A recent report by McKinsey on measuring the impact of employee training on business performance, got me thinking about a specific issue that many of my clients face:
How do I measure the return on investment of my change management program?
As an HR decision maker, there are an overwhelming number of questions you need to be asking yourself before proceeding with any workplace initiative. Without a clear set of expectations and a means of effectively measuring the impact of your change management programs, then what purpose do they serve?
Determining the key outcomes you want to see from a change management program and developing an effective means of measuring its progress and outcomes are key for assessing ROI. When you decide on a change management provider are you actively evaluating how this decision can encourage a return on your investment? Or are you merely looking for a quick solution?
The following are some questions you may have asked yourself when evaluating a potential change management provider:
- Who can do this program for the cheapest?
- Do we have any recommendations from people who have managed outplacement previously?
- Do these providers have sufficient experience and fit with our business?
- Have we used these providers previously?
Whilst these can be important aspects to consider, they don’t help you determine the value a change management service can bring to your business. Asking the above questions is not a solid basis for having subsequent ROI discussions with management.
As the HR manager, it is your responsibility to manage the impact of human change within your organisation. As such, you should be seeking to optimise the return on your investment. After all, it will be you who has to answer to management when they question the efficacy of a program you implemented!
To optimise the return on your investment in change management programs, you need to be evaluating the following outcomes:
- Did your provider advise and guide you through the change process?
- Were your “people leaders” equipped to manage the restructuring?
- What happened to the productivity of your remaining employees?
- What happened to those employees who transitioned.
If you’re not thinking about these kinds of measurements then you’re gambling on your ROI. And, when you gamble, who knows what your return will be!
Remember, when you’re thinking about ROI for change management, evaluate the performance of your chosen provider against the above criteria. By doing so, you can accurately measure your investment and the ROI for change management and on the business.
For more information on how Choice Career Services can assist you in maximising your investment in change management programs contact us today.