Changes in the IT environment can often result in a large number of incidents after the launch. This, of course, affects not only users and even the whole business, but also the economy in the long run. Structured change management, on the other hand, can bring business benefits.
As we have previously reported, implementing Change Management according to ITIL (Information Technology Infrastructure Library) is a step to cover all aspects of change. It is a well-documented way to bring structure to changes in the IT environment.
But Change Management can also be linked to benefits in the dimensions of time, resources and money, and this is an even more important argument for demonstrating financial benefits to the management team and the financial manager. Below we present three benefits:
- In some places it is said that the incident flow is reduced by 50-60 percent.
- In addition, there are no noticeable disruptions for the customer, which ensures uninterrupted delivery, satisfied customers and stronger customer relationships.
- The so-called impact is also reduced internally, so that there are no interruptions for employees. Everyone can get on with business as usual and contribute to the company's business.
Given that clients, product owners and other people with authority within their departments tend to emphasize the importance of protecting the business from the negative effects of an IT change, the above benefits are really interesting. When they do not want their work and that of their employees to be negatively affected by a change, it seems a logical step to apply Change Management.
Effective change management and ROI
There are also benefits in hard cash. Management consultants McKinsey published a study showing that projects where change was managed effectively generated a return on investment (ROI) that was 100% above what was expected, while the corresponding figure for those projects that were managed ineffectively and unregulated was less than 50% of what was expected.
There are also figures on the effectiveness of change management and how project objectives are met. The more efficiently a project was implemented according to Change Management, the more participants in the project team (and clients of the projects) thought that the objective of the project was met or even exceeded.
Why are economic arguments important?
Incidentally, financial arguments are your strongest asset in a discussion with the management team. The more economic arguments the better. It is excellent to have economic arguments for all parts of your business, and ideally by calculating the value based on the costs of the consequences of a problem. The cost of the consequences is the value of getting the problem (or problems) solved. If you can make a sound economic argument, you are guaranteed to get the attention of the management team.
Don't forget to measure. Of course, there are different ways to measure, but measure - because then you have something to discuss!
Change management facilitates success
But management team members don't just listen to the so-called 'hard facts' - they know, of course, that soft values are also a prerequisite for a well-functioning business. The positive effects of change management on business can be summarized in these points:
- Change Management facilitates change at the pace the company needs
When a change is to be implemented, it is done in such a way that it is in line with the company's development. - Change Management creates knowledge among IT staff and other employees about new and changed services
The change increases the level of competence in the company. This is done by documenting the change, and what processes or products were changed, why and in what way. - IT resources are used efficiently
As with any internal process, it is important that the right skills are used in the right way, and by formalizing the process around change, the company gets an overview of who is involved in the process and can take a stand on the use of resources.
Find out more about change management and how to implement it effectively in our white paper Change Management in Practice (SE).
