Avoiding Change Mistakes: Not Creating a Cost-Benefit Analysis for Managing Change

Common Challenge: Justifying the Investment in Change Management

Quick Summary

Organizations often skip building a cost-benefit case for change management—leading to underfunding, delayed adoption, and failure to meet objectives. This article outlines how to quantify the value of managing change and how to make a compelling case for it.

The Challenge

Change management is frequently viewed as a “nice to have” rather than a necessity. Without a solid cost-benefit analysis, it’s hard to justify the investment. Leaders want ROI—so change practitioners must show how managing change contributes to business results and reduces risk.

Why It Matters

When organizations fail to quantify the cost of poor adoption, they undervalue the need for structured change support. The result? Resistance goes unmanaged, timelines slip, productivity dips, and the initiative never entirely takes hold.

The LaMarsh Perspective

The LaMarsh Managed Change™ Model is designed to help practitioners connect people-related risks directly to business outcomes. With the right analysis, change management becomes an enabler of value—not an added cost.

How-to Solution: Build a Cost-Benefit Case

1. Estimate the Business Impact of Resistance
   Use data from past initiatives to quantify delays, rework, or lost productivity due to unmanaged resistance.
2. Identify People Risks Early
   Highlight risks to adoption, speed, performance, or engagement—and what it would cost if not addressed.
3. Quantify the Benefits of Successful Adoption
   Faster implementation, fewer escalations, better ROI—tie these benefits to change management efforts.
4. Compare Against Change Management Investment
   Include training, coaching, tools, and resources. Then show how the avoided costs or gained value outweigh the expense.
5. Use a Visual Summary
   Present the analysis clearly—pie charts, ROI ratios, or risk heat maps help tell the story powerfully. 

Pro Tip

Executives don’t invest in what they don’t understand. Make the value of managing change tangible and measurable.

Wrap-Up

Effective change isn’t just a people issue—it’s a business issue. A solid cost-benefit analysis ensures that change management is treated as an essential investment.

👉 Need help building your case? Join our next Managed Change Workshop or Contact us for tools and support.