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Success Rates of Organizational Change

September 14, 2001
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Related Topics: Change Management, Featured Article
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The nature of change initiatives vary widely. Still, you can use the chartbelow to get a feel for how often certain types of programs succeeed.

Change Success
Rate
Sample Source
Reengineering,
Process
Improvement
20-50% Practitioners of radical corporate reengineering reporting on success rates of Fortune 1000 Strebel, 1996
Reengineering,
Process
Improvement
16% fully satisfied 350 executives A.D. Little survey cited by Caldwell, 1994
Reengineering,
Process
Improvement
Goals met for those pursuing cost reduction; 75% success for those pursuing time reduction and productivity increase. 600 large firms in North America and Europe Tenner & DeToro, 1997
Reengineering,
Process
Improvement
27% 166 U.S. and European Troy, 1994
Reengineering,
Process
Improvement
23% 75 North American companies Mourier and Smith, 2001
TQM-driven 33% not described McKinsey survey cited by Naveh, Erez, and Zonnenshain, 1998
TQM-driven 29% reported high or very high satisfaction 133 companies Conference Board (1991) cited in Carr, Hard, and Trahant, 1996
TQM-driven 27% 15 North American companies Mourier and Smith, 2001
Mergers 30% not described Mark Sirower quoted by Drake Beam Morin, 1999
Mergers and Acquisitions 25-33% not described Mirvis & Marks (1992) cite ten studies to support estimate
Acquisitions 80% "earned their cost of capital" 21 companies Anslinger & Copeland, 1996
Mergers and Acquisitions 14% 37 North American companies Mourier & Smith, 2001
Restructure < 50% failed to achieve significant increases in value compared to competition 135 companies attempting massive restructure Study cited by Tomasko, 1993
Restructure White-collar productivity shows little improvement, administrative costs far above strongest competitors 30 automotive companies Study cited by Tomasko, 1993
Restructure 10% 49 North American companies Mourier & Smith, 2001
Business Contraction 19% 1000 downsized companies Study cited by Tomasko, 1993
Business Contraction 19% 21 North American companies Mourier & Smith, 2001
Strategy Deployment 58% 166 U.S. and European companies Troy, 1994
Strategy Deployment 10% 21 North American companies Mourier & Smith, 2001
Technology 20% 166 U.S. and European companies Troy, 1994
Technology < 40% success in implementing data warehousing 50 companies Stedman, 1998
Technology 28% 32 North American companies Mourier & Smith, 2001
Culture 32% 166 U.S. and European companies Troy, 1994
Culture 10% corporations institutionalize new management style not described Bennis (undated) cited in Carr, Hard, and Trahant, 1996
Culture 19% 59 North American companies Mourier & Smith, 2001
Business Expansion 14% 14 North American companies Mourier & Smith, 2001
Software Development 16% fully successful, on time, on budget, full functionality Approx. 7500 software projects (1994 survey) The Standish Group, reported by Johnson, 2000
Software Development 27% fully successful, on time, on budget, full functionality Approx. 7500 software projects (1996 survey) The Standish Group, reported by Johnson, 2000
Software Development 26% fully successful, on time, on budget, full functionality Approx. 7500 software projects (1998 survey) The Standish Group, reported by Johnson, 2000
Software Development 28% fully successful, on time, on budget, full functionality Approx. 7500 software projects (2000 survey) The Standish Group, reported by Johnson, 2000
Software Development 33% in terms of value creation, cost-effectiveness, financial impact, and goal attainment > 100 users of enterprise software projects Boston Consulting Group, cited in Booker, 2000
New Computer System 24% reported no major project failures 500 IT managers Sequent Computer Systems reported by Moad, 1998
New Computer System 17% 30 North American companies Mourier & Smith, 2001
Various 39% 23 major international companies MCB Univ. Press Ltd, 1997
All 25% 210 North American companies Mourier & Smith, 2001

Reprinted with permission from Conquering Organizational Change: How to Succeed Where Most Companies Fail, by Pierre Mourier and Martin Smith, Ph.D. © 2001 CEP Press. To order, 800/558-4237 or www.ceppress.com. Available in bookstores nationwide as of October 2001.

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