Today’s business environment is characterized by rapid change; small and large firms alike are implementing transformation initiatives more frequently than ever, driven by factors such as technological developments, competition, regulations and industry consolidation trends.
• According to IBM (2008), only 40% of projects meet their schedule, quality and budget goals.
• Research conducted by KPMG in New Zealand in 2010 found that 70% of organizations had experienced a least one project failure in the preceding year.
• A UK study of more than 5,000 IT projects by McKinsey/BT found evidence of a total cost overrun of $66 billion, with 17% of projects being so disastrous they threatened to destroy their companies.
One of the biggest stumbling blocks for any company that needs to implement a change initiative is internal resistance. People often resist change, and this can seriously sabotage or hinder progress on a transformation initiative. Being able to recognize and overcome staff resistance – which may be covert or subtle – is often crucial for a successful organizational transformation.