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.
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.