Step Change Definition

A step change is a sudden, significant increase or decrease. In business, a step change may refer to a radical shift in strategy or operations. For instance, a company might undergo a step change in its approach to customer service by instituting major changes to the way it interacts with customers.

A step change can also be an evolutionary process, as when a company slowly but steadily improves its performance in some area. In this case, the term is often used interchangeably with the concept of continuous improvement. A manufacturing firm, for example, might incrementally improve its production process over time, eventually achieving a step change in quality or efficiency.

The term step change is sometimes used more broadly to describe any sort of transformative event or process. A country undergoing economic reform might be said to be experiencing a step change, as would an individual who makes a major life decision such as quitting a job or getting married.