{"id":1198,"date":"2015-01-21T00:08:41","date_gmt":"2015-01-21T05:08:41","guid":{"rendered":"http:\/\/flevy.com\/blog\/?p=1198"},"modified":"2015-02-27T23:21:47","modified_gmt":"2015-02-28T04:21:47","slug":"70-of-change-management-initiatives-fail-really","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/70-of-change-management-initiatives-fail-really\/","title":{"rendered":"70% of Change Management Initiatives Fail&#8211;REALLY?"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignright size-medium wp-image-1199\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2014\/12\/1f9b23b-300x183.jpg\" alt=\"1f9b23b\" width=\"300\" height=\"183\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2014\/12\/1f9b23b-300x183.jpg 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2014\/12\/1f9b23b.jpg 951w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>So now to tackle another much debated change subject&#8211;that so-called 70% failure rate.<\/p>\n<p>How many times have we seen LinkedIn posts and discussions talking about this subject? \u00a0As many as\u00a0<a href=\"https:\/\/flevy.com\/blog\/change-management-methodologies\/\" target=\"_blank\">Change Management Methodologies<\/a>,\u00a0<a href=\"https:\/\/flevy.com\/blog\/project-management-vs-change-management\/\" target=\"_blank\">Project Management vs Change Management<\/a>,\u00a0and\u00a0<a href=\"https:\/\/www.linkedin.com\/pulse\/article\/20140811041615-7145156-change-management-do-you-need-to-be-certified?trk=mp-reader-card\" target=\"_blank\">Change Management Certification<\/a>!!!<\/p>\n<p>Before we start in earnest on the subject, let just have a look at some of the headline statements on this subject from some of the most influential sources of business information:<\/p>\n<ul>\n<li><a href=\"http:\/\/www.mckinsey.com\/app_media\/reports\/financial_services\/the_inconvenient_truth_about_change_management.pdf\" target=\"_blank\" rel=\"nofollow\">McKinsey and Company<\/a>\u00a0&#8212; &#8220;A recent survey of business executives indicates that the percent of change programs that are a success today is\u2026 still 30%.&#8221;<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\"><a href=\"http:\/\/public.dhe.ibm.com\/common\/ssi\/ecm\/en\/gbe03618usen\/GBE03618USEN.PDF\" target=\"_blank\" rel=\"nofollow\">IBM<\/a>\u00a0&#8212;\u00a0&#8220;Nearly 60 percent of projects aimed at achieving business change do not fully meet their objectives.&#8221;<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\"><a href=\"http:\/\/hbr.org\/2000\/05\/cracking-the-code-of-change\/ar\/1\" target=\"_blank\" rel=\"nofollow\">Harvard Business Review<\/a>\u00a0&#8212; &#8220;The brutal fact is that about 70% of all change initiatives fail.&#8221;<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\"><a href=\"http:\/\/www.forbes.com\/sites\/victorlipman\/2013\/09\/04\/new-study-explores-why-change-management-fails-and-how-to-perhaps-succeed\/\" target=\"_blank\" rel=\"nofollow\">Forbes\/Towers Watson<\/a>\u00a0&#8212; \u00a0&#8220;A new study by Towers Watson has found that only 25% of change management initiatives are successful over the long term.&#8221;<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\"><a href=\"http:\/\/www.connerpartners.com\/how-challenging-is-the-change\/the-dirty-little-secret-behind-the-70-failure-rate-of-change-projects\" target=\"_blank\" rel=\"nofollow\">Connor Partners<\/a>\u00a0&#8212; &#8220;Change practitioners have some culpability for the atrocious 70% failure rate of change initiatives.&#8221;<\/li>\n<\/ul>\n<p>So there we have it \u2026 <em>proof<\/em> \u2026 it must be true! Between 60% and 70% of Change initiatives fail? Wow!!!<\/p>\n<p>But where did this much vaunted 70% figure come from? Is it a myth? Is it supported by hard facts\/real evidence? The following two articles explain its origin and provide some compelling evidence that the figure is a myth:<\/p>\n<ul>\n<li style=\"font-weight: inherit; font-style: inherit;\"><a href=\"http:\/\/conversationsofchange.com.au\/2013\/09\/02\/70-of-change-projects-fail-bollocks1\/\" target=\"_blank\" rel=\"nofollow\">Conversations of Change<\/a>\u00a0&#8212; 70% of change projects fail: b***ocks!<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\"><a href=\"http:\/\/www.enclaria.com\/2014\/06\/03\/its-time-to-abolish-the-70-change-failure-rate-statistic\/\" target=\"_blank\" rel=\"nofollow\">Enclaria LLC<\/a>\u00a0&#8212; It\u2019s time to abolish the 70% change failure rate statistic.<\/li>\n<\/ul>\n<p>But this figure actually provokes a more interesting debate&#8211;the one about how we measure success\/failure in the context of change initiatives.<\/p>\n<p>There is of course the traditional way. That is you measure success\/failure against your original Business Plan in which there should be clear and detailed Business Benefits. The problem with this is that change initiatives have a habit of not going to plan and veering off in all kinds of different directions dependent on various factors that cause them to do this. So the problem is measuring against an initial set of Business benefits that no longer relate to the way a change initiative has developed.<\/p>\n<p>The Business Benefits profile should be managed and controlled as rigorously as costs and there will need to be a process of refining the Business Benefits profile in your original Business Plan. It will need to be reassessed and adjusted as necessary during the programme. Regular reviews should be conducted of the main Business Benefits led by Key Stakeholders from the Business and\/or Operational Areas and facilitated by the Change Manager. Adjustments may be identified from a range of events or circumstances such as:<\/p>\n<ul>\n<li style=\"font-weight: inherit; font-style: inherit;\">Business operations may be unstable.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Forward plans are no longer realistic.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">External circumstances changing.<\/li>\n<\/ul>\n<p>So in effect your change initiatives\/objectives will need to be re-focused along with identified Business Benefits on a regular basis based on the changing circumstances which will facilitate a much better focus on eventual measurement of success against these.<\/p>\n<p>Then there are other ways.<\/p>\n<p>In a paper called \u201c<a href=\"http:\/\/www.pwc.com\/en_US\/us\/people-management\/publications\/assets\/pwc-change-trifecta.pdf\" target=\"_blank\" rel=\"nofollow\">The Change Trifecta Measuring ROI to maximize change effectiveness<\/a>\u201d by PwC suggests a four point formula to prove return on investment for change:<\/p>\n<ul>\n<li style=\"font-weight: inherit; font-style: inherit;\">Measuring the relative contribution that change management provides to a project\u2019s overall ROI.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Conducting an in-depth retrospective analysis of similar cases with like objectives to identify common investment criteria and parameters.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Maintaining a portfolio of change programs and measurement systems that is customized to the organization.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Measuring organizational readiness or agility for change.<\/li>\n<\/ul>\n<div class=aside>The author, Ron Leeman, has published <a href=\"https:\/\/flevy.com\/browse\/business-document\/a-comprehensive-guide-to-change-management-979\">A Comprehensive Guide to Change Management<\/a> on Flevy, a 199-slide PowerPoint detailing just about everything there is to know about Change\u00a0Management. \u00a0It is currently the best selling document on Change Management available on Flevy.<\/div>\n<p style=\"color: #;\">Additionally in an article called \u201c<a href=\"http:\/\/www.imaworldwide.com\/blog\/bid\/138610\/How-Do-You-Measure-Transformational-Change-Success\" target=\"_blank\" rel=\"nofollow\">How Do You Measure Transformational Change Success?<\/a>\u201d by Implementations Management Associates they suggest the following criteria:<\/p>\n<ul>\n<li style=\"font-weight: inherit; font-style: inherit;\">On time.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">On budget.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">All technical objectives met.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">All business objectives met.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">All human objectives met.<\/li>\n<\/ul>\n<p>But how do you try and ensure your change initiative will be a success? Maybe a good starting is looking at some of the reasons for failure of change initiatives:<\/p>\n<p style=\"color: #;\">In an article by Huffington Post called \u201c<a style=\"font-weight: inherit; font-style: inherit; color: #;\" href=\"http:\/\/www.huffingtonpost.com\/willow-dea\/change-management-fails-f_b_3614274.html\" target=\"_blank\" rel=\"nofollow\">Change Management Fails for Three Reasons<\/a>\u201d they cite the following:<\/p>\n<ul style=\"color: #;\">\n<li style=\"font-weight: inherit; font-style: inherit;\">Change consultants are insufficiently equipped on a personal level.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Most change models are incomplete.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Capacity is widely overlooked, on all levels.<\/li>\n<\/ul>\n<p style=\"color: #;\">In a Coaching for Change article called \u201c<a style=\"font-weight: inherit; font-style: inherit; color: #;\" href=\"http:\/\/www.coachingforchange.co.uk\/latest-news\/change-failure-reasons.html\" target=\"_blank\" rel=\"nofollow\">Effective change management is all down to the right skill-set<\/a>\u201d they state:<\/p>\n<ul style=\"color: #;\">\n<li style=\"font-weight: inherit; font-style: inherit;\">Poor leadership when it comes to leading through example.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Employees were not involved enough.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Lack of effective communication.<\/li>\n<\/ul>\n<p style=\"color: #;\">An article by Goals and Achievements called \u201c<a style=\"font-weight: inherit; font-style: inherit; color: #;\" href=\"http:\/\/goalsandachievements.com\/tag\/change-failure-reasons\/\" target=\"_blank\" rel=\"nofollow\">6 Reasons Why Change Programs Fail<\/a>\u201d they suggest the following:<\/p>\n<ul style=\"color: #;\">\n<li style=\"font-weight: inherit; font-style: inherit;\">Communication.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Top Down.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Lack of space and support.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Unclear objectives.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Lack of performance measures.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Underestimating emotions.<\/li>\n<\/ul>\n<p style=\"color: #;\">An article by Project Smart called \u201c<a style=\"font-weight: inherit; font-style: inherit; color: #;\" href=\"http:\/\/www.projectsmart.co.uk\/change-management-in-practice.php\" target=\"_blank\" rel=\"nofollow\">Change Management in Practice: Why Does Change Fail?<\/a>\u201d they say\u201d<\/p>\n<ul style=\"color: #;\">\n<li style=\"font-weight: inherit; font-style: inherit;\">Not clear about the reasons for the change and the overall objectives.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Failure to move from talking to action quickly enough.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Leaders had not been prepared for the change of management style required.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">A change methodology or approach that did not suit the business.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">The organisation had not been prepared.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">The business had &#8216;ram raided&#8217; certain functions with little regard to the overall business.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Strategic direction for the change was set but the leaders had remained remote.<\/li>\n<\/ul>\n<p style=\"color: #;\">And finally in a Change Designs article called \u201c<a style=\"font-weight: inherit; font-style: inherit; color: #;\" href=\"http:\/\/www.changedesigns.net\/public\/organisation\/change\/Why-change-fails.html\" target=\"_blank\" rel=\"nofollow\">Why Change Fails<\/a>\u201d the following reasons are given:<\/p>\n<ul style=\"color: #;\">\n<li style=\"font-weight: inherit; font-style: inherit;\">Ineffective communication.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">People simply don\u2019t want the new strategy or change to be successful.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">The change is implemented in isolation.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Mixed messages and confusion.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Lack of a single integrated change strategy.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">A focus on knowing rather than doing.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Being put off by resistance to change.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Expectations of instant success.<\/li>\n<li style=\"font-weight: inherit; font-style: inherit;\">Change Management has a negative image.<\/li>\n<\/ul>\n<p style=\"color: #;\">Looking at all of these reasons it is arguable that the two consistent factors across all of them is that of\u00a0<a style=\"font-weight: inherit; font-style: inherit; color: #;\" href=\"https:\/\/flevy.com\/browse\/business-document\/communication-966\" target=\"_blank\" rel=\"nofollow\">Communication<\/a>\u00a0plus\u00a0<a style=\"font-weight: inherit; font-style: inherit; color: #;\" href=\"https:\/\/flevy.com\/browse\/business-document\/stakeholder-analysis-and-management-962\" target=\"_blank\" rel=\"nofollow\">Stakeholder Management<\/a>\u00a0(both factors that underpin my\u00a0<a style=\"font-weight: inherit; font-style: inherit; color: #;\" href=\"https:\/\/flevy.com\/browse\/business-document\/a-practical-framework-approach-to-change-965\" target=\"_blank\" rel=\"nofollow\">Practical Framework Approach to Change<\/a>) as if we didn\u2019t know that already!!! Good grief haven\u2019t there been enough studies by renowned organisations that have told us that over the years. So please tell me why is it that individuals that purport to be Change Manager\u2019s so often do not give these critical factors the importance they deserve? Perhaps they become too engrossed in trying to deliver something within the constraints of an ill thought through plan and the pressures that go with that scenario.<\/p>\n<p style=\"color: #;\">So please let\u2019s stop talking about this mythical 70% failure rate because it has no substance and no facts that support it. The longer we in the change community continue to talk about and write articles on the subject (like this one \u2026 LOL) it will continue to damage the reputation of Change Management and the people that practice the profession.<\/p>\n<p style=\"color: #;\">I rest my case, m\u2019lud!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>So now to tackle another much debated change subject&#8211;that so-called 70% failure rate. How many times have we seen LinkedIn posts and discussions talking about this subject? \u00a0As many as\u00a0Change Management Methodologies,\u00a0Project Management vs Change Management,\u00a0and\u00a0Change Management Certification!!! Before we start in earnest on the subject, let just have a look at some of the&hellip;&nbsp;<a href=\"https:\/\/flevy.com\/blog\/70-of-change-management-initiatives-fail-really\/\" rel=\"bookmark\"><span class=\"screen-reader-text\">70% of Change Management Initiatives Fail&#8211;REALLY?<\/span><\/a><\/p>\n","protected":false},"author":29,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[85],"tags":[612,613,228,614,10],"class_list":["post-1198","post","type-post","status-publish","format-standard","hentry","category-organization","tag-change-failure","tag-change-failure-rate","tag-change-management","tag-harvard-business-review","tag-mckinsey"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/1198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=1198"}],"version-history":[{"count":6,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/1198\/revisions"}],"predecessor-version":[{"id":1368,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/1198\/revisions\/1368"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=1198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=1198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=1198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}