C-Suite Community Pulse on Change Management


November 2024

With the rapid pace of technological change, the enormous potential of AI, and the close alignment between digital initiatives and business growth, organizations seem to be in a constant state of change. In fact, according to Gartner’s 12 Leadership Principles for Successful Organizational Change, change management is ongoing for C-level executives and their organizations. The Gartner report notes: “Organizational change is no longer a single event experience. Instead, organizations are attempting to adapt through multiple, simultaneous change initiatives.”

With multiple change management initiatives to address, how can C-level executives help promote adoption and minimize resistance? We asked more than 800 C-level executives across Evanta communities about the current state of change management at their organizations. Here is a snapshot of what they are reporting.
 

Are they currently working on change management initiatives?

Currently, 80% of C-level executives say that their organization is engaged in some kind of change management, and another 8% predict they will be working on change initiatives in the future. 

When we asked what organizational initiatives required change management, executives responded with digital transformation, such as cloud migration and AI adoption; automation and AI integration; mergers and acquisitions or organizational restructuring; and process or cost optimization, among others.


What is their role in change management?

Nearly three-quarters of C-level executives (74%) report that they provide strategic direction to their organizations’ change management initiatives. Another 69% of leaders note that their job is to communicate and engage with stakeholders, and 61% say they are leading and championing the initiatives. Less than 10% report that they have “minimal involvement” with change management.


What makes change management successful?

According to 39% of respondents, executive leadership or sponsorship has the biggest impact on change management initiatives. Twenty-two percent of C-level leaders believe that effective communication is the next biggest factor in successful organizational change. Interestingly, employee engagement (17%) and investments (16%) came in lower when executives had to cite the main factor in success.


How much are their organizations investing?

Forty-five percent of executives say their organization has made a “moderate” investment in change management, and 31% report that it is “low.” Very few leaders say their organization is not investing in change management at all (3%).


How confident are they in their organization’s capabilities?

Despite moderate investment, C-level executives are confident in their organization’s ability to implement change management initiatives, with 23% saying they are “very confident” and 67% reporting they are “somewhat confident.”


Barriers to Change Management Success

We asked C-level leaders what they believe are the barriers to change management success, and their answers ranged from communications, stakeholder buy-in and resistance to change, to competing priorities, insufficient resources and the lack of alignment across the organization. 

Here is a sample of their responses:

The benefits of change are not necessarily visible to the individuals affected – at least not in the short term.”

Focus. Staying the course over a period of time as other initiatives come into and leave the strategic spotlight.”

Keeping the drumbeat on the WHY and following up that it's a journey, not a one and done.”

Lack of understanding and appreciation for change management as a critical component of major initiatives.”

Following through with change past the implementation milestones to ensure adoption.”

Finding all the right constituents and engaging them early enough.”


Overcoming Change Fatigue

With change becoming an ongoing activity for organizations, we also asked executives how they approach the problem of change fatigue. Many leaders acknowledged that their organization struggles with this challenge. Here are some of their responses:

We spread changes out over a longer period of time and frequently measure and celebrate progress.”

Set strong expectations for a continuously changing environment. Communicate the ‘why’ for every change. Build resilience skills within employees.”

This is a current challenge. Trying to be purposeful about the sequencing and volume of change hitting the organization at any given time.”

Try to keep employees well informed, not push change just for change's sake, but tie it to improving the employee or customer experience.”

You have to pace your changes; slow down to speed up.”

No good answer on this. Fatigue is real.”




If you are a C-level executive 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 825 responses to Evanta’s Community Pulse Survey, November 2024.