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5 Strategic Decisions for Building Organizational Change Capability in 2026

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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.

How to Achieve Your Digital Transformation Goals

Digital transformation is arguably the highest priority in business today. It’s also one of the hardest to get right. Research shows that 70% of digital transformation initiatives fail. That’s not because the technology doesn’t work. It’s because people aren’t supported enough to adopt and embrace it. Digital transformation goals sound promising: boosted productivity, reduced costs, improved customer experiences. But they only happen when people adopt new ways of working. Good change management provides the framework to turn digital goals into measurable results. And it does so by preparing, equipping and supporting your people through change. This article explores eight digital transformation goals and how to achieve them with change management. Because digital transformation only succeeds when people do. What Digital Transformation Goals Often Miss Digital transformation goals set out to reshape how an organization operates and competes. They aim to improve business processes, enhance customer experiences, and deliver a competitive edge through digital initiatives. Common digital transformation goals focus on improving areas such as: Customer experience and service delivery Operational efficiency and business processes Agility, innovation, and responsiveness Decision-making through data and insights Employee performance and collaboration Competitiveness, compliance and risk management But in the pursuit of these objectives, many organizations zero in on the tech and overlook the people. New systems roll out, but adoption doesn’t follow. Workflows change, but behaviors don’t. Transformation fails to take hold because people weren’t supported to succeed. Effective change management fixes that. By addressing both the technical and people sides of change, you can implement new technologies and equip your people to adopt them. Prosci’s Unified Value Proposition shows how this dual focus improves outcomes, accelerates adoption, and delivers sustainable change. Prosci Unified Value Proposition Next, we’ll explore eight common digital transformation goals—and why getting them right depends on preparing, equipping and supporting your people. 8 Digital Transformation Goals—and How to Achieve Them With a People-Centric Approach Digital transformation goals create the foundation for improved operations and business growth. Yet research shows that 70% of digital transformation initiatives fail. Transformation projects rely on new technologies, updated processes and expanded capabilities. But the key enabler of their success is people. When people and leaders are supported through change with the right tools and resources, adoption follows. In fact, Prosci research shows that organizations with excellent change management are seven times more likely to achieve their objectives. Correlation Between Change Management and Project Success Here’s how a structured, people-centric approach helps you realize the objectives of your digital transformation journey and sustain its results in the long term. 1. Increased adoption of new technologies A key digital transformation goal is to improve the adoption of new technologies across the organization. Most companies invest in digital tools to improve operations and enhance customer experiences. For example, a recent study found that 77% of businesses are either using or exploring the use of AI. But these improvements can only be realized when people understand, accept and use these technologies. Change management provides the structure to guide employees and leaders through this transition by: Empowering leaders to model commitment and reinforce the value of new technologies. Communicating the “why” and “how” behind the new technology and its impact on employees through a structured Communications Plan. Equipping employees with knowledge and skills to use the new technology effectively. This includes training plans, resources and ongoing support. A multinational chemical company faced this challenge head-on. After realizing that technically successful projects were stalling due to low employee adoption, they partnered with Prosci. Together, we customized training for their engineering-focused workforce and integrated change management into project workflows. Thanks to the partnership, the company increased its change maturity by 30%, cut training costs by over 75%, and aligned 20,000 employees under a common language for change. 2. Agility and adaptability A common digital transformation strategy objective is to create a more agile and adaptable workforce. This allows organizations to respond faster to change and innovate continuously as market demands shift. A people-centric approach is key to achieving this level of responsiveness. Employees need to be prepared and equipped to navigate change. And leaders need the skills to guide them through it. Change management helps build this capability along your digital transformation journey by: Developing change leadership skills to equip people leaders with the mindset, tools and behaviors needed to lead change effectively. Involving employees in the change process so they feel invested in the digital transformation project, which increases their willingness to embrace changes. Embedding structured, repeatable change practices to strengthen organizational responsiveness to factors such as changing market conditions. Over time, this builds a resilient organization that’s ready for what’s next. 3. Improved customer experience Customer experience is a defining element of digital transformation. Innovative technologies such as mobile apps can greatly enhance the way customers interact with your brand. These digital tools can help you deliver consistent, high-quality service at every touchpoint. But technology is only the first step in reaching this goal. Achieving it requires employees to understand their role in the customer journey and align their behaviors with the service vision. These behaviors are more likely to stick when they’re guided by leadership. Change management makes this possible by: Clearly defining roles and responsibilities to align behaviors with new digital processes and expectations. Coaching people leaders to guide teams through new ways of working and reinforce service behaviors. Reinforcing positive behaviors by recognizing and rewarding employees who positively impact customer experiences and meet customer expectations. The Drechtsteden Shared Services Center achieved this goal through structured change management. When eight separate service counters were causing inconsistent customer experiences, the firm partnered with Prosci to transform its service model and create a unified solution. After applying the Prosci ADKAR Model to guide individual transitions, the company achieved a customer satisfaction score of 7.9 out of 10, and created a sustainable framework for ongoing service improvement. 4. Increased operational efficiency Improving efficiency is a common goal in any digital transformation strategy. Organizations aim to reduce waste and encourage revenue growth by replacing outdated processes and legacy systems with streamlined automation. These process improvements only succeed when people adopt the new workflows correctly. Change management enables this by: Identifying adoption risks early so leaders can address issues before they impact performance. Training impacted teams so they understand how to apply new processes in their daily work. Tracking progress to ensure people are adopting the change and improvements are being realized. When people adopt new ways of working, organizations can unlock the full value of new technologies and achieve meaningful efficiency gains. How Change Management Supports Digital Transformation Goals 5. Data-driven decision-making Digital transformation efforts often focus on improving decision-making. Organizations invest in dashboards, analytics platforms and AI tools to leverage data for more informed decisions. Reaching this goal requires a shift in how people make these decisions, as they will need to rely on data rather than instinct or habit. Change management supports this shift by: Establishing trust by communicating the purpose of data initiatives and how they align with business goals. Building skills and knowledge to access, interpret and apply data in their work. Reinforcing data-driven behaviors over time so they become part of daily decision-making. When people have what they need to embrace new decision-making behaviors, they’re more likely to sustain those behaviors over time. 6. Improved compliance and lowered risk Digital transformation can strengthen compliance and reduce risk. New technologies offer better tools to manage data, enforce controls and meet regulatory requirements. But for these technologies to deliver compliance improvements, people need to understand and apply the changes correctly. Structured change management can help achieve this by: Delivering targeted training so people know how to operate within new systems and processes. Clarifying responsibilities to ensure individuals understand their role in maintaining compliance. Reinforcing consistent behaviors that support regulatory and policy alignment. With strong change management in place, compliance becomes embedded in processes and risk becomes easier to manage. 7. Innovation across the organization Driving innovation is a core goal of digital transformation. New technologies can facilitate new thinking and continuous improvement throughout the enterprise. Innovation only works when people feel confident to try new things. A people-centric approach helps instigate a cultural shift towards a more innovative environment. Change management supports this by: Encouraging experimentation and open feedback during digital transformation initiatives. Reinforcing a supportive company culture where people have the confidence to explore and learn. Ensuring strong leadership that promotes innovation and recognizes and rewards adaptive behavior. When people have the confidence to adopt an innovative mindset, it benefits the entire organization. 8. Internal change capability A core goal of digital transformation is not only to implement new technologies but to ensure your organization can continuously adapt and evolve. Building internal change capability enables this by equipping your workforce to lead change from within. Outsourcing this critical function limits long-term success. By equipping your people to lead and sustain change, you build the capability to drive successful outcomes across every initiative. Developing internal change capability requires a robust, repeatable process and clear language for change. This structured approach integrates change into the way your organization operates: Training internal practitioners to apply a repeatable, research-based approach to change. Coaching sponsors and people leaders to activate their networks and build momentum. Embedding change as a core competency across roles, functions and strategic initiatives. With internal change capability in place, you’ll be ready to navigate whatever changes lie ahead. How Structured Change Management Supports Digital Transformation Goals Successful digital transformation requires a deliberate approach to guiding people through changes in systems, processes and ways of working. Change management provides that structure. Supporting individuals while also addressing the technical side of change, it offers a foundation for implementing and sustaining digital transformation. The Prosci ADKAR® Model is a proven change management approach that helps people adopt change successfully. Here’s how this people-centric model helps you overcome digital transformation challenges and achieve your transformation goals. Prosci ADKAR Model Awareness of the need for change Our ADKAR Model starts by creating Awareness among employees about the need for digital transformation. This includes clearly communicating the reasons for change, such as improving efficiency, enhancing customer satisfaction or staying competitive. When individuals don’t understand why change is happening, they’re more likely to resist it. Fostering awareness of why the transformation is necessary will prevent negative reactions such as fear and uncertainty. Desire to support and participate The second element of the ADKAR Model focuses on building Desire to engage with the digital transformation efforts. A key part of this is showing employees how they stand to benefit personally from the change. For example, new tools will make their jobs easier by automating manual tasks. The Desire stage also encourages actively involving employees in the change process. This helps to foster a sense of ownership, increasing willingness to engage with new technologies and processes. Knowledge on how to change Lack of digital skills is a key barrier to successful transformation. Prosci’s study, Keys to Unlocking AI Adoption, reveals that nearly 40% of adoption challenges stem from skill gaps. The ADKAR Model provides a framework for delivering training programs that equip employees with the necessary knowledge to adopt new technologies. The Knowledge element also focuses on resources and support materials that ensure employees understand how to adapt to new workflows and processes. This understanding is crucial to successful digital adoption—without it, people lack both the skills and confidence to adopt change effectively. Ability to implement required skills Advanced technologies often require new competencies. To put these into action, people need the Ability to apply them. Our ADKAR Model helps to develop the behaviors employees need to thrive in a digital environment, such as using new tools accurately, following updated workflows, and adapting to new performance expectations. Targeted training programs build Ability in the specific areas that drive successful adoption. This includes hands-on practice and real-time feedback to build proficiency. Unlike the Knowledge element, which focuses on understanding, the Ability element ensures employees can apply what they’ve learned in real work situations. By removing barriers such as a missing capability, you can support employees to implement the change effectively. Reinforcement to sustain the change Reinforcing change is key to its sustainability. Without reinforcement, people can easily fall back into old habits and practices. Our ADKAR Model emphasizes this with strategies like recognition programs, ongoing support, and continuous improvement initiatives. Monitoring progress is also critical to the long-term success of your digital transformation initiatives. Without visibility into how individuals are progressing, gaps can go unnoticed and adoption can stall. Use ADKAR Assessments to track individual and team progression over time. Ensure that employees remain engaged and on track to meet your digital transformation goals. The Prosci ADKAR Model provides a framework for managing the people-side of the digital transformation journey. And its impact is clear; in a Prosci study, 51% of respondents rated the ADKAR Model as extremely effective for facilitating change. Effectiveness of the ADKAR Model on Facilitating Change Digital Transformation Goals FAQs What is a digital transformation goal? A digital transformation goal is a strategic objective set by an organization to improve its performance, customer experience, or competitiveness by leveraging digital technologies. These goals define what the organization aims to achieve through its transformation efforts. They typically focus on outcomes such as streamlining operations, enhancing service quality, reducing costs, and increasing responsiveness. What are the key objectives of digital transformation? The key objectives of digital transformation focus on using technology to improve business performance, strengthen resilience and enable long-term growth opportunities. The most common objectives of digital transformation include: Increase adoption of new technologies Improve agility and adaptability Enhance customer experience Increase operational efficiency Support data-driven decision-making Strengthen compliance and reduce risk Foster innovation across the organization Build internal change capability These objectives guide digital transformation strategies and impact the investments organizations make. Why does digital transformation matter? Digital transformation matters because adopting new technologies enables businesses to adapt to changing customer expectations, improve efficiency and gain a competitive edge. To sustain these changes, people need to adopt new ways of working. Change management helps build this capability, ensuring today’s transformation delivers results, and tomorrow’s changes are easier to lead. How can a company succeed in digital transformation? Digital transformation succeeds when organizations address both the technical- and people-side of change. A structured, adaptable approach to change management, like the Prosci Methodology, helps set your people up for successful adoption. Achieving Digital Transformation Goals Starts With People To unlock the benefits of digital transformation, you need to support the people at its center. Change management provides a structured approach to turn strategy into sustained adoption and improved results. Prosci gives you the tools, training, and support to achieve lasting digital transformation success.

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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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