Most ERP implementations don't fail because the technology is wrong. They fail in the space between a signed charter and sustained leadership, where approval ends and active sponsorship never quite begins. In this episode of Built to Change, Emma de-la-Haye, Engagement Director for UK & Ireland, and Kelli Smith, Director and Engagement Leader for Prosci North America, look at what that gap looks like in practice: why it opens, what it costs, and what the executives who get it right do differently.
One pattern they keep returning to: executive resistance to ERP can run higher than in any other group in the organization. That matters because sponsorship is the single biggest driver of ERP s...
Delivering Value, Not Just Systems: Strategic Alignment Before ERP Configuration
Enterprise resource planning (ERP) systems promise streamlined processes, greater efficiency, and higher productivity. But these promises only uphold when teams strategically align and optimize processes before automating them in the new system.Strategy and Process Design account for 22% of what 1,618 ERP professionals would do differently to improve ERP success—the third-largest category. That’s because automating broken processes leads to faster failures and rarely delivers benefits without heightening operational friction. Without executive clarity on what success means, implementation teams optimize for technical completion while business leaders expect transformational outcomes. Delivering value, not just the ERP system, requires alignment, governance, and a shared direction for the way forward. What leaders said they would do differently to improve the business benefits gained from their ERP implementation ERP system vs. value delivery ERP programs are often judged by whether the system goes live, but that’s not what the business ultimately cares about. Executives must stay anchored in value delivery, not just technical implementation, to deliver the business transformation organizations want. Revisiting value delivery throughout the ERP implementation When supporting ERP deployments, I see senior leaders start with a strong business case that clearly articulates value, benefits, metrics, and people impact. And then, once the business case is presented and approved, teams rarely revisit it. But when leaders archive the business case and set it aside, failing to keep it top of mind, executives and steering committees can unintentionally shift their focus from value realization to technical progress. Leaders can and should regularly revisit the ERP implementation business case, asking questions like: What is our business case? Which value assumptions are still valid? Are there any benefits we want to achieve that are currently at risk? What can we do to limit risk or assess the trade-offs of failing to achieve these benefits? × Unlocking ERP Implementations - A prosci Research White Paper Equipping sponsors to communicate the story for change In addition to revisiting the ERP business case, emphasizing and ensuring the sponsor understands how to be an effective sponsor, and can communicate the value and business benefits, helps keep the goal top of mind. In practice, this looks like: Conducting a sponsor briefing at the beginning of an ERP deployment and reiterating the importance of communicating the story for change Engaging the sponsor coalition around the value story and business benefits Challenging the team when decisions drift toward technical implementation allows sponsors to naturally ask, “Are we on track to deliver the value we promised? Monitoring change alongside project delivery Finally, strong governance is the practical mechanism that can help teams prioritize value delivery over system implementation success. In ERP deployments, we often see a program management office (PMO), and it’s critical to have a change management office (CMO) integrated alongside them. The integration of project management and change management helps teams assess not only the project’s progress, but also the people side of change, keeping the people impact and desired benefits at the forefront of the work. The cost of misaligned ERP programs When I worked on an SAP deployment for a large energy company, the ERP system relied heavily on another initiative related to rationalizing the entire application landscape. The applications were supposed to be ready before the SAP arrived, but the sequencing between the two programs was misaligned. Meetings between the sponsors and program leaders were infrequent and lacked a structured approach to shared risks, dependencies, or success criteria. The ineffective communication between sponsors led to compounding risks, including: A lack of shared knowledge around decommissioned and improved applications, leading to interface design that didn’t match reality, and increasing costly ERP system configuration rework Misaligned program roadmaps leading to missed milestones due to unaccounted for interdependence Technical escalation issues and extended life of legacy applications, increasing cost for an extended period Financial impact due to ERP implementation delay Temporary technical workarounds to bridge the gap between the planned and actual states, adding further cost and complexity Widespread confusion and change fatigue as a result of mixed messaging from the two sponsors across the multi-country, multi-entity environment When organizations lack a tight connection between highly interdependent programs, confusion and risks compound, making or breaking the success of an ERP initiative. Without effective coordination, these misaligned programs created a cascade of escalations, increased risk exposure, higher overall program costs, and significant people impact. Preventing misaligned ERP programs From a governance perspective, this example illustrates the cost of misalignment, which executives can prevent through: Clearly defining ERP success criteria and stating that ERP success is conditional on the outcome of interdependent programs Unifying or tightly aligning interconnected programs as one interdependent transformation with a shared or overarching sponsor Centralizing governance through joint steering committees focused on shared risks and combined success metrics, rather than running the programs in silos Transformational change outcomes are much harder to achieve when misalignment creates unwanted risks and costs, hindering the success of an ERP implementation. ERP programs dependent on other initiatives face compounded risk when program leaders aren't aligned. Defining ERP success before go-live Business leaders don’t invest in ERP systems to achieve technical implementation without change; they expect transformational outcomes. Emphasizing the importance of a shared story for change before go-live is essential to steering the program toward the outcomes the organization cares about. Here’s how we approach workshopping the story for change and aligning on success: Align on the business context and case for change Before configuration starts, executive sponsors and key stakeholders need a shared understanding of why the organization needs the ERP now. This looks like asking the questions: What is the organization’s current position in the market and competitive landscape? What challenges is the organization facing internally and externally? What is the current stance on the evolution of the company and the market? Why is an ERP the right solution to these challenges? Where do you want to go with the new ERP? What past successes should we celebrate before beginning this transformation? Without this context, teams risk treating the ERP as a technology upgrade rather than a business-critical transformation. Acknowledging past successes also helps paint the picture that the foundations are in place to support this new initiative. Define ERP success criteria and measures At Prosci, we use the Prosci Change Triangle (PCT) Model, one of the two foundational models of the Prosci Methodology, to help senior leaders, steering committees, project managers, change managers, and other key stakeholders align on a shared definition of success. We encourage them to consider the desired situation and imagine the change as a success years down the road. We ask: What will we celebrate at the end? What does success look like? What key metrics will we measure to show that the ERP implementation is successful and achieving the benefits the organization wants to realize? What key benefits and value will exist? This exercise encourages leaders to workshop and agree upon a consistent story for change while also considering how to manage the transformation operationally. The goal is to find common ground that shapes the global story around the ERP deployment, the overarching vision, and key success metrics. Defining success before go-live has to be done really well in advance, which is not always the case for organizations kicking off ERP implementations. Determine standardization balance In global ERP programs, executives also need to make an explicit decision about the balance between standardization and local adaptation. In practice, a common pattern is aiming for roughly 80% standardization and 20% local adaptation. The 80% represents the harmonized consistency that drives efficiency and comparability across different parts of the organization. The remaining 20% is a governed space for local adaptation, such as country-specific applications, regulations, or deeply embedded systems that cannot change on the same timeline. When organizations drift toward 80% local and 20% standard, they erode the enterprise value case and recreate complexity. When they refuse any local flexibility, they fuel resistance and workarounds. Treating the 80/20 balance as a strategic value decision, grounded in the business case, helps leaders protect both global harmonization and local realities. Process optimization before ERP configuration Our research shows that process optimization before configuration prevents costly rework, whereas automating broken processes leads to faster failures. Reconfiguration after go-live costs substantially more than proper design beforehand. In the SAP deployment for the large energy company mentioned above, the misaligned interdependence between the application program and the lack of clarity around that body of work led to some rework of the ERP system configuration. When processes are unclear, inconsistent, or misaligned with the business strategy, a new ERP system merely exacerbates them. Optimizing and standardizing core processes before configuration, grounded in the business case, success criteria, and 80/20 standardization decisions, ensures that what you automate reflects the way the organization intends to operate going forward for the best results. Executive action for strategic alignment before ERP configuration Whether you’re preparing to launch an ERP program or trying to realign one that’s already in motion, consider: Revisiting your business case governance – Don’t let the ERP business case be a one-time approval that disappears after. Use it as a standing reference to revisit value assumptions, assess at-risk benefits, and consciously decide on trade-offs. Advocating for cross-program alignment – When ERP success relies on related initiatives, manage them under a shared governance umbrella. Align sponsors, integrate roadmaps, and create joint oversight focused on shared risks and success metrics. Treating these programs as one transformation reduces rework, prevents compounded risk, and preserves the path to value while making the messaging more explicit and clearer for the impacted groups. Balancing standardization with local realities – Decisions about the 80% standard / 20% local adaptation balance are value choices. Ground these decisions in the business case and success criteria, and reinforce them consistently to avoid scope creep, confusion, and resistance. When executives take these actions, ERP programs are no longer driven primarily by technical milestones. Instead, they are guided by clear definitions of success, integrated governance, and disciplined attention to the people that ultimately determine whether value is realized.
Making Change Stick: The Role of People Readiness
While organizations focus on technology, processes, and timelines, people readiness — whether individual humans are ready, willing and able to change — is what’s necessary for successful organizational change.People readiness is often misunderstood as something measured by training attendance, a one-time communications blast, or a gut feeling from leaders that “people seem ready” to change. In reality, true people readiness reflects clarity about the change, willingness to participate, and know-how and capability to perform new ways of working. In this article, we cover why people readiness is important, key components for building it, consequences of poor people readiness, and best practices to implement. × Calculating the ROI of Change Management Why is people readiness important? People readiness is critical for teams because organizational change only succeeds when individuals choose to accept, adopt, and use a change in their daily work. Even well-designed change initiatives can fail if people don’t understand why the change matters or lack the skills and support to implement it. Ultimately, people readiness ensures that employees have the necessary context, information, and training to navigate change at the individual level, driving adoption and long-term success. Key components of people readiness Several key components can help your company effectively build people readiness, including the following: Organizational preparedness When organizations have clear objectives and plans, people readiness improves because people have a shared vision to work toward. Leadership plays an essential role in organizational preparedness, serving as the primary sponsors of change. In addition to clear objectives and committed sponsorship, organizations increase preparedness when they put the right training, resources and structures in place to enable adoption. Individual preparedness (ready, willing and able) People readiness is strongest when individuals understand the change and its impact, want to participate, have (or can build) the needed skills, and have support available as they adopt new behaviors. Prosci’s ADKAR® Model addresses these challenges by equipping leaders with the right strategies and tools, and individuals with the right information, motivation and ability to successfully navigate organizational change. Clear change impacts and change readiness People readiness requires clarity about who is impacted and what will change in their day-to-day work, often at the group or role level. Company achievements are the result of the combined effort of all its individuals. It’s necessary to outline how a change will impact groups differently to make sense of how change will come to life across the organization while supporting individual employees through their personal change journeys. Effective communication Organizations increase people readiness when they build an understanding of the need for change, using the right senders and consistent messages. Communicating a compelling why connects the dots for everyone in your organization who will feel the impacts of a change. Additionally, Prosci’s Best Practices in Change Management research consistently shows that people and groups have preferences about who they want to hear from during change: executives for change impacts on the business, and managers for change-related impacts on daily work. Leader and sponsor readiness When sponsors are well-prepared to fulfill their roles, people readiness improves. Leader and sponsor readiness looks like alignment at the leadership level, preparedness to answer questions, quick removal of barriers, and reinforcement of success through celebration of changed behaviors. Manager readiness (CLARC) People managers play a necessary and critical role in people readiness. When people managers are equipped to communicate, gather feedback, advocate, manage resistance, and coach employees through the transition, people readiness accelerates. Prosci research shows that people managers have five unique and important roles to play during times of change, which we refer to as CLARC: communicator, liaison, advocate, resistance manager and coach. Training + coaching to build proficiency Proficiency in a changed behavior or new skill isn’t the result of a one-time training effort. True people readiness is achieved when organizations help individuals build the knowledge and real-world ability to perform in the new environment. Pairing training with coaching and hands-on experience provides this full experience. People-side risk management People readiness improves when you identify the highest people-side risks, prioritize the top risks you can influence, and implement mitigation actions early. A proactive approach to risk management allows leadership to address potential challenges before they materialize. If you preempt risk, you can implement mitigation strategies that minimize disruptions, reduce resistance, and smooth the adoption of change initiatives. Consequences of poor people readiness Poor people readiness creates a predictable chain reaction of resistance, readiness gaps, and slower time-to-value. Specifically, the consequences of poor people readiness appear as: Resistance or workarounds – When employees don’t feel confident or capable of performing new ways of working, they resist and look for workarounds, even if that means following outdated legacy processes. Low utilization – Without sufficient training, skill development, and reinforcement, new systems and processes often go underused. Low proficiency – When skill development results in low proficiency, employees are more prone to errors, costly rework, and significant customer impacts. Cost delays – Transformations are costly enough, and poor people readiness that calls for go-live rework, retraining, or redesign increases costs even further. Manager misalignment – When managers provide different, mixed messages, it leads to uneven adoption and inconsistencies throughout the organization. When leadership isn’t equipped to anticipate and address these issues, adoption and proficiency lag, benefits realization stretches out, and the organization risks only partially achieving objectives. How does people readiness relate to change management? Ultimately, people readiness is the outcome that change management strives to create, leading to higher adoption rates and usage. While change management focuses on enabling people to engage, adopt, and apply a change, people readiness is a practical way to assess whether the affected people are prepared to adopt it. People readiness focuses on individuals and their readiness for change, whereas change readiness examines an organization's shared preparedness to implement change. Prosci research shows more than 50% of practitioners evaluate readiness at the organizational level, but only about 1 in 3 evaluate readiness at the individual level, yet adoption happens one person at a time. People readiness vs. change readiness Below are the key differences between people readiness and change readiness worth highlighting: People Readiness Change Readiness Are the people who must change ready to adopt and use it successfully? Is the company set up to succeed with this change? Focuses on whether impacted individuals and groups are prepared to adapt Focuses on whether the organization overall is prepared for change Low people readiness shows up as: “I don’t know how to do it” or “I can’t do it,” which can be a readiness gap Low change readiness shows up as unclear success definitions, insufficient resources, a weak sponsor coalition, or a lack of support structures Requires preparing individuals to be “ready, willing, and able” to change Requires organizational preparedness (resources, training, sponsor commitment, clear objectives), an open attitude toward change, and individual preparedness (where people readiness fits) How to assess people readiness Assessing people readiness is about understanding whether individuals and groups are prepared to adopt and sustain a change. It provides a structured approach to identifying where people are and what gaps may prevent successful change adoption. A strong readiness assessment enables you to move beyond assumptions and focus your change efforts where they will have the greatest impact. The following steps can help you assess people readiness inside your company: Step 1: Establish project context Start by grounding your assessment in the specifics of the change. Clarify what’s changing and who will be impacted. Identify key stakeholder groups, the nature of the disruption to their roles, and what success looks like from a behavior and adoption standpoint. Without this context, readiness assessments risk being too generic to drive meaningful action. Step 2: Gather readiness intelligence from change leaders and people managers Engage sponsors, change leaders, and especially people managers to understand how employees are reacting. Use interviews, focus groups, and quick pulse checks to capture insights on awareness, sentiment, perceived barriers, and competing priorities. People managers are often closest to the source of employee truth. Step 3: Identify patterns in people-side risks and challenges Look for common themes across key areas, including a lack of awareness, resistance, knowledge gaps, or lack of visible leadership support. The goal is to identify the greatest risks to adoption and usage so you can prioritize them accordingly. Step 4: Use ADKAR to structure what you learn Map people-side risks and challenges against Prosci’s ADKAR Model — Awareness, Desire, Knowledge, Ability and Reinforcement — to pinpoint where in the individual change journey breakdowns are occurring. This turns people readiness assessments into actionable plans with targeted interventions for each stage. Step 5: Define what “ready enough” looks like Establish clear, pragmatic readiness criteria. Absolute readiness is unrealistic. Instead, define what “ready enough” looks like to proceed with key milestones, such as go-live. Readiness criteria might include thresholds for awareness levels, training completion rates, and a percentage of users with demonstrated ability in critical roles. These criteria create team alignment to keep the project moving forward reasonably, rather than pursuing unattainable goals of absolute readiness. Strategies to improve people readiness Improving readiness requires targeted, role-based actions. Key strategies for improving people readiness, based on Prosci’s research and approaches, include: Enabling sponsors – Ensure sponsors are active and visible, take the lead in building a sponsorship coalition, and communicate the why behind the change. Equipping people managers – Provide people managers with the tools, messaging, and confidence to lead their teams through change, ensuring a positive impact on each individual’s journey at each stage of the ADKAR Model. Delivering role-based communication and leveraging preferred senders of messages: Tailor messaging to what each group needs to know and why it matters to them. Building Knowledge and Ability – Offer practical, accessible training and opportunities to practice new skills. Preventing and managing resistance – Identify resistance early and engage directly and empathetically. Reinforcing changes for long-term sustainment – Build Reinforcement through recognition, feedback loops, and performance alignment to embed the change over time. Best practices for people readiness The following best practices reflect what consistently drives successful adoption, helping organizations focus on the right actions at the right time. Define people readiness – Clearly articulate readiness as a combination of being informed (ready), motivated (willing), and capable (able) so that stakeholders share a common understanding of what success looks like. Assess readiness early – Evaluate it as soon as the change is defined, grounding your efforts in the project context and understanding how different groups will be impacted. Prioritize the greatest readiness risks – Focus your efforts on the most significant barriers to adoption rather than trying to address every issue equally, ensuring resources are directed where they matter most. Build readiness with integrated change plans – Align communication, training, sponsorship, and coaching activities into a cohesive plan that collectively advances readiness. Clarify roles among people managers, sponsors, and change practitioners – define and reinforce who is responsible for driving awareness, motivation, and capability, so there is no ambiguity about how readiness is built across the organization. Equip people managers to drive readiness – Enable them to fulfill their roles as communicators, liaisons, advocates, resistance managers, and coaches (CLARC) to influence their individual team members’ readiness. FAQs How do you measure people readiness? People readiness is measured by combining qualitative and quantitative indicators that reflect individuals' progress along their change journey. The ADKAR Assessment, which leverages the Prosci ADKAR Model, is an excellent readiness assessment tool for collecting employee data and identifying gaps in the individual change process. These insights enable change teams to develop targeted solutions that address gaps and support individual transitions, ultimately leading to the successful implementation of organizational change. Who owns people readiness–the project team or leaders? People readiness is a shared responsibility, but ownership ultimately sits with business leaders and people managers, not the project team. Change practitioners and project teams enable readiness by providing structure, tools, and guidance, but leaders and managers directly influence whether their teams are ready, willing, and able to adopt the change through their actions, communication, and reinforcement. How can we improve people readiness quickly without slowing the project? The fastest way to improve readiness is to focus on the highest-impact levers: active, visible sponsorship; equipping people managers with clear messaging and expectations; and addressing the most critical adoption barriers first. Rather than adding more activities, prioritize targeted actions to ensure change efforts are focused, practical, and aligned with project milestones, avoiding parallel work or delays. Embedding change through people readiness By continuously assessing people readiness, addressing the most critical gaps, and equipping leaders and managers to support their teams, organizations can significantly improve adoption and outcomes. When people are truly ready, willing and able, change becomes not only possible, but sustainable.
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Why Projects Fail: Common Causes and How to Prevent Project Failure
Projects fail more often than organizations like to admit, and rarely for one reason. Missed deadlines, budget overruns, and low adoption rates are symptoms of deeper issues: poor leadership, inadequate planning, ineffective communication, and a lack of change management.Understanding why projects fail is critical for improving project outcomes and avoiding repeat mistakes. By addressing both delivery and the human side of change, teams organize and complete projects that deliver lasting value and build change-ready organizations along the way. In this guide, we explore the most common causes of project failure, the role of change management in project success, and practical steps organizations and project managers can take to reduce risk and achieve the outcomes they hope for in every new initiative. × Overcome the 4 most common project management challenges The Importance of Understanding Project Failure Understanding why projects fail is critical to preventing similar situations in the future. When organizations look beyond surface-level issues, such as missed timelines and budget overruns, they can identify recurring root causes and address them proactively through systemic changes. This insight allows project managers and teams to plan more effectively, communicate risks earlier, and increase the likelihood of project success with each new initiative. Assessing project failure also builds credibility and trust with stakeholders. Openly acknowledging what went wrong strengthens transparency, improves communication, and aligns teams around more realistic expectations. Most importantly, it enables organizational learning, turning failed or struggling projects into valuable development opportunities that build stronger, more resilient teams. 8 Common Causes of Project Failure Project failures rarely stem from a single issue. Understanding the most common causes of project failure helps organizations recognize early warning signs and take corrective action to get the project back on track. 1. Poorly defined goals When project goals are vague, conflicting, or poorly understood, teams lack a common goalpost to work toward. Without clear objectives and a shared definition of success defined in the project charter, team members may struggle to prioritize the project alongside other responsibilities, make well-informed decisions, or measure their progress. Over time, ambiguity leads to significant gaps in misalignment and wasted effort. 2. Scope creep No project is immune to scope creep. When stakeholders add requirements without a proper evaluation or approval process, scope creep occurs, even when the additions are small. Despite good intentions, unmanaged scope changes can increase complexity, deplete resources, delay schedules, and introduce unforeseen or missed dependencies. Without strong governance, slight changes accumulate into significant project delivery risk. 3. Inadequate planning and unrealistic timelines Compressed project schedules and insufficient planning create undue pressure, undermining high-quality outcomes and team morale. When teams set project timelines without accounting for factors such as dependencies, risk management, and organizational readiness, they end up executing reactively and under pressure. This often results in rework, missed milestones, and burnout. 4. Weak leadership Too many leaders make the mistake of initiating or assigning a project and removing themselves from the picture, expecting teams to complete the work in their absence. But projects need visible, engaged leadership to provide direction, make timely decisions, and remove barriers. Weak sponsorship and unclear accountability leave teams without the necessary authority to resolve issues and keep the project moving. 5. Communication breakdown Poor communication leads to misaligned expectations, confusion, risks, and frustration among project team members. When stakeholders miss or don’t receive essential updates, they get left behind. When project updates focus solely on tasks and timelines, stakeholders may disengage without a clear understanding of the project's purpose and impact. Communication gaps amplify uncertainty and resistance. 6. Lack of stakeholder engagement When project managers and teams exclude stakeholders from planning and decision-making, teams miss critical insights and inevitably create resistance. Stakeholder engagement is a necessary foundation for starting the project off right. Plus, engaged stakeholders are more likely to support the project and adopt new ways of working when teams include them from the beginning. 7. Insufficient project resources Under-resourcing projects in staffing, skills, or time hinders the team’s ability to deliver successful project results. While a conservative resourcing approach might feel like a win from the project budget perspective, these decisions often do more harm than good. Competing priorities and overloading team members increase errors and lead to severe burnout. Resource constraints rarely reveal themselves until delivery is already at risk. 8. Inflexibility in change Projects fail when organizations treat plans as fixed, even as conditions evolve. Inflexible project planning limits the team’s ability to respond to new information, emerging risks, or shifting business priorities. At the same time, inflexibility in managing change, such as ignoring feedback and assuming people will adapt without an effective change strategy, increases the chances of project failure. Successful projects balance discipline with adaptability, adjusting plans as needed while supporting people through change. How Change Management Impacts Project Success Change management has a direct, measurable impact on project success when teams integrate change management with project management from the outset. While project management focuses on the technical aspects, change management ensures that people affected by the project's changes are prepared to embrace them. A change management approach provides a structured methodology to help individuals transition from the current state to the desired future state. This involves preparing, equipping, and supporting individuals to adopt and use the changes effectively, driving organizational results by engaging employees and inspiring them to adopt new ways of working. Prosci’s Unified Value Proposition model is effective for positioning change management and defining its critical contribution to project and organizational outcomes. The Unified Value Proposition Finally, change management helps teams identify and address resistance to change, enabling smoother transitions and better project outcomes. Projects succeed only when employees change how they work, and change management works alongside project management to increase the chance of success. How to Avoid Project Management Failure Avoiding project failure requires intentional focus and dedication to the technical and people sides of change. While no project is risk-free, organizations that prevent and address common causes of failure early are more likely to achieve better project outcomes. Consider these best practices for avoiding project failure: Define success early – Establish clear objectives and success criteria from the start. Engage stakeholders in defining success and ensure alignment with organizational goals. The 4 P’s Exercise can jumpstart a discussion on change management and why it’s critical for project success. Plan realistically – Develop a structured plan that is realistic, flexible and sustainable. Break projects into manageable phases with clearly defined milestones to recognize and celebrate short-term successes. Engage stakeholders continuously – Build alignment and ownership across stakeholders around a common definition of success. Involve key stakeholders and sponsors early in the project to clarify roles and expectations, both from a technical and change management perspective. Communicate relentlessly – Project managers must start communication early and involve all key stakeholders. Frequent, transparent communication keeps teams aligned and reduces uncertainty. Use structured, innovative communication plans to ensure clear, concise, and frequent communication. Adapt to change – Remain flexible, recognizing that project objectives may shift for various reasons, and use the project’s defined success criteria to guide the work and assess shifting objectives. Prosci’s PCT Model helps teams ensure clarity and alignment on project objectives, enabling organizations to achieve better outcomes. Invest in people, not just plans – Projects succeed when people are prepared to adopt new ways of working. And teams build organizational readiness and change resilience by prioritizing the people side of change. Change-ready organizations equipped with change management expertise are 7x more likely to succeed on must-win projects. Change done right, no matter the project, is critical to business agility. Partner with Prosci when you don’t want your projects to fail because we’ve spent over 25 years studying how organizations and people thrive through transformation. FAQs What is the most common reason projects fail? Typically, multiple factors contribute to project failure, including unclear goals, misalignment among stakeholders, and insufficient budgets and resources. The reasons projects fail also depend on the type of project. For example, technology projects fail because the project isn’t defined enough, there is a lack of leadership and accountability, communication is inefficient, timelines are poor, there is no user testing, or teams are trying to solve the wrong problem. Can agile prevent project failure? Agile can reduce certain project risks related to inflexibility by promoting flexible planning, incorporating feedback, and using incremental delivery. But agile can never entirely prevent project failure, as using agile alone doesn’t address critical success factors such as stakeholder engagement and alignment, or effective communication. Without strong leadership and sponsorship, stakeholder engagement, and a change management approach, projects can still fail, even in agile environments. How often do projects fail? While project failure rates vary by industry and project type, Prosci’s research shows that projects with excellent change management are 7x more likely to achieve their objectives than those with poor change management. This finding highlights the importance of following a structured yet adaptable change management approach to reduce the frequency and severity of project failure. Correlation of Change Management Effectiveness With Meeting Project Objectives What role does change management play in preventing project failure? Change management addresses the people side of change, a necessary aspect of helping individuals move from the current state to the future state. An intentional, well-defined approach to managing change, such as the Prosci Methodology, provides the structure needed to stay on track. It allocates sufficient time for meaningful activities and creates space to identify and address gaps throughout the project lifecycle, addressing risks before the project fails. Why is leadership support crucial for project success? Prosci research shows that projects with extremely ineffective sponsors were only 27% likely to meet their objectives, compared with 79% with extremely effective sponsors. Having a positive leader who actively guides the organization through change and is visibly involved throughout its lifecycle has been the top contributor to success rates since 1998. Correlation of Sponsor Effectiveness With Meeting Objectives
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5 Strategic Decisions for Building Organizational Change Capability in 2026
Twenty-six percent. That's the success rate for transformations that improve performance and sustain results. For enterprise leaders finalizing 2026 budgets, the question isn't whether transformation will happen—it's whether your organization can execute it.Market conditions leave no room for failure. Organizations are running multiple high-stakes transformations simultaneously while 53% of employees report feeling overwhelmed by too much change happening at once. The executives who succeed won't be those who predict the future most accurately. They'll be those who build the capability to adapt quickly regardless of what emerges. We interviewed Prosci's executive leadership team—spanning finance, operations, people, and regional leadership—to understand how they guide enterprise clients through this challenge. Their collective insights reveal five strategic decisions that separate transformation success from budget waste. × × Can You Afford Your Change To Fail? 1. Fund Change Capability Like Infrastructure, Not Projects Most organizations treat change management as a variable project cost. But this approach fails when facing an uncertain 2026 landscape where strategic priorities may shift mid-year. Prosci research shows the financial impact of this decision. Organizations executing excellent change management practices see an 88% success rate in meeting project objectives, compared to only 13% for those with poor change management practices. The difference represents significant value at stake. Correlation of Change Management Effectiveness with Meeting Objectives "No matter what those bets are, they still require that people are changing to actually make that come to life," explains Romona Brown, President of Prosci North America. "That is the piece that's consistent. The adoption still needs to happen to actually get to the ROI." Michelle Haggerty, Prosci's COO, cuts to the core of how executives should reframe this investment: "It's not what can we afford, but how can we afford not to. More now than ever, transformation is happening every single day. It's incredibly important to put intentionality in your relationship with your project management and change management office." Building baseline change capability delivers measurable financial benefits. Once established, it reduces per-project investment while accelerating time-to-value. Organizations avoid starting from zero with each transformation and instead leverage existing organizational muscle memory. 2. Plan for Dual Transformation Realities The transformation challenge has fundamentally changed. Organizations now face continuous AI-driven change alongside discrete strategic projects. A single approach to resourcing and planning won't address both effectively. "You have to do both," says Laura McGann, Chief People Officer at Prosci. "You have to do the ongoing continuous transformation and then you have to get really clear on must-win projects. They overlap 100%, but you actually treat them differently." Haggerty reinforces why this distinction matters: "Transformation isn't about structure and processes. That's a key component, but it's also about behaviors and mindsets. The best leaders really focus on the people side of it and really where execution comes to life is through those humans and their adoption." Business-as-usual changes require workforce adaptability—AI is reshaping daily work, regulations are evolving, market forces are shifting. These changes demand different resource allocation and planning than structured transformation projects like ERP implementations or organizational redesigns. Organizations that apply the same strategy to both underperform on both. 3. Consider People Impact During Budget Planning The sequence matters. Organizations that assess people impact during project planning—not after technology selection—build realistic timelines and avoid late-stage budget overruns. Prosci research on change management maturity shows a clear difference in outcomes based on timing. Organizations that incorporate change management practices from the outset experience a greater success meeting their objectives than those that treat it as an afterthought. Correlation of When Change Management Begins with Meeting Project Objectives "We see in very mature organizations that early into the process as they're planning out initiatives, they're considering the people side impact," notes Randy Herrera, EVP of Global Growth at Prosci. "We also know from our research that change management mature organizations have a higher degree of success on their initiatives." When we asked what sets successful executives apart in their planning approach, Haggerty was direct: "They're really looking beyond the milestones and focusing on outcomes and adoption. Where I see leaders struggle is when they underestimate that human element around adoption." Early adoption planning prevents late-stage budget overruns and schedule delays. The business case is clear. 4. Develop Leaders as Change Capability Multipliers Leadership requirements have evolved beyond traditional project management. Leaders now navigate continuous market change while executing transformation initiatives simultaneously. Prosci research demonstrates the multiplier effect of leadership engagement. Organizations with active executive sponsorship and visible leadership support report a 73% success rate in their change initiatives, compared to only 29% for those lacking such support. Correlation of Sponsor Effectiveness With Meeting Objectives McGann emphasizes this shift: "Being a leader, you are managing that ongoing continuous transformation and change for your team members. Leaders really have to understand that both of those are going to co-exist going forward." When we asked what leadership capabilities matter most during transformation, Haggerty identified three critical components: "Active and visible sponsorship throughout the entire transformation. Building a coalition—making sure that return you're hoping for is a team sport, not something individuals achieve in silos. And communication. Why, why now, what if we don't. Continually repeating those at different elements and milestones." Change-capable leaders become force multipliers who enable adoption across multiple initiatives simultaneously. This approach scales capability without proportional resource increases. 5. Measure Adoption in Real Time, Not Just at Project End CFOs increasingly focus on transformation ROI, but many lack the data and metrics connecting adoption levels to business outcomes. "Getting buy-in across the organization is so important," explains Shelley Pino, CFO at Prosci. "If people don't believe, you are constantly vying for resources and dollars. It's not the most fun place to send your money." Real-time adoption tracking enables course correction before problems compound. Organizations can identify resistance early, adjust approaches mid-stream, and demonstrate incremental value to maintain executive support and resource commitment. Haggerty adds a critical operational perspective: "There's a high level of expectation around data and metrics to measure adoption in real time, not just at the end. That's a key component of successful transformation. You're seeing those adoption metrics, you're seeing return on investment metrics throughout the life cycle, not just hoping they'll be there at the end." Organizations that measure adoption iteratively throughout the transformation lifecycle protect their investments and capture value faster. Turn Change Capability Into Competitive Advantage The organizations thriving in 2026 will be those that invested in change capability during their 2025 planning cycles. They understand a fundamental truth: building change capability isn't about managing individual projects more effectively. It's about organizational resilience that converts uncertainty into competitive advantage. As Haggerty puts it, "You need some space to build in the unpredictable because we know for sure it's coming. We just don't know when or what it will be." The 2026 planning window is closing. Executives who invest in change capability now will lead from strength while competitors scramble to adapt. Prosci's proven methodologies and enterprise solutions help organizations turn the people side of change into a strategic asset. These insights come from conversations with Randy Herrera (EVP Global Growth), Laura McGann (Chief People Officer), Shelley Pino (CFO), Romona Brown (President, Prosci North America), and Michelle Haggerty (COO) conducted in September 2025.
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Build Organizational Resilience: A Strategic Capability for Navigating Change
As today’s business leaders and organizations face continuous transformation driven by new technologies, evolving customer expectations, shifting economic realities, and shifts in workforce preferences, organizational resilience is a necessity rather than a trend. In this article, we explore organizational resilience and strategies for developing resilient teams that view change as an opportunity. What is Organizational Resilience? Organizational resilience refers to an enterprise’s ability to adapt and thrive in the face of change. It’s what allows teams to remain focused, deliver results, and grow stronger through disruption, rather than feeling derailed by it. Building this capability emphasizes the value in equipping employees to respond with confidence, agility, and purpose when change inevitably occurs. Core Pillars of Organizational Resilience Building organizational resilience involves strengthening the core capabilities that allow teams to respond effectively to change. These core pillars create the foundation of a resilient organization: Leadership and vision Organizational resilience requires competent change leaders who can effectively guide professionals through the change process. Leaders who communicate a clear vision and model adaptability set the tone for how the rest of the organization responds to disruption. When employees understand the why behind changes and feel empowered by leaders navigating uncertainty with purpose, they’re more likely to stay aligned and motivated through transformational change. Culture and employee engagement Employee engagement fuels resilience. When people believe in the organization’s mission and trust leadership, they can overcome challenges together. Healthy cultures prioritize ongoing communication, employee recognition, and opportunities for providing feedback and feeling heard. When resilience is part of an organization’s culture, every hire becomes an opportunity to strengthen the team’s capability to navigate change. Adaptability and innovation Resilient organizations view change as an opportunity for growth rather than a threat to stability. They encourage continuous learning, experimentation without fear of failure, and cross-collaboration. When teams embed adaptability into their organization’s DNA, new ideas and improvements emerge naturally, even in uncertain times. Risk management and preparedness While it’s impossible to anticipate every disruption, resilient organizations prepare for the unexpected by identifying risks early and developing flexible response plans. Effective risk management fosters change readiness, encompassing organizational readiness, open attitudes toward change, and individual readiness. When challenges arise, resilient organizations can adjust course quickly and maintain momentum without losing sight of their business goals. Building Organizational Resilience Organizations build and strengthen resilience through deliberate actions, including developing the systems, skills, and structures that support adaptability. Here’s how: 1. Assess your organization’s current capabilities Conducting a thorough assessment of your organization’s strengths, opportunities, and change readiness provides baseline metrics of current resilience and identifies areas for focus. This includes evaluating leadership commitment, communication effectiveness, employee readiness, and the maturity of your change management practices. Change readiness is a strategic advantage for organizations of all kinds. 2. Develop crisis management plans Preparedness reduces uncertainty. Crises that have significant organizational impacts range from natural disasters and socio-cultural events to market shifts and economic downturns. Establishing crisis management and business continuity plans enables organizations to respond quickly and effectively when disruption occurs. The goal is not to create a perfectly laid-out plan, but rather to identify critical components, including key decision-makers, communication plans, and the proper course of action when managing rapid change in a crisis. 3. Invest in technology and infrastructure Having the right systems and technologies in place is a powerful enabler of resilience, especially during times of crisis. Modern, flexible systems support remote and hybrid work, data-driven decision-making, and cross-functional collaboration. That’s why many organizations are prioritizing digital transformations. Investing in an infrastructure that can scale, adapt, and help employees stay connected and operational under changing conditions is crucial for navigating the unexpected. 4. Train and empower employees Change is inevitable, but with the right approach, it’s always an opportunity. Ongoing training and skill development help employees build confidence in navigating change, solving problems, and adopting an open-minded approach to change. Empowered employees adapt to and drive change. When individuals feel equipped, trusted, and empowered, the organization as a whole becomes more capable of thriving in uncertain times, and the company develops strong human capital. Strategies for Sustaining Resilience Sustaining resilience requires ongoing attention and commitment beyond the initial stages of building the foundations. Resilient organizations view change as a constant and maintain their resilience by integrating learning, communication, and support into their daily operations. The following strategies help develop organizational resilience and human capital as a lasting capability: Strengthen communication and relationships with transparency and clarity Communication and trust are at the core of both successful change and sustained resilience. The Prosci ADKAR® Model – Awareness, Desire, Knowledge, Ability and Reinforcement – puts people at the center of change and highlights clear, transparent, and consistent communication throughout every stage of the individual change process. Prosci ADKAR Model Strengthening communication channels between leaders, managers, and employees helps maintain alignment and engagement, especially during ongoing transformation, creating trusting relationships to navigate uncertainty together. Build strong relationships among teams to create a supportive network during times of change and transition. Implement robust support systems Robust support systems ensure that employees have the necessary resources to adapt successfully. Provide resources for employee well-being, such as mental health support and coaching. Develop a structured transition plan by following a change management framework, such as the Prosci Methodology, to guide employees through changes and ensure they have the necessary support and resources. Foster a culture of continuous learning Sustained resilience depends on an organization’s ability to learn quickly and adapt to the pace of change. Business leaders play a key role in fostering learning cultures by modeling curiosity, encouraging reflection, and celebrating growth and improvement. Encourage ongoing training and development to enhance skills related to adaptability and problem-solving. Additionally, embedding flexibility into daily operations, encouraging experimentation without fear of failure, and implementing feedback mechanisms ensure that learning occurs throughout the change process. Benefits of Organizational Resilience When organizations invest in building and sustaining resilience, they reap both short and long-term benefits, including: Enhanced adaptability to change – Organizations that prioritize resilience are better equipped to respond to challenges such as supply chain disruptions, talent shortages, and shifts in customer demand, all of which can have a lasting impact on operational continuity. Improved employee engagement and retention – A resilient organization fosters a supportive work environment with higher levels of engagement, job satisfaction, and loyalty, ultimately reducing turnover. Long-term competitive advantage – By effectively managing risks and capitalizing on opportunities, resilient organizations can outperform competitors and achieve long-term success. Challenges in Building Organizational Resilience While the value of organizational resilience is clear, achieving it can be a complex process. Many organizations face obstacles that limit their ability to respond effectively to change. Challenges to prepare for include: Resistance to change – Resistance is a natural human reaction to change. Prosci research shows that preventing resistance to change is more effective than addressing it reactively. Strong sponsorship, effective communication, and addressing cultural barriers can help mitigate resistance. Resource constraints – Competing priorities and teams stretched too thin often lead to change saturation, which occurs when disruptive changes exceed an organization’s capacity to adopt them. To overcome this, leaders must prioritize strategically, allocate resources intentionally, and integrate change management into existing processes rather than treating it as an add-on. Balancing stability and innovation – Organizations must find the right balance between stability and innovation that works best for their teams. Strengthening leadership alignment and organizational readiness ensures that innovation occurs within a framework that supports people through change, not one that overwhelms them. Case Studies in Building Organizational Resilience We have a philosophy of building organizational resilience to make you stronger for every future change. Here are some examples of how Prosci can help your organization become more resilient. Building organizational change capabilities following a crisis Following the COVID-19 pandemic, employees at The Washington State Department of Health faced overwhelming burnout, turnover, and change fatigue. With a focus on building executive commitment and support, creating lasting change management capabilities, and helping the department regain momentum, Prosci developed a comprehensive strategy to support these capabilities. This enabled the department to embed change management principles and processes into their daily work, building a change-ready team for the future. A more agile and resilient organization Oregon Lottery embarked on a transformational journey involving a series of significant change initiatives. By engaging Prosci as a trusted partner for change, delivering formal change management training to employees, and leveraging Prosci’s structured approach to change, Oregon Lottery became future-ready. The team encountered fewer barriers to adoption, achieved higher levels of employee participation and adoption of new systems, and achieved a 95% participation rate in their engagement survey. Organizational Resilience Best Practices and Key Takeaways The most resilient organizations take a strategic, intentional approach that weaves resilience into every layer of how they operate and lead change. They: Embed resilience into strategy – Integrate resilience thinking into strategic planning, risk management, and decision-making processes to embed it into the organization’s identity. Commit to continuous learning and adaptation – Encourage teams to evaluate outcomes to strengthen organizational change maturity and agility over time. Align resilience with organizational goals – When resilience initiatives align with what matters most to the business, they gain leadership support, employee buy-in, and measurable impact. Building Change-Ready Organizations for What’s Next Organizations that weave resilience into their strategy, culture, and leadership practices position themselves to thrive in the face of constant change. By equipping people with the necessary tools, mindsets, and support, leaders can transform uncertainty into opportunity. The future belongs to those who are change-ready.
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