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Data on impact of effective change management
Prosci is releasing a four-part series on "why change management" to
provide several different perspectives on how to make the case for
applying a structured approach to manage the people side of change for
organizational initiatives. This series includes:
• Correlation data
on the impact of effective change management
• Cost-benefit analysis
for change management
• Case study on project impact of effective
change management
• Emergence of change management
This tutorial
shows the correlation between effective change management and the
ability to meet project goals - including project objectives, schedule
targets and budget requirements.
2009 correlation data
Prosci has
recently completed gathering data for the 2009 edition of the Best
Practices in Change Management benchmarking report. 575 participants
from 65 countries around the world contributed data on a wide range of
change management issues. This is Prosci's sixth study in change
management and lays the foundation for one of the world's largest bodies
of knowledge on managing the people side of change. Analysis is
underway, and the complete 2009 edition of Best Practices in Change
Management report will be available in the summer of 2009.
Below are
charts showing the cumulative 2007 and 2009 best practices data. The
charts show the correlation between the overall effectiveness of change
management on the project and three different dimensions of success for
the project: meeting objectives, finishing on time and staying on
budget.
Data again clearly showed that:
• Participants using
effective change management with their projects were more likely to meet
objectives.
• Participants using effective change management with
their projects were more likely to be on schedule.
• Participants
using effective change management with their projects were more likely
to be on budget.
The graphs include the number of participants in
each of the change management effectiveness buckets: Poor, Fair, Good
and Excellent. The "n" values are different for each graph because some
participants indicated "too early to tell" for a particular metric.
Correlation:
change management effectiveness and meeting objectives
There is a
direct correlation between change management effectiveness and meeting
project objectives. The graph below shows the percentage of participants
who met or exceeded objectives. Only 16% of those with "poor" change
management met or exceeded objectives, while 95% of those with
"excellent" change management met or exceeded objectives.
Correlation: change management
effectiveness and staying on schedule
In addition to the correlation
with meeting objectives, there was a similar correlation between
effectiveness of change management and being on or ahead of schedule, as
shown below. As above, only 16% of participants with poor change
management programs were on scheduled, compared to 71% with excellent
change management. This provides quantitative evidence to refute the
objection that "applying change management will slow down the project"
that is sometimes voiced by project teams.
Correlation: change management
effectiveness and staying on budget
Finally, participants with
excellent change management programs were more likely to be on or under
budget. While only half of participants with poor change management were
on budget, over three-quarters with excellent change management in
place were on budget. So, while there is some initial cost to applying
change management, in the end the project is more likely to stay on
budget. 
Takeaways
1. Data from the 2007 and
2009 benchmarking studies with participants from across the globe shows a
direct correlation between the effectiveness of change management and
meeting project goals - including meeting objectives, staying on
schedule and finishing on budget.
2. If you hear the objection that
"change management will slow us down" or "change management will cost
too much" - you now have data showing that, to the contrary, effective
change management supports on time and on budget delivery.
3. Using a
structured and proven approach to change management increases the
overall effectiveness of the change management program. Prosci's change
management methodology presents a research-based, holistic and scalable
solution for managing the people side of many types of change - from new
processes, to new technologies, to new job roles or new organizational
structures. Find out more about the methodology, certification training
or Prosci's published materials.