emotionally reactive

• constantly switching priorities

the change will lose consistency.

People follow what leaders reinforce daily, not what they announce once.

Without leadership attention, even good initiatives fade.

Not All Changes Are Equal!

Another common mistake is treating every change the same.

In practice, there are different levels:

Small changes

• process tweaks

• reporting adjustments

• role clarifications

These can be tested quickly.

Medium changes

• new team structures

• new performance systems

• major workflow redesign

These require planning and communication.

Large changes

• business model shifts

• cultural transformation

• technology overhauls

These need phased rollout and strong leadership presence.

Using “big change energy” for small problems creates fatigue.

Using “small change methods” for big transformations creates failure.

Matching approach to scale matters.

A Simple Readiness Check for Founders

Before launching any change, ask yourself:

1. Is the problem clearly visible to the team?

2. Do I have at least 30% of my time and attention available?

3. Are key stakeholders aware and involved?

4. Is the business stable enough to absorb short-term disruption?

5. Have I defined what success looks like?

If you answer “no” to two or more, it may be worth slowing down.

Waiting a few weeks to prepare often saves months of recovery.

Timing Is a Leadership Decision

Good timing doesn’t mean waiting for perfect conditions.

Perfect conditions rarely exist.

It means choosing moments where:

• people can focus

• leadership can be present

• and the business can absorb learning

In startups and SMEs, this judgment call usually sits with the founder.

It’s part of operational leadership maturity.

Final Thought

Timing won’t solve everything.

But poor timing can undermine even the best-designed change.

Choose your moments carefully.

In growing companies, when you change is already part of how you lead.

What Comes Next

Now that we’ve covered when to change, the next step is understanding who is affected.

In Part 3, we’ll look at:

• how to map your people realistically

• how to identify champions and silent resistance

• why middle layers matter more than founders expect

This is where many change initiatives quietly succeed or fail.