Why Organizational Change Fails in Capital Projects—And How to Spot It Early
Digital Transformation Secrets: How to Navigate Change Management in High-Stakes Capital Projects Without Derailing Your Budget and Schedule
For leaders managing large capital projects, change is inevitable—but success isn’t. While new systems, processes, and mandates may be part of your transformation strategy, one issue remains persistently underestimated: people.
In our recent webinar, “Why Change Fails and How to Fix It,” we tackled a recurring challenge in capital-intensive environments: the failure to properly manage organizational change. Despite strong project plans, robust risk registers, and powerful technical tools, many projects still experience costly delays, missed milestones, and stalled adoption. Why? Because the human side of change isn’t adequately addressed.
The Real Cost of Overlooking People Issues
Omar Kaoud, an expert in organizational change management, shared insights from over a decade of experience across nuclear energy, infrastructure, and other regulated sectors. One of his key observations: project delays can be traced back to people-related issues, not technical failures.
This means that what looks like a system glitch, scheduling conflict, or cost overrun often masks a deeper issue—resistance, burnout, or confusion among the workforce. And when organizational change is underfunded—often receiving less than 1% of the total project budget—the risks are magnified.
Capital projects are inherently complex. They can involve thousands of people, layers of regulation, and ongoing operational responsibilities. As Omar put it, leaders are often “building the ship while sailing it.” That’s why integrating change management into project governance is critical.
Three Key Warning Signs
So how do you know when change is going off the rails? Omar outlined three early indicators that leaders can use to proactively identify risks:
Change Saturation
When multiple initiatives are launched simultaneously across an organization, people become overwhelmed. The result? Confusion, fatigue, and decreased engagement. For example, if your team is juggling an ERP rollout, regulatory updates, and a new cost system—something’s likely to break.Passive Leadership
Effective change requires visible, engaged leadership. When executives don’t actively communicate the “why,” attend key meetings, or demonstrate commitment, employees perceive the change as optional—or worse, irrelevant.Resistance (Explicit or Implicit)
Not all resistance looks like defiance. While some employees openly refuse to adopt new tools, many resist in quieter ways: missing training sessions, dismissing new procedures, or expressing cynicism about the project’s purpose. This subtle pushback often signals deeper concerns that must be addressed.
A Practical Framework for Leaders
Recognizing the problem is only the first step. Omar also shared a simple framework leaders can use to evaluate change before it’s too late:
Assess Complexity: How significant is the change across people, processes, and technology?
Scan for Competing Priorities: What else is happening across the organization that might conflict or compete with your initiative?
Plan for Stakeholders: The more departments impacted, the more resources and alignment you’ll need.
These three questions alone can guide better planning, budgeting, and governance.
Making Change Measurable
If it can’t be measured, it can’t be improved. Omar emphasized that tracking success in change management isn’t about eliminating all resistance. Instead, look for signs of constructive engagement, clear benefits realization (quantitative or qualitative), and shifts in behavior that align with your future state.
The Takeaway
Technical tools and governance structures are critical, but they’re not enough. The true differentiator in high-stakes capital projects is the ability to manage change in a way that prioritizes people—early, consistently, and at every level of the project.
If you’re running a major initiative and want to avoid hidden risks, start asking one simple question in every planning session:
“How is this change going to impact people?”
Watch the Replay
About Dokainish & Company
The capital project landscape is impacted with billions of dollars lost from cost overruns. Dokainish & Company stands out with a track record of building award-winning PMOs and lowering cost overages up to 200% on projects in energy, infrastructure, mining, construction, defense, and more. We are the category leaders in project controls and technology consulting. We are ISO 9001:2015 certified, minority owned, and maintain a 97% rate of client retention. We provide integrated project controls, project management, and change management services. Learn more at dokainish.com and follow @Dokainish&Company.
