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IBM’s Making Change Work Study Gives Stark Warning
Submitted by Leslie Allan on February 2nd, 2010
Managing change in today’s organizations is not getting any easier. However, doing it well is the new imperative. How are organizations faring with moving their people and systems in new directions? IBM Global Business Services researched change management practices across the globe. Their extensive Making Change Work Study quizzed over 1,500 project leaders, sponsors, project managers and change managers from many of the world’s leading organizations, ranging from small to very large in size.
The IBM study reveals that the percentage of CEOs expecting substantial change has risen from 65% in 2006 to 83% in 2008. However, CEOs reporting that they had managed change well in past projects climbed from 57% in 2006 to only 61% in 2008. This constitutes a more than tripling in the size of the gap between actual change capability and needed capability. The costs to organizations are real and sizable. Failed change initiatives bring in their wake budget overruns, disgruntled customers and demoralized employees.
How successful are organizations at implementing change? The IBM study reports most CEOs considering themselves and their organizations largely ineffective at bringing about change. The change practitioners themselves reported the following change program success rates:
- 41% fully met objectives
- 44% missed at least one objective
- 15% missed all objectives or aborted
Click here to read the full Making Change Work Study commentary. What do you think are the implications for this study for the way organizations manage change in this new decade?