In the relentless pursuit of innovation and operational excellence, organizations often find themselves pouring resources into technology, infrastructure and process redesign—while neglecting the single most volatile variable: people. In my decades guiding organizations through transformation, I can say with conviction that organizational change readiness and adoption is not a “nice-to-have”—it is the linchpin and return-on-investment assurance of project success. As organizations delve deeper into annual planning, here’s my provocative recommendation: allocate at least 25% of your project’s budget to organizational change readiness.
Anything less is a gamble with your ROI.
The Data: Change Failure Is Expensive
Let’s start with the numbers. Whether or not you buy into the notion that 70% of large-scale change initiatives fail to achieve their intended outcomes, there’s clear evidence that the majority of initiatives fall significantly short. Just as compelling is that many executive leaders know there will be a “success gap”—a chasm between the intended and actual results. The root cause? Not technology. Not process. It’s people—specifically, resistance to change and lack of readiness and adoption. When employees are not prepared, engaged or aligned, even the most sophisticated solutions falter. The cost of failed change is staggering: lost productivity, plummeting morale, customer dissatisfaction and, ultimately, financial loss.
Consider this: For every $1 million invested in projects, a staggering $122,000—over 12% of the total investment—is wasted due to poor project performance much of it tied to inadequate change management. If you’re allocating less than a quarter of your budget to preparing your people to either change or reinforce key behaviors, you’re effectively betting against your own success.
$122,000 is wasted
for every $1 million invested in projects due to poor project performance
But the story doesn’t end with project launch. The real value of change management is in sustaining new behaviors and ensuring that adoption sticks. According to Prosci, the people-dependent portion of a project’s ROI—the “adoption contribution”—often accounts for 80% to 100% of the total benefits. Effective change management prepares, equips and supports individuals so they not only adopt new ways of working, but continue to do so, closing the gap between technical implementation and lasting results. When people are truly invested in change, it is 30% more likely to stick, driving durable performance improvements and maximizing your return on investment.
The Provocation: Stop Treating Change Readiness and Adoption as an Afterthought
Too many organizations treat change readiness as a checkbox—an afterthought tacked onto the end of a project plan. This is a critical error. Change readiness must be embedded from day one, with a dedicated budget that reflects its importance. Why 25%? Because that’s the minimum required to fund truly effective change acceleration. Anything less, and you’re under-resourcing the most unpredictable element of your project.
The Payoff: ROI That Outpaces the Competition
Organizations that invest heavily in change readiness don’t just avoid failure—they outperform. The Prosci data is unequivocal: 88% of projects with excellent change management meet or exceed objectives, compared to just 13% with poor change management. That’s a difference you can’t afford to ignore. The more you invest in preparing your people, the greater your returns. This is not just about avoiding loss; it’s about unlocking discretionary effort, accelerating adoption and creating a culture that thrives on change.
The Call to Action: Make Change Readiness and Adoption Non-Negotiable
It’s time for a mindset shift. If you’re not allocating at least 25% of your project budget to organizational change readiness, you’re not serious about success. This is not a cost—it’s an investment in your people, your culture and your bottom line. The organizations that win in the next decade will be those that treat change readiness as a strategic imperative, not an afterthought. Are you ready to lead, or are you content to follow? The choice—and the investment—is yours.
