Understanding the 7 Losses in Change Management for Financial Advisors


Change is an inevitable part of life, and while it often brings excitement and opportunity, it can also be deeply unsettling. Whether it’s starting a new job, moving to a new city, or undergoing a major organizational shift, the process of change can feel chaotic and uncomfortable. Bill Bridges, a renowned expert in change management, provides a powerful framework that explains why change is challenging and how we can navigate it more effectively.

Bridges’ model draws a critical distinction between “change” and “transition.” Change refers to the external event or situation—getting a promotion, moving to a new home, or adopting a new company policy. Transition, on the other hand, is the internal psychological process of letting go of the old and embracing the new. It’s during this transition phase where people often struggle the most.

According to Bridges, every change involves a sense of loss. When we undergo change, it’s not just about adapting to new circumstances; it’s also about grieving what we’ve left behind. This is why understanding and addressing these challenges is essential to moving through the discomfort and finding stability in our “new normal.” 

Bridges identifies seven significant losses that can arise during transitions.  Individuals can expect to experience some, or all, of these major losses associated with any given change they undergo.  The extent to which someone experiences these challenges can vary depending on the nature of the change and their personal circumstances.  These factors highlight why change feels so challenging on a personal and emotional level: 

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  1. Loss of Identity
    Change often disrupts how we see ourselves. For example, if you’ve always identified as a “New Yorker,” moving to a different city can feel like you’re losing a part of who you are. Our identity is deeply tied to our environment, roles, and routines, so when those shift, it can feel like we’re losing a piece of our core self.

  2. Loss of Familiarity
    Humans are creatures of habit, and familiarity provides a sense of comfort and safety. Whether it’s knowing the layout of your home, your daily commute, or your go-to lunch spot near the office, losing these touchpoints can make change feel disorienting and overwhelming.

  3. Loss of Structure
    When we’re in transition, structure often disappears before a new one is in place. For instance, starting a new job might leave you feeling disoriented because you haven’t yet established a new routine or figured out how to navigate your responsibilities.

  4. Loss of Control
    Change can make us feel powerless, especially when it’s imposed on us. When circumstances shift unexpectedly, we may feel like we’re at the mercy of external forces — leading to frustration, anxiety, and even resistance.

  5. Loss of Future
    Change often disrupts the plans and expectations we had for the future. If you envisioned your life going in one way but a change redirects your path, it can feel like you’ve lost the future you were working toward, even if the new path is ultimately a positive one.

  6. Loss of Attachments
    Transitions often involve leaving behind relationships—whether it’s colleagues, neighbors, or close friends. These attachments are a key part of our sense of belonging and losing them can leave us feeling isolated or disconnected.

  7. Loss of Meaning or Purpose
    Our roles and environments often provide a sense of meaning. When these shift, we may begin to question our purpose. For example, leaving a career you’ve built your identity around can feel like losing the foundation of your life’s work.

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A key insight from Bridges’ framework is that even positive and exciting changes cannot be fully embraced until you acknowledge what you’re leaving behind. Many of us try to power through change, suppressing feelings of loss and discomfort. But ignoring these emotions only prolongs the transition and makes it harder to fully embrace the new reality.

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For example, before you can settle into a new home, you need to pack up the old one. This involves sorting through your belongings, deciding what to keep or let go of, and saying goodbye to the space where you’ve created memories, as well as your neighbors you’ve grown accustomed to seeing daily.  During a transition, it’s important to acknowledge the emotional losses you’re experiencing and allow yourself time to process them.

Once you’ve identified the losses you’re facing, the next step is to decide how to respond. Bridges outlines four key strategies for dealing with these losses:

  1. Restore It
    In some cases, you can reverse the change and return to the old way of doing things. For example, if a new position or city isn’t working out, you might decide to revert to your previous role or location.

  2. Replace It
    If you’ve lost something important, consider how you can replace it with something new. For instance, if you’ve left behind a close-knit community, you can seek out new social groups or activities to create connections.

  3. Redesign It
    Sometimes, you can reimagine what you’ve lost in a new context. If your career path has shifted, for example, you might find new ways to use your skills or redefine your role to make it feel meaningful again.

  4. Relinquish It
    Finally, some losses can’t be replaced or restored. In these cases, the best option is to let go, accept the change, and focus on building a future around what lies ahead.

These strategies are empowering because they shift your perspective from being at the mercy of change to being in control of how you respond.  They put you back in the driver’s seat and allow you to actively shape your experience of the transition.

Bridges also emphasizes the importance of ceremonializing the end of an important chapter in your life. Creating a symbolic act of closure—a farewell party, a reflective journal entry, or even a mock funeral for what you’re leaving behind—can provide a sense of completion. These rituals help you say goodbye to the past and make it easier to move forward with clarity and purpose.

Understanding the emotional side of change is essential for both individuals and organizations. Too often, we focus solely on the practical aspects of change—setting goals, executing strategies, and measuring outcomes—and we neglect to address the human experience. By acknowledging the losses associated with change and taking steps to navigate the transition period, we can reduce resistance, build resilience, and ultimately thrive in our new circumstances.




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