Change Management Series
Change Management - Why?
Poor Change Management can hurt your bottom-line more than you think
We’ve all seen Change Management done poorly. It leaves people confused, anxious, and angry. The cost to staff engagement and staff morale is enormous. And the effect on company productivity and customer service, is downright crippling. In fact, managing change incorrectly can often lead to the good people just leaving the organisation.
All this hurts the bottom line. Yet the finance department would argue that it’s hard to put a true dollar figure on the cost of poor staff engagement.
Well guess what? They don’t have to. Change Management has another and much more direct link to the bottom-line.
Organisations invest heavily in changing systems and processes
They hope to achieve real and measurable gains from these projects. These benefits can come in many forms; improved customer service, higher quality, or more efficiency. But, in every case, these gains will have been given a dollar value.
The business case to ‘make the change’ will compare the value of the benefits as well the cost of doing the project. So often, though, these benefits are not realised. And one of the most common reasons is poor and/or ineffective management of change..
It may seem sensible to invest in a new process or a new IT system. However, unless the right people use the system and use it well, the benefits will not be seen. Furthermore, unless that new system is being used, it’s just a waste of money.
This is where good and effective Change Management comes in
The Change Management process is about bringing people along for the journey. The goal of good change management is preparing people to be “ready, willing, and able to take up the new”. A good Change Management plan ensures that the new system will be used effectively and enthusiastically. Note: This is backed up by considerable research (McKinsey, Price Waterhouse Coopers, Prosci) that effective Change Management makes a significant difference to an organisation’s ability to capture and realise the gains expected from a project.
To quote a report from PriceWaterhouseCoopers, “A systematic approach to organisational change management in projects is fundamental for superior performance “. McKinsey found that good Change Management improves the return on investment by over 400%! And that’s why, over time, a graduate certificate in change management can be worth literally thousands of times the cost of the course!