Measuring ROI to maximize change effectiveness

March 2012
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Measuring ROI to maximize change effectiveness

At a glance

While there is no single approach or framework to measure the ROI for change, there are three commonalities in the four common approaches: high-quality change management practices, a mature program management framework, and an agile organization. We call this synergy the "Change Trifecta", and when properly executed, your investment in change transforms from a mere costs to an enduring benefit.

For leaders to invest in change management, they are required to understand the return they are getting for their investment. Experience and research tells us that change management has a profound and clear influence on the success of large transformation initiatives. However, it is not as clear how much of that success is attributable to change management.

Recognizing the need for a business case around the ROI for change, PwC recently conducted an extensive review of business research, published within the last five years, to see if there might be a predicting formula to prove return on investment for change. And while no predicting formula surfaced in that review, four distinct approaches to measuring ROI for change did emerge. Each of these four approaches directly related to an organizational point-of-view on change management. Further, the research confirmed our experience with clients - ROI for change is maximized in organizations that embrace quality, agility and maturity in their approach to managing change.