Beyond Technology: Why Organisational Change Management Must Lead Your Transformation Efforts
When we talk about business transformation, technology usually steals the spotlight, doesn’t it? It’s exciting—new tools, cutting-edge software, AI—it’s hard not to get caught up in the buzz. Companies pour millions into these advancements, thinking they’re the golden ticket to success. But here’s the truth: technology alone doesn’t guarantee transformation.
What often gets overlooked—trust me, I’ve seen this firsthand—is the human element. You can have the shiniest new tech in the world, but if your people aren’t ready for it, it’s just going to sit there, gathering dust.
I remember attending a Gartner event a while back, fully expecting to hear about the latest trends in AI or cloud computing. But what really struck me wasn’t the tech itself—it was a session on adoption. Not how fancy the systems were, but whether people were actually using them. And that’s when it hit me (again): Organisational Change Management (OCM) isn’t just a box to tick. It’s the foundation of any successful transformation.
The Gap Between Expectations
Think about this for a second: When you buy a new phone, what do you expect? It’s going to work straight out of the box, right? If it doesn’t, you’re on the phone with customer support in no time. We’ve got high expectations for technology in our personal lives. But at work? It’s a different story.
Somehow, we’ve come to expect problems—delays, bugs, “oh, that’s just how things are.” But why? Why do we lower the bar for technology in the workplace?
This gap between expectations is exactly where things start to fall apart. Technology might be the tool, but if the people using it aren’t engaged or ready, it’s going to flop. And that’s where OCM steps in. It’s not just about sending out a few training emails—it’s about helping people want to embrace the change.
My Experience: The Reality of Multiple Transformations
Let me tell you a story. A few years ago, I was part of an organisation that decided to tackle three major programs at once: a core banking refresh, digital banking, and a CRM system upgrade. And to make it all work together, we had to implement an Enterprise Service Bus (ESB). The CEO gave us 18 months to get it all done—talk about ambitious, right?
Here’s the kicker: The Head of Strategy insisted that 10% of the entire program budget be set aside for change management. Now, at the time, I thought that was a bit much. I was more focused on getting the best systems in place. But looking back? That 10% was crucial.
You see, it wasn’t just about implementing these shiny new systems. It was about changing how the entire organisation—and more importantly, the people in it—worked. Without proper change management, we would’ve been setting ourselves up for failure.
As the project progressed, I started to realise just how much people needed support. It wasn’t enough to give them new tools. They needed to understand why these changes were happening and how they’d affect their daily work. That’s when I really began to see the value in OCM. Without it, we would have had some fancy new systems that no one was ready or willing to use.
OCM: The Unsung Hero of Transformation
Let me put it this way: OCM is about more than just sending out a few emails or scheduling training sessions. It’s about understanding how people feel about change. Resistance isn’t always logical—it’s emotional. If you don’t get that part right, all the tech in the world won’t make a difference.
Studies back this up. Prosci research shows that projects with effective OCM are six times more likely to meet their objectives. And both Harvard Business Review and MIT Sloan found that companies that allocate 10% to 15% of their budget to OCM significantly improve their chances of success.
But here’s the reality: too many companies still underinvest in OCM. McKinsey found that 70% of transformations fail, and a big reason for that is ignoring the human side of change. People resist or avoid new systems, and without proper support, things fall apart.
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The Psychology of Change
Here’s the interesting part: we’re hardwired to resist change. It’s in our DNA. We like sticking to what we know because, for most of human history, that’s how we survived. So, when something new comes along, especially in the workplace, there’s pushback.
That’s why we’re seeing more and more psychologists and behavioural experts being brought in during business transformations. It makes sense, doesn’t it? They’re the ones who can help break down the emotional barriers that tech can’t fix. Because transformation isn’t just technical—it’s personal.
AI Adoption: Bridging the Human and Tech Divide
Let’s talk about AI for a minute. Everyone’s buzzing about it—and yeah, it’s revolutionary. But here’s the thing: MIT Sloan found that only 23% of employees feel fully prepared to work with AI. That’s a huge gap! And without OCM, how are we supposed to get the other 77% on board?
It gets worse. Gartner’s 2022 AI Survey revealed that 53% of AI projects never make it past the prototype stage. Why? Because people aren’t ready for it. And McKinsey’s AI Survey? They found that 70% of companies implementing AI see little to no return on investment—not because the tech doesn’t work, but because the people aren’t ready to use it.
The message is clear: You can’t charge ahead with new tech and leave your people behind. OCM is what builds that bridge.
Building a Future-Ready Workforce
So, what’s the solution? It’s simple: invest in your people as much as you invest in your technology. OCM isn’t about ticking boxes; it’s about helping your employees see change not as something to fear, but as something to embrace.
When employees feel engaged, when they understand how the change impacts them, and when they’re given the tools to navigate it, they stop seeing transformation as a disruption. Instead, they see it as an opportunity to grow.
That’s the kind of culture OCM can create, and that’s why it’s so critical to any transformation journey.
Conclusion
At the end of the day, successful transformation boils down to one thing: people. Technology is powerful, yes, but only when it’s in the hands of people who are prepared to use it. Organisations need to remember that the human element is just as important, if not more, than the tech itself.
If you want your transformation to succeed, OCM needs to lead the charge. As the future of work evolves, don’t lose sight of the human element. Keep it front and center, and you’ll not only transform your business—you’ll transform your people along the way.
Financial Sector Transformation | Global Risk Management & Compliance | Operating Model Implementation
1 个月Your observations and lived experiences are on point. A 2024 study revealed that more than 80 percent of AI projects fail (Ryseff, De Bruhl, Newberry).?For context, a Stanford study indicated that AI investments reached $67.2 billion in the USA in 2023. Applying the first statistic, that could represent $53 billion of mis-directed investments. There are definitely use cases where AI excels, but it is by no means a panacea, or a replacement for the role of people in the successful execution of transformation programs.
Head of Portfolio Change and Optimisation- CXO and Corporate Transactions (M&As) at AIA
1 个月Great article Emmanuel. It resonates with me and speaks to many of my experiences. When I have worked on a project/program/portfolio where the leader gets it, what we can achieve is almost limitless.