Change management challenges exposed as businesses grapple with rapid transformation

Organizations are facing significant change management challenges as they grapple with rapid business transformation.

A new report from Capability for Change found that, while awareness and discussion of change management have increased, the fundamental infrastructure and perceived value of change management have deteriorated.

The report surveyed over 500 global change specialists from prominent organizations, highlights a concerning trend: teams appear unsupported and ill-equipped to manage transformation effectively.

Organizations are talking more about change but investing less in the mechanisms that make it successful. With 88 percent of organizations reporting unmanageable change levels and only 11 percent effectively managing their change portfolio, we are witnessing a fundamental breakdown in how organizations navigate transformation.

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Businesses are drowning in unmanaged change

Organizations are drowning in unmanaged change volumes, with 59 percent of respondents identifying “too many changes at once” as their top barrier to effective change. The widespread integration of artificial intelligence (AI) and automation has accelerated transformation timelines across all sectors.

Organizations are simultaneously managing multiple transformation programs while adapting to rapid technological change, creating unprecedented pressure on change management resources and capabilities. Increasing digitization and operational efficiencies are the most common types of change while reorganization and new strategic direction have grown in importance as they are fundamental to implementing new digital technologies. 

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Businesses lack change management resources and support

The data showed that dedicated change resources in organizations are small. As many as 84 percent of respondents stated that their resource pool is less than 20 people. What’s more, the level of dedicated change resources do not appear to increase as the volume of change grows.

Meanwhile, more than half (53 percent) of change experts believe there is insufficient involvement from senior leadership. Only 7 percent of organizations have a board member specifically responsible for overseeing change management initiatives, a disconnect that can hinder an organization’s ability to adapt successfully to evolving circumstances.

Read 8 reasons why change management fails!

Measuring change is a significant challenge

Assessing the impact of change initiatives is another significant challenge. While 80 percent of respondents said their companies track employee adoption of new practices and monitor project timelines, three-quarters acknowledged that they do not measure the actual business benefits produced by these efforts.

Furthermore, 74 percent reported that they do not evaluate whether changes have delivered added value, with 38 percent saying they do not determine whether productivity or overall performance has improved as a result.

The change management skills gap

Finally, Capability for Change’s study revealed a critical skills gap in change management. Only 38 percent of respondents said that their organization trains people in change management.

More than half (53 percent) of those polled claimed leaders are not receiving the necessary training to effectively manage change initiatives, with 29 percent believing senior managers assume they can manage change intuitively.

Interestingly, 12 percent of respondents said that “senior managers are scared to ask for help or training as they fear it may be seen as a sign of weakness.”

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