The cornerstone of an organization is its people. When it comes to construction, understanding, empowering and leveraging employees effectively can lead to significantly improved results. For an organization to reach an intended future state, impacted employees must reach their own future states. Organizational change management places the necessary focus on where change actually occurs: at the individual employee level.

Organizational change management can greatly contribute to a project’s bottom line. Data from numerous sources shows a direct correlation between change management effectiveness and the likelihood of success. According to a recent benchmarking report by Prosci, when the people side of change was inadequately managed, the rate of bringing in a project on time was only 14 percent. Of the projects studied, roughly 48 percent were on budget, and a mere 15 percent actually met their objectives. These are not sustainable numbers in any organization.

Projects using effective organizational change management tools, by contrast, met their objectives in 94 percent of cases. Seventy-one percent completed their project on time, and 81 percent remained on budget.

While there are many benefits to engaging in organizational change management, here are five key ways it can improve a project’s bottom line.

Maximizing the return on investment

There are three main change factors that will either contribute to or constrain a project’s success. The first, speed of adoption, is how quickly impacted employees get on board with new processes or behaviors. Another factor is the ultimate use: the number of employees that engage rather than opt out or find a work around. Lastly, proficiency, which is how effective employees are once they make the transition.

Change management enables achievement of optimal ROI through faster speed of adoption, higher ultimate use and greater proficiency. When an organization’s people and processes are aligned, the positive returns from implemented changes increase dramatically.

Reduce cost

Change management can help avoid unnecessary costs on a new project by ensuring the right people are in the right place. When synergy exists in the team, organizations are able to create new efficiencies and decrease the number of errors by identifying and leveraging the appropriate staff. Budgets can be better managed. Cost overruns can be reduced. Should a problem arise, the right people will be in place to find a solution.

Risk mitigation

When the people side of change is ignored or mismanaged, additional risks will arise. Risks emerge at the project level and organizational level and include factors such as active and passive resistance, morale declines, loss of valued employees, delays and inefficiencies from having to redo work. By considering all individuals and teams involved, change management enables an organization to reduce these risks and ultimately save time when it comes to project implementation.

Improve productivity

Change is hard and failure is common. Research by McKinsey & Company revealed an overwhelming 70 percent of organizational change initiatives fail. Not only does this type of failure waste valuable time and resources, but it also undermines productivity. Ensuring a change management plan is in place upfront can greatly improve the chance of project success and increase employee productivity throughout the process.

Today, as many baby boomers in the construction industry are retiring, organizational change management is an effective means to capture the knowledge these employees have spent decades learning and mastering. Retaining their knowledge in a way that can be easily transferred will have a substantial impact on productivity in new generations.

Better employee cooperation

The change management process provides an opportunity to address employee concerns, support and empower staff, and develop new avenues for innovation. When employees are invited to participate in the transformation process, engagement will naturally increase.

Even those resistant to the change can be extremely beneficial when it comes to understanding potential risks that may have been otherwise overlooked. Take the time to truly engage with them and be open to their perspective. In the end, having employees from different sides thinking and working together can lead to surprising discoveries. The collective wisdom of the team can be tapped and harnessed for the benefit of the organization.

To create lasting improvement in the work environment, organizations must be willing to help individuals do their jobs in a new way. Organizational change management enables businesses to make transitions smoothly and effectively. Why accept a dismal 15 percent chance of meeting project objectives when that number can be increased to 94 percent? Give the company's vision what it needs to become a reality.