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.
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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