Poorly managing change: The cost of the REs

Individual transitions: the building blocks of successful change

Projects and initiatives create change in a variety of ways by introducing some sort of solution to the organization. These solutions often emerge in the form of new or altered processes, new systems or tools, new reporting structures, new job roles, or new ways of operating. There is often tremendous focus placed on designing the "right" solution to the change. The goal of the solution is to improve performance in the organization and to achieve some sort of desired results and outcomes that triggered the change in the first place.

In the end, though, these solutions each ultimately require individuals to change how they work. A newly designed and documented process delivers improved efficiency only when individuals follow the process. A newly developed technology or tool comes to life only when it is used by individuals in the organization. Conversely, a perfectly designed process that no one adheres to does not deliver the intended results and outcomes. Likewise, a perfectly designed tool that no one uses results in no improvement (and a hefty, negative ROI). Change does not result from the solution, but rather from employees exhibiting the new behaviors, adhering to the new processes, following the new workflows or using the new tools that were triggered by that solution. Said another way, the individual is the unit of change, and thus individuals are the building blocks of successful change.

It is this reality of how change occurs in the organization that results in the costly REs when the people side of change is ignored. When the people side of change is addressed early in the project lifecycle, decisions are influenced and guided by issues related to usability, adoption and functionality for the end user. However, if the end user only enters the conversation late in the design effort, the result is the costly REs of mismanaged change.

Example RE costs that can be avoided

Below are a number of the costly REs that result from addressing the people side of change too late. Think about your experience working on projects and initiatives. Have you ever experienced any of the RE costs? Could the costs have been avoided if the people side of change was addressed earlier in the project lifecycle?

Repeating any activity adds cost. Both time and financial resources are wasted. Schedules and budgets have to be expanded to account for additional costs. The opportunity costs are high when potential revenue is missed during the time it takes to REdo and REwork. Project team members are tied to the project longer than expected and unable to take on a new project. The anticipated benefits of the project are achieved later. The return on investment is delayed. 

The reason that many of these RE costs can be avoided is simple: the people side of change is where changes ultimately occur. It is the bridge between installing a solution and realizing the benefits of that solution. It is the critical ingredient that ensures that a great solution ultimately delivers the intended results and outcomes. When the people side of change becomes part of the strategy early in the project, individual change processes can be managed correctly the first time and, collectively, the project's business results can be achieved without costly REs.