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How Can Organisations Manage Internal Change Successfully? (Report Date: August 2006, Full Report: 19 pages) Summary Although competitive pressures, globalisation, political and socio-economic uncertainties, and technological advances have pressed organisations to change at a more rapid pace than ever before, the real determinant of performance is the successful management of change, and not the change itself. Unfortunately, organisational change has had a very high failure rate until now. Researchers at the Harvard Business School found that only 30% of the change projects of organisations in the Fortune 100 between 1980 and 1995 led to an improvement in bottom line results that exceeded the cost of capital and only 50% led to an increase in share price. And yet each of the companies that were studied invested as much as $1 billion in change programmes over that 15-year period. This high failure rate is due to two main reasons: (1) First, organisations have been more concerned with incorporating changes quickly than with managing them effectively. (2) Second, organisations have neglected the importance of people management during the change process. Yet this aspect of change management is the most important determinant of success of a change initiative. Organisations must follow some fundamental change management guidelines in order to reap the full benefits of their change initiative. These guidelines include engaging employees in the change process, formalising organisational processes, involving HR in the change process, educating the workforce on new practices, promoting change leadership, and much more. This report provides recommendations for the successful management of organisational change.
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