Top 3 KPIs for Measuring Change Management
Top 3 KPIs for Measuring Change Management
Change is a constant in the workplace…but how do you know when change is really working?
If you leave your selection of change management metrics to chance, you leave the success of your change initiative to chance as well. As with any endeavor, key performance indicators (KPIs) are critical to understanding and communicating your progress toward a stated objective. Your change plan is no exception. Change management KPIs can be used to measure the effectiveness of any change management program, from updated HR practices to adoption of new travel tools.
But crafting a well-rounded measurement strategy is no easy task. With so many factors to consider, finding the most important metrics to focus on can feel like an impossible task. Lucky for you, FCM is here to nudge you in the right direction. Here are our top 3 change management KPIs to help you design the measures you really need.
1. Employee Sentiment
WHAT IT IS: In simplest terms, employee sentiment is a measurement of how your employees feel about their work, their company, or – in this case – the implementation of organizational change. It is most often measured with low-effort, open-ended surveys or even by observing employee interactions on the job. High scores on employee sentiment indicate they are supportive of the change and think it was a great idea. A low score, on the other hand, means they don’t like the change, or they don’t understand it.
HOW IT HELPS YOU: One of the biggest risks to your corporate travel change is the loss of valuable talent – and employee sentiment tends to be linked to retention rates and staff turnover. These quick-turnaround feedback mechanisms give your organization a line of sight into what is or isn’t working almost at the very moment those feelings manifest. This can help you determine whether or not you need to tweak something in order to make the change more appealing or comprehensible. For example , let's say your organization is switching OBTs after using the same tool for years…but your employees are a little too used to the former OBT’s interface and are struggling to adopt usage of the new one. Conducting UI tests before and after launch will help you identify what steps you should take in order to ease the transition process. If your employees provide low scores on employee sentiment and communicate that they don’t understand the organizational layout of the new tool, you may want to provide them with more training or offer more opportunities for feedback during this transition period.
HOW TO MEASURE IT: There are several methods that can be used to measure employee sentiment on corporate travel change. One of the most effective methods is to conduct employee surveys and interviews. These can be designed to gather information about how employees feel about the change, including their concerns, suggestions, and overall satisfaction with the new travel policies or technology. This can be done through online surveys, focus group discussions, or in-person interviews. Another way you can measure employee sentiment after launch is by looking at employee retention rates, productivity, and engagement levels to measure the impact of the travel change. This can help you assess whether the change is positively or negatively impacting employees, allowing you to adjust accordingly.
2. Net Promoter Score
WHAT IT IS: NPS, or Net Promoter Scores, are a great way of measuring customer loyalty and advocacy after successful change management initiatives have been executed. They provide insight into how likely a client is to recommend our company and/or services to someone else and why they are/aren’t recommending. The lower the score, the more dissatisfied your clients are and the fewer recommendations you’re getting. The higher the score, the more positive word-of-mouth you receive from customers.
HOW IT HELPS YOU: When an organization is going through change, it’s important to make sure it’s executed in a way that doesn’t impact the client experience – but if you’re not careful, they could suffer negative impacts as a result of the change. According to Prosci, improper execution of change plans leads to a reduced quality of work, productivity plunges, and overall decline in morale – all of which affect your organization's ability to interact with and provide for your clients. NPS can help determine whether your change efforts have moved your organization in a direction that will improve its reputation and long-term growth as well as identify areas where improvement may be necessary when it comes to client retention.
HOW TO MEASURE IT: The calculation is simple. You ask clients one question: “On a scale of 1-10, how likely are you to recommend our company/service?” We recommend choosing clients who would noticeably and directly be affected by the change. Responses are then recorded as detractors (0-6), passives (7-8), and promoters (9-10). To calculate the NPS, subtract the percentage of detractors from the percentage of promoters. The score can range from -100 to +100. Analyze the NPS and additional comments provided by customers to identify areas of improvement and take action to address any issues and improve the overall experience.
WHAT IT IS: We all know what spend is, but what does it tell us in terms of change management? Spend measures the effectiveness of your change plan in relation to the costs associated with your new program and efforts. It shows whether spending habits have increased or decreased since implementing change within the organization – which means it gives an indication into whether people are actually adopting new practices and/or technology after undergoing organizational change. For example, successful travel program change management should lead to a decrease in overall spend on specific business travel expenditures by reducing leakage and driving higher online adoption of your program-compliant policies.
HOW IT HELPS YOU: It’s no secret that change plans can be costly, so measuring spend helps ensure that you are making the most of what you have allocated for change management efforts and that they are being applied appropriately during the transition period between programs. It’s also useful for observing changes over time: if expenses go up significantly, it might mean something went wrong with your change management initiatives. This will allow you to determine if your changes have been effective and find new ways to reduce costs.
HOW TO MEASURE IT: Before you go-live with your new travel change, first collect and categorize all data related to travel spend, including travel expenses such as airfare, lodging, ground transportation, meals, and incidentals. This data can be obtained through expense reports, credit card statements, and invoices. Next, identify patterns and trends in travel spend and look for areas where expenses are high or increasing over time, and identify the reasons behind these trends. Then, after launching your corporate travel change, monitor progress over time to determine if your change is effective. Continue to collect and analyze data to identify areas where further improvements can be made.
Change can be tough. But with FCM, it doesn’t have to be. For more insights, tips, and success stories, visit our Change Management Hub.