Ever doubted the value of change management or wondered why you’d include time and resourcing for ACM in your projects? You’re probably not alone. When we talk about technology projects, we’re so used to dealing in black-and-white, yes or no certainty, and the human element of Change Management can sometimes feel…dare I say it…fluffy.
However, overlooking the importance of user experience and managing people through the change will have significant impact on your project’s capability to return the business outcomes you need. This risk is only amplified when we talk about implementing new tools and systems that users can opt out of using completely.
The number of internal networking and communications platforms we see that aren’t being used to their full potential, or expensive Gen AI licenses sitting around doing nothing is astounding, and these represent value that organizations are failing to realize from their technology investments.
Not convinced? Here are ten of our favourite statistics that demonstrate the importance of effective change management.
- 73% of organizations are near, at or beyond the point of change saturation
This data from Prosci should not come as a surprise. The last five years or so have been chaotic for most organizations as we’ve dealt with the pandemic, recession, global unrest and all the implications these have had on work.
Now more than ever, we need to be adopting a programmatic approach to change management, considering human capability and bandwidth in the same way we would plan resourcing in a project portfolio.
- Nearly 75% of organizations expect more change initiatives over the next three years
We say that change is inevitable, and it seems this truly is the case! Most organizations are considering rolling out more change projects in the next few years, taking workforces that are already suffering from change fatigue, and forcing them to keep going.
Again, a programmatic approach to change management is essential here and can help surface and mitigate risks that may not be picked up on from a project resourcing perspective. We not only need to think about who is doing the work, but who the change is going to affect.
- Projects where change management was classified as “excellent” were almost 8 times more likely to achieve or exceed project objectives than those with “poor” change management
This data from Prosci’s “Best Practices in Change Management” survey gives us that high level correlation between effective change management and project success. None of us start projects at work with the aim of falling short of our objectives, and integrating change management into your project will massively mitigate this risk.
- 70% of change programs fail to achieve their goals, largely due to employee resistance and lack of management support
Not all change management plans are good change management. According to McKinsey, we will struggle to achieve our goals unless we can deal with employee resistance and get leadership visibly supporting our efforts.
There is a huge misconception that change management is just communications and training. These are important activities, but they don’t represent the whole discipline and don’t have the power to secure user buy-in if used sporadically or in isolation.
- Projects with extremely effective sponsors are 79% likely to meet their objectives compared to just 27% with extremely ineffective sponsors
Aligning with the point about management support in the previous statistic, having active and visible sponsorship has been the top contributor to change management success in each of Prosci’s most studies since 1998.
Having a figurehead for your project that has the capability to stir up enthusiasm for the project, keep the organization aligned and help people understand the benefits the change should bring, is a primary indicator of, and often a prerequisite for, project success.
- 74% of leaders say they involve employees in change strategy, but only 42% of employees feel they were truly included
While we need leadership to be visible and approachable throughout any change, research from Gartner demonstrates a disconnect between what leaders think they’re offering, and what their employees are perceiving.
A huge part of change management is effective listening and understanding the perspectives of all groups impacted by the change. A good change manager will help identify and bridge any potential divides, and positively impact the project and trust in leadership.
- 61% of employees want to hear organisational messages about the change from leadership, but 58% want to hear about personal impact from their managers
Sponsorship and leadership are so important in times of change, but they shouldn’t be the only people with communication and support responsibilities. The preferred senders for messages about how change will impact someone’s role on a personal level are line managers, and as change managers we need to ensure that we equip managers with the right resources to deliver messaging effectively.
- 82% of HR leaders believe managers are not equipped to lead change
We need managers to communicate impact within their sphere of influence, but what if they’re not equipped to lead the change? Effective change management requires a wide variety of technical, organizational, and people-focused skills. Although a good change manager will be able to demonstrate these skills themselves, they also need coach managers who will support their teams more effectively.
- 73% of change-affected employees report experiencing moderate to high stress levels
Change is scary. It’s even scarier when it concerns the livelihood that you depend on. Getting your employee communications right, keeping them transparent, relevant and with the right level of detail, and ensuring leadership is visible and appropriate support is provided are ways that we can help reduce this stress.
A good change management team will consider stress and employee wellbeing when planning change management activities and when working with affected user groups.
- 44% of employees don’t understand why things need to change at all
When we look at Prosci’s ADKAR methodology, the first potential blocker we need to address with individuals affected by a change is “awareness” – what is changing and why is it happening? If they don’t understand the need for change, they will likely not participate in it.
Methodology aside, this is a commonsense requirement for effective change, and it’s staggering that the percentage of employees who aren’t ready to engage with change is so high. Awareness is one of the first points of resistance a good change team will address, and dealing with this issue early will mitigate a significant risk to the success of your project.
The Need for Change Management
These statistics confirm that change management is a complex, multi-faceted disciple, but one that is essential in any project.
If you’d like advice regarding how to get the best out of your transformation projects, Insentra is here to help. Contact us today to schedule a consultation or download our eBook “Driving Seamless Change: The Role of Adoption and Change Management in Digital Transformation” for a more comprehensive dive into change management.
