Common Change Mistake #1 – Return on Investment (ROI) goals are not clearly identified at the outset.

Change Mistake #1 - Return on Investment

In business, making a change of substantial scope should positively affect the bottom line and as such must be measureable in terms of a return on investment.

It has been our experience that too often until we bring this fact to our client’s attention, it is overlooked. The executives who authorize the change have not clearly defined the outcomes – the ROI they want from the change.

Whether the change project is a new software system or new organization structure, the delivery of that change is simply a means to a greater end. Implementing the stages of the change on budget and on time may be perceived to be successful delivery of the change. However, this does not ensure successful delivery of all the benefits from that change.

One important aspect is frequently overlooked.

For most change projects today, achieving the full ROI depends on employees adopting and using new practices with proficiency within a specific period of time.

Specific, Measureable, Attainable, Relevant, Time-bound – SMART goals must be stated. Statements should be as direct as: To reduce processing errors by 20% within 90 days; or, To increase application processing efficiency by 30% within 120 days after implementation; or, To reduce operating costs by 18% within 6 months. Without them, chances are high that goals will not be met.

At Change Management Professionals, we help to mitigate this important and costly mistake by helping to:

  • Identify the portion of project goals dependant on employees adopting and using new practices, and
  • Drive the planning, implementation and post implementation actions that are required to ensure they are delivered.

 

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