Successful transformation: the key role of change management
What managing change really involves and how it impacts on a company's results. The benefits of incorporating this approach to maximise organisational success.
In a world of constant transformation, change management has become indispensable for the success of any organisational project.
It is, quite simply, a discipline that seeks to prepare, equip and support people in organizational transitions so that they can successfully adopt change. It is not just about implementing processes or technologies, but also about ensuring that people are ready to embrace and sustain these transformations. At the heart of this practice is the understanding that the success of any change depends to a large extent on people's ability to adapt.
Importance of change management
In today's business environment, marked by technological disruption, globalization and the demands of new talent, the only certainty is change. However, many transformation projects fail due to a lack of focus on people. When managing change effectively is not done, teams face resistance, uncertainty and lack of commitment, which ultimately affects business results.
That is why change management is a strategic tool: it helps minimize the risks associated with change and promotes an environment where employees can adopt new ways of working with confidence and clarity. Prosci's research shows that organizations with excellent change management are:
- - 7 times more likely to achieve project objectives.
- - 4.6 times more likely to stay on or ahead of schedule.
- - 1.4 times more likely to stay within or below budget.
This data is no coincidence. In specific projects such as migrations to S4Hana, for example, we observe that 80% of implementations with solid change management meet their main objectives. More importantly, companies report user adoption rates of 80-90% in the first months post-implementation, with users reaching their expected productivity in as little as three to four months.
The financial impact is also significant. Projects with effective change management report up to 25-30% higher ROI compared to those that omit it. In addition, companies experience a reduction in support and maintenance costs of approximately 20-25% in the first year, while maintaining user satisfaction levels of 70-80%.
But what makes change management so effective? The answer lies in its holistic approach. It is not just about implementing processes or technologies, but about preparing, equipping and supporting people during the transition.
As part of this journey, sponsorship from top management is key. Leaders must be active enablers of the process, receiving the support and skills development necessary to face the challenges of the project.
Organizational change strategy
When companies integrate change management into their projects, the chances of success increase significantly. This is achieved by addressing both the technical and human aspects of change, from initial planning to implementation and sustainability. Without a clear strategy for involving and supporting people, even the best-designed initiatives can fail.
A key factor in this success is measuring how people are adapting. This involves carrying out diagnoses, perception surveys and periodic follow-ups to identify points of friction or areas that need additional support. When measuring change in people, organizations obtain valuable information to adjust their strategies and ensure successful adoption.
In fact, Readiness to Change (R2C), our AI and machine learning-based tool, assesses how prepared companies are to face change. This solution measures stakeholders' propensity to change and, therefore, the likelihood of success in change management. Without adoption, changes will not be successful and the desired outcome will not be achieved. Data analysis tools and performance metrics provide a clear and detailed view of organizational behavior.
R2C provides a clear view of the distance between the final objective and the current state of the organization, measuring progress over time and how we achieve the necessary transformation in teams.
Training and communication: essential pillars
Training and communication are the two fundamental pillars of change management. On the one hand, training programs ensure that employees have the necessary skills to face the new work dynamics. On the other hand, effective communication programs create transparency, reduce uncertainty and align teams with the objectives of the change.
Without adequate training, people may feel disoriented or unable to perform under the new schemes. Similarly, without clear and continuous communication, rumors, resistance and lack of commitment are likely to arise, compromising the success of projects.
Change management is not just a “nice to have”, but a critical factor for the success of any transformation initiative. By focusing on people, measuring their adaptation and strengthening pillars such as training and communication, organizations can not only implement changes, but do so in a sustainable and effective way.
By Irene Marqués, Managing Partner of Olivia Mexico.
