Logica Study Shows Consequences of Lack of Change Management

A new study commissioned by Logica Management Consulting identifies winners and losers in business process change and outlines best practice guide

• Companies surveyed in the UK losing £1.7 billion a year
• One third of business process changes fall short of expected benefits
• One fifth of businesses do not measure change management performance

A key finding from the report is that winners tend to be more ambitious when planning change projects. Winners are much more likely to run cross-regional, cross-departmental projects than losers. They are also more proactive when planning change projects, don’t wait for problems to arise such as customer complaints or lost market share before implementing change reactively, but plan for change in order to improve business performance and involve customers and partners in that planning.

High performers also put more emphasis on treating change as a distinct project with its own budget, instead of attempting to manage change as part of day to day business. Such a simple step serves to counterbalance the key obstacles to successful change, namely pressure from everyday business (42%) and lack of resources (41%).

Editor P.S: The report also highlights the main barriers to effective business improvement. The majority of these barriers are directly or indirectly related to change management issues, such as lack of dedicated resources, lack of alignment between functions, relevant indicators and level of employee buy-in. Interesting also, are the country analysis charts highlighting substantial cultural differences in the way executives perceive barriers and critical success factors for change. For example, Belgium and Sweden mention lack of senior management support in their top 3 barriers while Germany and Spain feture lack of acceptance and buy-in of employees in their top 5.

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