ORGANIZATIONAL CHANGE MANAGEMENT IMPORTANCE.  


What are the Benefits of Change Management? Everything You Need to Know to Educate Sr. Leaders
By Ogbe Airiodion (Sr. Change Lead)  


Benefits and Importances of Effective Change Management


Importance of Organizational Change Management

Organizational change management (OCM) involves applying structured change methodologies to manage the people side of change. Changes can include new business processes, new systems and technology integration, mergers and acquisition integration, new products, expanding to new markets, new skills, new company vision and many more.

A program or project management team is responsible for designing, developing and deploying the new solutions. But it is the impacted employees and end-users who need to successfully adopt the new solutions before these solutions can provide value to the organization. The importance of change management is that it increases end users’ willingness and ability to accept and use new solutions.


Change Management Mitigates Resistance

When a program (project, new solution, change, etc.) faces employee resistance and backlash, or when a general lack of stakeholder awareness, buy-in, and knowledge exists, the program will not achieve all of its stated objectives, which means the program will not achieve the return on investment (ROI) that the company’s executives expected when they decided to implement the new solution.

The focus of change management is to minimize resistance, increase awareness, knowledge, and adoption. The OCM process helps to increase the probabilities that the program will achieve all of its objectives and surpass its expected ROI.

The charts and sections below present some of the key benefits of an effective organizational change management program.

These are the key factors why organizations are choosing today to leverage a structured change management process to help increase the success of their initiatives and programs. These findings of the benefits of organizational change management are based on decades of studies by Prosci and other research organizations.


Importance of Change Management: Projects Achieve Their Objectives

Studies show that an organizational change initiative, program or project is 6x more likely to achieve its objectives when there is an excellent change management structure.


Benefits of Organizational Change:  Projects Meet or Beat Deadlines

The second benefit of organizational change management is that a project, program or organization initiative has a 72% probability of staying on or ahead of schedule with a well-defined change program.

If we don’t bring impacted users along via an efficient OCM process, there is an increase in delays and reworks, as well as retraining from active or passive resistance to the change. With a structured change management process, we can effectively get impacted users to buy-in into the change, and to successfully adopt the change.


OCM Benefit: Projects Are Completed Below Budget

The third benefit of change management is that a project, program or initiative has an 81% probability of being completed at a lower cost than was initially budgeted. 


Importance of Change Management: An Increase in Return on Investment (ROI)

Based on a recent McKinsey & Company study, firms with an excellent change management process achieved 143% of expected ROI with a well-structured change program, versus an average of 35% of expected ROI with little to no change management program.


External source: https://pixabay.com/photos/new-year-s-eve-fireworks-beacon-1953253/


Author: Ogbe Airiodion | Senior Change Management Lead. 

I am always excited to connect with fellow change management practitioners and program/project management leads. My goal for this website is to grow it into the industry standard for best project and change management practices, tools, and templates. Ask me questions: Message Ogbe Airiodion or connect with me: Ogbe Airiodion - LinkedIn.

Content on Airiodion Global Services (AGS) website is copyrighted. Please review Airiodion Global Services' Terms. Contact Airiodion Global Services today.