Successful change management pivotal to achieving higher revenue growth, WTW research finds

LONDON, November 15, 2023 — Companies that take a proactive approach to change management drive nearly 3 times more revenue than companies with below-average change effectiveness. This, according to new research from leading global advisory, broking and solutions company, WTW (NASDAQ: WTW). The new paper, Accelerating change amid disruption, also revealed the employee experience as a key differentiator to succeeding in change management.

The research, based on an analysis of 600 global organisations, termed those most effective at change management as “change accelerators”. These organisations perceive change management not as an expense but as a catalyst for superior financial and business outcomes. Because of this, change accelerators outperform transitional companies – those that struggle to manage through change – across several different metrics: one-year revenue change (6% vs. -30%), three-year revenue growth (4% vs. -7%) and gross profit margin (19% vs -13%).

According to the paper, change accelerators also recognise the employee experience as a key differentiator to success, prioritising four critical dimensions: purpose, people, total rewards and work:

• Purpose: A majority (90%) of employees at change accelerating organisations reported that their leadership had a clear vision for the future, maintaining a relentless focus on communicating why the change is happening and what the organisation is trying to achieve. This compared to only 73% at transitional organisations.
• People: Almost 90% of employees at change accelerating organisations expressed satisfaction with their involvement in decisions that affect their work, denoting a stronger trust level in the company and its leadership.
• Total rewards: 79% of employees in effective change organisations said their company encourages good performance through recognition and non-monetary rewards. Only half report doing so in transitional organisations.
• Work: 84% of employees in effective change organisations think that decisions are made in a timely manner versus 68% in transitional organisations. Companies that focus on embedding the change into their organisations culture and daily work routines are more effective at convincing employees that the changes being made will be long-lasting.

“In a changing global environment, where workforces and culture are ever-evolving, it’s critical for organisations to be intentional about the ways they manage change,” said Gaby Joyner, Head of Employee Experience Europe, at WTW. “By drawing on insights, effectively identifying and managing risks and placing people at the centre, companies will maximise their chances of a successful change effort and are more likely to achieve superior financial and business outcomes as a result”.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organisations sharpen their strategy, enhance organisational resilience, motivate their workforce and maximise performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.