Organization Change: Learning from the Best
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Managing change in today's organizations is not getting any
easier. However, doing it well is the new imperative. How are
organizations faring with moving their people and systems in new
directions? IBM Global Business Services researched change management
practices across the globe. Their extensive Making Change
Work Study quizzed over 1,500 project leaders, sponsors,
project managers and change managers from many of the world's leading
organizations, ranging from small to very large in size.
The IBM survey was fairly representative, covering a wide
range of small to large projects designed to implement strategic,
organizational, operational and technology based change. Project
objectives included improving customer satisfaction, sales and revenue
growth, reducing costs, innovating processes, implementing technology
and entering new markets.
The stand out feature of the IBM study is its solid
reinforcement of the business imperative: for companies to survive and
strive in today's competitive environment, they will need to change
quickly and successfully. Managing change is now a core competence that
can no longer be considered a discretionary "nice to have". Yet most
organizations are falling short in the race to adapt. The accelerating
pace of change coupled with increasing uncertainty and complexity has
pushed up this skills gap to what is now a major area of concern.
The IBM study reveals that the percentage of CEOs expecting
substantial change has risen from 65% in 2006 to 83% in 2008. However,
CEOs reporting that they had managed change well in past projects
climbed from 57% in 2006 to only 61% in 2008. This constitutes a more
than tripling in the size of the gap between actual change capability
and needed capability. The costs to organizations are real and
sizeable. Failed change initiatives bring in their wake budget
overruns, disgruntled customers and demoralized employees.
How successful are organizations at implementing change? The
IBM study reports most CEOs considering themselves and their
organizations largely ineffective at bringing about change. The change
practitioners themselves reported the following change program success
rates:
- 41% fully met objectives
- 44% missed at least one objective
- 15% missed all objectives or aborted
In all, 59% of change initiatives failed to meet their
objectives. This is quite a sobering result as we set about entering
the second decade of the 21st century. Another sobering thought is the
stark contrast between those organizations getting change management
right and those that are struggling. The top 20% of organizations, the
study reveals, are successful 80% of the time. Conversely, the bottom
20% of organizations only manage to achieve their change objectives 8%
of the time. The top 20% of companies are ten
times more likely to lead a successful change initiative than the
bottom 20%.
Clearly, underachieving organizations can draw important
lessons from the top achievers. What are the barriers to successful
change and what are the key success factors that poor performers can
leverage to their competitive advantage? The IBM study provides
valuable insights into what poorly performing organizations can do to
emulate the success of their better performing competitors. What are
these lessons?
Through their research study, IBM revealed these key barriers
to successful change:
- 58% Changing mindsets and attitudes
- 49% Corporate culture
- 35% Complexity is underestimated
- 33% Shortage of resources
- 32% Lack of commitment of higher
management
- 20% Lack of change know how
- 18% Lack of transparency because of
missing or wrong information
- 16% Lack of motivation of involved
employees
- 15% Change of process
- 12% Change of IT systems
- 8% Technology
barriers
Note how people factors account for the top three challenges
and for four out of the top five. Getting the "soft" stuff right turns
out harder to do than getting the traditional "hard" stuff, such as
resources and technology, correctly aligned. What was once considered
the unimportant "soft and fuzzy" aspect of organizational life turns
out to be what makes or breaks change projects. This picture of what
enables successful change is highlighted again in IBM's uncovering of
the key success factors. These key ingredients for successful change,
as revealed by the top performers in the study, are:
- 92% Top management sponsorship
- 72% Employee involvement
- 70% Honest and timely communication
- 65% Corporate culture that motivates and
promotes change
- 55% Change agents (pioneers of change)
- 48% Change supported by culture
- 38% Efficient training programs
- 36% Adjustment of performance measures
- 33% Efficient organization structure
- 19% Monetary and non-monetary incentives
Once again, tuning in to the "soft" factors makes up for the
top six key aspects for successful change. How does your organization
measure up on its change management scorecard?
Pull out a blank sheet of paper and place a line down the
middle of the sheet, from top to bottom. On the left hand side
of the sheet, enter all of the above key barriers. At the top of the
sheet, label this list with "Forces Against Change". On the right hand
side of the sheet, list the above key success factors and label the
list "Forces For Change".
Now place a line under each factor pointing to your center
line. Make the length of each line proportional to the strength of each
force; either for or against the planned change. You have now an
instant picture of the current health of your change program. Work with
your team to develop strategies for leveraging the predominant forces
for change and for mitigating the strongest forces against change.
Find out all you can about how to weaken the barriers against
change and strengthen the key success factors. Respect and develop your
own skills as a change leader and invest in the skill development of
your change team. All the while, keep uppermost in your considerations
the central learning from this IBM study: that people matter the most.
Copyright © Leslie Allan
About the Author
Leslie Allan is Managing Director of
Business Performance Pty Ltd; a management consulting firm specializing
in people and process capability. He has been assisting organizations
for over 20 years, contributing in various roles as project manager,
consultant and trainer for organizations large and small. Mr. Allan is
a prolific writer on business issues, with many journal and web
articles to his credit. He is also the author of five books on employee
capability, training and change management. His company's web site is a
rich source of information, advice and tools in a variety of business
and management areas. Visit Mr. Allan's Business Performance
web site to download trial versions of products, free
templates and introductory chapters.
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Article Published/Sorted/Amended on Scopulus 2013-04-30 09:01:07 in Employee Articles
