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Most companies want to go from good to great, which may be why a new Gartner survey reports that BPI is the top priority for IT Executives in 2009. Each of these initiatives will require investment in organizational change. Gartner, as well as other business analysts, also reports that for the past 20 years, 85% of all change initiatives fail to yield a return on investment. These odds are simply no longer tolerable. Learn how the revolutionary new "Science of Change" is helping IT executives beat these odds by making strategic changes happen reliably -- on time and on budget. It concludes with five secrets from science that you can use to change your organization on-demand in 2009.
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Business Process ChangeThat Works!
Jeffrey Barnes: Compelevent Solutions
Cheryl White: Change Delivery GroupCheryl White: Change Delivery Group
Good To Great!Good To Great!
• BPI Top Priority for IT in 2009
• Requires Organization Transformation
Session ObjectivesSession ObjectivesObjective 1: Describe historical failure to deliver
ROI
Objective 2: Introduce the “Science of Change”
• Improve Business Process
• Manage Client Side Effectively
• Implement Effective Business Performance
• Maximize Synergy of Groups During Change
• Rapid Cost Reduction and Optimized PerformanceObjective 3: Five Secrets to Increase Your ROI
The Problem with ChangeGartner on past 20 years
The Problem with ChangeGartner on past 20 years
85% of Strategic Initiatives fail to deliver ROI
• 62%-91% Statistics Canada
• 85% Dept of Defense Business Board
• 70%-80% InfoWorld
• 91% University Geneva
• 90% Johns Hopkins
The Problem with ChangeThe Problem with Change
85% failure rate is
no longer tolerable!
Call Center ExampleCall Center Example
Call Volume vs. Data Acquisition?
Two Kinds of Change
Consequences of Failure to ChangeConsequences of Failure to Change• Reduced Functionality
• Workarounds
• Reduced Productivity
• Customer Defection
• Losses to Competition
• Regulatory Sanctions
• Business Contraction
• Business Cessation
Missed OpportunitiesMissed Opportunities
• Speed to Market
• Early Mover Advantage
• Market Share
• Competitive Wins
• Repeat and Referral Revenue Stream
Change Happens
In a world of explosive growth and
unexpected contraction,
business survival depends on
fast, targeted response
Change DemandsChange Demands• More efficient processes
• Better use of tools & technology
• Redeployment of human capital
• Realigned organization structure
• Mergers, acquisitions, divestitures
• Off-shoring, near-shoring, re-shoring
“I’ve got my own problems. Just fix it!”
Customers
“We are doing the best we can with the
resources we have. Why can’t they
understand that?”
Customer Support
“We need to make compromises, but everyone
has their own agenda. When it comes to
changing things around here, all I get is
pushback and change resistance.”
Director
“I want results not excuses! Changes must be
implemented now. Not tomorrow. Not next
month. NOW!!!”
Senior Executive
“I agree. We have to fix things. . . And we would
if we weren’t so busy managing crises.”
Managers
“We’ve got processes. We’ve got policies.
Everyone understands them. No one has time to follow them.”
Employees
“We’ll make the changes they want, after they
give us the resources we need!”
Everyone
Recognize the RisksRecognize the Risks
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%Historically High failure rates
Face Reality
Under stress, people and organizations
resist change
They won’t “change for cheese”
Face Reality
Johns Hopkins Rule of Change:
90% of all terminally ill patients will
not make lifestyle changesnecessary to save their life
Recognize the Limitations
Old change models don’t work.
It’s time to change the way we change
our organizations
Recognize the Limitations
Science of ChangeScience of Change
• Neurology
• Biology
• Chaos Theory
• Complexity Theory
Neurology saysNeurology says
Real Change is Brain Change
Our brains automatically associate
change with pain. Once the association
is made, it is permanently etched into
our neural network
Change Hurts
Real Change Causes Real Pain
ReasonReasonEmotionEmotion
Biology says real change means Biology says real change means
changing the group mind
The Group Mind Always Wins—
especially when the organization is
under stress
Corporate Culture
Repository of All Rules
Few Business
What we doBusiness Rules
How we do what we do
Many Social Rules
Chaos Theory says Chaos Theory says
Organizations will always seek stability
Organizations are not created equal
One organization’s stability is another
organization’s chaos
Orderly organizations are like pelicans
• Process-centric
• Attract people who prefer structure provided
by processes
• Resist innovation
• Distrust innovators & change agents
Orderly organizations are like pelicans
Disorderly organizations are like wolf packs
• Innovative
• Attract people who are easily bored with process & prefer to be inventive
• Experiment with new processes then abandon them
• Distrust process & change agents
Disorderly organizations are like wolf packs
Hybrid organizations are like penguins
• Flip periodically between order & disorder
• Attract people who prefer order but have a
tolerance for disorder & ambiguity
• Return to dominant state after workplace
upheaval
• Distrust change agents
Hybrid organizations are like penguins
Complexity Theory says Complexity Theory says
Organizations are rules based systems
Groups “self-organize” around a unique set of
“rules for change”
Change Resistance is a Safety Feature
Change Resistance is NOT A BUG
Culture
Change
Adoption
Applying the Magic of ScienceApplying the Magic of Science
Here’s what you can do today to
implement sustainable changes in your
organization
Applying the Magic of Science: NeurologyApplying the Magic of Science: Neurology
Activate only the left brain
Applying the Magic of Science: BiologyApplying the Magic of Science: Biology
Use scientific principles to customize
business, process & technology
solutions to the rules present in your
culture
Applying the Magic of Science: Chaos Applying the Magic of Science: Chaos
Theory
Avoid instability by chunking change into
small, implementable business
problems
Financial
Learning & Growth
Internal
Processes
Customers
Mission
Strategy
Applying the Magic of Science:
Set measurable, achievable process and
performance goals compatible with the
“social rules” for change present in your
organization
Applying the Magic of Science:
Complexity Theory
Applying the Magic of Science: Use
Trust your culture keepers &
your culture coach
Applying the Magic of Science: Use
Common Sense
90%
80%
70%
60%
Achieve Your Performance Goals
50%
40%
30%
20%
10%
0%It Works!
303-523-5541
cwhite@changeperfect.com
360-210-7656
jbarnes@compelevent.comcwhite@changeperfect.com
www.changeperfect.com
jbarnes@compelevent.com
www. compelevent.com
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