Organizations that successfully manage change are more likely to follow a formal, systematic process and employ a staff that focuses on change management, according to a new study by global professional services company Towers Watson.
"When it comes to managing major organizational change, many companies have a difficult time getting it right," says Kathryn Yates, global leader of communication consulting at Towers Watson. "In fact, our research shows that less than half stay on schedule, come in at — or under — budget or hold people accountable for deadlines. Considering that the average survey respondent went through three major changes in the past two years and the effect change management can have on the bottom line, there is plenty of reason for them to learn how the best organizations manage change."
Specifically, the study shows that 65 percent of respondents with the best change management adhere to a formal, systematic process as opposed to only 14 percent of respondents with low change effectiveness. Another 45 percent of respondents with high change effectiveness employ a staff that solely focuses on change management compared to 16 percent with a lower level of change effectiveness.
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The study also finds that the most influential factors in the success of an organization's change are leading activities, such as finding executive sponsorship for organizational change; developing a strong vision; crafting an integrated communication and change management strategy; and creating strong employee motivation for making organizational change. Eighty-four percent of respondents that are highly effective at change management hold a clear vision of what their organizational change is set to accomplish as opposed to 19 percent of respondents that have low-change effectiveness. According to the study, senior leaders as well as communication and change management professionals play an important role in these leading activities.
Measuring activities are some of the top drivers of change success, the study shows. In fact, 76 percent of respondents that are highly effective at change implement clear, measurable goals up front for the impact of changes while only 14 percent of low-effectiveness respondents do so. Seventy-three percent of highly effective companies also calculate their progress against goals in comparison to 12 percent of respondents with low-change-effectiveness practices.
Additionally, effective respondents integrate programs to withstand the positive change effects over time. Sixty-four percent of highly effective companies still show new behaviors and use new skills once changes have happened while only 8 percent of low-effectiveness respondents do the same.
"Organizational change is a continuous reality," Yates says. "Regardless of the type of change an organization experiences or where an organization is located, the critical change activities remain constant. Organizations that get the leading, measuring and sustaining activities right will be the ones that experience the greatest success."
While 83 percent of respondents say they train managers on change management, only 36 percent of respondents say it is effective. However, effective communication is considered an important component of change management and can significantly impact financial performance. The study even shows respondents that are highly effective at both communication and change management are two and a half times as likely to outperform their peers as companies that are not highly effective in both categories.
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