2. SYNOPSIS
IBM Global Business Services’ change Management research across the globe emphasizes improving customer
satisfaction, sales and revenue growth, reducing costs, innovating processes, implementing technology, and entering
new markets. IBM believes in strategic, organizational, operational, and technology-based change to survive and strive
in today’s competitive environment.
The study revealed that despite companies’ focus on continuous change, the gap between actual change capability and
needed capability widens. This involves significant costs to companies. Failed change initiatives bring in budget
overruns, disgruntled customers, and demoralized employees.
In all 59% of change initiatives failed to meet their objectives. The study reveals that the top 20% organizations are
successful 80% of the time. Conversely, the bottom 20% only manages to achieve their change objectives 8% of the
time. The top 20% of companies are ten times more likely to lead a successful change initiative than the bottom 20%.
They can successfully identify the barriers to change the key factors, to leverage them to achieve success. In this way,
poorly performing organizations can improve. Study suggests the key ingredients for successful change
Such a scorecard helps to frame strategies that can weaken the barriers against change and strengthen the key success
factors, respect and develop our own skills as a change leader, and invest in the skills development of the change team.
And the core learning is that it is the people who matter most in managing change in organizations.
3. Q1. FROM THE IBM STUDY LIST OUT THE IMPORTANT ISSUES OF
STRATEGIC ORGANIZATIONAL CHANGE AND DEVELOPMENT.
58%
49%
35%
33% 32%
20%
18%
16% 15%
12%
8%
0%
10%
20%
30%
40%
50%
60%
70%
Changing Mindsets
and Attitudes
Corporate Culture Complexity is
Underestimated
Shortage of
Resources
Lack of
Commitment of
Higher
Management
Lack of Change
Know-how
Lack of
Transparency
because of Missing
or Wrong
Information
Lack of Motivation
of Involved
Employees
Change of Process Change of IT
Systems
Technology
Barriers
Important Issues of Strategic Organizational Change
Important Issues of Strategic Organizational Change
5. Q2. TO WHAT EXTENT DO YOU FEEL THIS STUDY IS RELEVANT FOR
INDIAN ORGANIZATIONS?
• So, to a certain extend this study is relevant for Indian Organizations. In this Case study IBM talks
about emphasizes improving customer satisfaction, sales and revenue growth, reducing costs,
innovating processes, implementing technology, and entering new markets.
• Indian makers are not realising that world has been changing with great speed. So, they have to
focus on building core organisation process & develop new capabilities on the basis of existing
resources & challenges. They have been basically people developers.
• Early awareness and actions are critical to address the top organizational challenges inherent in
change projects shown earlier: mindsets, attitudes, culture and complexity. Such changes do not
happen automatically Change Masters address them early, plan carefully and execute rigorously.
• Many companies like Ranbaxy, wipro, bajaj auto, Infosys etc have learned to adapt to the new
environment in different degree.
6. CONCLUSION
• While the Enterprise of the Future is indeed hungry for change, us Making
Change Work study shows that executing change well remains the exception,
though certainly an achievable goal.
• Our research with practitioners revealed practical insights about closing the
change gap – including the insight that soft, people-related factors typically
present greater challenges than hard, technology related factors that are
typically easier to identify and measure.
• Improving project outcomes requires attention to a combination of acting on
real insights, employing better skills, establishing solid methods and
allocating the right investments.
• By focusing on all four facets of the Change Diamond, organizations can gain
synergies that make change work in their favor: delivering more successful
projects and building a change management capability that is vital to
becoming an Enterprise of the Future.
