OUTCOMES OF IMPROPER CHANGE MANAGEMENT

 










Every year, massive expenditures are made in large-scale, complicated businesses, ranging from ERP implementations to mergers and acquisitions. The sums of money spent on organizational reform are enormous. Organizations simply cannot afford to fail when the stakes are this high. However, the number of failed implementations continues to rise, which is terrible. According to recent studies, approximately 25-30% of all company changes result in full benefit realization. Approximately 70% of corporate projects continue to fall short of delivering on time and under budget (Alsher, 2018).

Wasted resources include, money, time, people. The long term and indirect costs are slightly less obvious, but still significant. Those are, morale suffer, decreases of confidence in the leadership, increase in resistance to change, and Future changes are more likely to stall or fail. Even the best-laid strategies and the most cutting-edge software might leave the organization behind the curve if the management is moving too swiftly to account for the human aspect of change.

The implications at the organizational level are a step up from those at the project level. These costs and risks are felt by the entire organization, not just the project team. Many of these consequences last far beyond the project's lifespan. When a company's most important people depart, the consequences are severe. A history of unsuccessful change serves as an important and ever-present backdrop against which all future changes will be measured (Prosci, 2022).

References

Alsher, P., 2018. imaworldwide.com. [Online]
Available at: https://www.imaworldwide.com/blog/the-high-cost-of-weak-change-management#:~:text=When%20an%20organization%20employs%20a,costs%20are%20a%20bit%20obvious.
[Accessed 07 04 2022].

Prosci, 2022. blog.prosci.com. [Online]
Available at: https://blog.prosci.com/the-costs-risks-of-poorly-managed-change
[Accessed 07 04 2022].





Comments

  1. Saugi DissanayakeApril 23, 2022 at 1:33 AM

    This seriously affects organizational goals.Employees of the company have to face unnecessary problems due to the location of unwanted people.Time management has a direct impact on the financial management of the organization and people management.

    ReplyDelete
  2. Achinda GamageMay 1, 2022 at 5:51 PM

    When an organization employs a weak change management process, more than just money is going to be lost. In fact, there are both short term and long term, direct and indirect costs to the organization. When the business objectives haven’t been achieved, the short term, direct costs are a bit obvious.

    ReplyDelete
  3. SudarshanaMay 27, 2022 at 1:24 PM

    If the change does not deliver the results and outcomes—in large part because we ignored the people side of change—there are additional costs and risks. Costs if the change is not fully implemented: Lost investment made in the project. Lost opportunity to have invested in other projects.

    ReplyDelete

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