Companies are underestimating the disruption caused by organisational change, with new research suggesting inadequate preparation can result in months of weaker productivity.
Almost nine in 10 organisations were not considered highly prepared for their most recent significant change, according to research from people development company Insights.
The study, based on responses from 880 senior HR and people professionals across 11 markets, found a gap between executives’ expectations and the eventual impact on their organisations. While 39 per cent anticipated moderate or major disruption, 51 per cent said they subsequently experienced disruption at that level.
Only 13 per cent of organisations prepared across at least four of six areas examined by the research, which covered operational, communication and people-related measures. Almost half prepared in only one or two areas.
The difference was reflected in productivity. Some 22 per cent of the least-prepared organisations reported a decline during periods of change, compared with 10 per cent among the best-prepared businesses.
Across the entire sample, 17 per cent suffered a productivity decline. Recovery could be lengthy, with 31 per cent of affected organisations taking between three and six months to return to previous productivity levels. A further 8 per cent required more than six months and 2 per cent had yet to recover when surveyed.
The findings suggest companies are more likely to prepare operationally than for the effect of change on management and employees. Just 43 per cent included behavioural leadership in their preparations, making it the least frequently addressed of the six areas examined.
Dr Tanya Boyd, thought leadership and insights lead at Insights, said companies could have formal change plans while remaining poorly equipped for the consequences.
“Change readiness needs to be managed as an operating capability, with clear decisions and practical preparation for the pressure placed on teams during change,” she said.
Boyd added that businesses should define the leadership behaviours required during periods of disruption, clarify decision-making responsibilities and identify potential sources of friction before implementing significant changes.
The findings come as employers contend with rapid technological change, including the adoption of artificial intelligence, alongside restructuring and continued pressure to improve productivity.
