Change Management Study EN
Change Management Study EN
ORGANIZATIONS
Boosting change success with data
CONTENTS
FOREWORD 3
2 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
FOREWORD CHANGE STUDY
Alex sighs. The status meeting didn't go well for him. Once again, the project sponsor
wanted to know where they stand in terms of their change ambition and whether the
project is still on track. Alex gives it a long thought and concludes that he could just
ask a couple of people from his department. What is one more email. The colleagues
surely don't have a problem with taking some time out of their day for it ...
Does this fictional scenario sound familiar? We encounter the question of the
measurability of change in almost every change project. Data-driven business, data-
driven organizations and the use of data in our private lives have by now become
a commodity. However, as soon as it comes to data-driven change management,
the room often gets very quiet. Is it even possible, how does it work and what is
allowed? These are precisely the questions that we constantly encounter and that
have brought us to the topic of this year’s change management study.
It was important for us to establish a validated connection between the data maturity
of a company, selected mediating factors, such as leadership or trust, and change
success. We succeeded in doing so, and the results are encouraging.
The use of data in change management has great potential that has not yet been
sufficiently exploited. In our study, we show the added value of data-driven change
management and what companies can do to successfully set it up and implement it.
We are convinced that data-driven change management makes change processes
more measurable and more successful. Not least through greater transparency,
more opportunities for participation and a greater sense of control among
those involved.
Not quite convinced yet? Gain a first-hand impression by reading our results or
contact us directly. We look forward to the dialog with you!
We would like to thank all study participants, especially those who were available
for a personal interview, as well as our study team Antje Peters, Jakob Teubert,
Hannah Pitacas, Svenja Stegemann, Lukas Binder, Nicola Aumüller, Hendrik Gräfe,
Hannah Louis, Svenja Berg, Julian Schabio and Nathalie Miesch, without whom
this study would not have been possible.
3
I. OBJECTIVES, APPROACH
AND PARTICIPANTS
The heat is becoming more and more If we wanted to store the 181 zettabytes face of this feverish agglomeration
unbearable. We're not talking about of data forecast for 2025 in our heads, of data is provided by the certainty
climate change, we're talking about it would require 181 million human that the growing volume of data is
data. In 2020, more than 64 zettabytes brains – for example, those of all the not indomitable. Companies are using
of new data were created on Earth – inhabitants of France, South Korea, increasingly sophisticated methods
that's 64,000,000,000 terabytes. Colombia and Portugal. and tools to process, display and
For comparison, if the Earth stood analyze data. And the larger the
for one petabyte, the sun would be If you've broken a sweat, get ready knowledge base, the easier it is to
equivalent to one zettabyte. because it’s getting hotter every day. predict future events. For executives,
That's more than a million times The International System of Units this is the information that really
more voluminous. So we terrestrials, (SI) has already named the next matters. After all, despite the
courtesy of machines, have created highest data dimensions: Yottabyte big-bang like expanse of the data
64 suns of data in just one year. (= 1,000 zettabytes), Brontobyte universe, it is only the raw material
The human brain has a theoretical (= 1 million zettabytes) and Geopbyte from which smart managers forge
storage capacity of 0.000,01 zettabytes. (= 1 billion zettabytes). Relief in the their company's future.
4 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
5
Data-driven Change
Management for data-
ready organizations
When markets demand and reward
data-driven decision-making and
action, it is obvious to trim the
company to peak performance
in terms of information technology.
This by no means requires the
immediate hardware and software
upgrade of the organization. But
the company must have a certain
degree of maturity in handling data.
This implies that it has mastered the
effective handling of data and knows
how to use it efficiently for corporate
management and transformation.
6 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
NOR 1,3 %
NDL 3,4 %
SWE 3,2 %
LUX 0,3 %
DNK 3,2 %
BEL 3,3 %
POL 3,2 %
GBR 6,6 %
GER 5,9 %
FRA 7,7 %
CZE 2,8 %
PRT 3,6 % CHN 5,6 %
USA 25,5 % AUT 3,3 %
ESP 3,7 %
ITA 3,7 %
CHE 2,1 %
IND 6,0 %
AUS 5,4 %
7
Fig. 06 Participant gender, age, management responsibility and role information
47,5 % Participants 42.3 % 18 to 34 years 52.9 % 35 to 54 years 4.9 % Older than 55 years
Management 14.4 %
One person with non-binary gender
Finances 9.4 %
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Data Driven Organizations | Boosting change success with data | Change Management Study 2023
9
II. SPEED UP YOUR
CHANGE WITH DATA
Data streams have always paved Data teams as an Companies are spending a lot of
the way for transformation processes. interface that makes money on this. According to the
Radio and television made information International Data Corporation
globally available, and the internet has
companies smarter (IDC), global spending on big data
multiplied the amount of new data and business analytics (BDA) in 2021
Companies' data teams make use
being added every day. Supposedly, grew more than ten percent to USD
of this revolution, with both data
it was during a lunch in the cafeteria 215.7 billion within a year. And that's
and business specialists working
of computer manufacturer Silicon just the beginning. By 2025, the
together closely. Data analysts master
Graphics in the mid-1990s that compound annual growth rate
the handling of huge amounts of
computer scientist John Mashey (CAGR) will jump to 12.8 percent.
data. Business analysts know what
predicted that computers would "As executives seek solutions to
management needs to make decisions.
soon reach their limits in processing enable better, faster decisions,
Together, they provide valuable
data because the volume was growing we’re seeing relatively healthy
information for optimizing existing
exponentially and the variety of data BDA spending across all industries,"
processes. To filter and classify
categories was simply exploding. said Jessica Goepfert, Program Vice
the information and extrapolate it
For the first time, the word "Big Data" President of Customer Insights and
into the future, which is the dream
came up. A revolution with seven Analysis at IDC. "Leveraging data for
of every business-minded person,
letters that is also driving major insights into everything from internal
companies are specifically turning
transformations in companies. business operations to the customer
towards analytics. This involves
And the upstream and downstream journey is top of mind and of strategic
explicit measures to identify patterns,
thinking done by people reliably importance." As an example, IDC cites
correlations or causalities hidden in
ensures that change actually companies in the service industry that
the vast amount of data. Equipped
happens. are using Big Data and analytics to
with those insights, they safeguard
support their 360-degree customer
their decisions and put themselves
and client management and – watch
ahead of the competition.
out! – project management initiatives.
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Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Network analysis 23 %
For change managers, data available
in real time serves both as a safety
net and as a telescope into the future.
It establishes a broader and denser
information base for upcoming Here, people join in enthusiastically; That’s why data-driven change
decisions and their expected effects, there, they are secretly stonewalling. management focuses primarily on
optimizes the success monitoring That's why, according to our study the economic benefits for companies,
of change measures, and shortens results; the establishment of data- while also being aware of the leverage
the reaction time for necessary based change management is aimed effect of higher employee satisfaction.
adjustments. This control panel at accelerating decisions (44 percent) Apparently with success:
is the added value of data-based and creating more transparency
change management. (42 percent) as well as employee In organizations where employees rely
satisfaction (38 percent). Remarkably, on data to make decisions, 83 percent
However, even digitally savvy two-thirds of the highest-priority feel they have an impact on change.
change managers know that in goals are directed at employees' In organizations without this need
order to move safely and skillfully readiness to change (Fig. 7). for data, only 48 percent do.
from good to great, they need the
intrinsic approval of the employees We already argued in favor
for change. This, in turn, is heavily of dexterity in our 2019 Change
determined by the corporate culture. Management study(II): maximum
flexibility for companies while
increasing job satisfaction.
11
See data with Where it is not yet available, it must Data-based change management
new eyes be gathered. The following questions makes the blind spots and cause-
point the way: What data do we and-effect relationships in processes,
Status quo reporting, diagnosis, need? Can it be extracted from the decisions and corporate culture visible.
decision support, forecasting – data ERP with the help of the data team, In this way, it widens the view for
analytics can do all that. In every purchased from somewhere, or new options. An example: A sluggish
company, there is a vast amount of generated ourselves? transformation process could be due
inventory and process information to the fact that parts of the workforce
about customers and employees For example, change managers can are covertly resisting the change.
from purchasing, production, use network data analyses to examine Could be ... but how can this be
service and logistics, from financial communication channels within the verified? And if it is confirmed:
accounting, human resources and company in order to identify silos What’s the reason? Lack of
marketing. Ideally, the contents of and change agents. In most cases, appreciation? Burden’s too high or
various departmental platforms are a few multipliers are enough to too low? Inadequate expectations?
combined in an enterprise resource reach a large number of employees. In our study, 53 percent of the
planning system (ERP). Evaluated data such as click rates participants from companies with
measured by web servers and actively a low level of data analysis skills
The challenge for change management collected data from employee surveys assumed that the skills of the
is to find the relevant information that and feedbacks are suitable for this employees in the organization
suits the current change project among purpose. The former show to those were unknown. In contrast, in data-
the huge amount of available data. responsible for change which areas savvy companies, only 23 percent
It is not a matter of indiscriminately of the company, departments or expressed this opinion.
accumulating tons of data. Rather, teams need to be persuaded in the
those who want to successfully long term. The latter provide clues
change their business must use as to why employees are hesitant.
the appropriate data. This knowledge makes managers
more confident in their decisions
about target-oriented measures.
12 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Is your company ready confident in their data literacy skills.
for data-driven change? Subsequently, only 4.8 percent of
companies describe themselves as
The advantages of data-based data mature. 46 percent describe
change management become more themselves as data-empowered,
pronounced the higher the level of and 45.8 percent attests themselves
data maturity of a company. But even basic competencies.
with less distinct data maturity, initial,
important insights can be gained. It's Companies are not willing to accept
better to start small than not at all. this. By analyzing more than 48 million
Advanced organizations use consistent, job advertisements, the Bertelsmann
high-quality data managed by a data Stiftung(IV) shows that employers are
warehouse. They use processes and attaching increasing importance to the
methods such as data mining and skill of data literacy. Compared to the
artificial intelligence, supported by previous study from 2018, business
well-educated and competent IT demand for employees who are adept
and management staff. In addition, at handling data has increased by
the maturity level is determined 62 percent. This is the second-highest
by the skills and knowledge of the increase for a single employee skill,
employees in handling the data. behind the evergreen "prudence"
(+ 73 percent). In a corporate culture
For data-driven change management, where data is viewed at best as
this is proving to be a serious hurdle. an ex post justification, not an ex
In a global study on data maturity(III) ante actionable metric, this desired
by Accenture and Qlik, 79 percent of competency will admittedly not be
employees concede not being fully easy to convey.
Management 4.13
Finances 4.00
Accounting 3.95
Sales 3.75
Others 3.86
13
There is still room in line with the results of our study companies. This has accelerated
for improvement in (see page 16). Only the pioneers are the development of analytics to help
able to extract meaningful information them better understand their key
data maturity from continuous insights into their stakeholders and communicate the
data and use it proactively and in meaning of change. Change leaders
Bear in mind: Data reduces
the appropriate context throughout with an affinity for data can take
uncertainty and increases the
the company. In addition to high advantage of this.
probability that the right decisions
data quality and the application of
will be made. Provided that data is
analytical methods, companies that Among the greatest challenges
integrated comprehensively and
are already data-driven have in on the path to a data-driven
in compliance with the law into all
common that they sensitize and train transformation culture are isolated
processes, activities and decision-
their employees in the comprehensive solutions that do not involve all
making processes, it delivers tangible
use of data, both individually and organizational units, as well as a
business benefits and supports
as part of multidisciplinary teams. lack of a culture of trust. Uncertainty
transformational leadership. This is
After all, a data-driven company and mistrust put a strain on the
how change managers turn the risk
requires far-reaching skills in many self-efficacy of people and teams.
potential of data into a promise
areas of technology. And not every Central to the use of business
of success.
company is up to the challenge. analytics in promoting change
processes within the company is the
Only a few European countries and
Leadership in behavior and credibility of managers.
industries are succeeding in delivering
a transformation Both decisively determine employees’
on this promise(V). With eight percent
trust in the organization as a whole
of companies, Great Britain leads the culture driven by data and their enthusiasm and commitment
way, while five percent in Germany,
to change.
Austria and Switzerland have sufficient Recent advances in data analytics
capabilities to fully exploit their data. are of paramount importance
The industry leader is the financial for modern change management.
services sector at ten percent, People – investors, customers,
with telecommunications second employees and other stakeholders –
at seven percent. This is pretty much are the key success factors for
50 – 100 4,23
20 – 49 4,17
10 – 19 4,04
5–9 3,91
1–4 3,80
Measured on a scale from 1-5, where 1 represents
0 3,82 a low level and 5 a high level of data maturity
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Data Driven Organizations | Boosting change success with data | Change Management Study 2023
15
III. THE STUDY FINDINGS IN DETAIL
16 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Why data maturity The promotion of a data-based to be understood and actively built
is the precondition for corporate culture is a task for into decision-making processes."
data-driven leadership which is That secures decisions, uncovers
change success interdependent with the unique disruptive factors early on, and points
culture of the company. Mid-level to proactive measures. "Divisions that
Change projects rarely run smoothly.
managers in particular are relentless are at the beginning of data maturity
At times you are behind schedule,
in informing, arguing, and persuading, react rather than act," deems a people
elsewhere the left hand doesn't
thereby strengthening employees' analytics specialist. While looking
know what the right hand is doing,
confidence in the meaning of in the rearview mirror only allows
behind closed doors decisions are
transformation and the use of for corrective intervention, looking
picked apart, and anyway: Who says
data that it requires (see page 5). through the windshield enables
that the change is really necessary?
"We need to look at people first and forward-looking action.
In case of doubt, the data. Data-
then bring in data," says a participant
mature companies read a lot from
who works in the triangle of Business analytics make a company
it, about the past, the present and,
organizational development, human data-enabled – all the more so in
what matters most in change, about
resources and change management, change projects, where a challenge
the future. They have adopted a data-
adding conclusively: "If data is going could lurk around every corner.
driven culture, based on a shared
to do anything, people need to see Our study shows that companies
understanding among executives
the value added." Linking that with comprehensive data analytics
and employees about the possibilities
to change is a leadership task of are rated by respondents as both
and limits of data use. Data is handled
top priority. In organizations with more adaptable (15 percent)
openly, transparently and trustfully
comprehensive data analytics, and more financially successful
as the basis for decision-making.
employees are 18 percent more likely, (87 percent).
But people should always retain
on average, to trust the company
primacy over technology.
"The change of corporate culture This triad – data-driven culture,
The third element of data maturity data-driven leadership, and data
can be seen as a prerequisite for
is data capability. By this we mean capability – determine an organization's
successful data-driven change
the effective, efficient, responsible data maturity. Two of them, culture
management," confirms a change
and sustainable handling of data. and leadership, directly impact those
management expert. "Data is like
The overriding goal is to have a high involved in change. Let`s see how
a control tool and supports the
level of skills and competencies with a this works.
success of one's work."
maximum of data security. In the case
of change, this implies the greatest
possible transparency as to where the
project and those involved in it stand
at any given time. The visualization
of data is helpful. But: "A dashboard
alone is not enough," says an expert in
data-driven organization. "Data needs
17
benefits transformation results. If only
because the probability that change
progress is carefully communicated
by management is 20 percent higher
on average in organizations with
comprehensive data analysis.
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Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Finding 1
The key for success in any transformation is change leadership. When leaders
explain the benefits of using data and lead by example, they increase employees'
willingness to work in a data-driven way. Simultaneously looking at processes,
structures and the people involved builds the confidence of organizational
members to change for the better. Cross-functional collaboration is
a compelling framework for this. When all three factors come together,
change success is greatest.
19
Knowing what´s going
on provides certainty
that things are moving
Viewed in isolation, numbers and
data have no value. But they can be
used to inform employees about the
goals and actions of change projects.
Our study proves: A higher level of data
maturity in the company has an indirect
but unmistakable effect – namely via
the level of informedness – on the
commitment and change proactivity
of those involved. This has a significant
impact on change success (Fig. 13).
20 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
21
Culture + Leadership =
Fig. 14 Data maturity and changeability
Changeability
This must be the claim, because Fourth most important
Data-Maturity Change Success
People factor
for companies the ability to change
(“changeability”) has become an Data-driven Change
existential question. The more Culture Proactivity
profound the technological change + +
and the associated challenges, the Data-driven Change
more the general transformation Changeability
Leadership Commitment
capability of the organization
determines the success of change
+ +
Data Organisational
projects. In companies with Capabilities Success
comprehensive data analytics, five
out of six employees (83 percent)
see the change project as being
supported by a broad coalition in
leadership. This is where the circle
closes. Our study proves that data- Finding 3
driven culture and change leadership
have a direct impact on the ability to Our study proves that high data maturity significantly increases the learning
change. Where comprehensive data culture in the company. This benefits change because the will to learn dissolves
analytics is already in place, 86 percent resistance and opens up the organization to new things. The use of data proves
of respondents see their leadership to be the linchpin here. The learning culture is an important characteristic
carefully communicating the progress of a company's general ability to change. It determines the degree of
of change, compared to just 60 percent commitment and change proactivity with which managers and employees
elsewhere. No coincidence: 88 percent intrinsically support and drive change.
of the study participants consider their
company to be successful in managing
change. With limited data use, the
figure is only 55 percent. This speaks to the desire to be But only under the condition
flexible in the choice of means. Rightly that leadership allows itself to be
In companies where data is used so, as our study confirms the positive supported by data and consistently
to enhance communication efforts correlation between data maturity and transfers this open-mindedness into
in the change process, the percentage change capability on one side as well the organization.
of employees who rate their company as commitment and proactive action
as successful in managing change by employees on the other – and It requires a strong and empathetic
increases by 13 percent. Example: therefore also the success of the leadership for this mechanism to
If information about change measures organization in transformation work. Change demands a great deal
and successes has previously been processes (Fig. 14). from all those involved. Employees
provided in newsletters, but the want to be guided fairly and informed
data shows that these are read by comprehensively. They want to feel
only a few recipients, then additional
Data maturity and
people factors make and experience that all parts of the
information channels are necessary. company are moving in the new, the
change manageable right direction. Neither silo thinking
When leaders consistently use nor evasive answers are appropriate
business analytics and share the The study results show that we
when colleagues ask questions that
data it generates with employees, were right with our hypothesis.
reveal uncertainty and concern.
things really start to shift within Only in the case of change stress
The biggest challenge for change
the company. "Convincing people did we have to correct our assumption
managers is not to lose sight of
that change is good is the most (see page 20). The analysis of the
any of the aforementioned aspects.
important thing," explains an expert interviews and the quantitative
In this context, data maturity functions
in organizational development, human study prove that data maturity gives
like a radar system that enables
resources and change management. companies a considerable advantage
change management to arrive safely
"If the effectiveness of actions is in change processes. We even say:
at its destination under (almost)
measured, you can use other change it contributes significantly to the
all weather conditions.
methods faster if need be." success of transformations.
22 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Our study confirms the positive link The outstanding position of German Change commitment is not only
between a company's data maturity companies in the overall European driven by leadership and corporate
and the success of its ongoing or analysis is essentially due to high culture, but also by an understanding
recently completed change projects. intraorganizational approval ratings of the need for change.
However, we did not stop with for change (Fig. 16).
this generic confirmation of our
hypothesis. In order to verify the
preceding considerations and to
determine the probabilities of Fig. 15 Organizational success in the regions
success in more detail, we conducted
various cluster analyses, according 4,50
to, among other things, company
characteristics region and industry,
as well as according to departments 4,25
APAC
DEU
4,00
Regions and countries
EUR
23
Industries
Fig. 17 Organizational success in the industries
When we look at the different sectors
4,50
of the economy, the uncompromising
digitizers from telecommunications,
automotive, banking and insurance
are at the top of the list (Fig. 17). 4,25
Automotive Telecommunication
There is no doubt that these sectors Banking
are ahead in IT-driven transformation(VII),
Data Maturity
Consumer Products & Retail
Insurance
and the reason for this is obvious: 4,00
Pharma / Life Sciences
Consulting Energy & Utilities
For companies competing on a global
scale, there is simply no alternative Other
Public Services
Departments
Data Processing / IT
The analysis by business departments 4.25
Manufacturing / Production
reveals little at first glance, but at a
Management
closer view it is quite surprising. Let's
Data Maturity
Facility Management
Research & Development
start with the obvious. Measured by 4.00
Finances
Marketing / Advertising
Accounting
their level of data maturity, IT and Human Resources
management are the most willing Quality Assurance
to actively promote change. It could Other
3.75 Sales
be assumed, and is confirmed by the
participants, that the high level of Logistics, Materials
commitment has a positive impact Management
3.50
on the company's success (Fig. 18).
If management succeeds in extending 3.50 3.75 4.00 4.25 4.50
24 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Management range
Fig. 19 T
he relationship between data maturity and organizational success by
The higher a company’s data maturity, management responsibility
the better its prospects of bringing
4.50
the transformation process to a
successful conclusion. This was our > 1.000
initial hypothesis. In fact, there is an
> 100 but < 1.000
almost linear connection between the 4.25
50 – 100
data maturity of an organization and 20 – 49
Data Maturity
its corporate success (Fig. 19). We see
10 – 19
a comparable connection in change 4.00
commitment and change proactivity. 5–9
– 5–9
Managers who lead more than 3.75
1,000 employees rate both the data
maturity of their own company and
its success highest. This is followed by
3.50
a management range of 101 to 999
and only then by the much smaller 3.50 3.75 4.00 4.25 4.50
25
IV. HOW TO ACHIEVE DATA-
DRIVEN CHANGE MANAGEMENT
Most companies are well positioned Yet, managers in particular swear by Data-based
when it comes to leveraging their data! However, the opportunities of Change Management
business intelligence data. However, data-driven change management are
our study has shown that the crucial still often underestimated. Of course,
boosts existing levers
step for implementing data-driven management always works and makes
Our 8-lever model (Fig. 20) illustrates
change management has not yet decisions based on data, but similar to
how to develop and implement data-
been taken. Change managers only benchmarks, mostly with data from
driven change management as part of
hesitantly recognize the benefits of the past or the present. Thanks to
a holistic strategy. Any changes to one
data-driven scenarios for decisions predictive analytics, managers gain
lever inevitably impact how the others
in change processes. The brakes are a large-scale and at the same time
work, so side effects and consequences
being put on by a lack of knowledge – detailed picture of the future actions
must always be considered. Below, we
how does it work? –, doubts about and behaviors of their customers,
provide some guidance on how change
effectiveness – what's the point? – suppliers and employees. Only then
management can use data to amplify
and uncertainty: what data is necessary, it is possible to act with foresight and
the power of the levers.
already available or can be obtained analytically secure knowledge of the
in a data protection compliant manner? most probable results. Given the clear
Speaking of procurement: What does business benefits of these techniques, The first and most important lever
the technology cost us? Do we have we believe that there is still great for successful implementation of
to hire dozens of IT specialists for it, potential to be tapped here. data-driven change management is
who are not available on the labor corporate culture. The entirety of
market anyway? Last but not least, shared values, norms and attitudes
This is supported by the strongest
the term people analytics evokes an determines how people work together.
argument of all. If you can leave it
instinctive shyness. Is the workforce, Managers and employees can usually
to technology to navigate faster and
are our staff members on board? give a good description of the culture
with a greater likelihood of success,
and what it should ideally be like. But
then you should. Let data do the work.
for change management to be able
Our study indicates that many companies The most efficient way to do this is to
to intervene in a targeted manner,
find it difficult to adopt a data-driven build a data team of data architects
it needs more than just a vague gut
mindset in their corporate culture. and business analysts (see page 10).
feeling that things are not going
as they should. It needs objective,
reliable data that is collected at regular
intervals and shared with employees.
Only then can it steer change in the
right direction.
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Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Ecosystem Culture
Broaden company boarders for innovation, A common vision and mindset provides
speed, and to leverage flexible resourcing strong sense of community and is basis for
and skills. collaboration, empowerment, and innovation.
Adaptive
Organization
Data awareness
A data-driven way of working Governance
to foster sustainable, long-term Principles, guidelines, and rules
results and sound, fact-based for steering and decision-making.
decision making.
Structure Processes
Focus on capabilities and roles rather than Standardized processes optimizing team
positions and functions, breaking existing interaction are individually adapted to
silo-structures and enabling collaboration business and market requirements.
across business units and partner networks.
People & Culture already has a lot Leadership is closely linked to In a way, designing processes is a
of data, aggregated across the entire corporate culture. Where decisions home game for data-based change
workforce or individual departments, are made in a data-conscious management. This is because
for example the number of internal and transparent way, hegemonic processes are based on data from
and external job applications, sickness knowledge and sensitivities lose workflows, predecessor-successor
frequency and duration, the fluctuation their significance and make way models, dependencies and
rate, participation in voluntary social for understanding and agreement. interactions. In order for this data to
events, evaluated opinion surveys Anonymized surveys, summarized be shared, used and compared across
or anonymized statements from HR analyses of performance reviews, departments, it must be sufficiently
interviews. Some companies regularly pulse surveys and 360-degree surveys standardized. The change team and
ask employees for their impressions, provide scalable data and targeted the specialist departments central to
feelings or attitudes toward certain information for change. In addition, the respective phase need sufficient
measures. The participation rates they provide impulses for personnel freedom to evaluate additional data
indicate the extent to which employees development and training. Finally, sources and implement suitable ad hoc
are convinced that their opinions are an important part of the leadership measures. Of course, the assignment
valued. In others, a "mood barometer" function is to develop employees. of access rights to the data must take
is posted on the virtual bulletin board, This includes enabling them to work data protection into account.
where all employees voluntarily can independently with data and make
mark their opinion. People analytics decisions based on it (see page 13).
can be used to pinpoint exactly
what is going great or what may
still be lacking. The goal is always to
systematically transform moods into
measurable characteristics. After all,
how could we ever manage something
that isn't being measured?
27
Data awareness is the key If change management becomes Governance should be ethically
to smart change the champion of a high level of data unassailable, data-aware, transparent,
awareness in the company and pushes and communication-oriented, thus
A high level of data awareness for appropriate training, it is likely to acting as an indirect lever for change.
that is widespread throughout the win the approval of the corporate We have seen it in many change
company is indispensable for making functions. At the same time, it projects: When governance fosters
good, fact-based decisions. Managers facilitates work, because data- better quality decisions that
thus increase the weight of their aware employees get to the point are accepted by all, the change
arguments and gain promoters for much quicker. This, in turn, points team's chances of success increase
efficient and sustainable solutions; the way forward for change. In 2019, tremendously. It is similar with
the reason of some measures becomes we stated in our Change Management the structure of the company,
clearer to employees. And the future study(X): "The more carefully data is which reflects positions, functions
is becoming more manageable. interpreted and processed, the more and roles of managers and employees.
The Big Five(IX) companies and valid the decisions made on this basis If we expand this description to
numerous start-ups are emphatically will be and thus ensure sustainably include behavior in the dynamic web
proving that business models based on better results." of relationships and the data-affinity
the collection, analysis and processing skills of organizational members, the
of data are among the big winners importance of structure for the success
on the market. The intelligent use of data-driven change management
of algorithms promises new business becomes apparent.
opportunities by filtering out the
really relevant information from
the mass of data.
28 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
29
Knowing what it's about. There are
various positive effects on success
if employees in change projects feel
informed about progress, i.e., about
milestones reached, but also about
setbacks. This prevents rumors
from germinating and promotes
commitment and proactive action.
Technical tools for visualizing team
goals and progress in real time have
long been established. It is also
helpful to analyze the communication
channels preferred by employees
("channel utilization"). Dashboards
can be used to share information
quickly in a comprehensible way –
for example, the accomplishment
of interim goals or tasks that are still
open. Valid statements about the
degree of information can be made
by measuring the click rate of data
dedicated to the project. Recorded
over time, the average reading time
indicates increasing, constant or
decreasing attention to the change.
This data provides the change team
with information on communication
measures that may be necessary.
And managers learn from this indirect
feedback whether they should sharpen
their role as promoters of change.
30 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Being eager to learn. In a world of Two factors promote a good learning can help them to approach tasks
volatility, uncertainty, complexity culture: low-threshold offerings in a structured manner. In another
and ambiguity – VUCA for short – tailored to specific employee groups, company, an online adventure game
companies are lost without a learning and clearly defined time slots made in which tasks also had to be solved
culture. This is especially true for available for learning. One of our using data proved to be very
change processes, because it is customers set up a so-called Escape successful. Games with a learning
imperative that employees acquire Room, which employees are only to character are excellent for breaking
knowledge and new skills. But even leave after solving puzzles with the down fear of first contact. They can
that is not enough. A learning culture help of data analytics. In doing so, also be simply differentiated into
provides answers to the following they learned in a playful and at the learning paths to address company-
questions: Are suggestions and same time instructive way how data specific target groups.
ideas generally welcomed? (Yes!)
Do we encourage and reward
further training? (Yes!) Do we make
a distinction between formal and
informal learning? (No!) Do we Data ownership: Who has access to which data?
sanction mistakes that result from
eagerness to learn or work? (No!) Data forms its own ecosystem, which should be mapped in a data model for
Does our organization learn from the entire organization. Not every employee needs to know who generates,
mistakes? (Yes!) Do we have a data uses and manages which data. But everyone should know who they can turn
storage system where our learnings to when they need data. "The biggest challenges are the lack of control over
are saved and retrievable? (Yes!) Our projects and the lack of commitment to data," confirms a change manager.
study results suggest that we should To ensure that everyone knows who is responsible for what data, data owner-
ask these questions. Participants in ship must be clarified. Risk management, compliance and data protection
organizations with comprehensive data officers all have a say in this. Ideally, the company should appoint a data owner
analytics are, on average, 24 percent who determines which data all employees may access. In addition, department-
more committed to a culture that specific data owners are appointed. "Data is created in processes, and you
emphasizes people development. need experts who know which data can be used for which tasks," explains one
participant. The IT department, in turn, knows the technical architecture
and how the data flow corresponds with data governance.
31
Fig. 21 Our data-driven change model
Our data-driven In the preparatory phase, For example. If, due to training
change model management works out the goals efforts, the data competence of
of the transformation with the vision a defined group of employees has
For a better understanding of how and, after determining the actual reached 80 percent, then increasing
data-driven change management values, defines the target values. it by the remaining 20 percent requires
is implemented, we have expanded This is how Netflix proceeded in the considerably more resources than
our proven and tested change model early 2010s with its change from DVD is economically worthwhile (Pareto
(Fig. 21). As before, it shows the change rental company to streaming provider. principle). However, if the increase
process divided into the preparation For the new business model to work, in data competence is of paramount
phase (left) and the implementation the number of subscribers had to importance for the overall success
phase (right). We added a data level increase dramatically. It succeeded of the change project (which goes
(in the figure highlighted in green). despite initial difficulties: Between without saying in data-driven change
The insights gained on the data level 2011 and 2019, the number of management), then the effort is
support change managers on the subscribers increased sevenfold to justified. It always depends on which
action level (in the figure highlighted 163 million – far more than all cable goals are most important for the
in blue). Where traditional change TV providers in the U.S. combined. change project. This also determines
management only focuses on the what data is required to measure
change process from vision to The vision shines on the horizon, success. And whether the data is
performance review, data-driven but the path to it must be well already available in the company or
change management continuously illuminated. Thus, in the next step, must first be obtained or collected.
expands the view to include project- the change team defines specific
relevant data on demand and in sub-goals and suitable indicators and
real time. measurement methods, similar to a
balanced scorecard. Not as fixed KPIs
("82 percent"), but as KPI target
corridors ("from 80 to 85 percent"),
in order to secure flexibility in the use
of the available resources and efficient
in terms of revenue and expense.
32 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
33
V. PLANNING THE NEXT STEPS
The dynamic events in recent times Navigating this landscape safely is Ten years ago, many change managers
should have proven that change is not the task of the command bridge. were ahead of their time. We quote
just on the agenda every few years. But finding the best route to get from our 2012 Change Management
Standing still is a step backwards. there is the responsibility of change study(XI): "While there is a gradual
Companies have to change constantly management. As the traffic situation rethinking of how change managers
to stay on top of their business. is constantly changing, it has to steer are hired and how change is evaluated,
Change may be strategically justified. accordingly. To fellow travelers this companies continue to rely on familiar
But it is also part of the operational may look like a zig-zag path. But and proven recipes. It won't remain
business. For executives, this means pointing to the objective navigation that way. Thanks to digital platforms,
to keep an eye on the broad picture. data, the steering team will succeed knowledge can be easily shared, stored
Let’s listen to Carsten L. Pedersen in convincing the doubters. and recombined. In order not to lose
and Thomas Ritter, economists at connectivity, change management
Copenhagen Business School: “Doing requires increased sensitivity as
business today means navigating a well as structures that do not want
complex landscape of interconnected to avoid surprises, but expect them.
and interdependent issues, each having This opening and new access to know-
multiple stakeholders and agendas."(XI) ledge will alter change management
itself in the medium term."
34 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Successful transformations require Why data-driven change We also highlight the enormous
active input from employees. That's managers move forward benefits of data-driven change
why change managers spend a lot management with the results of
of their time explaining, arguing and
more easily our latest study (see page 16). Don't
dispelling internal resistance. Why have managers have enough backpacks
For David Groombridge, VP of research
we set this goal? Why did we decide to to shoulder already? Do the drivers
at Gartner, the main themes for 2022
do this or that? Why are we convinced of change, ideally front runners
were: building trust, shaping change
that the planned measures will take with strong communication skills
and accelerating growth. For this
us further? And in countless peer- and outstanding leadership abilities,
year, he foresees these highlights:
to-peer discussions: How does the now have to become shrewd data
generative artificial intelligence, data
employee benefit from going along analysts as well?
fabrics as a flexible form of integrating
with the change? Data is useful in all
data across platforms and business
these unavoidable discussions. At the All-clear: No, they don't. This task can
units, and the distributed enterprise,
beginning, it clarifies the meaning of be delegated to data-savvy members
i.e., companies where employees are
change. Being on the road, it indicates of the change team. Alternatively,
spread across home offices instead
our position. If we're off course, employees from the data team can
of the traditional, office-centric
we need to redirect, develop new be delegated to the change team. In
organization.(XIII) This means that
metrics or measures, and explain any case, leadership should familiarize
data-driven change management
them to employees. Due to modern themselves with the possibilities,
is not only in line with the trend,
analytics, data has become indispensable effects and benefits of data analytics.
but also seems to be tailor-made
assistance to change. It gives managers They do not need to know all details.
for the coming developments.
the freedom to convince employees, In oder to assess which data is
which is never in vain and is often needed and which tools are helpful,
However, implementing vision and
even necessary. it is sufficient to have an overview of
strategy through change management
the topic and to distribute the tasks
needs commitment. "Data can help
To be fair, data-driven change intra- and cross-functionally. Sort of
us find out what people think about
management does not work overnight. traditional management, so to speak.
change," an expert in building data
Complex analyses require intensive
platforms tells us. "For example, we
work with data analytics. It's tedious at
use algorithms that search for keywords
first, but in the medium and long term
in discussions on social media. That's
it promises to relieve those responsible
how we find out whether we're getting
of their core task – stirring the crew’s
attention and engagement on the
enthusiasm for the change journey
new topic."
and keeping its momentum alive all
the way to the finish line. "You need
Momentum is crucial, as for many
a strong advocate from leadership to
companies it is not only important but
invest in technology and people and to
also urgent to initiate change now.
be an ambassador to really drive data,"
Given the high level of relevance,
urges a people analytics specialist. But
change managers are called upon to
how do you get that done? "It is about
deliver verifiable successes as quickly
emphasizing the benefits of business
as possible. Plainly speaking, most
analytics." We couldn’t agree more.
change leaders are under pressure.
The fact that they are dependent on
the understanding and cooperation
of their employees doesn’t make
things any easier.
35
More time for people Cross-functional collaboration What to do now
benefits from this. It makes the work
Even professionals with years of of managers easier and increases The challenge of data-driven
change experience back up their the prospect of success. change management is to use data
gut feelings with data sheets, graphs intelligently(XV). To do this, leaders
and analytics when they need to make Data analytics sharpens the view need (1) a clear data strategy,
decisions. Descriptive data reflects ahead, especially when it comes (2) confidence in data across the
the status of the transformation. to transformations. Data-driven enterprise, (3) a state-of-the-art
Where do we stand? Extrapolations change management thus removes data landscape, and (4) data-driven
specify the target. Where do we want uncertainty from decision-making. decisions to take the most effective
to go? Prescriptive data analytics actions (Fig. 22).
indicates the path. In which direction Data-driven change management
do we need to steer? Our research provides more transparency in the Develop a clear data strategy.
demonstrates that data-driven implementation and achievement Change managers should be aware
organizations bring about change of measures, throughout the of the learnings their companies have
better and faster. Change managers organization. This reinforces the already gained so far in dealing with
have already given us evidence purpose of the change and gives data. And they should understand
of this(XIV): employees the feeling of being what data analytics (and data teams!)
informed and having control over can do. Both combined grant them a
D
ata-mature organizations are the process. strategic edge. Almost all organizations
more agile. Of the organizations have a data strategy, but it has hardly
where data is trusted, 79 percent This in turn increases commitment ever been used for change. Particularly
consider themselves more agile, and proactivity. When change in change projects, it is important to
and 62 percent say they can access managers present a clearly defined harmonize people and data. This will be
data as quickly as needed. path, their team and the business achieved by aligning the data strategy
departments gain confidence in with the goals of the change.
the strategy. Measurable actions
reinforce this effect and increase
the willingness to participate.
A double benefit: less resistance
and a strong tailwind drives
the pace.
36 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Building trust in data. Employees’ Establish a state-of-the-art data Making data-driven decisions.
confidence in data and its use is not landscape. The existing systems and If the change team can make a tick
just a question of technology. There software solutions should fit the data mark behind data strategy, trust in
is no doubt that the investment in analytics needs of the change team. data and a modern data landscape,
the availability of trustworthy data This can be determined and often the project is on the right track. Over
is worthwhile. However, whether achieved with minor technical changes time, the database becomes broader
employees regard data as a tool that if the team's data analysts discuss and deeper, decisions – including
can potentially be used against them their respective goals intensively those made by employees! –
or as an objective source of information with their colleagues from IT. IT wants become more well-grounded.
has a lot to do with corporate culture to remain as unaffected as possible And the change journey proceeds
and the credibility of managers. by the change. But for change to smoother. Thus, change leaders
As soon as employees notice success succeed, identifying, collecting and become pioneers of a new, data-
in data-driven change, their confidence analyzing the relevant data is crucial. competent corporate culture.
in the integrity of data use and change Understanding the special tasks often
management practices grows. This is leads to technical solutions that are Our many years of working on
a self-reinforcing process – but it also comparatively easy to implement. transformation projects have shown
works vice versa. It is equally important Such as reporting dashboards. Ideally time and again that leadership and
that those responsible for the change equipped with AI functions, they make a culture of change have a lasting
project keep their employees fully a decisive contribution to identifying impact on the entire company. Its
informed: What data will be used? and implementing the most effective resilience grows with the increasing
Which tools will be used to collect measures. self-confidence of managers and
and process it? How does this pay off employees in dealing with change.
in terms of the change project’s goals? This delivers on the promise of data-
Various measures and channels are driven change management: arriving
available to provide answers, from safely in a turbulent environment.
personal meetings in small groups
to blogs or vlogs in which information
is provided about the status of the
transformation. The traditional
newsletter is suitable for this
purpose as well.
37
ENDNOTES
(I) (VI) (X)
Capgemini Invent (2019) Capgemini Consulting (2015) Capgemini Invent (2019)
Leaping Forward – Paths to Organizational Superleaders or Superteam? Leaping Forward – Paths to Organizational
Dexterity, Change Management Study 2019. How managers can really change their world. Dexterity, Change Management Study 2019.
Capgemini Change Study 2015, p. 45
(II) (XI)
Capgemini Invent (2019) (VII) Pedersen, Carsten L./ Ritter, Thomas,
Leaping Forward – Paths to Organizational A small selection: 4 Types of Business Transformation.
Dexterity, Change Management Study 2019. Jan Büchel, Barbara Engels (2022) In: Harvard Business Review, 2022/06
Digitalization Index 2022,
(III) Digitalization of the Economy in Germany (XII)
Accenture/Qlik (2020) Capgemini Consulting (2012)
bit.ly/Digitalization_Economy_Germany
The Human Impact of Data Literature. Digital Revolution: Is Change Management Bold
A leader's guide to democratizing data, boosting Hans Böckler Foundation (2022) Enough to Face the Future? Change Management
productivity and empowering the workforce. Atlas of Digital Work Study 2012, p. 24
bit.ly/Human_Impact_of_Data bit.ly/Atlas_of_Digital_Work
(XIII)
(IV) DIHK/IHK (2022) Gartner Tech Trends:
Bertelsmann Stiftung (29.9.2022) Digitalization with challenges, What needs to be on the CIO agenda in 2022.
Permanent crisis changes the world of work: IHK survey on digitalization IT Welt.at, September 2, 2022
Which soft skills are now in demand bit.ly/IHK_survey_on_digitalization bit.ly/2022_CIO_Agenda
bit.ly/Permanent_crisis_changes_world_of_work
(VIII) (XIV)
(V) Capgemini Consulting (2015) Capgemini (2020)
Freeform Dynamics/Fujitsu (2020) Superleaders or Superteam? How managers can The data-powered enterprise, p. 19
The Data-Driven Business Maturity Perspective really change their world. Change Management
Study 2015, p. 16 (XV)
bit.ly/Business_Maturity_Perspective
Capgemini (2021)
(IX) Data Mastery. How data-powered organizations
Google, Amazon, Microsoft, Meta, Apple outperform their competitors, p. 3.
LIST OF FIGURES
Fig. 01 Fig. 08 Fig. 15
This is what comprehensive Data maturity per department Organizational success in the regions
data analysis delivers . . . Page 13 Page 23
Page 5
Fig. 09 Fig. 16
Fig. 02 Data maturity per management responsibility Change commitment in the regions
The success of change increases through . . . Page 14 Page 23
Page 5
Fig. 10 Fig. 17
Fig. 03 Interdependencies in data-driven change Organizational success in the industries
Participants per country management Page 24
Page 7 Page 16
Fig. 18
Fig. 04 Fig. 11 The connection between data maturity
Company size by number of employees Data maturity and change leadership and change commitment by departments
Page 7 Page 18 Page 24
Fig. 22
Steps to data mastery
Page 37
38 Data Driven Organizations | Boosting change success with data | Change Management Study 2023
Data Driven Organizations | Boosting change success with data | Change Management Study 2023
THE AUTHORS
39
About Capgemini Invent
As the digital innovation, design and transformation brand of the Capgemini Group, Capgemini Invent enables
CxOs to envision and shape the future of their businesses. Located in nearly 40 studios and more than 60 offices
around the world, it comprises a 10,000+ strong team of strategists, data scientists, product and experience
designers, brand experts and technologists who develop new digital services, products, experiences and
business models for sustainable growth.
Capgemini Invent is an integral part of Capgemini, a global leader in partnering with companies to transform
and manage their business by harnessing the power of technology. The Group is guided everyday by its purpose
of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and
diverse organization of over 350,000 team members in more than 50 countries. With its strong 55-year heritage
and deep industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business
needs, from strategy and design to operations, fueled by the fast evolving and innovative world of cloud,
data, AI, connectivity, software, digital engineering, and platforms. The Group reported in 2021 global
revenues of €18 billion.