The High Cost of Poor Change Management

Whether change is driven by technology updates, shifts in the market, or internal restructuring, organisations must constantly adapt to stay competitive. However, the high cost of poor change management – both visible and hidden – can drain resources and demoralise teams. In this blog post from Change Specialists CEO John Dean, he breaks down the tangible and intangible costs of ineffective change management and explores practical ways to mitigate these risks.

Financial Costs

Start with a comprehensive diagnostic assessment to understand the project’s current status and
identify key issues and risks. Involve all stakeholders to ensure a holistic view.

When a change initiative goes off the rails, the financial repercussions are often the most obvious. Delays, impact on budgets, and wasted resources can quickly turn what seemed like a strategic move into a financial burden.

According to a study by McKinsey, 70% of change initiatives fail to achieve their goals, often due to ineffective management. The associated costs can include:

Rework & Project Overruns: Budget projections spiral when initiatives are restarted or corrected due to poor planning or implementation.

Lost Productivity: When employees are confused, resistant, or unsure of their roles, productivity takes a nosedive, affecting business performance and revenue generation.

Missed Opportunities: Failed change initiatives often delay opportunities for growth and new product or service launches.

Solution: Robust Planning & Metrics

To avoid financial pitfalls, invest time in detailed planning, stakeholder mapping, and clear success metrics from the outset. Proactively monitor progress and remain flexible to adjust course as needed.

Cultural Costs

A poorly managed change initiative can negatively impact company culture. Employees often bear the brunt of sudden or mismanaged change which can result in stress, disengagement, and a loss of trust in leadership.

When change feels imposed, employees may experience uncertainty, and this may lead to increased absenteeism. These human costs weaken overall company culture.

Solution: Transparent Communication and Employee Involvement

Communicate openly and consistently throughout the change journey. Listen to employee concerns to involve them in the process and show empathy for how the change impacts their daily lives. When people feel heard and valued, they are far more likely to engage positively with change.

Operational Costs

When change management is ineffective, business operations can be severely disrupted. Processes may break down meaning teams can lose cohesion, and critical workflows can grind to a halt – all of which hurt productivity and customer satisfaction.

Poorly implemented technology changes, for example, can lead to things like customer service failures, or data breaches, of which can have lasting impact.

Solution: Phased Implementation and Continuous Support

Roll out changes in manageable phases, allowing time to test and adapt before full-scale implementation. Offer continuous training and support to help employees adjust smoothly and maintain operational efficiency.

Avoiding the Costs: A Holistic Approach to Change Management

How can organisations minimise the risk of poor change management and avoid these costly pitfalls? Here are some proven strategies:

Leadership Buy-In: Leaders across the organisation should actively support and champion the change, setting the tone and leading by example.

Clear Vision: Define the “why” behind the change, outlining what success looks like and how it benefits everyone involved.

Engagement, Not Imposition: Involve employees early, and treat them as partners in the change journey. The more they own the process, the more they will support it.

Regular Feedback and Adaptation: Continuously seek feedback and be willing to adapt plans in response to concerns, challenges, or changing circumstances.

Invest In Skills Development: Equip teams with the skills they need to succeed in the new environment through training and ongoing learning opportunities.

Final Thoughts

The high cost of poor change management – financial, cultural, and operational – are too great to ignore. With thoughtful planning, transparent communication, and a commitment to supporting people through change, organisations can avoid these pitfalls and concentrate on transformation.

Contact me, or the wider team at Change Specialists, we are all seasoned Change professionals who are well placed to share our experiences and expertise to support your success. 

Contact John, or connect with him on LinkedIn.

Follow Change Specialists for further tips to support successful project management.

G-Cloud 14 Framework for the Second Consecutive Year

We’re delighted to share that Change Specialists has been confirmed as a Crown Commercial Supplier on the UK Government’s G-Cloud 14 Framework for the second consecutive year.

G-Cloud is a UK government framework that aims to simplify the public sector procurement process through a pre-approved list of suppliers. 

The framework is designed to be utilised by Central Government, Charities, Education, Health, Local Authority, Blue Light (Police, Fire, Ambulance, Search & Rescue) and Devolved Administrations. Working with Change Specialists gives the reassurance of partnering with a government approved supplier who is well placed to support IT, Digital & Change projects and programmes.

Our services include:
✨ People consultancy and placement.
💻 Digital transformation, technology upgrades and improvement.
⬆️ Programme turnaround, delivery assurance, and advisory services.
💡 Operational improvements and business transformation.
✔️ Regulatory change, including crisis work.
💼 Rationalisation and optimisation of teams and infrastructure.
😀 Customer experience improvement and culture change.

For more information, feel free to reach out to us at info@changespecialists.co.uk / 01379 871144

The Change Specialists team are delighted to be approved on the G-Cloud 14 Framework for the second consecutive year Change Specialists – The Change People.

5 Tips for Turning Around a Project in Need of Recovery

In this blog post Change Specialists CEO John Dean outlines his 5 tips for turning around a project in need of recovery,

In the dynamic world of business, projects and programmes sometimes lose their focus. When this happens, swift and strategic intervention is required to realign to achieve desired outcomes.

Conduct a Thorough Diagnostic Assessment 

Start with a comprehensive diagnostic assessment to understand the project’s current status and
identify key issues and risks. Involve all stakeholders to ensure a holistic view.

Re-establish Clear Objectives and Milestones

Clarify, review and, where appropriate, redefine project objectives and milestones ensuring that they are realistic, achievable, and aligned with organisational strategic goals. This provides a clear roadmap and helps measure progress effectively.

Strengthen Leadership

Enhance leadership frameworks to ensure clear accountability and decision making authority. Effective leadership can inspire a team, streamline processes, and foster a culture of accountability.

Enhance Communication and Stakeholder Engagement

Open, transparent communication is vital.
Ensure stakeholders receive regular updates in order to build trust and ensure everyone works towards the same goals.

Implement Rigorous Delivery Assurance

Establish delivery assurance mechanisms to monitor progress, manage risks, and ensure quality. Regular audits, progress reviews, and risk assessments are essential to maintain project health and deliver on promises.

Repairing a troubled project or programme is challenging but achievable with the correct approach and expertise. At Change Specialists, our goal is to supply our clients with the necessary skills and capacity. By applying the 5 tips for turning around a project or programme in need of recovery outlined in this blog post our experts can assist you in delivering a successful project recovery.

If your organisation is implementing changes, please get in touch to discuss how the Change Specialists can support your journey.  

Contact John, or connect with him on LinkedIn.

Follow Change Specialists for further tips to support successful project management.

Understanding and Overcoming Resistance to Change

This blog post explores understanding and overcoming resistance to change.

Change may involve implementing new technology, restructuring, or evolving business strategies – organisations must adapt to remain competitive.

Resistance among staff can hinder these efforts, therefore understanding the top factors causing this resistance and recognising the signs can help organisations devise effective strategies to manage and mitigate it.

Top Factors Causing Resistance to Change 

Fear of the Unknown: One of the most common reasons for resistance is fear of the unknown. When team members are uncertain about how changes will affect their roles, responsibilities, and job security, anxiety and opposition often follow. 

    Lack of Communication: Poor communication or lack of information about the change process can lead to misunderstandings. The team needs to understand the reasons behind the change and how it will benefit them and the organisation. 

      Loss of Control: Change can make team members feel as though they have lost control over their work environment, leading to resistance as they cling to familiar processes. 

        Bad Experiences with Past Changes: Negative experiences with previous changes makes team members sceptical about new initiatives. If past changes were poorly managed or led to negative outcomes, they might resist future changes. 

          Lack of Trust in Management: Trust in leadership is crucial for successful change management. Resistance is likely if the team does not trust management or believe that leaders are not acting in their best interests. 

            Fear of Failure: Team members may resist change because they fear they will not have the skills or knowledge to succeed in the new environment, which is a significant barrier to embracing change. 

              Signs of Employee Resistance

              Decreased Productivity: A noticeable drop in productivity is a sign that the team members are resisting change. This might manifest as missed deadlines, lower quality of work, or a general decline in output. 

              Increased Absenteeism: Resistance to change can result in people taking more sick days or requesting more leave to avoid dealing with the new changes. 

                Negative Attitudes / Low Morale: An increase in complaints and a general drop in morale may indicate resistance. Team members might openly express their dissatisfaction or engage in passive-aggressive behaviour. 

                  Lack of Engagement: Disengaged team members might show a lack of interest in their work, avoid participating in meetings, or stop contributing ideas. adjustments.

                  Strategies to Overcome Resistance

                  Effective Communication: Clear, frequent communication is vital. Ensure your team understand the reasons for the change, the benefits it will bring, and how it will be implemented. Encourage questions and provide honest answers. 

                  Involve the Team: Involvement in planning and implementing change can reduce resistance. When team members feel they have a say in the process, they are more likely to support it. 

                  Provide Training and Support: Offering training and resources alleviates fear of incompetence. Make sure they have the skills and knowledge needed to thrive in the new environment. 

                  Address Feedback: Listen to concerns and take feedback seriously. Addressing issues promptly can prevent small problems from escalating into major resistance. 

                  Lead by Example: Leadership should model the behaviour and attitudes they expect from team members. When leaders are committed to the change, it can inspire similar feelings in the workforce. 

                  By understanding the factors that cause resistance and actively addressing them, organisations can create a smoother transition process. Effective change management is not just about implementing new systems or processes; it’s about leading people through a transition and ensuring they feel supported and valued throughout the journey. 

                  If your organisation is implementing changes, please get in touch to discuss how the Change Specialists can support your journey.  

                  Contact John, or connect with him on LinkedIn

                  How to Maximise ROI in Change Management

                  Knowing how to maximise ROI in change management is key for any organisation undertaking transformations. Effective change management mitigates risks while also enhancing the likelihood of achieving desired business outcomes. This blog post from our CEO John Dean explores best practices for maximising ROI in change management.  

                  Align Change Initiatives with Strategic Objectives 

                  It is crucial that change initiatives align with the organisational objectives. This alignment ensures that the change contributes directly to the overarching goals of the business.

                  Update Stakeholders on a Regular Basis

                  Engage stakeholders from the outset and maintain good communication throughout the change process. This engagement ensures buy-in, mitigates resistance, and fosters a culture of collaboration. Regular feedback sessions and transparent communication help identify potential issues early and allow for timely adjustments.

                  Adopt a Structured Change Management Framework

                  Utilising a framework such as ADKAR (Awareness, Desire, Knowledge, Ability, Reinforcement), provides a clear roadmap for managing change. This framework helps in systematically addressing the human side of change, ensuring that everyone is adequately prepared, equipped, and supported throughout the transition.

                  Track and Measure Benefits Realisation 

                  Define clear metrics and continuously measure progress against these metrics. The approach allows organisations to track the realisation of benefits and make necessary adjustments to stay on course. By setting clear KPIs and regularly reviewing performance data any required ,corrective actions can be implemented promptly.

                  Invest in Change Leadership and Capability Building

                  Developing strong change leadership and building change management capabilities within the organisation are vital for sustained success. Investing in training programmes and creating a network of change champions can significantly enhance the organisation’s ability to manage future changes effectively. This approach supports the success of change initiatives and embeds a resilient change culture across organisations. 

                  Conclusion

                  Maximising ROI in change management requires many actions, such as creating a strategic approach. By adopting these best practices, organisations can enhance their change initiatives’ effectiveness and realise substantial returns on their investments.

                  A disciplined and inclusive approach to change management is key to achieving and sustaining business success. Following these guidelines means organisations can navigate the complexities of change with confidence and ensure that their investments yield tangible and lasting benefits. 

                  At Change Specialists, we can provide your business with the help it needs maximising its ROI. Please contact us and we will get you on the right track.  

                  Contact John, or connect with him on LinkedIn

                  Basic Drills for Governing Change in 4 Steps

                  Change Specialists Practice Director Julian Brown shares his insights on basic drills for governing change in 4 steps.

                  Strong and effective governance in IT, Digital and business change programmes supports successful outcomes. With technology playing a pivotal role in driving business success, I must stress how crucial it is to put in place robust governance practices that ensure the successful execution and delivery of IT initiatives. This blog post shares some of my best practice techniques for governing change programmes.

                  Define a Clear Governance Framework

                  Establishing a well-defined governance framework is the foundation for ensuring that an IT or business change programme is governed effectively. This framework should outline the roles, responsibilities, and decision-making processes within the company. Key components of the framework should include:

                  • Definitions of the roles and responsibilities of stakeholders, such as executive sponsors. It’s important to call out the decision making authority to avoid ambiguity.
                  • Establish effective channels for communication and reporting, ensuring that stakeholders receive timely updates and are involved in decision-making processes. Regular status reports, project dashboards, and executive briefings are some effective communication tools. Transparency is key.
                  • Develop comprehensive policies and procedures that govern the stage gates which the projects will go through, such as initiation and

                  Engage Stakeholders and Establish Ownership

                  Engaging stakeholders early and ensuring their active involvement throughout the project or programmes lifecycle is crucial for effective governance. Here’s how you can achieve this:

                  • Secure strong executive sponsorship to provide strategic direction, allocate necessary resources, and remove any roadblocks that may get in the way.
                  • Foster collaboration between IT, the business, and other relevant stakeholders to ensure alignment of the programme or project objectives with organisational goals. Involve stakeholders in decision-making processes.
                  • Assign clear ownership for deliverables, milestones, issues and risks. This accountability ensures that individuals are responsible for their respective roles and fosters a sense of ownership and commitment.

                  Establish Robust Programme and Project Management Practices

                  Implementing effective practices is vital for successful governance of IT and business change programmes and projects. Like Change Specialists, you may want to consider the following:

                  • Develop detailed project plans, outlining objectives, timelines, resource requirements, and deliverables and implement a robust project management methodology.
                  • Identify, assess, and manage risks throughout the lifecycle. Enforce a risk management framework that enables proactive risk identification, mitigation, and contingency planning.
                  • Establish KPIs and metrics to track progress, measure success, and identify areas for improvement, as well as regularly monitoring and reporting on these metrics to stakeholders.
                  • Identify and register dependencies within the programme or project and those that are external i.e. in the rest of the organisation or outside.

                  Continuous Improvement and Learning

                  To drive continuous improvement and learning, companies must create a culture of adaptability and innovation. Below are some thoughts on how you might create this:

                  • Conduct in-depth reviews at the end of each programme or project phase to capture lessons learned. It’s a good idea to document and share successes, challenges, and recommendations for future initiatives.
                  • Establish knowledge-sharing mechanisms, such as communities of practice, to encourage sharing of best practices, experiences, and lessons learned across the organisation. Recognise colleagues who are collaborating and sharing ideas.
                  • Embrace ‘Agile’ principles in governance practices, allowing for iterative adjustments and flexibility where governance processes are continuously reviewed and adapted to address evolving needs and changes in the IT landscape.

                  If you found this post helpful, would like to share your own basic drills for governing change, or to find out how Change Specialists could support your IT, Digital or Business Change plans, please contact Julian, or connect with him on LinkedIn.

                  Why Cyber Security is Vital in Today’s Digital Landscape

                  In our increasingly interconnected world reliable cyber security is rightly a high priority for organisations. This blog post from our CEO John Dean explores why cyber security is vital in today’s digital landscape.

                  The Growing Need for Cyber Security

                  The rapid adoption of digital technologies has transformed the way businesses operate, bringing numerous benefits in efficiency, communication, and data management. However, this digital transformation has also made organisations more vulnerable to cyber threats. In the UK, cyber security is now a top priority for businesses, governments, and individuals alike.

                  Cyber attacks can result in issues like severe financial losses, as well as reputational damage and legal consequences. With the increasing sophistication of cybercriminals, the need for robust cyber security measures grows year by year. In fact, according to the Cyber Security Breaches Survey 2023, 39% of businesses in the UK reported having a cyber security breach or attack in the last 12 months.

                  Key Cyber Attacks in the UK

                  The UK has witnessed several significant cyber-attacks that underscore the urgent need for amplified cyber security measures. These incidents highlight the diverse nature of cyber threats, ranging from ransomware and phishing to data breaches. The impact they can have is widespread. Some notable examples include:

                  Redcar & Cleveland Borough Council (February 2023): A ransomware attack disrupted council services, costing the council over £10 million in recovery efforts.

                  EasyJet (May 2023): The airline disclosed a cyber-attack that compromised the personal information of approximately nine million customers.

                  NHS (July 2023): A phishing attack targeted NHS staff and exposed sensitive patient data.

                  British Airways (September 2023): A data breach affected over 400,000 customers, resulting in a substantial fine from the Information Commissioner’s Office (ICO).

                  Key Areas of Risk

                  • Ransomware – Attackers encrypt an organisation’s data and demand a ransom for its release, causing operational disruptions and financial losses.
                  • Phishing – Cybercriminals use deceptive emails to trick employees into revealing sensitive information or downloading malicious software.
                  • Supply Chain Attacks – Targeting third-party vendors to gain access to an organisation’s systems which exploits the interconnected nature of modern business operations.
                  • Insider Threats – Employees or contractors with malicious intent or negligence can compromise security from within the organisation.

                  The Changing Cyber Security Landscape

                  In recent years we have seen significant changes in the cyber security landscape. For example, the COVID-19 pandemic accelerated the adoption of remote work, increasing the attack surface for cybercriminals. Also,, the rise of the Internet of Things (IoT) and 5G technology has introduced new vulnerabilities. Regulatory changes, such as the General Data Protection Regulation (GDPR), heighten the importance of data protection and compliance.

                  The Role of Change Management in Cyber Security

                  Effective change management is crucial in implementing and maintaining robust cyber security measures. If your business uses a change management scheme, security protocols would be integrated into an organisation’s operations, minimising disruptions and maximising team adoption.

                  At Change Specialists, we recognise the importance of a structured approach to cyber security. Our expert capabilities can help organisations navigate the complexities of implementing new security measures, and they can align your business goals to make sure that changes are effectively communicated and adopted.

                  Conclusion

                  With the rise in cyber attacks and the evolving threat landscape, organisations must adopt robust security measures to protect their assets and reputation. I believe that change management plays a pivotal role in this process where security protocols are seamlessly integrated into business operations.

                  Get in touch with the team at Change Specilaists to discuss your current or upcoming change programme.

                  Adaptive change

                  Selecting the Right Project Methodology

                  As a sponsor of projects or programmes, your decisions will significantly influence the project’s outcome. One crucial decision is selecting the right project methodology.

                  This guide from our CEO John Dean aims to simplify this process by breaking down the phases of three popular methodologies – Waterfall, Agile, and Wagile, while also considering the impact of company culture on your choice.

                  Waterfall Methodology Phases

                  • Requirements Gathering: Clearly define all project requirements.
                  • System Design: Create a detailed system architecture.
                  • Implementation: Actual building or coding.
                  • Testing: Rigorous testing of the entire system.
                  • Deployment: Going live for end-users.
                  • Maintenance: Ongoing support and maintenance.

                  Agile Methodology Phases

                  • Planning: Initial planning and prioritisation.
                  • Sprint Planning: Short work cycles (sprints) are planned.
                  • Execution: Work on tasks for the current sprint.
                  • Review: Evaluate what was accomplished.
                  • Retrospective: Discuss what went well and what didn’t.
                  • Release: Deploy the incrementally built product.

                  Wagile Methodology Phases

                  • Initial Planning: Similar to Waterfall but less exhaustive.
                  • Design & Development: A blend of Waterfall’s design and Agile’s execution.
                  • Sprint Execution: Agile sprints for specific tasks.
                  • Testing: Iterative testing.
                  • Deployment: The system goes live.
                  • Review & Adapt: Ongoing analysis and adjustments.

                  The choice of methodology is pivotal and should align with both the project’s needs and organisational culture. If your project seems to be going off track a reassessment may be required.

                  Understanding of these variables equips you to make informed decisions that can significantly impact the project’s outcome.

                  Comparative Analysis

                  Planning: Extensive in Waterfall, minimal in Agile, moderate in Wagile.

                  Design and Development: Separated in Waterfall, incorporated in Agile sprints, blended in Wagile.

                  Execution: Single and linear in Waterfall, iterative in Agile, can be both in Wagile.

                  Testing: Post-development in Waterfall, within sprints in Agile, both in Wagile.

                  Deployment: One-time in Waterfall, multiple in Agile, flexible in Wagile.

                  Review & Adaptation: Lacking in Waterfall, constant in Agile, essential in Wagile.

                  Change Specialists work with clients across multiple sectors to support them to achieve successful outcomes for business change and digital transformation programmes.

                  Contact us to discuss your pending or current programmes of work.

                  UK Labour Market Update June 2024 

                  You may be aware that Change Specialists produce a monthly UK Labour Market update highlighting headline statistics relating to the UK market. Here’s our update for June 2024 in 45 secs 👇

                  UK Labour Market Update Summary

                  The number of active job adverts reflects continuing steady demand for workers despite slow progress in the wider economy.

                  Employers remain intent on hiring and investing in their business, but are acting more cautiously because of economic and political uncertainty. This is expected to change as inflation stays low and interest rates drop over the summer.

                  Interested in receiving monthly UK labour market updates direct to your inbox? If you have found our Labour Market overview insightful drop us a message – info@changespecialists.co.uk or follow our company page on LinkedIn to receive regular updates.

                  Change Specialists work with clients across multiple sectors to support them to achieve successful outcomes for business change and digital transformation programmes.

                  Contact us to discuss your pending or current programmes of work.

                  5 Tips for Developing a Project Plan 

                  Project planning is a critical phase in the project management lifecycle, as it lays the groundwork for the successful execution and delivery of projects. These 5 tips for developing a project plan from our CEO John Dean lift the lid on essential components required for success.

                  John provides an overview on how to implement these strategies in Microsoft Project, a popular project management software used by professionals worldwide, including those at Change Specialists.

                  1. Define Project Scope and Objectives Clearly

                  Tip: Begin by establishing a clear understanding of the project’s scope and objectives. This involves detailing the project’s goals, deliverables, constraints, and the criteria for success.

                  Implementation in Microsoft Project:

                  • Start by creating a new project. Set up the project information by going to the “Project” tab and clicking on “Project Information.”

                  • The “Task” section is utilised to break down the project into smaller, manageable tasks.

                  • Deliverables need to be defined for each task or phase. Use the “Notes” section of each task to ensure clarity on the expected outcomes.

                  2. Develop a Detailed Work Breakdown Structure (WBS)

                  Tip: A Work Breakdown Structure (WBS) is essential for decomposing the project into smaller, more manageable components. It helps in organising and defining the total scope of the project.

                  Implementation in Microsoft Project:

                  • Utilise the “Task Name” field to create a hierarchy of tasks and subtasks, effectively outlining your WBS.

                  • Indent and outdent tasks to create a structured, hierarchical view of the project tasks, facilitating easier management and tracking.

                  3. Assign Resources and Estimate Durations

                  Tip: Assign the right resources to each task, including team members, equipment, and materials, and estimate the duration of each task accurately to ensure realistic planning.

                  Implementation in Microsoft Project:

                  • “Resource Sheet” view can be used to add and define all the resources available for the project, including human resources, equipment, and materials.

                  • Add these resources to specific tasks using the “Resource Name” field in the task list, adjusting for any resource constraints or availability issues.

                  • Estimate task durations by entering values in the “Duration” field for each task, considering the resources assigned and their availability.

                  4. Establish Milestones and Critical Path

                  Tip: Identify major milestones in your project, such as key deliverables or project phases. Determine the project’s critical path, which is the longest sequence of tasks that dictates the minimum project duration.

                  Implementation in Microsoft Project:

                  • Define milestones by setting the duration of key tasks to “0” days, which will automatically designate them as milestones.

                  • Enter tasks, dependencies, and durations. Select “Gantt Chart” in the “View” tab to select the click on “Critical Path”. This will highlight the tasks that directly impact the project timeline.

                  5. Regularly Review and Update the Project Plan

                  Tip: View project plans as living documents. Regular reviews support the capture of changes and progression alongside any issues arising.

                  Implementation in Microsoft Project:

                  • Regularly update task statuses, completion percentages, and actual start and finish dates to reflect real-time progress.

                  • Use the “Tracking Gantt” view to compare planned versus actual progress. This allows you to make informed decisions and adjustments to the project plan as needed.

                  Change Specialists work with clients from SME’s through to global leaders. We support them to achieve successful outcomes for business change and digital transformation programmes.

                  Contact us to discuss your pending or current programmes of work.