Enterprise resource planning (ERP) transformations promise a return on investment (ROI) that organizations won’t see without people readiness. Nearly half (45%) of ERP implementations don’t achieve their objectives, and seldom because of technology. Rather, they fail because the organization isn’t ready to receive, use, and adopt the ERP system.
In this episode of Built to Change, Emma de-la-Haye, Engagement Director for Prosci Europe, and Amber Severson, Principal Change Advisor for Prosci North America, look at how people readiness enables ERP transformations to deliver ROI, transformation, results, and business outcomes.
What go-live readiness looks like
When organizations say “we’re ...
How AT&T Prepared Its Workforce for AI: 6 Adoption Questions Answered
Most organizations investing in AI are spending significant money and not seeing a return. Our latest Prosci research across more than 1,500 workers found that motivation to use AI is nearly identical in organizations that are succeeding and those that are stalling. People want to use these tools. What separates results from failure is how organizations prepare and enable their workforce. Last month, I sat down with Stephanie Harvey, Principal Technology Strategist at AT&T, and Patrick Martin, Senior Customer Success Account Manager at Microsoft, for a panel-style webinar on this topic. AT&T had successfully scaled Microsoft 365 Copilot to more than 18,000 active users in six weeks, reaching a 96.4% sustained adoption rate among assigned users. Nearly 2,000 people attended the webinar, with lots of questions, some of which we were able to address on the call. If you want to listen to the full conversation, the recording is available on our website. I’ve also captured below the most frequently asked questions with more depth than we had time for on the call. How do you get a senior leader to care about change management without overwhelming them with the methodology? Stop leading with the methodology. Executives are focused on outcomes, and the most effective way to earn their attention and commitment is to frame the conversation around risk to their goals, not around the change management process you're planning to use. AT&T's team leveraged the Prosci Risk assessment to identify areas of risk and leveraged those insights in discussions with executives. Leaders seeing the cost of getting it wrong is more effective to drive alignment than being educated on methodology. Stephanie put it plainly: "Help them understand the risk of doing nothing and show them the specific outcomes their business unit needs. Make the sponsorship feel like a leadership role, not just an ask." A few practical notes from what AT&T did: bring options to that conversation, not a finished plan. Leaders who help shape the approach own it differently than those who are asked to approve it. How do you define adoption, and how do you know when it's real? AT&T’s initial measure was at least one active Copilot use within a 30-day window, which they monitored daily. That definition gave the team something specific to manage, and daily monitoring enabled them to intervene quickly when usage dropped, rather than discovering the problem weeks later. We received several questions asking whether active usage is really adoption or just a usage indicator, which is a fair challenge. Real adoption shows up as sustained behavior change. Usage that builds over time, spreads across the tool's capabilities, and holds without constant reinforcement. Stephanie was clear that active usage was the floor, not the ceiling, and her team used surveys and focus groups to gather more usage information. How did you handle employee resistance, especially fear of job displacement? AT&T saw minimal broad-based resistance, but job displacement fears and other concerns about the environment and the ethical use of AI surfaced in pockets. For any organization, especially one as large as AT&T, the best approach to managing these concerns is to route them to the team lead or manager. When employees raised questions the change team wasn't positioned to answer on the company's behalf, Stephanie's team pointed them to the company's official stance on AI and gave supervisors specific talk tracks to use with their teams. "With change management, you've got to be careful as a practitioner," Stephanie said. "Not everything is yours to solve." One of the key messages delivered during this rollout was that workers who build AI proficiency now will be more marketable than those who don't, which did contribute to an increase in training attendance. How do you build the ROI story when you don't have the numbers yet? Most organizations make one or two mistakes here: they either wait too long to start building the story, or they manufacture numbers too early to satisfy executive pressure. Both create credibility problems. Stephanie set honest expectations upfront, then built the methodology before she had the results. In the early months, the team ran surveys and focus groups, asked employees to estimate time saved on specific tasks before and after Copilot, applied AT&T's loaded labor rate to translate that into financial terms, and cross-referenced everything against Microsoft's usage dashboard. The result was a conservative number with a clear, auditable methodology. "Leaders trust you if they can understand how you got there," Stephanie said, "far more than they trust some big number without a story behind it." What makes an AI rollout structurally different from other technology changes? Several things make an AI rollout structurally different from other technology changes, and underestimating them is where most organizations get into trouble. First, the nature of the change itself is different. Most technology rollouts ask people to learn a new system or process with defined inputs and outputs. AI tools, especially generative AI, ask people to develop judgment about how and when to use them, how to evaluate the outputs, and how to integrate them into work that often doesn't have a clear before-and-after. That's a fundamentally different kind of learning. Prompt engineering is a skill that develops over time through practice and experimentation, and needs vary significantly by role. AT&T ran more than 200 live training sessions, with dedicated sessions on prompt engineering, because one-size training wasn't sufficient. Second, the emotional stakes are higher. Prosci's research found that organizational change management, specifically resistance to change and user adoption challenges, is the single largest barrier to enterprise AI adoption, representing nearly a third of all executive-reported challenges. Job displacement fears are real and widespread. They don't disappear because leadership issues a reassuring message. They require sustained, honest communication at the right level, with the right people, over time. AT&T saw this directly. Addressing it required routing those conversations to supervisors with specific talk tracks, not managing it from the change team. Third, the pace of change won't slow down. Whatever playbook your organization builds for one AI tool will need to flex as the tools evolve. That's exactly why methodology matters more than platform familiarity. A team that understands how to move people through Awareness, Desire, Knowledge, Ability, and Reinforcement can apply that framework to whatever comes next. A team that built a Copilot-specific rollout plan will be rebuilding it in a matter of months. Is it too late to introduce structure if your organization has already started informally? No. But the approach changes depending on where you are. If AI use is scattered and informal, the first priority is understanding what's actually happening. Which groups are using which tools, for what, and with what results? That picture shows you where the highest-value opportunities are and where the biggest risks are quietly accumulating. From there, the work is largely the same as it was at the start: build executive alignment, map your personas, address Awareness and Desire before pushing more Knowledge and Ability, and put structural reinforcement in place so adoption doesn't depend on individual motivation. The difference is that you're working with an existing reality rather than a blank slate, and that reality includes employees who may have formed habits, positive or negative, around AI tools already. One thing you should avoid is launching a formal program that feels like a correction of what employees were already doing, which will likely encounter resistance. The better framing is that the organization is now investing in making what's already started more effective, more supported, and more connected to business outcomes—which is true. The structure exists to make the work better and communicating it that way is what brings people along rather than putting them on the defensive. It is never too late to introduce the structure. Your workforce is ready What our latest research shows, and what AT&T demonstrated, is that business results from enterprise AI initiatives come from the model you build around organizational change, and a people-focused approach is critical to drive outcomes from AI investments. If you're facing these same questions in your own organization, a Prosci consultant can help you apply this thinking to your specific rollout.
Inside AT&T's Copilot Rollout: How 18,000 Employees Adopted AI in Six Weeks
Most organizations investing in AI are spending significant money and not seeing a return. Prosci's research across more than 1,500 workers found that motivation to use AI is nearly identical in organizations that are succeeding and those that are stalling. People want to use these tools. What separates results from failure is how organizations prepare and enable their workforce. AT&T scaled Microsoft 365 Copilot to more than 18,000 active users in six weeks, reaching a 96.4% sustained adoption rate among assigned users. Last month, Stephanie Harvey, Principal Technology Strategist at AT&T, and Patrick Martin, Senior Customer Success Account Manager at Microsoft, joined us for a webinar to share how they did it, and why leading with the people side of change made the difference. Watch the full webinar below, or continue reading for the recap. Curious about the specific questions AT&T's rollout raised about resistance, ROI measurement, and adoption metrics? Read the practitioner Q&A. What AT&T did differently Four decisions shaped the outcome of AT&T's Copilot rollout, starting with how they framed the change itself. AI adoption is not a standard technology rollout AT&T came into the Copilot rollout with 20,000 initial licenses, and facing considerable change fatigue, organizational governance requirements, and an internal AI platform already in employees' hands. The most important decision early on was recognizing that a standard technology rollout model would not work. As Stephanie put it: "If your change management strategy looks the same as any other software deployment you've been a part of, you're going to have to stop and recalibrate." Executive sponsorship for AI adoption was a key input Prosci’s research shows that active and visible sponsorship is the single strongest contributor to change success, and our 2026 “State of AI Adoption” Study found that coalition-building behaviors showed the strongest statistical association with enterprise AI adoption of any executive behavior measured. Because AT&T Leadership helped shape the plan, they were invested in the outcomes and owned it differently when questions arose later from teams about the pilot, including who was getting Copilot access and why. The Prosci ADKAR® Model was the foundation of their AI rollout AT&T built their Copilot rollout around the ADKAR Model. This was critical at each stage from persona mapping that determined who got what support and when, to more than 200 live training sessions, AI ambassadors embedded in each business unit, and daily usage monitoring that enabled real-time course correction. Patrick shared the principle behind the execution: "The methodology is the asset, not the tool. AT&T didn't win because they picked Copilot. They won because they applied Prosci's framework rigorously." Structural reinforcement kept AI adoption from stalling Two key decisions prevented the typical post-launch drop-off. AT&T communicated with employees who didn't yet have licenses from day one, so no one was left to disengage quietly. In other words, with people focused approach they communicated with everyone, not only those actively in the pilot. And they built accountability into the structure: 30 days of non-engagement triggered outreach; 45 days moved the license to the next person in the queue. Reinforcement was a structural component of the change plan. The ROI story required honesty before it required numbers One of the biggest challenges we hear is how do we capture the ROI? What’s unique about the AT&T rollout was expectation setting up front with leadership that this is new, and we won’t know what the ROI number is right away. That expectation-setting created space to gather real data. Over three months, the team combined employee surveys, focus groups, before-and-after time estimates, AT&T's own cost model, and Microsoft's usage dashboard into a conservative, fully traceable number. That created a data-informed approach to measurable ROI and led directly to the program expanding from 20,000 licenses to 60,000. How organizations can move forward with AI rollouts Business results from enterprise AI initiatives come from the model built around organizational change. AT&T's rollout worked not because of the platform they chose, but because they applied a rigorous, people-first framework to prepare their workforce for it. If your organization is investing in AI and wants a rollout that looks more like AT&T's than the ones that stall, connect with a Prosci consultant to explore what a people-first AI adoption strategy looks like for your organization.
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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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