Based on a survey of 22 large partner groups of the chairs ESSEC Amendment And IMEO (Managerial Innovation and Operational Excellence) we wanted to assess the importance of change in organizations and the sense of magnitude of the number of changes[1] in the context of transformation.

On the way to exponential change

As mentioned in the words of singularity university In the US, we are entering a period of exponential change due to some form of technological convergence. Digital, AI and robotization will cover more and more needs and are accompanied by many technological, social and organizational changes. The number of changes is perceived as increasing by 100% of respondents. For 61.9%, this increase results from a number of changes multiplied by a number between 3 and 5 in the last 15 years.

33.3% of team managers manage more than 5 change projects per year and 33.4% between 3 and 5 projects. So we have about 66.7% of local managers handling between 3 and 5 change volume per year. Managers of managers are more affected by the inflationary phenomenon of change. 68.2% manage more than 5 projects per year, which is more than double compared to local managers.

80% of local managers devote 25% or less of their time to change management. 20% say they spend more than 50% of their time managing change. One explanation lies in the content of certain management functions that implement projects, as is the case in IT.

Managers of managers devote more time to change projects. 71% devote between 25% and 50% of their time to this topic. This can be explained by the fact that the content of their work involves more and more changes. This category plays an important role in the implementation of change projects.

Regulation, society, customer: the podium of change factors

The companies had to answer the following question: “What are the factors driving change in your company (customers – societal changes – globalization regulations – technology)?” Regulation is seen as the most important driver of change, followed by societal changes, customer requirements, technology and globalization.

The two regularly mentioned factors of technology and globalization appear after regulations, societal changes and customers. This shows the importance of external regulations in our societies, but also the fact that many organizations use internal normative systems. Societal changes are associated with the emergence of collaborative organizations and the search for meaning Terms such as purpose and corporate social responsibility. The companies interviewed are large international corporations and the idea of ​​globalization is an integrated reality.

Change projects are justified, but imposed and disorderly

For 72%, the implemented change projects are indispensable and fully justified, even if 63% say that the change projects are not always relevant at the time of their implementation. 68% think projects are not well organized and 77% chaotic. 60% of projects are perceived as mandated by management and only 40% are seen as part of their purpose. For 63% there are too many changes and for 86% the changes are not prepared well enough.

The multitude of projects at all levels of the organization and the difficulty in completing projects give the impression of a disorderly movement with no visibility of the results. This enables the transformation to be managed as a whole and the number of changes to be implemented to be assessed in relation to the organization’s operational readiness. This also shows the need for co-construction methods.

Prioritize change and make time for change

95% of study participants report no reduction in change projects. However, they are waiting for organizational answers better project management. Above all, they expect changes to be prioritized and want the time to do so. 60% state that they experience a tension between recurring production tasks and project-related tasks. 60% would like more leeway to implement the changes on site.

Today a manager manages between 3 and 5 changes per year and takes up between 25% and 50% of his working time. These few numbers allow us to affirm that “the change is happening now”. This increase in the number of changes is due to the evolution of regulations, societal changes, customer demands, technology and globalization. If the employees do not question the changes, they criticize their implementation methods. Change projects are perceived as forced and poorly organized. For this, companies are asked to create a real transformation management to prioritize projects and propose organizations that allocate time for the implementation and stabilization of projects.

Article written with Kevin Johnson, Professor HEC Montreal

[1] The survey was conducted in 2020 and updated for publication in the Canadian Journal in 2022 management