Status of Change Management in Organizations: Findings
"Most of us are reviewing and renewing our businesses and many have tried to transform our organizations - it is more than any of us thought it would be. There have been successes, however, many of us are failing. Why? Conducting an analysis, setting a mission and planning a reframed company is one thing - transforming the plans into reality, quite another!" CEO of Automobile Manufacturing Co. & Chairperson, Competing for Our Future Task Force.
How are companies worldwide converting plans to change in reality?
- What are organizations doing to get even better?
- Plans, goals, new business model, strategy, mission, vision, business plan, expected deliverables identify a direction and end point
- Change management is what a company does internally to adapt to the strategy, plan and external conditions
The following findings and conclusions are based on an informal survey of organizations across all industries with participation from companies in the Asia/Pacific Rim, Americas, EU and Scandinavian countries. The information was collected from a variety of sources and included Managing Directors, CEO's, COO's, CIO's Board Members, Presidents, Vice Presidents, Partners, Management Consultants, Chairpersons of related task forces and others.
Change Initiatives Being Implemented
- Over half report four or more change initiatives
- 90% report at least one
- Fewer than 30% created a change management strategy
Organization Structure
- 55% report that organization structure is an asset for change
Organization Culture
- In less than 15% of the organization culture is aligned to change initiatives
Top Management Commitment to Change Initiatives
- 85% board members and senior executives say yes
- 45% vice presidents, yes
- 35% reporting directly to VP, yes
Best Sponsors and Champions are Selected
- 75% board members, senior executives, yes
- 40% vice presidents, yes
- 30% those reporting directly to VP, yes
Effective Change Management Coaching, Mentoring From Leaders
- 20% board members, senior executives say yes
- 10% vice presidents, yes
- 10% those reporting directly to VP, yes
Problems with Change Management Approach
- 5% board members, senior executives say yes
- 20% vice presidents, yes
- 35% those reporting directly to VP, yes
Lack of Senior Management Recognizing Importance, Understanding Change Management
- 40% board members, senior managers say yes
- 55% vice presidents, yes
- 60% those reporting directly to VP, yes
Teams Formed to Manage Significant Change Initiatives
Training Provided for the Team
- 60% coordination, project management
- 25% team leadership, participant behavior
- 10% no training
- 5% change management, leadership
Team Empowered for Change Management, Initiative Implementation
- 45% somewhat agree
- 30% strongly agree
- 25% disagree
Team Participants Coordinate Within and Outside Team
- 60% somewhat agree
- 30% strongly agree
- 10% disagree
Communications Issues
- 75%, messages were consistent
- 80% reached appropriate audience
- 75% timing and frequency appropriate
- 50% communications were effective
Why Change Management Fails
- 70% insufficient attention resources to transformation
- 35% no training, expert guidance
- 30% lack of change management expertise
- 13% external resources failed
- 10% external resources not used
Transition Issues
- 90% engagement of survivors in new strategy, way forward
- 85% focus on limited set of initiatives
- 70% disciplined monitoring, measurement, adjustment
- 60% rapid alignment top to bottom, global
- 45% layoffs, outplacement
- 40% develop capacities of workforce, leadership, empowerment
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