Change Management Statistics By AI, Technology And Digital Adoption

Introduction

Change Management Statistics: Change management is an important part of how businesses run today. Knowing the latest facts and figures about change management can help companies understand the challenges they face and the opportunities they can take advantage of. This article will explore the most recent and interesting change management data, giving us a look into how businesses handle change.

From the influence of new technology to the role of leadership, these Change Management Statistics show the strategies and trends that help companies manage and adapt to change.

Editor’s Choice

• Change Management Statistics stated that almost 47% of companies that use change management are more likely to reach their goals than the 30% that don’t.
• Only 34% of change projects are successful.
• Almost 79.7% of businesses need to make changes every two to five years.
• One in three CEOs didn’t get the results they wanted from past transformation projects.
• Two-thirds of workers suffer from burnout, which leads to failed transformation efforts.
• Workplace stress makes up 8% of national healthcare costs.
• The digital transformation market is expected to grow to $1,009.8 billion by 2025.
• 29% of employees say change isn’t communicated clearly.
• Change Management Statistics stated that almost 93% of workers with change fatigue say their employers have backtracked on at least one initiative, which leads to frustration.
• 64% of employees rely on their leaders to guide them through change, showing a lack of proactive involvement.
• 7 out of 10 organizations rely on top-down leadership for change.
• Change Management Statistics stated that 62% of businesses use leader-driven plans to make sure changes happen quickly and consistently. However, 72% of leaders say they don’t understand what employees need to do differently during changes due to being disconnected from daily work.
• Nearly 48% of leaders also struggle to spot market trends and predict customer needs (KPMG, 2016).
• Although 74% of leaders say they involve employees in creating change plans, only 42% of employees feel they’re truly included.

What is Change Management?

In change management (CM), it’s important to support both the people and systems involved in the company’s changes. This means having a clear plan for sharing updates and managing both people and processes during the transition.

There are many reasons why change management is needed. Things like mergers, leadership changes, and the use of new technology often require it. Companies also need to keep up with the fast digital changes happening in the industry, which leads them to introduce new products and processes. However, these changes can disrupt how people work, so having good change management is necessary.

Effective change management is more than just sharing information—it’s about making the change a part of the company culture. Using a strategy for managing change helps everyone accept the changes more easily. Involving employees in the process and making them part of the solution helps the company hit important goals. Leaders should create a solid change management plan to show everyone how the change will benefit the company.

General Change Management Statistics

• The digital transformation market is expected to reach $1,009.8 billion by 2025.
• Change Management Statistics stated that almost 70% of change management efforts fail.
• 25% of employees think change management is a key strength of their company’s leaders.
• The four main factors that affect change in organizations are time, trust, dedication, and effort.
• 29% of workers in the UK said their company didn’t explain changes clearly.
• Nearly 32% of employees dealing with change fatigue say stress from work has made them less productive.
• More than 70% of change projects fail because of initial pushback from employees.
• 78% of employees have gone through more changes at work during the COVID-19 pandemic than at any other time in their careers.
• 58% of companies use AI to boost consistency and quality.
• The global digital transformation market was worth $937.20 billion in 2023 and is expected to grow to over $7,033.01 billion by 2032.
• The digital change transformation market is predicted to reach $1,009.8 billion by 2025.
• Only around 34% of change initiatives are successful.
• Change Management Statistics stated that 73% of organizations expect more change projects, 14% expect the same amount, and 13% expect fewer changes.
• About 79.7% of businesses need to update their strategies every 2-5 years.
• Here’s a simplified version of the information with key facts:
• 7% of companies need to update their business strategies every 2-5 years to keep up with change. As a result, 96% of businesses are going through some form of transformation.
• Around 73% of companies expect more changes shortly, while 13% expect fewer, and 14% expect the same amount.
• 51% of businesses say competition and growth opportunities are their main reasons for change. Meanwhile, 41% mention changing customer behaviors and expectations.
• Half of the companies in a McKinsey survey (2018) said their most recent change focused on digital transformation.

(Reference: mooncamp.com)

• Only 34% of change projects succeed, with most companies experiencing an average of five major changes every three years.
• Only one-third of big changes meet their goals, and one out of three CEOs say their transformation efforts didn’t bring the expected results.
• Overall, 60-70% of change projects fail, with half of them failing and 16% showing mixed results.
• Just 17% of executives feel their organizations are good at carrying out transformation plans.
• Half of leaders also admit they can’t confidently measure the success of their changes.
• 31% say their companies lack processes to manage innovation.
• 48% of workers dealing with change fatigue report higher stress levels.
• Another 37% say they trust their employers less, and 38% enjoy their jobs less.
• Another study shows quitting their jobs.
• Change Management Statistics stated that 70% of change projects fail because of employee resistance and lack of management support.
• Only 38% of employees are willing to support change, down from 74% in 2016. Even though they are capable, just 26% of employees effectively implement change.
• 83% of employees with change fatigue say they don’t have the tools they need to adapt.
• 41% resist change because they don’t trust their organization, and 39% resist because they don’t understand why the change is happening.
• Fear of the unknown (38%) and potential changes to their job roles (27%) also cause resistance.
• Around 23% feel left out of decisions about change, leading to more resistance.
• Almost 37% of executives say the main barrier is not adapting their operating model enough.
• 28% say organizational culture and existing priorities are challenges, while 30% point to outdated technology.
• Nearly 51% of leaders struggle to keep communication open during changes, and over half of managers say leaders fail to define clear success metrics for change.

Technology And Digital Adoption Statistics

• Companies that use data effectively are 23 times more likely to get more customers.
• 27% of managers believe that going digital is no longer optional; it’s necessary for the survival of the business.
• 70% of businesses say their top goal is to use technology to simplify tasks and reduce costs.
• Change Management Statistics stated that 53% of companies are starting to use robotic process automation, and 78% of them plan to invest more in it over the next three years.
• 30% of business buyers are open to using virtual assistants and chatbots.
• 85% of business leaders say their companies have sped up the use of new technologies.

(Reference: digital-adoption.com)

• Change Management Statistics stated that 68% of managers think that combining AI with human workers is important for their business’s success.
• 95% of companies leading in the digital use of cloud technology stay ahead of their competitors.
• 40% of businesses will not survive in the next 10 years unless they change and adopt new technologies.
• Work overload can reduce productivity by 68%, so it’s important to use tech that reduces busy work, like commuting or repetitive tasks.
• Nearly 25% of companies around the world have adopted cloud systems on a large scale.
• 56% of businesses say that digital improvements have already increased their profits.
• Companies with advanced digital tools see a 45% growth in revenue, while those with less digital maturity only grow 15%.
• For some businesses, the pandemic sped up the use of digital tools by almost 7 years.

Leadership in Change Planning Statistics

• Only 25% of employees think their leaders are good at managing change.
• 53% of leaders believe change should happen faster.
• Change Management Statistics stated that 41% of employees feel that resistance to change comes from a lack of trust in leadership.
• 74% of people think leaders should make more effort to understand why employees resist changes.
• More than 25% of employees feel they don’t have enough information to understand the changes happening at work.
• Around 45% of people think productivity would improve if leaders better understood why employees resist change.
• 55% of people believe that if leaders understood resistance to change better, it would help keep employees longer.

(Reference: changing-point.com)

• Change Management Statistics stated that 43% believe that if leaders better-understood resistance, it would improve teamwork, and 45% think it would also help with mental health at work.
• 66% of HR leaders agree that changes should happen more quickly.
• 75% of HR leaders say they spend more time on managing change now compared to three years ago.
• Nearly 73% of CEOs expect changes to be made faster than before.
• 71% of HR leaders say their organizations use a top-down approach for managing change.
• Almost 29% of HR leaders claim to use an open-source strategy for change, but only 11% of organizations use this method.
• 74% of leaders say they involve employees in creating change plans, but only 42% of employees feel truly involved.
• 72% of leaders admit they don’t fully understand what changes employees need to make because they’re disconnected from daily work.

(Reference: flair.hr)

• 83% of employees experiencing change fatigue said their company didn’t give them enough tools or support to handle the changes.
• Change Management Statistics stated that 93% of employees with change fatigue said their company reversed at least one change that happened during the pandemic.
• About 33% of employees rated their company’s communication about changes as “fair” or “poor.”
• 27% of employees said their company rarely or never asked for their opinions on the changes.
• 42% of employees dealing with change fatigue said their company had reversed changes more than once.

Digital Transformation Statistics

• Change Management Statistics stated that 55% of CIOs plan to hire more full-time IT staff in 2021 to speed up digital transformation projects, like improving analytics and security.

(Source: scoop.market.us)

• Using digital tools helps companies reach their goals 22% faster.
• Companies that focus on their culture during changes are 5 times more likely to succeed than those that don’t.
• 53% of businesses say many workers will need to update their skills to keep up with digital progress.
• 15% of organizations have made digital transformation a top priority.
• Companies expect to boost customer interactions through digital platforms by 40%.
• 76% of managers agree that companies must change the way people and technology work together to be more focused on human needs.
• Change Management Statistics stated that 87% of senior leaders say digitalization is a priority for their company.
• 40% of businesses have successfully expanded their digital transformation efforts.
• 52% of companies plan to delay or cut investments because of the COVID-19 pandemic, with 9% focusing on digital transformation.
• 54% of businesses worldwide say digital transformation is a key part of their tech strategy.
• Companies make progress twice as fast in digital transformation when both employees and leaders understand its importance.

AI in Change Management Statistics

• In our first AI study from October 2023, 84% of change management professionals were familiar with AI. By October 2024, that number dropped to 77%. Today, only 39% of the 656 people surveyed say they use AI in their change management work.
• The reasons for not using AI are shown in the graphic below.

(Reference: prosci.com)

• Even though more people understand AI tools, there are still worries about privacy, security, risks, and accuracy.
• People are also concerned about job loss, not having enough information, and how people will adjust to the changes.
• The main issues include not knowing how to use AI properly, having little experience with it, and being afraid of risks that haven’t been fully identified yet.
• Respondents mentioned a few challenges, such as not having enough access to the right AI tools and resources for change management. They also felt unsure about which tools were available and how to use them in their work.

(Reference: prosci.com)

• Problems like limited access to reliable AI tools, tight budgets, and a lack of support from their organization made things worse.
• Worries about data privacy and security were also a big concern. Respondents were unsure how their data would be handled and protected and also worried about the safety of the AI systems their organizations were adopting.
• Lastly, respondents said their organizations weren’t mature enough to use AI effectively. This included not having enough change management expertise to implement AI technology properly.

(Source: prosci.com)

Workforce Adaptability And Change Fatigue

(Reference: capterra.com)

• Change Management Statistics stated that 43% of employees who experience high levels of change fatigue plan to stay with their current company, while 74% of employees with less change fatigue intend to stay.
• 67% of workers feel burnt out when dealing with change, which contributes to transformation failures.
• Stress from workplace changes accounts for 8% of the national healthcare spending.
• Almost 73% of employees impacted by change report feeling moderate to high stress, which makes them 5% less productive than the average worker.
• 51% of people say that market competition and growth opportunities are the main reasons for change in organizations.

(Reference: capterra.com)

• 71% of employees say they are overwhelmed by the changes at their workplaces since the COVID-19 pandemic, while 6% experienced no changes at all.
• 83% of employees dealing with change fatigue feel their employer doesn’t provide enough resources to help them adjust to changes.
• 93% of employees with change fatigue say their employer has undone at least one change made during the pandemic, increasing frustration.
• 78% of employees say they have experienced more changes at work during the COVID-19 pandemic than ever before in their careers.
• 79% of women experience change fatigue, compared to 70% of men.
• 80% of employees in companies with 101-1,000 employees report change fatigue, 73% of employees in companies with fewer than 100 employees, and 68% in companies with over 1,000 employees report the same.
• Change Management Statistics stated that 32% of employees with change fatigue say stress has made them less productive.
• 48% of employees with change fatigue feel more stressed at work than they did before the changes.
• 38% of change-fatigued employees enjoy their jobs less after the changes.
• Nearly 37% of employees with change fatigue say they trust their employer less than before.
• Around 54% of employees experiencing change fatigue are considering finding a new job.

Conclusion

In conclusion, the Change Management Statistics data shows that change is affecting many organizations in significant ways. A large number of employees are feeling stressed, overwhelmed, and fatigued by changes, and many are even thinking about leaving their jobs because they don’t have enough support or resources. On the leadership side, while many leaders understand the importance of involving employees in change, there’s still room for improvement in how changes are handled and rolled out.

As companies use more digital tools and AI to improve their processes, organizations need to focus on better communication, providing the right resources, and involving employees more in the change process.

If these issues aren’t addressed, companies might struggle to reach their goals and keep their employees happy and productive.