Change Management Failures

Topics: Project management, Change management, Risk management Pages: 6 (1216 words) Published: May 10, 2011
Change Management Failures

The case for change management:
Costs and risks of poorly managing change

In Prosci’s 2007 and 2009 benchmarking studies, the top trend identified by study participants was a greater recognition of the need for and value of change management. While some find themselves in a situation where change management is being requested, many other practitioners are still working diligently to make a compelling case for the need for change management. For these practitioners, Prosci is releasing a five part series on the case for change management. Learn how to effectively “sell” change management to project leaders and executives in your organization by directly connecting change management to project and organizational outcomes. This is the fifth tutorial of the series. This tutorial presents the costs and risks of poorly managing change. When the people side of change is ignored or poorly managed, the project and the organization take on additional costs and risks. From this perspective, effective change management can be viewed as a cost avoidance technique and risk mitigation tactic. Read on to find out what types of costs and risks you can help your organization avoid by applying change management.  [pic]


Consequences of mismanaging change

Each of us has been a part of a change that was poorly managed - either as the offender or as the victim. When projects and initiatives are mismanaged from the "people side" of change perspective, results and outcomes are not achieved. We know from previous tutorials in this series that the individual changes that culminate in organizational change do not take place. We know that we have a lower likelihood of meeting objectives, finishing on time and finishing on budget. And we know that speed of adoption will be slower, ultimate utilization will be lower and proficiency will be less - all dragging down the expected returns. There are two more perspectives to add to the discussion about the impact of not managing change effectively: costs and risks. These perspectives play out on two levels - the project or initiative level and the organizational level. While some of these costs and risks may seem "soft" - many of them are quantifiable and can have a significant impact on financial performance - both of the project and of the organization as a whole. |  |Costs |Risks | |Project level |  |  | |Organizational level |  |  |


Project level impacts

Project level impacts are related directly to the specific project or initiative that is not utilizing change management. These projects can impact tools, technologies, processes, reporting structures and job roles. They can result from strategic planning, from internal stimuli such as performance issues, from external stimuli such as regulation or competitive threats, or from demands by customers and suppliers. The initiatives may be formalized as projects with project managers, budgets, schedules, etc. or they may be informal in nature but still impact how people do their jobs. While these projects and initiatives can take on a number of different forms, the fact remains that ignoring or mismanaging the people side of change has real consequences for project performance. Below are some examples of the costs and risks at a project level when we do not manage the people side of change.


• Project delays
• Missed milestones
• Budget overruns
• Rework required on design
• Loss of work by project team


• Resistance – active and passive
• Project put on hold
• Resources not made available
• Obstacles appear unexpectedly
• Project fails to deliver results
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