Over a third of business process change projects fail, costing UK firms over £1bn a year, according to research released today by Logica Management Consulting.

Many firms embark on change management projects to improve their financial performance and customer focus, and in order to react to competition.

But 35 per cent of firms surveyed have abandoned a major change management project in the past three years, the research found.

Despite more than two-thirds of organisations spending between one and six per cent of their revenue on such projects, 18 per cent fail to assess the achievement of specific goals, like return on investment, against the original business case.

“The key thing is that some people don't actually focus on the right things when doing IT projects," said Logica management consultant James Campbell.

"They start off with the best intentions but then the pressure of business-as-usual gets in the way."

Logica advised firms to be more proactive and ambitious when planning change projects, and to involve partners and customers in the process.