12/9/2019
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The Impact of Change
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Case Study
What types of change do we see in our industry?
23 The McKinsey study examined many project variables and in particular, the effect of an Organizational Change Management (OCM) program on a project’s ROI. The study showed the ROI was:
24 The 11 most unsuccessful companies in the McKinsey study had poor change management, which showed up as the following:
• 143 percent when an excellent OCM program was part of the initiative;
• Lack of commitment and follow through by senior executives;
• 35 percent when there was a poor OCM program or no program.
• Defective project management skills among middle managers;
What do those these results mean? A 143 percent ROI means that for every dollar spent on the project the company is gaining 43 cents . On the other hand, a 35 percent ROI means that for every dollar spent they are losing 65 cents .
• Lack of training of and confusion among frontline employees.
ChangeManagementThat Pays,” McKinseyQuarterly ,2002
ChangeManagementThat Pays,” McKinseyQuarterly ,2002
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