5 risks of change management failure
When your organisation is on the cusp of a major change, it's easy to get caught up and go along for the ride like everyone else. It’s also easy to underestimate the risks. But moving quickly or following a change that’s been largely dictated by others can mean overlooking the people side of things. Even the best-laid plans or sleekest software can leave your company behind the eight ball.
The last thing you want when trying to implement change is for the project to fail. A successful approach to change management involves assessing the risks associated with your particular situation so you can plan accordingly and be prepared for what might happen.
Avoid the mess by taking these five change management risks into account.
1. Exceeding budgets
It’s no surprise that when your corporate travel change plan fails, it means you’ve wasted money on something that didn’t work out. But what change leaders often forget to consider is the additional costs of having to go back and fix the inefficiencies and mistakes of a failed plan. One of the biggest reasons for change plans failing is that leaders underestimate the money, time, and resources required for change management, leaving them ill-prepared for unforeseen delays, obstacles or push-backs.
Even when change is involuntary, and you’re told a change is cost-neutral, there are often hidden costs. Budget allocations for disruptions, additional training, or temporary inefficiencies are rarely accounted for in advance.
This often occurs true when change comes from larger organisations or standardised programmes, where decisions move slowly, adjustments take longer than expected, or results don’t reflect a modern-day travel programme.
In corporate travel, what works today might not get you through tomorrow. Through poor change management, you may have wasted the original budget, leading to extra funds being needed to complete the project effectively. And if your department does not have the luxury of providing these extra funds immediately, you could have to wait until the next quarter, the following year, or worse, indefinitely.
2. Future changes are stalled or fail
Remember: sometimes it only takes one bad mark to tarnish the whole record. A legacy of failed change presents a significant and ever-present backdrop that all future changes will encounter. This is especially true if there is a lack of trust or overpromising between the parties involved in the change.
One poorly executed rollout can leave teams frustrated, erode trust, and make decision-makers and investors hesitant to invest time or resources in subsequent change requests.
3. Increased resistance to change
Even when things are working well, change can still come, sometimes from outside your team or organisation. When employees are asked to adopt new systems or ways of working that they didn’t ask for, it's natural for resistance to arise.Especially when the benefits of those changes are not immediately obvious.
While this behaviour is normal and should be expected, neglecting to address the “people side” of change will lead to a greater likelihood of staff not adopting the change. Particularly if they’ve seen similar initiatives struggle in the past.
Employees who don’t understand what’s expected of them, or are being forced into something not on their terms, are more likely to resist change. Fearing that their job will be less secure, or because they feel like their time isn’t being spent wisely or efficiently. And no matter how effective the rest of the change process is, if your employees are not on board, the results will not matter.
4. Lose valuable employees
While the total cost of change can be difficult to measure, we do know how expensive it is to replace valuable workers who become dissatisfied or even malcontent with change if the process is not communicated properly. A lack of clearly communicated change management objectives leads to an increase in stress, confusion, and fatigue among employees, and divisions between “us” and “them” begin to emerge. Some friction can be anticipated during significant operational change. However, there can often be an unexpected and unwanted loss of top talent.
For example, travelling sales representatives comfortable with an existing online booking tool (OBT) may struggle if processes suddenly shift with little explanation. They may feel their time and expertise aren’t respected, leading them to question their role and potentially leave the organisation. Such flawed travel programme change management results in extra costs, loss of productivity, and a reduction of quality at work. One study from the Society for Human Resource Management (SHRM) reported that it costs 6 to 9 months of an employee’s salary to replace them. For example, losing an employee that made US$60k per year comes out to $30k - $45k in recruiting and training costs.
Prioritising people and service, rather than defaulting to a one-size-fits-all approach, ensures the change process and the new way forward is tailored to your teams and programme.
5. Your clients are impacted
When an organisation is going through change, it’s important to make sure it’s executed in a way that doesn’t impact the client experience. Large-scale restructures can often shift focus inward, prioritising internal processes or investor goals over the needs of clients and travellers. If this happens, even well-intentioned changes can disrupt service.
But if you’re not careful, they could get hurt by the change. According to Prosci, a global leader in change management solutions, poor execution of change plans leads to a reduced quality of work, productivity plunges, and overall decline in morale – all of which affect your organisation's ability to interact with and provide for your clients. And if they aren’t receiving the same services or information they expect out of your organisation, this could be a catalyst for many different problems, including customer dissatisfaction and churn.
Your solution to mitigating risks?
Focus. On. People. Change management is important and there are risks when you don’t do it well. To save your organisation from a failed change plan, you need to consider the people who your change will affect and whether what’s on offer is right for them. Address their needs early and integrate them throughout the change strategy, from start to finish.
Mastering the change management process is one of the most challenging issues for any organisation, and the statistics reflect that. However, careful planning, modern tools and frequent, thoughtful communication will help stack the deck in your favour.
If your organisation has change on the horizon, don’t get swept along. Own it, bring your people along, and make it work for the future of your corporate travel programme.
Want to know where to start with making change? Reach out to an expert here.
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