Common Types of Change in 2025
And how businesses are adapting
There’s a lot of change happening in the world right now. So much so that the phrase “In today’s rapidly evolving business landscape…” has practically become the AI generator’s unofficial slogan, appearing in almost every piece of content regardless of the topic. Political, technological, and social transformations are reshaping industries at an unprecedented pace, requiring businesses to constantly, iteratively (and seemingly endlessly) adapt to stay competitive. The need for effective change management has never been greater.
This blog post explores some of the most common ways businesses are evolving in 2025 and what these transitions mean for organisations moving forward. At Clarion, we’ve seen first-hand how overwhelming the pace of change can feel for businesses, leadership teams, and individuals. Our work focuses on helping them find clarity and confidence in the face of this challenge.
Technological Change
Technological advancements revolutionise industries by enhancing efficiency, automation, and connectivity, and in recent years have been one of the most prominent reasons for an organisation to need to change or adapt. One major technological shift currently impacting business is the rise of generative AI. In content creation and idea generation, individuals either avoid being seen using AI due to concerns over authenticity or seek employees proficient in AI to enhance efficiency. Most people fall somewhere in the middle, as AI is automatically being integrated into most of our everyday tools, from predictive text to image generation. This technological evolution influences business growth, workforce expectations, and job role development.
Another significant shift is the widespread transition to cloud computing. The technological boom of recent years has pushed many businesses to make the move, as cloud adoption is now essential for integrating new technologies as they emerge. These large-scale technological changes are expected to expand labour productivity and create new business models. Efficiency and cost savings are also key drivers of cloud adoption. However, internal systems must be compatible with external technology for this transition to be effective.
Rapid technological advancements also present challenges, including high implementation costs, the need for continuous employee upskilling, and cybersecurity risks. It’s also important not to forget that the success of technological change depends not only on systems and infrastructure but also on how well employees adapt to and embrace new ways of working. It’s important to remember that technology alone doesn’t transform organisations; people do. Just as importantly as integrating new systems businesses must ensure their people are equipped to embrace and maximise these changes.
Small and medium-sized enterprises (SMEs) may struggle to compete with larger firms with greater resources for technology investments and employee upskilling. Additionally, technological obsolescence can render existing business models outdated, requiring constant innovation to maintain competitiveness. Successful change happens when people feel equipped, supported, and involved. This that means bringing emotional intelligence, clear communication, and trust-building into any transition to new technologies.
Political Change
Political change, including shifts in government, legislation, and regulatory policies, can significantly impact businesses by altering taxation, trade agreements, and labour laws. For example, Brexit affected various aspects of trade, requiring many businesses to adapt. More recently, we’re seeing more global political instability. Sudden government changes or geopolitical tensions, can create uncertainty, making long-term planning and investment more challenging. For instance, Meta recently announced the removal of fact-checking on its social media platforms, a move that could be perceived as an attempt to appease incoming U.S. President Donald Trump, who has been highly critical of Meta in the past. Another example is Ukraine banks shifting to cloud computing due to the risk of their physical servers being bombed. These changes often force companies into rapid adaptation. The speed and effectiveness of implementation are critical, as transitions can impact company reputation or, depending on the industry, even the broader political landscape. Skilled change managers can mitigate risks associated with such shifts, ensuring a smooth transition for businesses and stakeholders.
Social Change
Social change, driven by shifting consumer behaviours, cultural changes, and demographic trends is reshaping market demand and workforce expectations. A recent example of this is the social by-products of the COVID-19 lockdown combined with the effect of Gen Z entering into the workforce over the past five years, both of which have increased the focus on workplace well-being. According to the CIPD, 81% of workplaces have enhanced their focus on employee mental health since the pandemic. While beneficial to most, this represents a significant shift from how organisations operated a decade ago.
Forbes notes the differences in how generations have been treated in the workplace in the early stages of their careers, effecting workplace dynamics. Unsurprisingly, older employees did not have access to these benefits early in their careers whereas younger workers often receive a broader range of workplace perks. According to Microsoft’s 2024 Work Trend Index, the pace of work has accelerated faster than employees' ability to keep up, with 68% of people struggling with workload demands and 46% feeling burned out. This has increased reliance on automation, as employees seek ways to streamline tasks and reduce workloads.
The demand for better work-life balance also affects businesses, requiring them to implement more workplace initiatives and prioritise employee well-being. According to Gympass, 86% of employees would consider leaving a company that does not focus on well-being. This concern is even more pronounced in the public sector, where 48% of employees report experiencing excessive work pressure at least once a week, compared to 38% in the private sector, according to the CIPD.
Adapting to social change is complex, as businesses must balance innovation with tradition while navigating differing societal expectations across regions. Companies that fail to respond effectively risk reputational damage, customer attrition, and difficulties in attracting top talent. Change experts are instrumental in guiding organisations through these shifts, ensuring that policies align with workforce expectations while maintaining operational efficiency.
Environmental Change
Environmental responsibility has become a strategic priority for businesses across sectors. Climate change is no longer a distant issue, it’s a lived reality that’s actively affecting operations. Organisations are under increasing pressure to adapt, from supply chain disruption due to extreme weather events, to new regulatory requirements focused on sustainability.
At Clarion, we’ve seen how environmental change is impacting even the most operationally focused organisations. In our recent work with the Coastguard, environmental factors such as rising sea levels and pollution incidents have contributed to rising emergency response demands. These pressures, often linked to wider issues such as migration or environmental legislation, are forcing organisations to reassess how they operate, and to do so quickly.
Younger generations, particularly Gen Z, are also placing greater emphasis on environmental values, challenging businesses to demonstrate genuine commitment to sustainability. Compliance and transparency are becoming key drivers of change, and organisations that fall short are likely to face reputational and financial consequences.
Economic Change
Finally, the economic climate continues to be a major influence on both individuals and organisations. Fluctuating markets, cost of living pressures, and rising inflation are creating significant challenges. For large multinationals, this often leads to paralysis: a sense of being “damned if they do, damned if they don’t”. For employees, economic stress is contributing to burnout, talent attrition, and growing dissatisfaction with traditional reward models.
We’ve noticed a shift in how people talk about pay and benefits. Conversations are increasingly centred around value; not just financial value, but purpose, autonomy, and what truly matters in the workplace. This has led many organisations to reassess their people strategies, prioritising meaningful engagement over purely transactional benefits. Economic change is often the catalyst for cultural and emotional shifts in how we define success and security.
Conclusion
Given the pace of change facing businesses in 2025, the role of change managers has become indispensable. They provide the strategic oversight necessary to navigate political, technological, and social transformations, helping organisations adapt proactively rather than reactively.
At Clarion Insight, we’re seeing these forces play out in real time. What we’ve learned is that the organisations who thrive are those that put people at the heart of transformation. They recognise that trust, communication, and emotional intelligence are just as critical as systems, tools, or strategies. And they build the kind of cultures where individuals feel empowered to respond to complexity with confidence and clarity.
To learn more about what we do at Clarion Insight, or to better understand how we could help you to successfully implement your business change or transformation, contact our team at busdev@clarioninsight.com, or check out our recent case studies.