Why Change Management?

Every day, organizations in Japan and across the world launch new initiatives and projects to improve performance, increase profits, and enhance competitive advantage. Whether implementing technology to enable a more mobile workforce, reengineering a process to ensure regulatory compliance or pursuing an enterprise-wide transformation around customer experience, those initiatives impact how individual people do their work: their processes, job roles, workflows, reporting structures, behaviors and even their identity within the organization.Especially due to the growth of technology, modern organizational change is largely motivated by exterior innovations rather than internal factors. When these developments occur, the organizations that adapt quickest create a competitive advantage for themselves, while the companies that refuse to change get left behind. This can result in drastic profit and/or market share losses. Organizational change directly affects all departments and employees. The entire company must learn how to handle changes to the organization. The effectiveness of change management can have a strong positive or negative impact on employee morale.  There is a common denominator for achieving the intended outcomes of your initiative: people.If we do not support and equip individual transitions, then our future state looks nothing like the future state we expected.

Here is why you need change management.

1. Thrive in an Ever-Changing World

2. Deliver the People-Dependent Portion of Project ROI

3. Close the Gap Between Requirements and Results

All too often, organizational changes meet requirements without delivering expected results. They deliver the necessary outputs without delivering on expected outcomes. The focus of the change effort is on the solution rather than the benefits of the solution. The gap that exists between requirements and results, between outputs and outcomes, between solutions and benefits is the people who bring the change to life in their day-to-day work. Change management enables the closing of this gap by effectively supporting and equipping those people impacted by a change to be successful in bringing it to life in how they work.

4. Increase Likelihood of Project Success

The data is abundantly clear. The better we apply change management, the more likely we are to deliver on project objectives. Prosci®’s correlation data from over 2,000 data points and ten years shows that initiatives with excellent change management are six times more likely to meet objectives than those with poor change management. By simply moving from “poor” to “fair,” change management increases the likelihood of meeting objectives by three fold. McKinsey data also shows that the ROI captured from excellent change management is significantly more than with poor change management. Change management, when applied effectively on a project, significantly increases the success rate of the effort.

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5. Mitigate Mission-Critical Risk

Ignoring the people side of change creates risk. When the adoption and usage of a solution is ignored, and the focus is exclusively on meeting technical requirements, the result is excessive risk and cost. Projects are subjected to “RE” costs like redesign, rework, revisit, redo, retrain, rescope, and in some cases, retreat. Absenteeism and attrition increase. Productivity declines. Customers feel the impact when they were not supposed to. Morale suffers. Employees disengage.Failing to plan for and address the people side of change is costly, and change management is the discipline to help mitigate those mission-critical risks.

6. Take the Chance out of Change

Change is difficult. To the degree that we can, we want to remove the chance or variability associated with change. Project management has accomplished this by providing direction on sequencing milestones, deliverables, activities and resources over the lifecycle of an effort. Unless we proactively support and guide people through the changes our projects bring, we leave them embracing change to chance. Change management removes the chance from change by providing employees with the preparation, support and skills they need to succeed in change.

7. Treat Employees Right

How many times have you heard, “our employees are our most important asset”? Then, when it comes time for a change to be implemented, employees are sent an email on Monday for training on Tuesday for go-live on Wednesday. That is not the right way to treat people, especially the people that are your most valuable asset. By proactively engaging and supporting people in times of change, we demonstrate in action that we value them.