Do you have a primary sponsor named for your project but lack the true sponsorship support you need to succeed?
When project leaders and change practitioners are asked to name the number one factor in project success, they typically know the answer: active and visible sponsorship. In all of Prosci's Best Practices in Change Management research reports, active and visible sponsorship ranks as the top contributor to project success and has been cited four times more often than any other factor. Yet, despite a large percentage of projects having a named primary sponsor, many change practitioners lack the true sponsorship they need for success.
Why You Need True Sponsorship During Change
To understand why the role of the primary sponsor is important to achieving successful change, consider what the role really entails. Change leaders need primary sponsors to fulfill all of the ABC's of Sponsorship:
Active and visible participation throughout the project
Build a coalition of sponsorship
Communicate support and promote the change to impacted groups
When this level of sponsorship is lacking, change leaders often experience:
Increased resistance from employees, including key people managers in the organization
Unavailable resources to support the project
Slow adoption of the change or complete rejection of the change by some parts of the organization
Sponsor in Name or in Practice?
Consider a project you're supporting today. If you agree with the statements above and a senior leader has agreed be your primary sponsor, you might assume you are good to go. Unfortunately, the research does not support this assumption. Over the last two decades, Prosci research participants have cited ineffective change sponsorship as a top obstacle to change for a variety of reasons, such as:
The sponsor was at the wrong level or in the wrong part of the organization to support this change (i.e., the sponsor lacked control over the people and systems impacted by the change).
The sponsor was invisible (i.e., the sponsor did not get involved with the project team or communicate to employees).
The sponsor did not build a coalition of sponsorship with other business leaders (and as a result, the change team encountered resistance from managers throughout the organization).
The sponsor wavered in their support midway through the project (or found a different project that took priority).
The sponsor did not manage the resistance that surfaced during the change.
In the 12th Edition of Prosci's Best Practices in Change Management research study, participants cited the following sponsor challenges:
The upshot? Assigning a senior leader to the role of primary sponsor does not constitute effective sponsorship.
Sponsorship Checklist
The checklist below is a simple tool that can help you determine whether you are well-positioned to have the authority necessary for change success. Score each question on a scale of one to five, where one represents "no" or complete disagreement with the statement, and five represents "yes" or complete agreement with the statement.
If you score between 40 and 50 and you scored the first three questions a 4 or 5, your project likely has the elements for effective sponsorship. A score below 30 indicates that your project lacks the effective sponsorship required for successful change.
Statement
Score
My sponsor has the ability to provide the needed resources and funding for the project.
1 - 5
My sponsor has direct control over the people and processes being impacted by this change.
1 - 5
My sponsor has direct control over the systems and tools being impacted by this change.
1 - 5
My sponsor is willing and able to be active and visible throughout the entire project.
1 - 5
My sponsor will build a coalition of sponsorship with key leaders and stakeholders in the organization.
1 - 5
My sponsor will manage resistance from other managers and remove barriers to the success of the project.
1 - 5
My sponsor will communicate directly to employees about why this change is being made and the risk of not changing.
1 - 5
My sponsor will implement the necessary reinforcements to sustain the change, including modifications to performance objectives and performance evaluations, and rewards and recognition for employees who adopt the change.
1 - 5
My sponsor is credible and respected by employees and managers within the organization (i.e., employees embrace the leadership of this individual).
1 - 5
My sponsor will remain in the organization throughout the implementation of this change.
1 - 5
Total score:
How to Remedy Ineffective Sponsorship
If you scored low on the sponsorship checklist, take action to address the root cause:
A low score on any of the first three questions means your sponsor is probably not at the right level, given the scope of your project. In this case, a careful assessment of the sponsor coalition would determine if this project is in jeopardy. If you determine that your sponsorship coalition is also weak, you have two options:
Identify the right person to sponsor this initiative and begin to build the necessary sponsor coalition.
Redefine the scope of your project to fit or align with the sponsorship you do have.
Simply continuing with the project is not typically a viable option because the consequences will negatively affect the organization and your people, and your risk of project failure is high.
A low score on questions 4 through 8 means your sponsor needs coaching on the role of the primary sponsors during change. You may have a sponsor who is willing but does not know what effective sponsorship means, or you could have a sponsor who prefers not to be directly involved. The latter issue is harder to overcome, but with the right information and approach, most sponsors quickly see the importance of their role and get on board. Other the other hand, if your sponsor is willing but uneducated about the role of effective sponsorship, the change leader should directly coach and assist the sponsor to execute the role.
A low score on questions 9 or 10 likely means you need special tactics for approaching the project, including careful use of a strong sponsor coalition to carry a strong message to employees and be there throughout the entire project. If your sponsor is on a fixed term, such as with military organizations or government agencies, you may want to consider breaking the project into phases and focus on the phase that falls within the term limit of that sponsor.
Your Role in Effective Sponsorship
Having a primary sponsor named for your change and having the required sponsorship for successful change are not the same thing. Most executives and senior leaders lack understanding about how to be an effective primary sponsor of change—and that's to be expected because change management is not their primary role in the organization. Fortunately, that's where you come in. As a change practitioner, it's your job to enable your sponsor, so they are prepared and equipped to execute the critical actions needed for change success.
Tim Creasey
Tim Creasey is Prosci’s Chief Innovation Officer and a globally recognized leader in Change Management. Their work forms the basis of the world's largest body of knowledge on managing the people side of change to deliver organizational results.
Successful digital transformations in banking and financial services can lead to improved business outcomes through enhanced operational efficiency, increased customer retention rates, and accelerated innovation. The benefits are promising, but digital transformations in banking aren’t without challenges, sometimes so complex that the digital transformation fails to succeed. This article examines the benefits of digital transformation in banking, the central challenges banks face across the industry, technology, and market, and how a structured change management approach, such as the Prosci Methodology, drives tangible results. Understanding Digital Transformation in Banking Digital transformation in the banking and financial services industry involves utilizing digital technologies to modernize the way financial institutions operate, meet customer expectations, and deliver value. Ultimately, banking digital transformations enable faster decision-making, improve customer experiences and create more resilient operational workflows. More than digital technologies, digital transformations in banking also require financial institutions to rethink how people work together, how they make business decisions, and how their culture supports customers. The people side of change requires aligning leadership, employees and customers around new ways of working while keeping up with evolving regulations and changing expectations. Digital transformation in financial services is a business imperative. In fact, our Best Practices in Change Management benchmarking survey of leaders in the banking industry highlights that technology and the need for digital transformation is the biggest challenge facing the industry over the next five years. Top CM Challenges in Banking Financial institutions that engage their people, strengthen their culture, and build strong change capabilities are better positioned to overcome challenges during digital transformations, resulting in a higher rate of success. Digital Transformation Challenges Banks Face Despite the promising advancements and advantages of digital transformation in banking, these large-scale initiatives introduce real challenges for financial institutions. Below are five common obstacles financial service providers face during their digital transformation journey, along with change management strategies for overcoming them. 1. Regulatory compliance challenges Banks and other financial services providers operate under strict regulatory environments. They must accurately navigate various regulatory requirements. Some examples include the Gramm-Leach-Bliley Act (GLBA), the PCI Data Security Standard (PCI DSS), Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) policies and measures, and Payment Services Directive (PSD2). Additional local compliance mandates further complicate the regulatory environment. While meeting regulatory requirements is non-negotiable, the pace of regulatory change often surpasses the pace of technological adoption, creating tension between compliance and innovative efforts. Compliance missteps can delay transformations, trigger audits, and damage trust with customers. How change management helps A structured change management approach, such as the Prosci Methodology, incorporates risk management strategies from the outset by involving compliance teams early in the process, facilitating better planning before new systems go live. Prosci’s 3-Phase Process provides a structured yet flexible framework for driving change at the organizational level. In Phase 1 – Prepare Approach, teams work together to position the change for success, which involves assessing risk, including compliance risks. By engaging compliance officers early, aligning them with project teams, and establishing clear objectives and metrics, banks can anticipate regulatory requirements and integrate them into their transformation planning. 2. Legacy systems and technological complexities One of the biggest inhibitors of digital transformation in banking is the presence of outdated core legacy systems. Aging systems may have multiple dependencies, high maintenance costs, and limited scalability and connectivity functionality. Replacing them requires a significant investment in both budget and human resources, and can increase the risk of operational disruptions. Prosci’s Keys to Unlocking AI Adoption study reveals that 16% of AI adoption challenges stem from system integration issues. Without careful planning, even routine tasks can be affected during implementation. How change management helps Legacy modernization causes a shift in people's day-to-day work. Implementing new technologies requires changing behaviors, and employees accustomed to old systems may resist the change or struggle to adopt the latest technology. The Prosci ADKAR® Model — Awareness, Desire, Knowledge, Ability, Reinforcement — equips leaders to engage individuals effectively during the change process and prevent and manage resistance. The ADKAR Model offers strategies and tools to guide individuals through ADKAR transitions, facilitating successful organizational change. Prosci ADKAR Model 3. Customer expectations and demands As technology advances, banking customers have higher expectations and seek varying experiences. Some want personalized, seamless, and always-available digital access, including mobile banking, real-time payments, as well as readily accessible financial advice. While some customers prefer a digital-first experience, banks must also support accessibility for clients who prefer traditional channels, including in-person banking. Additionally, launching new digital tools, such as mobile apps and digital wallets, can enhance the customer experience. Improving and modernizing core banking services to include these features helps meet customer demand, remain agile, and stay competitive. But if the launch experience is unclear or too challenging to navigate, these enhancements can leave a negative impression on customers. Maintaining customer satisfaction is necessary for success. How change management helps Meeting diverse customer needs while balancing the introduction of new technologies requires effective sponsorship and strong cross-functional alignment. Using a structured change management approach helps ensure that banks structure and fill the core roles needed to drive change successfully while keeping the customer journey at the forefront of strategic planning. 4. Data security and privacy concerns Cybersecurity is of utmost importance in digital banking as banks remain a desirable target for fraudulent activity, data breaches and ransomware attacks. Of equal importance, regulations mandate strict data protection, and customers want to know how banks use their information and who has access to their sensitive data. Balancing innovation with robust security protocols for protecting customer data is a challenge for today’s banks. How change management helps An effective change management strategy enables banks to clearly communicate security measures and involve risk and cybersecurity teams at the earliest stages of the change process. It helps ensure that staff understand security measures, know how to implement them, and consistently reinforce secure behaviors. Additionally, Prosci’s ADKAR Model helps ensure that employees receive the necessary training to understand their role in protecting data while advancing their digital transformation goals. 5. Cultural resistance and organizational pushback Resistance is a natural human reaction to change that arises when individuals face uncertainty, perceive threats, or are not aware of the reasons behind the change. Digital transformations in banking are not immune to resistance. Employees may fear replacement by automation, distrust leadership’s vision, or experience change saturation if there are too many simultaneous transformation efforts. Without addressing cultural barriers, even the best-laid digital strategies can stall or fail. How change management helps Prosci research shows that preventing resistance to change is more effective than addressing it reactively. With the right change management strategy, banks can establish a clear vision for transformation and involve employees early to minimize resistance and build momentum. The success of any change initiative is closely tied to how well financial organizations manage resistance through effective change management approaches. Technological Challenges in the Financial Sector While regulatory pressures, legacy systems, and cultural barriers create obstacles, the technology itself introduces its own set of challenges. For banks and financial institutions, the pace of innovation often collides with the complexity of technology. Below are three of the most pressing technological challenges banks face, along with an explanation of how change management can help address them. 1. Integration of new technologies To remain competitive, banks frequently adopt new digital solutions, including mobile apps, payment platforms, customer engagement tools and cloud services. However, integrating new technologies with core legacy systems and other long-standing technologies is rarely straightforward. Complex data architectures, fragmented data sources, and reliance on third-party vendors can create significant roadblocks and downtime. How change management helps Focusing too much on the technical aspects of change can lead to technology deployments failing to meet expectations. For successful change, financial institutions must also focus on the people, as organizational change requires individuals to transition from their current state to the future state. The Prosci Methodology enables organizations to manage the people side of change. 2. Big data and analytics The financial sector generates massive volumes of data daily, offering opportunities for personalization, fraud detection, and more intelligent decision-making. However, siloed datasets, a lack of advanced analytics capabilities, and workforce skill gaps prevent banks and financial services providers from fully maximizing the benefits of big data. How change management helps Successfully leveraging big data requires both cultural and technical transformation. Teams need to trust the data, adopt new tools, and develop data literacy. Prosci’s ADKAR Model helps institutions build awareness of the value of analytics, create a desire to use insights in decision-making, and reinforce behaviors that prioritize data-driven strategies. 3. Artificial intelligence (AI) and automation AI and automation promise efficiency gains in areas such as customer service via chatbots, credit scoring, fraud detection, and back-office banking operations. Yet implementation is far from simple. These initiatives raise ethical concerns, questions about integration with existing processes, and employee fears of job displacement. Without a careful and intentional rollout, AI projects risk resistance from both employees and customers. How change management helps Introducing and incorporating AI fundamentally changes the way bank employees work and how customers access financial information and services. A structured change management approach ensures employees understand why AI changes are necessary and their benefits, and are trained to work alongside new tools while understanding the value they bring to their work. By engaging stakeholders early, banks can address fears, align leadership messaging, and establish trust in AI-driven processes. This increases adoption rates while reducing the risk of poor return on investment (ROI). Market Competition Challenges in Financial Services Traditional financial institutions are no longer competing only with each other; they are under pressure from fintech startups, big tech firms entering the financial services sector, and even non-traditional players, such as digital wallets and peer-to-peer lending platforms. Unlike fintech firms that build systems from scratch, established institutions must contend with the challenges above, including legacy infrastructure, complex regulatory environments, and diverse customer bases. Consumers are often willing to switch providers if a competitor offers faster, cheaper, or more convenient services. To maintain a competitive advantage, banks must think beyond digitizing existing processes and must redefine how they deliver value to customers. Some key strategies include: Leveraging trust and reputation: Unlike fintechs, banks have a long-standing credibility in managing risk and compliance, which serves as a differentiating advantage. Investing in customer experience: Streamlined onboarding, personalized financial advice, and omnichannel engagement can elevate the customer experience. Forming partnerships: Collaborating with fintechs through open banking initiatives or joint ventures allows banks to innovate without starting from scratch. How change management helps Differentiating in a crowded, fast-moving market requires bold business transformation and organizational alignment. Prosci’s ADKAR Model helps employees understand why differentiation matters, build the desire and skills to deliver it, and reinforce new behaviors. With structured change management, banks can turn competitive pressure into a catalyst for innovation and growth. Managing the People Side of Change in Digital Transformation in Banking Digital transformation is redefining the world of banking and financial services. While new technologies bring potential, banks face a unique set of challenges across industry-specific, technological, and market factors. Real change can only happen when employees are engaged, equipped and supported throughout the digital transformation journey. Change management provides the structure and tools to embed structured change capabilities and support transformation at every level. With a people-first approach, you can act more quickly, build resilience, and create a lasting impact. That’s the power of change done right.
Change is hard. Change is fast. Change is continuous. But successful change is unlockable by preparing, equipping and supporting individuals through their journeys. It's a more productive and more humane way to create change. That's my "base beat" of change management—and it’s resonating with podcast hosts and listeners who work in a variety of disciplines and areas of expertise. Change Management Podcasts Change management enhances design thinking, product development, project management, digital transformation, customer experience, the practice of medicine, and more. To learn how change management can enable your organization’s success, check out these podcasts hosted by thought leaders in change-enabling and change-inducing disciplines: Digital Transformation Talk How do we know when we’ve missed the mark on the people side of change? I join Ema Roloff on the Digital transformation Talk to share how to build Repeatable, Scalable Change Management into digital transformations and avoid common challenges. The Changed Physician Why should doctors care about change management and the people side of change? In this episode, I chat with Dr. Melissa Cady and Dr. Kevin Cuccaro about the Foundations of Change Management and how it can help physicians build skills in all walks of life. Project Management Happy Hour Project success often depends on people using your deliverables, but how much are you really focusing on helping those people make the changes necessary? In Change Management Mic Drops With Tim Creasey, Kate and Kim host me for a mic-drop discussion about the 5 Tenets of Change Management. Project managers can also earn continuing education credits (PDUs) with this podcast. Project Management Happy Hour You're not seeing double! Kim and Kate invited me back to the Project Management Happy Hour for a marathon discussion that became a two-part series. In it, we explore some of my current work on the pain, power and potential of getting everyone the same page. We also walk through a 12-pack of alignment hacks that you can begin using immediately. A 12-pack of Alignment Hacks, Part 1 A 12-pack of Alignment Hacks, Part 2 PM Podcast In episode 468 of the Project Management Podcast, Project Management is Change Management, Cornelius Finch and I cover the intersection of project management and change management across numerous dimensions. We also participate in a great Q&A with a live audience. Change on the Run How do you engage leaders during change to fulfill their roles and ensure people have everything they need to take on new mindsets, routines and behaviors? How do you measure success to estimate the benefits of change and monitor the approach taken to realize them? Phil Buckley and I explore both issues in these episodes: Engaging Leaders During Change Measuring Success Change It How does change management effectively partner with other change disciplines like organizational development, project management and communications to enable organizational agility? Eloise Seidelin and I discuss Change Ecosystems and the “multilingual” change leader in this first episode of the Change Masterclass series. What Monkeys Do Change is an individual journey; how can you move through it effectively? In this episode of What Monkeys Do, I join Morten Kamp Andersen to reveal 5 Steps to Overcome Your Change Barriers and succeed with changes of all kinds. More Podcasts on the People Side of Change The episodes above are just a sampling of the many great podcasts and hosts that have welcomed me as a guest. Check out our full library of podcasts on our website. Listen and Learn With Change Management Podcasts Change practitioners know that change management is the application of a structured process and set of tools for leading the people side of change to achieve a desired outcome. As an effective change agent, you need to be able to tell the story of the value you create in all sorts of contexts, and the various pairings in these podcasts give you a solid jumping-off point. If you are less familiar with the people side of change, these podcasts might be surprisingly helpful. Give them a listen!
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The upshot? Assigning a senior leader to the role of primary sponsor does not constitute effective sponsorship.
