Structure and Function of the Change Management Team
Profiled Institution A B C D E F G H Industry Retail Financial Services Financial Services Transportation Utility Financial Services Manufacturing Automotive Employees 10,000 – 50,000 10,000 – 50,000 5,000 – 25,000 25,000 – 75,000 1,000 – 10,000 15,000 – 50,000 10,000 – 50,000 More than 100,000 Revenues $500 million-$1 billion Less $500 million More than $10 billion $5 billion-$10 billion Less $500 million $5 billion - $15 billion $5 billion - $15 billion $75 billion - $150 billion How are projects prioritized and distributed to team members? What are successes and challenges of the change management team? Key Questions: What is the structure of the change management team? What are the responsibilities and services of the change management team?
Issue Overview: Change Management
Table of Contents
Executive Summary Structure Function and Role Critical Factors Appendix Research Methodology
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In today’s dynamic business environment, it is a constant challenge for organizationS to gain competitive advantage. Organizations must have business processes in place that enable the firm to reorganize, reengineer, downsize, implement new technologies, or merge at a moments notice. Companies must be prepared to cope with a faster change cycle, requiring the ability to handle change whenever the market or customer demands 1 it. Despite companies’ best efforts to manage change, research reveals the following: • • 2
According to Harvard Business Review, 70 percent of all change initiatives fail to achieve desired goals. A survey performed by Deloitte & Touche Consulting identifies the need for heavy investment in the area of change management. An American Management Association survey reveals the poor performance of change management programs and structures within the 259 interviewed organizations.
“An organization’s ability to implement major change more efficiently and effectively than competitors represents a major source of strategic advantage. Ensuring that people throughout the organization have access to the knowledge and tools that will help them play their roles in change more effectively is a critical ingredient.”
Research indicates the imperative for improved change management in order to gain competitive advantage. For many organizations, the inability to successfully manage change has led to a distinct loss of competitive advantage. That said, learning how to 3 successfully manage change is potentially the managerial imperative for the next decade. This research brief examines change management teams at eight companies in various industries. The study attempts to define the characteristics of an effectively organized change management team in order to assist companies in successfully managing organizational change.
- Daryl Conner, Strategic
Catalog No. CLC1YCMDH
2003 Corporate Executive Board
This project was researched and written to fulfill the specific research request of a single member of the Corporate Leadership Council and as a result may not satisfy the information needs of other members. In its short-answer research, the Corporate Leadership Council refrains from endorsing or recommending a particular product, service or program in any respect. Sources are contacted at random within the parameters set by the requesting member, and the resulting sample is rarely of statistically significant size. That said, it is the goal of the Corporate Leadership Council to provide a balanced review of the study topic within the parameters of this project. The Corporate Leadership Council encourages members who have additional questions about this topic to assign short-answer research projects of their own design.
STRUCTURE AND FUNCTION OF THE CHANGE MANAGEMENT TEAM FEBRUARY 2003