In today's business landscape, continuous change is to be expected. According to Gartner's Organizational Change Guidance, companies have implemented approximately five major changes over the past three years, and three-quarters of organizations anticipate undergoing significantly more company-wide changes in the next three years.
As economic uncertainty, rapid technological advancements, a focus on AI automation, and the ongoing debate over hybrid work models shape the future of work, Chief Human Resources Officers (CHROs) have identified change management as their top priority this year. With an emphasis on building an agile and resilient workforce, how are CHROs navigating the complexities of change management today?
We surveyed 200 CHROs across Evanta communities to gain insights into the change management initiatives within their organizations. Here is what they reported.
Are they currently working on change management initiatives?
In alignment with their priorities, 88% of CHROs report that they are currently engaged in change management initiatives. An additional 6% anticipate leading change management efforts in the future, while only 6% indicate that they are not involved in any change management initiatives at this time.
When asked about the primary organizational initiatives driving their change management efforts, technology modernization, mergers and acquisitions (M&A), and organizational restructuring are at the forefront.
What is their role in change management?
HR leaders play a pivotal role in change management initiatives, with 83% reporting that communicating and engaging with stakeholders is one of their primary responsibilities. Additionally, 80% of CHROs are involved in providing strategic direction and oversight, while 73% are actively leading and championing change initiatives. Notably, only 5% of respondents indicate having minimal involvement in change management efforts.
What makes change management successful?
When considering the factors that influence the success of their organizations' change management initiatives, 34% of CHROs identify executive leadership or sponsorship as having the greatest impact. Meanwhile, 31% point to communications as the leading factor. Additionally, 17% cite investment and resources, and 12% believe that employee engagement is the most significant indicator of success.
How much are their organizations investing?
Forty-two percent of CHROs consider their organizations' level of investment in change management to be "moderate," while one-third of CHROs report a "low" level of investment in change management initiatives. Twenty-two percent indicate that their organizations are making a high investment in these efforts, and only 2% of CHROs report not investing in change management at this time.
How confident are they in their organization’s capabilities?
Ninety percent of CHROs express confidence in their organizations' change management capabilities. Of these, 70% describe themselves as "somewhat confident," while 20% consider themselves "very confident." Only 10% report lacking confidence in their change management abilities.
Barriers to Change Management Success
We asked CHROs to identify the obstacles they face in achieving change management success, and several themes emerged from their responses. Commonly cited challenges include inadequate communication, leadership misalignment, resource constraints, organizational resistance, and a lack of change management maturity. Here are a few of their comments:
Communicating a clear 'why' behind the change – and communicating it in multiple ways, multiple times."
Lack of commitment from senior leaders."
Time, money, and resources. There are so many priorities and few resources to carry them out."
General resistance to change. Our industry has been under extreme pressure for years, so people are tired."
Overcoming Change Fatigue
Change fatigue is a well-recognized challenge for CHROs, and we asked them to share how they are addressing it within their organizations. While many are still in the process of developing effective strategies, those who have made progress shared their approaches to mitigating change fatigue and effectively engaging employees. Here are a few of their responses:
Be very clear and transparent with the WHY… over index on communications."
We have been working to improve in this area, and we now have a change advisory council."
Acknowledge the reality of change happening and be willing to step back to ensure the right prioritization."
Move away from change management as an initiative within a project, and instead build change resilience as a competency in all positions."
If you are a CHRO navigating change management at your organization, explore an opportunity to discuss it with your peers by joining an Evanta community near you. If you are already a member, sign in to MyEvanta to find your community’s next gathering.
Based on 200 responses to Evanta’s Community Pulse Survey, November 2024.
by CHROs, for CHROs
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