How Can You Prove Change Management Really Is Worth It?

    Jul 22, 2019 | Posted by Michael Campbell

    Organisations don’t change, people within organisations do. More often than not, people are suspicious and resistant when it comes to both change and the change management processes and methodology.

    Proving that project management can achieve ROI poses a challenge, however, change management projects still faces the tasks of justifying the return on budget, time, work and effort which is required to manage the people side of change.

    Through a cost-benefit analysis of change management you can show the relationship between the costs to managing the people side of change and the benefits of applying a structured approach to enable and encourage employees to adopt that said change.

    But how do you know if Change Management really is worth it?

    In this blog, we take a deer dive into one of the five benefits of change management that Prosci highlights in it's research: Three People-Side ROI Factors.

    Change occurs at the individual level. Prosci's ROI of change management model focuses on three people-side factors, which contribute to, or limit, the value a change delivers to the organisation. Exploring the 3 people-side factors highlights the importance that Change Management has on successful change implementation.

    The 3 factors; speed of adoption; ultimate utilisation; and proficiency performance are unique to the change you are implementing but are universal in terms of justifying the ROI.

    Speed of Adoption 

    Measuring the speed of adoption factor determines the speed at which employees adopt the new changes. Through a 2015 study by Prosci, it was identified that 80% of those with excellent change management programmes showed in line or better than expected speed of adoption versus only 13% when implemented with a poor change management programme. 

    Speed of adoption graph

    Ultimate Utilisation 

    The ultimate utilisation measures how many impacted employees made the change, and how many did not. Of the 39% of participants in the 2015 Prosci study who measured ultimate utilisation, it was identified that 78% of participants with excellent management programmes showed in line or better than expected ultimate utilisation versus only 11% who had poor change management effectiveness. 

    Ultimate Utilization graph

    Proficiency Performance

    The proficiency performance factor measures how effective employees were at following the new changes. Participants in this same 2015 study by Prosci who measured proficiency performance showed that 80% of those with excellent change management programmes presented in line or better than expected proficiency versus only 15% who had poor change management effectiveness.

    Proficiency graph

    The ROI of Change Management

    The ROI of change management is the additional value created by a project due to the employee adoption, usage, and the performance of adopting and using the changes.

    To find out more about defining the value that derives from Change Management, you can register here for our webinar on the 22nd July, 4pm (SGT). In the webinar, we will discuss how to express a quantified change for the contribution that change management brings to a project. 

    Developing Your Understanding of Change Management

    Our 3-day Prosci certified change management Practitioner Programme provides participants with a methodology and toolkit for managing change in their organisations. This programme is designed for those individuals responsible for managing change on a specific project or who are building change management competency within their organisation.

    Register now and develop your understanding of change management.



    Topics: change management certification