Many organizations are making big bets on artificial intelligence (AI) adoption based on instinct: assuming employees will adopt because they have to, excitement at the leadership level, or a few successful pilots. But assumptions aren’t enough to gauge an organization's actual AI readiness.
Without a clear understanding of how prepared people, processes, and governance are, organizations risk overestimating AI readiness, underestimating constraints, and investing in AI while failing to achieve adoption.
Organizational AI readiness encourages executives and leaders to look beyond tools and infrastructure alone before proceeding with AI implementations. In this guide, we explain the signifi...
AI for Change Management
In artificial intelligence (AI) change management, AI-powered tools reshape industries while change management professionals find themselves navigating uncharted waters. Our understanding of the change process leads us to believe that change practitioners everywhere are on an ADKAR journey toward an AI-powered future. AI's impact across industries In applying the Prosci ADKAR Model to the AI Adoption webinar hosted by Prosci, 60% of the 679 respondents across industries said they expected significant disruption by generative AI. The most impacted industries were forecasted to be fintech, technology, banking, software and IT. Prosci experts think that the amount of disruption across an industry depends on how the tasks overlap with AI’s features and capabilities. Even for the industries that are the least disruptable, AI would still make a significant disruption in their content-heavy tasks. Applying ADKAR To AI Adoption Challenges The four areas where AI can cause disruption are: Industry disruption AI affects industries differently, based on how well it can match up with the jobs that need doing. A recent report ranked industries by how much AI can automate their tasks. Industries like banking, insurance, software and capital markets have the highest risk of disruption. Sectors such as natural resources, chemicals, and consumer goods and services face less risk. However, even in the least affected sectors, companies will see changes, particularly in roles involving language tasks. Organizational disruption AI will disrupt organizations in various ways, driven by different goals. Some AI changes will focus on making current management processes more efficient, helping organizations and their employees perform better. Other changes will aim at growth, enabling the organization to reach new markets and opportunities. Finally, some changes will be transformational, pushing organizations to rethink their operations, services and value. These changes—aiming at efficiency, growth and transformation—often happen simultaneously and influence each other due to the interconnected nature of technology. Organizational leaders must prioritize these changes and decide which areas to focus on first. Job disruption The fear of job loss due to AI-powered tools is significant, yet an insightful perspective suggests that it's not about robots taking over jobs but rather individuals using AI to advance in their current roles. Jobs evolve, so you must consider AI to make tasks more efficient. A World Economic Forum report predicts a decline in roles like bank tellers and data-entry clerks due to digital advancements. Conversely, fields such as AI, sustainability, business intelligence and information security are on the rise. Task disruption You can’t deny AI's knack for making routine tasks quicker and less of a hassle. Employees can use AI tools to improve their productivity and quality of work, taking into consideration which daily or weekly tasks AI can assist with. This journey involves several learning phases: identifying complex tasks that AI can optimize, mastering the technology's interface for optimal results, and understanding appropriate versus inappropriate AI usage. × Is your AI initiative struggling to gain traction? Current use and perspectives on AI change management Drawing insights from over 200 change practitioners, the Artificial Intelligence and Change Management study by Prosci highlights the increasing integration of AI in change management. Approximately 48% of these professionals already incorporate AI tools into their change management practices. Are You Currently Using AI Tools and Technologies in Your Change Management Practice? Utilization of AI in change management The areas below represent the top five reported by change practitioners using AI today, along with use cases and examples. Communication support Rewriting and refining messaging for different audiences Ensuring proper tone and grammar Tailoring content for specific communication channels Example: Evaluate the CEO's tone in announcements for appropriateness with company-wide staff during a rebranding phase. Content creation Developing training materials and case studies Drafting communications and presentations Brainstorming creative ideas and formats Example: Break down the complex topic of organizational restructuring into smaller, manageable segments for employees, focusing on individual roles and impacts. Strategy and planning Building comprehensive change management plans Scenario planning and risk assessment Aligning communications to strategy Example: Provide real-time feedback on the proposed employee engagement strategy related to the new organizational structure and focus on its impact on team morale. Automation and efficiency Using chatbots for FAQs and stakeholder questions Repurposing content across channels Creating explanatory videos Example: Create a chatbot to collect feedback on new HR policies and answer questions from department managers. Data analysis Surveying customers and analyzing feedback Identifying themes and areas for improvement Enabling customized messaging through segmentation Example: Perform a thematic analysis of customer feedback on recent product launches to identify key themes in customer satisfaction and areas for improvement. Common challenges in AI adoption in change management A LinkedIn poll by a Prosci executive asked professionals how often they collaborate with AI, revealing that over 80% of respondents used AI in some form or another to improve productivity. Despite this informal finding, a Prosci research study on AI adoption in change management reveals challenges to adopting AI in the discipline. These are five main reasons change practitioners avoid using AI, along with suggestions for overcoming those challenges: Uncertainty and inexperience Organizations should provide informative webinars and detailed use-case documentation highlighting AI benefits in change management. Lack of relevant use cases Developing and promoting AI tools with clear applications, such as AI for employee engagement, can provide direct solutions to the lack of use cases. Limited access and resources Companies can address this by allocating budgets for AI tools and forming dedicated AI support teams. Knowledge gaps Implementing training programs like AI workshops or online courses could demystify AI’s challenges. Time constraints and lack of priorities Developing efficient learning methods and setting clear priorities for AI integration can optimize time management for change practitioners. Benefits and opportunities in AI change management Our experts view AI's role in change management as evolving, particularly in its impact on the daily tasks of change practitioners. The essence of change management is embodied in the process of preparing, equipping and supporting people through changes at work. This concept is the foundation for understanding AI's integration within this discipline. What Impact have AI Tools and Technologies had on Your Change Management Work? What Potential Opportunities Do You Foresee With AI and Change Management Practices Over the Next 2 Years? Over the next two years, AI is poised to transform change management in several key areas. The Prosci Artificial Intelligence and Change Management study identifies several primary opportunities where AI could make a significant impact, as detailed below. Communication enhancement The most prominent opportunity, according to 29% of the change practitioners, is that AI can enhance the effectiveness of change communications. It can help generate content and offer new perspectives, which can help refine communications and engagement strategies. Change managers can then focus more on strategic implementation rather than content creation. Organizational transformation Accounting for 21% of responses, AI's potential to accelerate organizational change is noteworthy. AI can aid in adopting new technologies, thereby speeding up change processes. AI can help practitioners focus on critical thinking and interactions by managing repetitive tasks more efficiently and intellectually. Administrative support Voted by 16% of practitioners, AI can efficiently manage administrative tasks like communication handling, training invitations, and stakeholder data analysis. This automation liberates change management professionals to engage in more creative and strategic work. Decision-making and governance Predictive analytics, improved training methods, and data-driven insights can substantially improve the success rate of change adoption and tailor strategies based on stakeholder analysis. Stakeholder engagement AI tools can build stakeholder confidence and support change adoption. They draft communications, assess sentiments with real-time insights, and design tailored change interventions, helping create personalized support for stakeholders. Virtual environments With 4% indicating its potential, AI can create immersive training and scenario analysis environments. These AI-driven virtual platforms can provide realistic training for managing change resistance and enhancing stakeholder preparedness. Crisis planning In this smaller yet significant area, AI can assist in anticipating and mitigating resistance and failures in change implementations. This proactive approach in crisis planning enhances organizational resilience. These findings suggest a cautious yet optimistic approach toward integrating AI change management. These tasks are geared towards "safe" AI applications. Change practitioners are still steering away from the more controversial applications of AI, such as relying solely on AI for data-driven decisions over human judgment or using predictive models to forecast employee turnover during changes. Challenges and barriers in AI adoption in change management What Potential Concerns or Challenges Do You Foresee With AI and Change Management Practices Over the Next 2 Years? Bringing AI into change management has its challenges. According to the Prosci AI and Change Management study, professionals face challenges in grasping AI, managing its use, and keeping up with how quickly change management practices need to evolve. Key issues include: Fear and lack of understanding Fear stands in the way for many, especially about job roles and security, and reluctance to try new things. Nearly a third of professionals (29%) are wary of AI, making them hesitant to adopt it. Overcoming this fear means ramping up education and hosting workshops to boost AI understanding. Governance and compliance This presents a challenge for 22% of respondents. Addressing legal and ethical concerns involves establishing clear regulations and standardized AI ethics frameworks. Slow evolution of AI in change practice Noted by 16% of practitioners, the change management field's lagging adaptation to AI highlights the need for incorporating AI tools and change management frameworks to stay relevant. Security and privacy concerns Data privacy and security concerns 13% of respondents. To address this, organizations need to implement robust data protection protocols and advanced encryption. Human aspect and job displacement About 8% report feeling AI may lead to the loss of human touch in change management, and 10% worry about job losses. Emphasizing AI as a support tool and focusing on reskilling can address these issues. Average Barrier Significance Rating 1 = No Barrier; 5 = Very Significant Barrier This approach ensures that AI enhances rather than replaces human skills, addressing the human side of change thoughtfully and intentionally. ADKAR barriers exist when an element scores a three or above. From the data above, the first ADKAR barrier to focus on in most cases remains Awareness. The figure below shows some factors that drive and restrain AI Awareness: In the “Applying ADKAR to AI Adoption Challenges” webinar, Prosci Chief Innovation Officer, Tim Creasey, recommends a multifaceted approach to overcoming resistance, emphasizing the importance of contextual and task-oriented training. Instead of focusing solely on AI tool functionality, he suggests that people should integrate training with people's actual tasks, so it's practical and directly applicable. “It is important to think about Generative AI as an extremely skilled intern, rather than an oracle. You go to an oracle to get answers; you go to an intern with tasks and iterate and collaborate toward valuable outputs. Unlocking GenAI will be central for organizations to elevate change success." — Tim Creasey, Prosci Chief Innovation Officer. Navigating the future of AI change management Organizations and enterprises should address the restraining forces by building Awareness of the need for change, reducing fears, and providing access to AI-powered tools and training. There’s no denying that disruption is underway, and applying AI in change management is happening and will only continue to grow. With this in mind, it’s time to embrace AI in change management to reap the benefits of a smoother, more efficient transition.
From Promised ROI to Delivered ROI: Governing ERP Benefits Beyond Go-Live
Enterprise resource planning (ERP) projects rarely lack ambition. Organizations often invest millions of dollars in technology and implementation with the expectation that a new system will streamline operations, improve decision-making, and unlock meaningful business value. But when it comes time to report on results, many ERP teams find themselves struggling to turn promised return on investment (ROI) into delivered ROI, especially without the right metrics. Metrics are a critical component for measuring ERP success, and one of the most challenging aspects to get right. According to Prosci’s 2025 Unlocking ERP Implementations study, organizations with comprehensive metrics maturity achieve 28% success rates, 4x better than those with poor metrics (7%). Yet there’s a surprising twist: Organizations with no formal metrics (26%) outperform those with poor metrics, meaning bad metrics are worse than no metrics at all. To bridge the gap between promised and delivered ROI, organizations need to move beyond system usage and toward business and people-focused metrics. The question executives need to ask is: “Am I delivering systems or value?” The ERP metrics maturity gap Prosci’s 2025 ERP research showed that comprehensive metrics maturity (28%) leads to 4x better outcomes than poor metrics (7%). Organizations that define strong metrics significantly outperform those with poor ones, but the path to defining strong metrics isn’t always clear. Real-world reasons for the disconnect in ERP metrics maturity Most commonly, the disconnect in ERP metrics maturity stems from misalignment. Across client engagements, I’ve seen instances where organizations didn’t clearly define their metrics or where they defined the wrong ones. When this happens, stakeholders often outline their own version of what they should measure to deem the ERP transformation a success. Different business functions define their metrics in silos and believe the ones they choose are the right ones, creating an inconsistent narrative across teams. When ERP implementation teams, including sponsors, the steering committee, and additional senior leaders, define metrics together at the beginning of the project, they develop a common language and shared understanding of what success looks like. In practice, this works best when leaders gather input from impacted groups to understand how to measure success at the level where the work happens. Aligning and defining metrics for success can make or break whether an ERP implementation achieves its intended business outcomes. Executives can start by asking: Do we have a clear, shared ERP vision tied to business and people outcomes, or are we relying mostly on system usage metrics and siloed definitions of success? × Your ERP Will Go Live. Will It Deliver Value? Defining ERP success before you start When joining a client engagement, it’s not uncommon for us to see that organizations aren’t considering measurement from the start. But measurement must begin early in the process, not at go-live, because without baseline data, it’s nearly impossible to gather metrics that showcase real business value. The right time to design this measurement approach is during the ERP business case construction, not after configuration has started. Anchoring metrics design to the business case ensures that the value story, baselines, and success measures align from day one. Measuring the people side of change beyond system metrics One of the ways we help clients engage in early measurement conversations is by conducting Prosci’s 4 P’s Exercise, identifying the project, purpose, particulars, and people. In conducting this exercise, we ask questions about how we will measure the people impact. In ERP change management, we focus on submetrics, including: Speed of adoption – How quickly individuals or groups change their behaviors to use a new process or system Ultimate utilization – How many people are using the new process or system Proficiency – How well individuals perform after adopting the change, and whether they use the new process or system correctly and effectively To measure these, organizations typically have to extract multiple datasets to represent these areas. Things like accurate inventory accounts and cycles for speed of adoption, how many people completed training for ultimate utilization, and competency levels for proficiency. To gather these metrics, we need to understand how the organization currently uses and measures them so that we can identify comparisons in the people side of change. When we have these conversations early and involve change management expertise, we’re better able to identify the right metrics, leading to more successful outcomes. Business outcomes vs. ERP system metrics Too often, in the absence of business outcome-focused metrics, teams depend on system metrics, including logins and transactions, to paint the success story. While logins and transactions are the first step toward accessing the new ERP system, they don’t demonstrate the system's value or whether end users use it effectively. Moving from system metrics to business outcomes such as cycle time, inventory impact, and workforce productivity often requires a shift in thinking. We have conversations about the Prosci ADKAR® Model and the reinforcement and sustainment efforts post-go-live that drive feedback loops for continuous improvement and better business results, guiding clients toward people-focused metrics. We know from Prosci’s research that post-go-live is where ERP value materializes. What logins and transactions as core metrics miss are the feedback and information loops that facilitate adoption and ongoing use of the ERP system. Benefits realization governance Turning promised ROI into delivered ROI requires more than a strong business case at the outset. It requires disciplined benefits realization governance throughout the ERP lifecycle and well beyond go-live. One practical mechanism is a regular, often monthly, business case review where sponsors and the steering committee revisit value assumptions, assess which benefits are at risk, and decide on course corrections before issues compromise ROI. Effective governance starts with a clear agreement on how sponsors will stay informed. If I were in the role of an executive sponsor, I would want to know: How will I know what’s going on? How frequently will I be updated? How will teams surface decisions to the steering committee and me? How will we be informed about emerging risks and challenges? How will we know that we are successful? What will we measure, how will we measure it, and who is accountable for measuring it? The questions shape how the organization will monitor both ERP system implementation progress and value realization. At the center of these reviews is a simple but powerful question for executives: “Am I delivering systems or value?” This question keeps discussions anchored in benefits realization rather than just technical milestones. Measuring ERP benefits throughout the lifecycle Executives who want to understand whether their ERP is actually delivering value should work with change leaders to draw on tools like the Prosci Change Triangle (PCT) Assessment to gauge progress, conduct ADKAR assessments or pulse-check surveys, and review submetrics to determine how impacted groups are adapting to the change. By focusing on the sponsor’s area of the business, change leaders can make benefits realization tangible and relevant, reinforcing that the ERP is not just a technology program but a business transformation. Go-live is the starting line What leaders said they would do differently to improve the business benefits gained from their ERP implementation Participants in Prosci’s ERP implementation analysis cited Measurement and Continuous Improvement as the second-highest benefit lever (24%), trailing only People and Change Management (36%). Most notably, a significant finding emerged: Organizations that treat go-live as the finish line misunderstand when ERP value materializes. Effective ERP adoption doesn’t stop at go-live. The real business value often comes after implementation through process refinements, user feedback, data insights, and automation opportunities. One participant in our ERP implementation research identified 15-20% cost savings opportunities in inventory and procurement through predictive analytics, a testament to ongoing monitoring and continuous optimization. Opportunities like these only become available through continuous measurement and development, which is why it’s necessary to: Structure post-go-live investments – Many organizations view go-live as the destination, dedicating 92% of their budget to technical activities leading up to deployment (Best Practices in Change Management, 12th Edition). But organizations that want to see real value from their investment need to view go-live as a starting point and allocate resources to facilitate post-go-live support, including change management. Build feedback systems that surface problems early – Both early and post-implementation feedback are necessary. The former shapes the ERP implementation design, while the latter drives optimization. Embed measurement into operational dashboards – Real-time visibility through dashboards and embedded analytics provides insights that inform decision-making and demonstrate value early. Executive action for delivering ERP ROI Translating promised ROI into delivered ROI doesn’t come from better status reports or more system metrics. It comes from executives who deliberately govern benefits across the full ERP lifecycle and hold themselves accountable for value, not just go-live. To do that, executives can focus on three areas: Define a shared version of success early – Align on baselines before go-live so you can show real, comparable value later. Don’t let every function define its success metrics in silos. Assign clear accountability for benefits realization – Name who owns benefits realization and how they will track and communicate progress and risks. Invest beyond go-live and treat feedback as an opportunity – Protect post–go-live budget and capacity for change management, training, and optimization. Build feedback loops and dashboards that tie back to the success scorecard, not just system usage. Delivered ROI demonstrated through aligned metrics, sustained adoption, and visible business outcomes builds trust, unlocks future investment, and proves that the ERP is a true business transformation, not just a technology upgrade. Promised ROI will get you funded, but the delivered ROI will get you funded again.
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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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