KPIs For Change Management – Organizational Change Management KPI
by Pat Ordenes, on Mar 2, 2021 2:03:00 PM
Let's talk about KPIs For Change Management. We’ve covered a number of KPI examples in our KPI examples mini-series, and in this post we're going to look at some of the best KPIs for change management projects. “Change Management” is a bit of a buzzword, but it is important for any organization to adapt easily to changes. The business landscape and conditions are constantly changing, so you must be adaptable to be successful. This is why change management is a key concept to understand and implement in any workplace. Changes can occur in many ways and change management helps ease any tension creating a smooth process.
However, there is nothing full-proof when it comes to making changes. The biggest challenges for any organization is resistance to change and alignment. No matter what approach is used to implement the changes, there should always be a way to measure the success of process or change implementation. One of the most effective ways to measure this success rate is having the right set of KPI's for change management. That's why we created a Change Management Strategy Template. This Free to use template provides example KPIs in relation to an overall change management strategy. It is fully customizable so you can utilize this to plan your own organizations change management strategy. Access the Free Change Management Strategy Template here!
KPIs For Change Management (ITIL & COBIT Change Management Metrics)
Here are the most useful KPIs for change management in any organization. These metrics can be monitored on a regular basis to measure the success of the change management strategy within a company.
Reduction in the number of unauthorized changes
One of the most important requirements for change management is the establishment of a change management culture throughout the organization. Such an environment should have little tolerance for unauthorized changes of any type. An effective way to measure the success of your change management strategy is to track the number of unauthorized changes and working towards getting the number close to zero.
Number of changes rejected due to any reason
This KPI gives a useful insight into the process of approval and focuses on checking if you require any improvement to perform the process more efficiently. This factor can help improve the notification and communication between the customer and the service provider.
Increase in the number of changes introduced to services meeting customer requirements
Measuring the total number of successful changes with a customer service viewpoint in relation to the overall number of changes can be an effective way to predict how well a change management strategy has worked.
Reduction in the change requests backlog
A great situation to be in, is where change requests are handled as soon as they are received. Proposals from clients for alterations to the system or product would not queue up awaiting action and ultimately disappointing the client. Such effectiveness doesn't always exist but any organization can work towards reducing the pile-up of backlogged change requests. This measure gives an idea of how change management is performed within the company.
An Overall reduction in the number of failed changes
Tracking the success of your organization naturally depends on tracking where you had to struggle the most to get desired results.
Increase in overall change success rate
Another considerable KPI to measure for the success of change management in a company is tracking the percentage of changes implemented successfully, either through the mechanism of an RFC or a review. An increase in the overall success rate of changes is great and indicates that the organization is progressing in the right direction.
Number of changes following the lead time process
Lead time process and its adherence is of utmost importance in the life cycle of change implementation. Any request for change failing at this can be rejected easily. Such a denial can lead to further delay in the improvement of service.
Reduction in the number of incidents attributing to changes
An overall decrease in the number of incidents which can be traced back to changes is an essential KPI. Incidents are typically unavoidable but the number of incidents that attribute to changes indicates how well the organization manages changes.
Improvement in the average time taken to implement changes based on type, urgency or priority
A measure of how long the organization takes to respond to requested changes is important to improve the performance of change management. However, not all changes are the same and they should not be treated equally when measuring. This KPI takes into consideration various types of changes, their priority, and urgency during assessment.
Number of successful changes implemented in a particular time frame
This KPI is aimed at giving you a clear figure of the work value delivered to the customer. There are many factors which should be considered to achieve this KPI with a high success rate.
Changes performed during business hours
Some changes can be performed during the business hours only. This is because of the unavailability of various teams and constrained resources. Consider the example of a change requested to unrack a decommissioned router. It can be accomplished during business hours only due to the feasibility of pick and delivery.
Number of emergency changes performed with or without incident
Change management requests are aimed at helping you understand the need for improvement and any service flaws including hardware upgrade, lead time issue or maintenance which could have led to the change request in the organization.
Number of changes causing an interruption in any service during business hours
Certain live projects require live users analyzing and testing the service and they should be conducted during business hours only. As a service provider, this should be considered as it can be rare but not negligible. The number of changes which cause interruption during business hours is an important KPI determining the capability of the organization to handle changes.
Measuring the performance and improvement of KPIs is a vital part of any effective change management strategy. You can track the performance of the above listed KPIs to get a clearer picture of where the organization excels in terms of change management and shows where it requires applying a better effort or strategy.
Of course there are other more holistic KPIs you can measure as part of the change management process, which will also give you clear insight on how your organizations is handling the changes around it or within. These can be things like the commercial income line, team morale or organizational resilience through change. The later can be measure through staff productivity, turnover and other KPIs around performance. Ultimately, your team's 'buy in' and motivation can sometimes be the best way to measure the successful change in an organization.
Hopefully you've found this list of KPIs for change management useful. If you're looking for a way to effectively track your progress in these KPIs, then why not give the Free Change Management Strategy Template a try. You can not only track your KPIs, but also manage your entire strategy from one place, share it with your team, and ensure everyone stays on the same page!