How (People) Change Management can shore up Capital Investments and secure forecasted Rates of Returns
Dana Houston Jackson, CCMP, PMP, MS
Creatively transforming possibility into value | Change Leader | Coach | Educator | Futurist | AI and Tech | Revitalizing Willingness
Capital Investments try to avoid risk. To encourage investors to invest their funds into risky projects the returns from such projects should be higher than the returns from less risky investments.
A great deal of capital project failure comes from a failed attempt by people to adopt and use the new solutions or strategy – whatever it may be. If people do not adopt the solutions, put it into application and keep it in use, then a considerable percentage of that project’s Return on Investment (ROI) is lost = Risk.
The time it takes for a project to pay back the amount of money invested is a matter of concern to most investors. Investors set a time limit within which they expect to receive returns. Each project’s cash flow is determined. A project whose return fails beyond the time limit will be deemed risky. If the human-element of a project does not get onboard in time, and utilize long-term the strategy or solutions then investors see a dimensioning return. True value is achieved by what gets used - not just built or designed.
To fully capture the investment value the project must consider the people adoption and usage as an inseparable piece of the project planning. A fully integrated project plan that includes all the activities and deliverables (People) Change Managers provide on any given project should be mandatory for any capital planning and funding endeavor.
People Change Management is not a “value-add” proposition, it is a “must have” if you want your full investment plus gains. Will you be satisfied will only partial returns? If not – insist (People) Change Management activities are part of all Capital Planning efforts.
Written by Dana Houston Jackson, PMP, CCMP - Senior Change Management Consultant with 1898 & Co - part of the Burns and McDonnell family
#ChangeManagement #Prosci #1898andCo #Utilities #Capitalinvesments #Investments #CapitalPlanning
GM/Strategic Change Consulting Practice Lead at The Advantage Group, Inc.
5 年Dana Houston Jackson, PMP, CCMP, Prosci Excellent article. Thanks.? Nevertheless People Change Management can't be addressed in isolation, there are Culture, Processes and Systems involved in Change that need to be addressed as a whole. The vast majority of Change initiatives wrongly deployed and unsustainable because of lack of Organization Readiness and lack of Change Governance confirms that Thank you for sharing Have a nice weekend