Currently Featured Article »

Morag Barrett

Many managers would do well to quit their MBA program, (and quit Management by Bossing Around) to focus on their relationship skills. Maybe that manager is you.
But I’m not a people person!
Society is in a transition phase in terms of how relationships are valued in the workplace. The percentage of workers who come from the traditional “business is business” mindset is still large. However, as they approach retirement age the next generation is stepping forward, …

Read the full story »
Home » Change Leadership, Research & Studies

Gartner Study Finds Companies Under-Invest in Organizational Change Management

Published by One Comment

A 2011 Gartner survey1 found that companies under-invest in organizational change management. Companies allocate, on average, only 5% of the overall system implementation budget to the change management effort. Gartner recommends that companies allocate an average of 15% of the program budget to organizational change management, inclusive of training — but more, if changes are significant or the corporate culture is more change-averse.

The survey also found system integrators have relatively weak change management capabilities. Across the 169 implementations surveyed, companies were least satisfied with their system integrator’s organizational change management skills. Change management came in last among a list of 19 aspects of service provider performance that participants rated.

These findings re-affirm previous research that organizational change management accounts for 17% of the success of an IT project2. Among clients whose system implementations had failed or were at risk of failing, mishandling of the project’s organizational change effort was a key contributor to the failure3.

Gartner recommends a few strategies for a change management approach:

  • Embed change management into the program structure. Avoid viewing change management as an afterthought or an expendable line item. Change management executed well is a critical component of the program’s success. Treat organizational change management as being of equal importance as the technical aspects of the implementation.
  • Begin change management as early as possible. Assessing change impacts early allows the project team time to address issues, obtain buy-in from business sponsors and end-users, and de
    velop interventions that help the organization adapt to new processes and technologies, and adopt new behaviors.
  • Consider hiring a firm specializing in change management. Your implementation partner may technically and functionally strong, but they may not have a strong change management capability. If your organization is averse to change, and the change impacts of the new system are significant, consider a firm that specializes in organizational change management to support this piece of the program.


1 Lessons from 169 SAP Implementations Using Service Providers in North America, Gartner, March 2011
2 How to Increase Your IT Project Success Rate, Gartner, January 2011
3 ERP Implementation: To Avoid Project Failure, Assess the Impact of Change Before Starting Configuration, Gartner, March 2010

Other articles you may be interested in:

Jesse Jacoby
The Editor of Emergent Journal and founder of Emergent, Jesse is a recognized expert in business transformation. He and his team partner with Fortune 500 and mid-market companies to deliver successful people and change strategies. Jesse is the creator of the Accelerating Change & Transformation (ACT) model and developer of Change Accelerator and Savvy Transition. Contact Jesse at 303-883-5941 or jesse@emergentconsultants.com.

One Comment »

  • Great goods from you, man. I’ve understand your stuff previous to and you’re just too wonderful.
    I really like what you have acquired here, certainly like what you’re saying and the way in which you say
    it. You make it enjoyable and you still care for to keep it
    sensible. I cant wait to read much more from you. This is actually a terrific site.

6 Pingbacks »

Leave a comment!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.

Hide me
Subscribe to the FREE Emergent Insights newsletter
Email:
Show me