Calculating projected return on investment (ROI) is common practice in evaluating the cost versus benefit of implementing strategic initiatives of all stripes and scope. But what about major change efforts?
The one critical success factor in any organizational change initiative is how quickly people participate in, accept, and assimilate the transition. Yet how often is this seemingly obvious truth factored into leadership discussions of ROI and risk analysis for large-scale change and transformation?
In essence there are five "people side" factors which contribute to, or limit the value (ROI) a change delivers to an organization. Simply put, anytime a change requires people to do their jobs differently, it's how effectively they master the change that determines the business value the change delivers.
Increase the value (and success) of your transformation by designing, leading, implementing, and sustaining it to deliver high returns in these five "people side" change ROI factors:
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Acceptance: How many employees believe in the value and benefits of the change, and agree that the change is necessary.
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Speed of Adoption: How quickly people make the changes required.
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Utilization: How many people do their work in the new way.
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Proficiency: How effective each person is once they have adopted the change.
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Mastery: How effective the organization has become at embedding change leadership and change management competency into the culture, thus making it change-resilient and change-ready. (Change Mastery is the ultimate change ROI - paying dividends well into the future).
2009 Copyright © Moore & Associates
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