Today I wanted to share some statistics with you about change management. We are all aware of the positive impact that good change management can have on any project, but sometimes we do not need to convince the communicators or HR team that the change is needed, but the COO or the CFO. Deloitte North American CFO Signals survey found on average CFOs aspire to spend about 60 percent of their time as a catalyst for change and a strategist in their organisations. Change projects sometimes require a lot of money.
That is why I am sharing some much needed stats.
- According to Prosci projects with excellent change management are 6 times more likely to meet objectives than those with poor change management. The research found that only 15% of projects meet their objectives with poor change management (a fluke), whilst 94% of projects meet their objectives with excellent change management (see graph).
It also found that projects are 5x more likely to stay on or ahead of schedule and 2 x more likely to stay on or under budget.
- The Harvard Business Review suggests 60-70% of all the change initiatives undertaken in organisations fail.” (“3 Change Management Statistics You Need to Know – Capacity 4 Health”). The Prosci research found that 81% of the projects with effective change management came in on or under budget. This confirms that effective change management is needed for a positive fiscal impact.
- 71% of the study participants in the Prosci research indicated that they implemented change management techniques completed their projects on schedule and manage the change of and for the people affected by a project.
- It is well-known that top-down changes are determined by upper management, whereas cooperative processes are where employees and management are both involved in creating a change initiative. By ensuring there is a cooperative process, the rate of lasting success jumps up to 58%, compared to just 34% for top-down changes. (Gartner, 2020)
- The three essential elements for a successful transformation are 1) a fun, engaging communications plan, 2) executive sponsorship, and 3) innovation councils to sustain the change. (Google, 2019)
- Shifting implementation planning to employees can boost the probability of success by 12%. “Successful organisations empower employees to experiment with solutions and new ideas, but also set guardrails to prevent actions from derailing the change.” (Gartner, 2020)
- A Willis Towers Watson study found that “only two-thirds (68%) of senior managers say they are getting the message about the reasons behind major organisational decisions. Below the senior management level, the message dwindles further. Only half (53%) of middle managers and 40% of first-line supervisors say their management does a good job of explaining the reasons behind major decisions.”
Mastering the change management process is one of the most challenging issues for any organisation, and the statistics reflect that. Careful planning, modern tools, and frequent, thoughtful communication will help stack the deck in your favour. And that is why the CFO/COO needs to read this article. Please share this them.