Prosci* research survey of 780 projects found that 87% of projects with excellent Organizational Change Management met or exceeded objectives, compared to 17% with no or poor change management.
Picture this: you've finally obtained approval for that critical new software project. Your executives are on board, your team is excited, and you gather together to embark on this ambitious journey. However, as time passes, obstacles surface, supporters get distracted, problems and bugs grow, and your project veers off course. Throughout my career, I've faced this problem several times, and each time the root cause came back to insufficient preparation for the people, process, and system changes underway.
It's not just you and me - businesses worldwide face the challenge of executing projects seamlessly while navigating the complexities of change. Recognizing this need, we at Jade Global now offer specialized Organizational Change Management (OCM) services as options for our digital transformation projects. In this blog post, we will explore the correlation between change management and project success, highlighting how Jade's suite of offerings can help organizations overcome the challenges associated with change.
Understanding the Correlation between Organizational Change Management and Project Success
Organizational Change Management involves a structured approach to transitioning individuals, teams, and organizations from their current state to a desired future state. Without proper OCM strategies, projects can encounter resistance, delays, and even failure. Studies have consistently shown that the success rate of projects significantly improves when OCM practices are effectively implemented.
When considering change as part of a digital transformation, the need for strong organizational engagement and change management is even keener. Private and public organizations around the world are under increasing pressure to continually transform to remain competitive. Project failures or poor project ROI results are rarely due to the underlying technology but rather to a lack of preparation, strategy, and communication – in other words, the people part of the transformation. Executive sponsors and project managers who focus too much on the technical aspects of their transformation projects and neglect the key tasks to help employee users understand and embrace the changes may be left with sophisticated software and no one willing to use it.
The Impact of Organizational Change Management on Project Outcomes in Digital Transformation
Research on the impact of OCM for IT software upgrades, ERP systems, and CRM system projects conducted by Prosci* outlines the correlation between OCM and specific project outcomes in the digital transformation space, including:
Meeting project objectives
Of the 780 projects surveyed across all industries, 87% of projects with excellent OCM met or exceeded objectives, compared to 17% with no or poor change management. Even "fair" or "good" OCM practices provided significant benefits, with success rates of 42% and 70%, respectively. These objectives include strategic and financial measures, meaning OCM provides not just projects but strategic and financial success.
Staying on schedule
OCM primarily manages the people's side of change, leading to better adherence to project timelines. Projects with excellent Organizational Change Mangement services demonstrated a 65% on-schedule rate compared to only 14% for those with fair or no OCM.
Staying on budget
Effective OCM reduces common project headaches, minimizing budget overruns. Projects with excellent OCM had a budget miss rate of 29%, while those with fair or no OCM exceeded their budgets 50% of the time.
In short, a good OCM program will help your project manager keep the Golden Triangle in line (cost, time, scope), and the lack of schedule and budget slips can more than pay for the additional cost of your OCM program within the overall digital transformation effort.
Jade's Specialized Organizational Change Management Services
Even when a company recognizes the critical role of change management in project success, many find the cost associated with full commercial OCM services to be beyond their budget. In response, Jade has developed a range of OCM service plans to address this challenge head-on. Further, by integrating these services seamlessly into project plans, Jade ensures that change is effectively managed from initiation to implementation, resulting in successful project outcomes.
Business Benefits of Jade's Organizational Change Management Services
Early project risk assessment
Jade's proprietary Risk Assessment tool, used during the sales and Statement of Work process, gives our Program Management Office and service line leaders early insight into the specific needs of the client and project. OCM services are suggested to the client in line with the identified needs and added to the Statement of Work.
Project planning with OCM
All projects using Jade OCM services, regardless of Tier level, start with change planning with our expert OCM team. This includes an assessment of specific needs, initial planning of actions around the project plan, and a review of materials. This tight integration of project and change management is one of the indicators of an excellent OCM program, with 82% of "Excellent" and "Good" projects aligned this way, compared to only 39% of "Poor" projects incorporating this feature.
Tiered support levels
Jade offers three tiers of OCM support, allowing clients to choose the right budget fit and support model. These include:
- Tier 1 – After planning, the client is given a playbook and templates to allow them to run their own OCM program. Check-ins by the Jade project manager keep the OCM plan up to date and relevant.
- Tier 2 – Jade manages the OCM plan created in the planning phase, but clients provide the creative content for their specific business language and needs.
- Tier 3 – Jade provides full-service OCM through a dedicated change manager who works closely with our client.
Upgradable OCM Services for the Project Lifecycle
Although the best practice in the digital transformation space is to plan for OCM at project initiation, sometimes the need for support is not fully realized until later in the project design and even implementation phases. Additional OCM support can be easily added when this occurs on our projects.
Project success and effective change management go hand in hand. By leveraging Jade's organizational change management services, our digital transformation clients can navigate the challenges associated with change, improve stakeholder buy-in, and maximize the success of their projects. Jade's expertise in change management, combined with its commitment to tailored solutions, empowers businesses to embrace change confidently and achieve their desired outcomes.
To ensure your project success with Organization Change Management Services, connect with Jade's OCM experts.