Enterprise resource planning (ERP) systems unify processes, improve data visibility, and support decision-making across organizations. But the success of an ERP implementation depends on whether employees consistently adopt and use the system in their daily work.ERP user adoption is often the defining factor between a system that delivers measurable business value and one that struggles to achieve its intended outcomes. Understanding the challenges that influence ERP user adoption and the role change management plays in addressing them is essential for enterprises seeking to realize the full value of their ERP investment. {% module_block module "widget_b8696193-676a-4eea-b8a2-2d13950a6481" %...
SAP Cloud ERP Adoption
At the end of the quarter, leadership teams are presented with multiple versions of the truth. Finance, operations, and customer teams each report different realities, and time meant for decisions is spent reconciling data. This is a common limitation of legacy enterprise resource planning (ERP) systems and a key reason organizations are accelerating their move to SAP Cloud ERP.SAP Cloud ERP, most commonly delivered through SAP S/4HANA Cloud, integrates core business processes into a single, real-time system. Adoption, however, requires transitioning the entire organization to new, standardized ways of working. That transition is accelerating as the 2027 SAP ECC end-of-maintenance deadline approaches. But despite structured pathways like RISE with SAP and GROW with SAP, many ERP initiatives frequently face delays, cost overruns, and misalignment, not just because of technical complexity, but because they require widespread changes in behaviors, processes, and roles. × Your ERP Will Go Live. Will It Deliver Value? Key benefits of SAP Cloud ERP adoption The SAP Cloud ERP adoption may be challenging, but the business case is simple: organizations that get it right will unlock modernized, measurable improvements across operations, technology, and decision-making. These include: Improved Operational Efficiency Unlike legacy ERP systems, SAP Cloud ERP streamlines and automates core business processes, reducing manual work and minimizing errors. From inventory management to order processing, standardized workflows improve consistency and productivity. With greater visibility into operational metrics like cycle times and inventory levels, organizations can identify inefficiencies and drive continuous improvement. Faster Innovation A cloud-based ERP provides the agility to adapt quickly to changing market conditions. Organizations can scale operations, deploy updates, and introduce new capabilities without the constraints of legacy infrastructure. Integration with technologies like AI and automation also enables more advanced use cases, from predictive analytics to intelligent process optimization. Lower IT Complexity Organizations reduce reliance on on-premise infrastructure, eliminate many maintenance requirements, and shift to a more manageable, subscription-based model. This allows IT teams to focus less on system upkeep and more on enabling innovation and strategic initiatives. Enhanced Decision-Making With real-time data and integrated analytics, SAP Cloud ERP provides a single source of truth across the enterprise. Leaders gain immediate visibility into performance, risks, and opportunities, enabling faster, more informed decisions and stronger alignment across the business. Common challenges in SAP Cloud ERP system migration The ROI and benefits of SAP Cloud ERP are compelling, but many organizations encounter obstacles that can slow progress or limit value if not addressed early. Data Migration Complexity As organizations prepare to migrate from legacy systems, they are faced with large volumes of fragmented, inconsistent, or outdated data. Decisions must be made about what data to keep, how to standardize it, and how to ensure accuracy. Without strong governance, poor data quality can carry into the new system, undermining trust from the outset. Integration with Legacy Systems At the same time, integration challenges begin to surface. Most organizations are not starting from a clean slate. They operate in complex, hybrid environments where SAP Cloud ERP must connect with existing systems and third-party applications. These integrations can be resource-intensive and difficult to untangle, particularly when legacy systems are deeply embedded in day-to-day operations. Customization Limitations As the system takes shape, organizations are often confronted with the realities of standardization. SAP Cloud ERP is built around a clean core approach, which limits customization in favor of scalability and long-term flexibility. This requires teams to rethink and adapt their processes rather than replicate legacy ways of working, which can create friction across the business. Change Management and Employee Resistance That friction often shows up as resistance from employees who are asked to change how they perform familiar tasks, adopt new workflows, and trust new systems. Without clear communication, involvement, and support, this resistance can slow adoption and reduce the overall impact of the transformation. Budget Concerns Meanwhile, budget pressures continue to build. An ERP migration require significant investment, and as complexity increases, so can costs. Expanding scope, integration challenges, and delays can make it difficult to maintain alignment on expected value and return. The role of change management in SAP Cloud ERP adoption Individually, each of these challenges is manageable. Together, they create a level of complexity that many organizations underestimate. This is why SAP Cloud ERP migration planning is not just a technical effort, but a coordinated organizational change that must be actively managed from the start. New processes, standardized workflows, and real-time decision-making all require employees to think and work differently. Without a deliberate focus on that shift, even a successful implementation can struggle to deliver value. Change management brings structure to this transition. In fact, research shows that organizations using a structured change management approach are significantly more likely to achieve successful outcomes, with some studies indicating they are up to 33% more likely to meet or exceed project objectives. When introduced early, it aligns the ERP initiative with business priorities, ensures leadership alignment, and creates a clear narrative for why the change matters. It also helps address one of the most consistent barriers to ERP success: resistance. Ongoing communication, visible leadership support, and targeted training help employees build the knowledge and confidence needed to adopt new ways of working. Best practices for successful SAP Cloud ERP adoption Successfully adopting SAP Cloud ERP requires a structured, proactive approach that aligns technology, processes, and people from the start. Prioritize Change Management and Training Successful organizations treat adoption as the goal, not go-live. That distinction shapes how they approach the entire initiative. Change management and training are built into the plan from the start, not added once the system is ready to deploy. When employees understand what is changing and feel confident applying it in their day-to-day work, this is where implementation turns into actual business impact. Define Clear Business Objectives It begins with defining clear business objectives. Leading organizations anchor their ERP initiatives in strategic priorities, not system features. By establishing measurable outcomes tied to efficiency, growth, or performance, they ensure the transformation is focused on delivering real business value. Conduct a Readiness Assessment From there, they assess readiness. This step evaluates alignment across people, processes, and culture to identify potential barriers early. Finding skill gaps, resistance, or system limitations allows organizations to proactively plan rather than react mid-implementation. Develop a Phased Migration Roadmap With that foundation in place, organizations develop a phased migration roadmap. Instead of attempting a full-scale rollout at once, they prioritize critical functions, reduce disruption, and create opportunities to learn and adjust along the way. Work with Experienced SAP Implementation Partners At the same time, they leverage experienced SAP implementation partners to navigate complexity and maintain alignment between technical decisions and business goals. These partners help accelerate progress while avoiding common pitfalls. Focus on Data Quality and Governance Underlying all of this is a strong emphasis on data quality and governance. Clean, consistent data supports a smoother migration and ensures that the system delivers accurate insights and long-term value. Realizing the full value of SAP Cloud ERP investment SAP Cloud ERP adoption is often framed as a technology milestone, but go-live is only the beginning. The real measure of success is whether the organization embraces new processes, uses the system effectively, and translates its capabilities into better business outcomes. As the 2027 deadline approaches, many organizations feel pressure to move quickly. But speed alone does not guarantee success. Realizing the greatest value demands approaching adoption with the same rigor as implementation, aligning leaders, preparing employees, and reinforcing new ways of working over time. If your organization is preparing for or actively navigating an SAP Cloud ERP transition, Prosci can help. Our experts partner with you to build the change capability, align stakeholders, and drive adoption at every stage of your journey, so you can move beyond implementation and achieve lasting results. Frequently asked questions about SAP Cloud adoption How long does SAP Cloud ERP implementation take? Implementation timelines vary based on organizational size, complexity, and scope. Smaller organizations may complete implementations in a few months, while large enterprises with complex systems and integrations can take 6 to 18 months or longer. What is the cost of SAP Cloud ERP investment? Costs depend on factors such as system scope, number of users, implementation services, and ongoing support. While cloud ERP reduces upfront infrastructure costs compared to on-premise systems, organizations should plan for subscription fees, integration, training, and change management. Is SAP Cloud ERP secure? Yes. SAP Cloud ERP includes enterprise-grade security features such as data encryption, access controls, compliance support, and continuous monitoring. SAP also follows shared responsibility models, meaning organizations must actively manage certain aspects of security, such as user access and governance. Can SAP Cloud ERP integrate with legacy systems? Yes, but integration can be complex. Many organizations operate in hybrid environments where SAP Cloud ERP must connect with existing systems and third-party applications. Careful planning, strong architecture, and the right integration tools are critical to ensuring seamless data flow and business continuity. Why is change management important for SAP cloud ERP adoption? SAP Cloud ERP requires employees to adopt new processes, tools, and ways of working. Without a structured approach to managing this transition, resistance can slow adoption and limit value. Change management helps align stakeholders, prepare employees, and reinforce new behaviors to ensure the system is used effectively. What are best practices for managing change during SAP cloud ERP adoption? Successful organizations integrate change management early, communicate clearly and consistently, and engage employees throughout the process. Providing targeted training, securing visible leadership support, and reinforcing new ways of working after rollout are all critical to sustaining adoption and achieving long-term success.
Why ERP Investment Decisions Need to Shift Toward People
How much of your enterprise resource planning (ERP) investment budget are you allocating to the new system and other technical components of the change? Most organizations allocate 92% of ERP budget to technical activities and 8% to change management (Best Practices in Change Management, 12th Edition). Yet when we asked 1,618 ERP professionals what they would do differently, 36% pointed to People and Change Management factors, a 6:1 ratio of human-to-technical recommendations. This misalignment between resource allocation and actual success drivers represents a strategic gap executives must address. ERP investment decisions need to shift toward people to achieve business outcomes, rather than just technology deployment. What leaders said they would do differently to improve the business benefits gained from their ERP implementation The ERP investment gap Given Prosci’s research showing a 6:1 ratio of human-to-technical recommendations, it stands to reason there’s an investment gap. What’s causing the majority of ERP budgets to go to the technical aspects when people investments are imperative for success? Real-world reasons for the disconnect in ERP budget investments From my experience, ERP investment misalignment persists for several reasons. First, many organizations try to account for the technical aspects of the investment upfront during the initial technical requirements assessment. But it’s not uncommon for additional technical needs to emerge throughout the process as teams work to simplify processes and decommission tools. Many executives want to implement a harmonized system while reducing the number of applications they use. On the surface, this looks like a technical project requiring the majority of the investment. But Prosci research suggests that ERP implementations are human challenges, not technical ones. Beyond this, there’s often an underlying bias that a new ERP system is a technical replacement, which may not signal the need to invest in the people side of change. A lack of awareness of the need for effective change management contributes to disproportionate funding allocation. When organizations operate with a top-down approach to financial decisions, they often allocate investments to concrete aspects they can see, including the technology itself. Investing in people development can seem more intangible without a clear understanding of ERP change management and its contribution to value realization. × Your ERP Will Go Live, Will It Deliver Value? The cost of the wrong ERP sponsor Prosci research demonstrates that sponsors are so critical to change efforts that they can make or break a project or initiative, and the stakes are even higher during ERP implementations, given the significant resource requirements. Choosing the wrong ERP sponsor is costly. Years ago, during an SAP telecom deployment, we discovered a resistant sponsor six months into the ERP implementation. During ERP meetings, the sponsor was not proactive, did not ask questions, and was not outwardly supportive of the program director. After the team expressed concerns about a lack of active, visible sponsorship, we conducted assessments to determine whether the sponsor was the right fit. Based on our assessments, we concluded that if this sponsor remained in their position, the ERP implementation would likely fail as an enterprise change initiative. In partnership with the program director, who played a significant role in advocating for an effective sponsor, we shifted sponsorship to the organization’s chief financial officer (CFO). The CFO was active and visible, engaged peers and the sponsor coalition, and effectively communicated with employees and managers, fulfilling Prosci’s ABCs of Sponsorship: Active and visible participation throughout the project, from championing the change and allocating the necessary funding to participating in change activities and supporting the team Build a coalition of sponsors by mobilizing other key business leaders and stakeholders so that they can advocate for the change Communicate, support and promote the change to impacted groups as the preferred senders of messages about the business reasons for change Shifting to the CFO fundamentally changed the program’s trajectory over four years. The CFO was an effective sponsor who also advocated for the program director, the ERP transformation, and the need for internal change management practices. A two-person change management office (CMO) expanded to eight under the sponsor’s support and willingness to prioritize the people side of change internally. Why resistance is an executive problem Prosci’s 2025 Unlocking ERP Implementations study also revealed that resistance happens at every level and increases as deployment progresses. Despite the common misconception that end users are the ones resisting and slowing ERP adoption, executives and team leaders are also resistant to change, and their resistance has a disproportionate impact on outcomes. While resistance is a normal reaction to change, resistance at the leadership level has an outsized impact on ERP adoption and value realization. Such was the case in the SAP deployment where an engaged sponsor replaced a resistant one, leading to the program’s success. Employees look to leaders to understand whether a change is credible and high priority. Even subtle executive resistance amplifies throughout the organization. When leaders are openly hesitant, disengaged, or misaligned, teams follow suit. Resistance is an executive problem, not only because executives themselves may be resisting the ERP, but also because they reinforce or reduce resistance across the organization. When executives recognize that resistance is their problem to understand and address, they can lead ERP implementations as true business transformations. From communication to co-creation In addition to monetary investments and effective sponsorship, another powerful driver of ERP success is engaging stakeholders early through meaningful involvement rather than just telling them. The outcomes for stakeholders who communicate versus those who co-create are consequential. How one-sided communication leads to slowed ERP adoption In one change program I supported, the change and project teams created the story for change. They received validation from the sponsor and passed the story for change along to the sponsor coalition without their validation. Since the sponsor coalition was uninvolved in creating the program’s messaging, they didn’t feel a sense of ownership. Without ownership, their lack of early engagement slowed ERP adoption among impacted teams in their respective organizations. Communicating with key stakeholders without their input and involvement created a story for change that not everyone felt a part of. Successful ERP transformation hinges on people seeing themselves in and being a part of the story for change. How co-creation fosters ownership and ERP adoption By contrast, early in the SAP telecom deployment previously mentioned, we invited key stakeholders to co-create a clear story for change for the ERP program. There are many ways to conduct this type of exercise, including interviewing sponsors and the sponsor coalition directly or by organizing larger group workshops, depending on availability. When co-creating the story for change, it’s ideal to involve the sponsor, project manager, and change manager, at a minimum, to facilitate alignment. During this exercise, we develop the story for change by answering questions like: Why are we changing? What are the key benefits? What solution do we want to implement, and how will it help? What’s the vision, and where do we want to go? What pain points are we solving for? Ideally, you can involve part of the sponsor coalition, key change influencers, and the program team to create broader ownership of the story for change. The more stakeholders you can involve, the more ownership and belief in the story you can create. Most importantly, all key stakeholders need to validate the story for change to ensure the co-created narrative is the right one. Co-creation fosters ownership and commitment and is a good way to cascade consistent messaging about the change. Prosci’s research backs this up: Engagement creates ownership. Ownership drives adoption. Adoption enables value. Executive action for ERP investment decisions Whether you’re in the early stages of planning an ERP transformation or looking to steer your ERP program back on track, consider: Rebalancing your ERP investments – If 92% of your ERP budget is still going to technical activities and only 8% to change management, you are funding the wrong success drivers. Allocating enough budget toward change management closes the gap between “system is live” and value realization. Treat people-focused investments as part of your core ERP strategy, not an optional add-on. Assessing sponsor readiness – Prosci’s research shows that effective sponsorship is the single greatest contributor to change success. The cost of leaving the wrong sponsor in place is far greater than the discomfort of replacing them with an effective sponsor who will see the ERP adoption through to success. Governing the people side with the same rigor as the technical side – Apply the same structures and practices to the people side of change, including ADKAR® milestones, preventing and managing resistance, monitoring stakeholder engagement, and holding leaders accountable for outcomes. When you make these shifts, ERP implementations shift from technology projects to what they actually are: business transformations led by people, for people.
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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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