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Leading Through the Neutral Zone

Change Leadership Series
1. The Leader’s Role in Change and Transformation Psychology
2. Building Psychological Safety During Transformation
3. The Authenticity Paradox in Transformation Leadership
4. Leading Through the Neutral Zone
5. Middle Management’s Impossible Position
6. The Competence Crisis in Leadership
7. Leading With Measured Vulnerability
8. Managing Your Own Change and Transformation Psychology
9. Recognizing When You’re the Problem
10. Developing Change and Transformation Leadership Capability

Leading Through the Neutral Zone

Why the Psychological Middle Ground of Transition Is Where Transformations Succeed or Fail, and How Leaders Can Navigate What William Bridges Called the Most Dangerous Phase of Change

The Space Between What Was and What Will Be

Every significant transformation includes a period that organizations rarely acknowledge and rarely plan for: the neutral zone. This is the psychological middle ground where the old way has definitively ended, but the new way isn’t fully functional yet.

William Bridges, the organizational psychologist who mapped the psychology of transitions, identified this neutral zone as fundamentally different from both the ending that precedes it and the new beginning that follows. It’s not simply a gap to be crossed as quickly as possible. It’s a distinct psychological territory with its own dynamics, dangers, and opportunities.

Most transformation failures don’t occur during dramatic announcements or even difficult restructurings. They occur in this murky middle period when people have let go of how things worked but haven’t yet established new routines, relationships, and mental models. Understanding why the neutral zone is so challenging, and why it’s also essential for genuine transformation, fundamentally changes how leaders approach organizational change.

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The Psychology of the In-Between

The neutral zone creates specific psychological challenges that differ from the challenges of endings or beginnings. Understanding these dynamics helps leaders recognize what they’re seeing and respond appropriately rather than misdiagnosing neutral zone symptoms as resistance or incompetence.

Cognitive Closure Deprivation

Human beings have a fundamental need for cognitive closure, which is the psychological desire for definite knowledge and the avoidance of ambiguity. The neutral zone systematically frustrates this need. Old answers no longer apply, but new answers haven’t yet emerged. This creates a persistent low-level cognitive stress that affects concentration, decision-making, and emotional regulation.

Research on uncertainty tolerance shows that individuals vary significantly in their ability to function without closure. Some people adapt relatively easily to ambiguous conditions. Others experience significant psychological distress. During the neutral zone, organizations contain both types, creating tensions as those who need closure become increasingly frustrated while those comfortable with ambiguity may not understand their colleagues’ struggles.

Identity Suspension

Professional identity is partially defined by organizational role, competencies, and relationships. The neutral zone disrupts all three. People may have new titles but unclear responsibilities. Their established expertise may not apply to emerging requirements. Relationships that defined their organizational position may have been severed or fundamentally altered.

This identity suspension creates what psychologists call “liminality,” a state of being between identities. Anthropological research on ritual transitions shows that liminal states are psychologically demanding but also potentially transformative. People in liminal states are more open to new ways of seeing themselves and their circumstances. The neutral zone, when navigated well, can facilitate genuine identity development rather than merely cosmetic role changes.

Temporal Disorientation

The neutral zone distorts people’s sense of time. Unlike specific events like restructuring announcements or system launches that have clear dates, the neutral zone has no defined endpoint. This temporal ambiguity makes the experience feel potentially endless. “How long will this last?” becomes an unanswerable question that creates chronic rather than acute stress.

Research on stress and coping shows that humans can tolerate remarkable hardship when they can see an endpoint. The marathon runner knows the finish line exists at a specific distance. The neutral zone offers no such certainty, which means people can’t effectively pace themselves or manage their psychological resources for a defined period.

Research Insight: The Duration Paradox

Studies on organizational transitions reveal that the neutral zone often lasts longer than leaders expect but feels even longer than it actually lasts. This perception gap means leaders frequently underestimate the support employees need during this phase.

Why Leaders Struggle with the Neutral Zone

Leaders often find the neutral zone more challenging to navigate than endings or beginnings. Endings require difficult decisions but offer the satisfaction of decisive action. Beginnings allow for vision casting and celebration of new possibilities. The neutral zone requires patience, presence, and comfort with ambiguity that many action-oriented leaders find difficult to sustain.

The Action Bias Trap

Most leaders achieved their positions through decisive action and visible results. The neutral zone seems to call for the opposite: patience, presence, and acceptance of uncertainty. Many leaders respond to neutral zone discomfort by generating more activity, whether launching new initiatives, restructuring again, or creating more detailed plans. This activity provides the illusion of progress while often extending or deepening the neutral zone experience.

The appropriate response to the neutral zone is often to slow down rather than speed up, to consolidate rather than expand, to support rather than push. These behaviors feel wrong to leaders accustomed to driving change through visible effort.

The Metrics Problem

Traditional performance metrics often fail in the neutral zone. Old measures no longer apply to emerging realities. New measures haven’t been established or validated. This metrics gap creates leadership anxiety while also making it difficult to demonstrate progress to stakeholders who expect quantifiable results.

The absence of clear metrics can tempt leaders to declare premature victory, to claim the transformation is complete when people are still fundamentally in transition. This premature declaration often backfires when ongoing neutral zone symptoms become undeniable, creating cynicism about leadership’s understanding of organizational reality.

The Hidden Value of the Neutral Zone

Despite its challenges, the neutral zone serves essential functions that cannot be accomplished through any other means. Organizations that try to skip or rush through this phase typically find that they’ve achieved only surface change while deeper patterns remain intact.

Genuine Dissolution of Old Patterns

Deep organizational change requires more than new structures and processes. It requires the dissolution of old mental models, habits, and relationship patterns. This dissolution takes time and cannot be forced. The neutral zone creates the conditions under which old patterns can genuinely release rather than simply going underground to reemerge later.

Organizations that rush through the neutral zone often find themselves repeating old problems in new forms. The reorganization that was supposed to break down silos creates new silos. The culture change initiative produces new language for old behaviors. Genuine transformation requires the genuine dissolution that only the neutral zone can provide.

Creative Possibility Space

The neutral zone, despite its discomfort, is often the period of greatest creative potential. When old ways have released but new ways haven’t solidified, there’s space for genuinely new possibilities to emerge. Research on creativity and innovation shows that breakthrough ideas often emerge from liminal states when normal assumptions are suspended.

Organizations that recognize this creative potential can harness the neutral zone for innovation rather than simply enduring it. The discomfort of ambiguity can be reframed as the necessary condition for imagination unconstrained by “the way we’ve always done things.”

Deep Processing Time

Lasting change requires psychological processing at deep levels, which cannot be rushed. People need time to grieve what’s been lost, to integrate new information about their circumstances, to develop new competencies, and to form new relationships. This processing happens during the neutral zone, often below conscious awareness.

The neutral zone can be understood as a period of deep psychological work that prepares people for genuine new beginnings. Rushing this work doesn’t make it happen faster. It makes it happen incompletely, which means the same work will need to be done later under less favorable conditions.

Four Essential Neutral Zone Leadership Strategies

Normalize the experience: Help people understand that confusion and discomfort are normal features of this phase, not signs of personal failure or organizational dysfunction.

Create temporary structures: Establish interim processes, provisional relationships, and pilot programs that provide stability without prematurely locking in permanent solutions.

Increase communication frequency: The neutral zone requires more communication, not less, even when there’s less certainty to communicate about.

Celebrate small wins: Identify and acknowledge progress markers that help people see movement even when the destination remains unclear.

Recognizing Neutral Zone Dynamics in Your Organization

Leaders who can recognize neutral zone symptoms can respond appropriately rather than misdiagnosing what they’re seeing. Several indicators suggest an organization is in the neutral zone rather than merely adjusting to specific changes.

Productivity often plateaus rather than improving as expected, not because people aren’t working but because they’re expending energy on navigation rather than production. Confusion about priorities becomes chronic rather than resolving as new direction becomes clear. People express nostalgia for “the way things were” while simultaneously acknowledging that the old way couldn’t continue. Emotional engagement seems lower than usual, with people going through motions without full commitment.

The neutral zone can last weeks, months, or even years depending on the depth of change being navigated. Major transformations often involve multiple overlapping neutral zones as different aspects of organizational life change on different timelines. Leaders who understand this complexity can set realistic expectations for themselves and others.

Take Action: Lead Through the Neutral Zone

Continue the Series

Read the complete Change Leadership series for deeper insights into transformation psychology

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The neutral zone is where genuine transformation actually happens. It’s not a bug to be fixed or a gap to be crossed as quickly as possible. It’s the essential psychological territory where old patterns dissolve, new possibilities emerge, and people develop the deep changes that make lasting transformation possible.

Leaders who understand this can reframe their role during the neutral zone. Instead of trying to drive people through it faster, they can create the conditions under which people can do the necessary psychological work. Instead of measuring only traditional metrics, they can attend to the deeper indicators of genuine transition progress. This approach requires patience that action-oriented leaders often find challenging, but it’s the patience that distinguishes transformations that last from changes that merely disrupt and disappoint.

Next in the series: We explore why middle management faces an impossible position during transformation, caught between senior leadership’s strategic perspective and frontline teams’ operational reality, and what organizations can do to support rather than sacrifice this critical leadership layer.

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© 2025 Kevin Novak. All rights reserved.

Kevin Novak is the Founder & CEO of 2040 Digital, a professor of digital strategy and organizational transformation, and author of The Truth About Transformation. He is the creator of the Human Factor Method™, a framework that integrates psychology, identity, and behavior into how organizations navigate change. Kevin publishes the long-running Ideas & Innovations newsletter, hosts the Human Factor Podcast, and advises executives, associations, and global organizations on strategy, transformation, and the human dynamics that determine success or failure.

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