The Hidden Costs of Skipping Change Management (and How AI Can Help)

In today’s ever-evolving state of business, investing in enterprise technology isn’t optional—it’s absolutely essential. Companies are pouring millions into cutting-edge systems to drive efficiency, boost customer experience, and outpace competitors. But despite these massive investments, many organizations fail to see the expected returns. The underlying cause can be surprisingly simple. As Raymond and I were brainstorming this piece, we had a bit of an “aha!” moment, realizing the crucial factor was right there all along: change management.

Enterprise technology can transform a business—but only if people use it effectively. When change management is missing from the equation, even the best tools can end up underutilized, misunderstood, or outright abandoned. This leads to wasted resources, disengaged employees, and a failure to capitalize on potential competitive advantages.

The Financial Toll of Poor Change Management

The numbers don’t lie. According to Deloitte’s Global Technology Leadership Study, nearly 60% of IT investments are underutilized due to poor integration and ineffective change management. That means more than half of an organization’s tech budget could be going down the drain simply because people aren’t using the tools correctly—or at all.

And it’s not just IT investments that take a hit. Gallup research shows that highly engaged teams are 21% more productive and generate 21% higher profitability than disengaged teams. Without an intentional change management strategy, employee buy-in suffers, productivity plummets, and revenue takes a serious hit.

Even worse, employee disengagement doesn’t just cost companies money—it bleeds them dry. The Society for Human Resource Management (SHRM) estimates that disengaged employees cost US businesses $450 to $500 billion per year. Companies that fail to prioritize change management don’t just miss out on potential profits—they actively contribute to this staggering loss.

The Tech Stack Consolidation Revolution

With organizations relying on more digital tools than ever before, many are taking a step back to ask: Do we really need all these platforms? Enter tech stack consolidation: the process of streamlining an organization’s software ecosystem to reduce complexity, save money, and improve efficiency.

Companies consolidate their tech stacks to:

• Cut Costs – Eliminating redundant or underutilized tools significantly reduces licensing and operational expenses.
• Enhance Efficiency – A leaner tech stack means fewer tools to manage, smoother workflows, and less friction between teams.
• Strengthen Security – Fewer systems mean fewer security vulnerabilities, making it easier to protect company data.
• Improve Data Consistency – A centralized tech stack reduces data silos, ensuring better decision-making and improved analytics.

But while tech stack consolidation sounds great on paper, it can turn into an operational nightmare without proper change management.

What Happens When Tech Stack Consolidation Lacks Change Management?

While tech stack consolidation makes sense on paper, it can be an operational disaster without proper change management. Here’s what happens when companies fail to manage the transition effectively:

1. Employees Resist Change – If employees don’t understand why tools are being retired or replaced, they will push back, leading to adoption failures and a fragmented tech experience.
2. Operational Bottlenecks Emerge – Poorly executed consolidation efforts often result in disconnected workflows, redundant manual work, and dropped processes.
3. Data Gets Lost or Corrupted – When systems are migrated without structured change management, data integrity can suffer, leading to misinformation and poor decision-making.

The result? Wasted time, lost revenue, and frustrated employees.

The Future of Change Management: Introducing Change Management Agents

A new tool is emerging in the change management landscape: AI-driven change management agents. While not a silver bullet, these digital assistants can help organizations navigate complex transitions faster and more efficiently.

The Role of AI-Powered Change Management Agents

AI-driven change management agents can act as digital coaches, guiding employees through transitions by:

• Automating Repetitive Tasks – AI can handle scheduling training sessions, tracking adoption rates, and managing onboarding workflows, freeing up human leaders to focus on strategy.
• Personalizing Communication – AI uses sentiment analysis to tailor messages to different employee groups, ensuring change-related communication resonates.
• Monitoring Adoption in Real-Time – AI-driven analytics provide real-time insights into tool adoption, allowing companies to address resistance early.
• Providing Adaptive Training Programs – AI delivers training tailored to individual learning styles, accelerating adoption and boosting employee confidence.

Change Management is More Than Just AI

While AI-driven agents offer powerful advantages, they are just one piece of the puzzle. Successful change management requires a multi-faceted approach that includes:

• Strong Leadership and Executive Sponsorship – Change thrives when leaders actively champion initiatives.
• Clear, Continuous Communication – Transparent messaging ensures employees understand the “why” behind the change.
• Employee Involvement and Feedback Loops – Engaging employees in the process addresses concerns early and improves adoption.
• Structured Training and Enablement – A mix of AI-powered learning and hands-on training ensures employees feel confident in using new tools.
• Ongoing Support and Iteration – Change doesn’t stop after implementation—continuous support sustains long-term adoption.

Why Now? The Time for Change is Today

The rapid pace of technological advancement means that change is happening whether companies are ready or not. Organizations that embed change management into their digital transformation strategies gain a massive competitive edge. What companies stand to gain from prioritizing change management:

• Faster Adoption and Higher Engagement – Employees who are involved in change processes adopt new technologies 33% faster and are 38% more engaged.
• Stronger Financial Performance – Organizations that manage change effectively generate nearly twice the EBIT margins of those that don’t.
• Increased Retention and Morale – Change-friendly cultures improve employee retention rates by up to 46%, reducing costly turnover.
• Reduced Implementation Time – Structured change management can cut implementation times by up to 33%, allowing companies to realize ROI faster.

Final thoughts: Change Management Is Not Optional

Technology investments alone don’t drive success—adoption does. Companies that invest in structured change management strategies don’t just protect their tech investments, they unlock higher engagement, greater efficiency, and stronger financial returns. The question isn’t whether your company needs change management—it’s whether you can afford to ignore it.

How SH/FT Can Help You Succeed

At SH/FT, we specialize in ensuring that technology adoption doesn’t just happen—it thrives. We help businesses implement seamless change management strategies that drive enterprise-wide adoption, maximize ROI, and keep employees engaged throughout the process.

Here’s How We Help:

• Tech Stack Audits – We evaluate your current technology landscape to identify redundancies, gaps, and consolidation opportunities.
• AI-Driven and Traditional Implementation Support – We leverage a mix of AI-powered tools and human expertise to track engagement, provide real-time feedback, and optimize training programs.
• Custom Change Management Plans – We develop tailored strategies that ensure clear communication, smooth transitions, and long-term adoption.
• Continuous Support & Training – Change doesn’t stop after implementation. We offer ongoing support to ensure sustained adoption and success.

Ultimately, partnering with SH/FT means investing in a transformation that puts your people first – where technology isn’t just implemented, it’s genuinely adopted. Ready to future-proof your business? Given that digital transformation is no longer optional, companies that prioritize a structured, AI-enhanced approach to change management are positioned for significant competitive advantage and real business impact. Don’t let poor change management jeopardize your investments. Let’s team up to make your technology adoption seamless, strategic, and truly successful.

Sources and References for Change Management Thought Piece

1. Deloitte’s Global Technology Leadership Study
2. Gallup Research on Employee Engagement
3. SHRM (Society for Human Resource Management) on Employee Disengagement Costs
4. Gallup’s State of the Global Workplace Report

Co-Authored in partnership with Christina Matrocola and Raymond Blaisedell from the Business and Operations & Tech Services Team at SH/FT.