The Management of Change
OASIG Study 1996
80-90% of IT systems don't meet their performance goals
80% of systems are delivered late and over-budget
40% fail or are abandoned
Less than 40% fully address training and skills requirements
Less than 25% properly integrate business and technology objectives
10-20% meet all their success criteria
Emphasis on Cost
When IT systems are introduced "to reduce costs and improve efficiency" this can lead to people being seen as a cost rather than an asset.
"Downsizing" means reducing the size of an organisation by sacking staff and, therefore, reducing costs.
Employees are unlikely to be enthusiastic about a system that could take away their jobs.
Reasons why IT Systems Fail
Case Study - London Ambulance service
Businesses want to use the "latest technology", which means technology that hasn't stood the test of time.
Senior managers justify the new system on cost alone
Human or organisational factors are ignored
Users don't participate in the design stage and, therefore, are unsupportive of the new system.
Users may have been given unrealistic expectations of the new system
Costs and/or time-scale underestimated
Managing Change Successfully
Managers shouldn't try to change too much at once. They need to look at the whole organisational structure and current working practices. They should try to minimise the impact on working practices.
Everyone should be involved. Ideas should be listened to.
Management should explain but not exaggerate the benefits of the new system.
Full training should be given in the technology and the new organisational procedures.
Management should understand the reasons why staff might be nervous about change (e.g. IT can threaten jobs).
Opportunities for New Businesses
Large organisations can't change quickly. New businesses have taken advantage of this with the growth of e-commerce. For example, Amazon grew very quickly selling online books - WH Smith or Waterstones couldn't move as quickly. Recent developments, however, have shown that people have not deserted the high street to shop online and that, when shopping online, people look for familiar names.