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On the 9thOctober, Neil White, a Change Management specialist and APM Enabling Change SIG committee member, gave a presentation entitled ‘The need for Why and the importance of How’ in which he described how answers to these two key questions helps pave the way for successful change outcomes. The backdrop for this presentation is the rate and scale of world change with the scene being set for it to change much faster. Neil described how much change is a product of our Capitalist way of living and as long as profit is favoured over societal values then we must be prepared to tolerate continual change. The presentation started with a ‘just for fun’ quiz to guess the dates of some of the top 25 inventions of all time. A ‘throwable’ microphone was used to good effect to let people share their thoughts on what the benefits and disbenefits of each invention had been. The dates of these inventions were plotted on a graph to describe the exponential increase in technologically determined change. It was emphasised that Technology enabled innovation – continues to revolutionise the way we work and has opened up vast number of new markets. It has reduced cost and raised expectations and is undoubtedly the greatest catalyst for change in modern times – today though, such developments almost always result in a loss of jobs. The impact that globalisation is having on the world and that we were increasingly exposed to world events which we have little warning and no control over but to which we have little choice but to respond was described. Globalisation (enabled through technology) is one of today’s greatest change drivers. Our customers are now our competitors; they have learned to innovate for themselves and of course we had already enabled their ability to manufacture! How certain aspects of economically driven change can be forecast and how the scene is set for a good period of growth and prosperity was described. However, where the wealth is down to technological progress it almost always increases the wealth of the already wealthy. Neil referred to a number of specific change management principles to describe the reason why the question WHY is so important to stakeholders. A key message was the role that 'respect' plays in meeting the change challenges faced by our organisations. He emphasised that people must be increasingly respected as the most powerful and long-lasting tool in the armoury. Such is our need for shorter and more dynamic change lifecycles that an organisation’s people should not only be involved in the change process but also enabled to resolve how objectives are to be achieved for themselves. Neil explained how we already have the tools and disciplines needed to effect organisational change successfully but that success depended on how our organisations choose to implement them. Neil draws our attention to the importance for organisations to develop and continually adapt their own ‘unique’ change management capabilities.
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The need for Why and the importance of How!
Neil WhiteManaging Director – ChangeVista Ltd07890397046
Neil White Change Management Specialist
20+ yrs RAF (Engineering+)Change Management for last 20yrsBusiness Improvement (SEI CMMI) - Assessment Team LeadTransformation Change ManagerBenefits & Business ChangeMSc Change Management
‘an ardent believer that the ability to change is more important than the required changes themselves’
Association for Project Management (APM)Enabling Change SIG – Change Futures Pillar leadBenefits Management SIG - Secretary
Adapted from an old adage of my youth:
Look after the ‘Why’ and the ‘How’ and the Who, Where, When and What will take care of themselves
‘the only constant in life is change itself’
The simple truth about change
Herakleitos of Ephesus (c.535 BC -475 BC) Greek philosopher
Three distinct agenda ‘topic areas’
Change yesterday, today and tomorrow and WHY we have no choice but to be able to respond
Selected Change Management fundamentals that emphasise the importance of WHY
HOW to use what we already know and HOW we can make Change work for us
Change yesterday, today and tomorrow and WHY we have no choice but to be able to respond
1 – Guess the year2 – Describe the benefits3 – Describe the disbenefits (if any)
A Quiz – just for fun
For each of the following inventions:
Just put up your hand to answer a question and, of course, catch the microphone...........
Please join in and help get us thinking about change..........
Stott Park Bobbin Mill Steam Engine Chris Allen - From geograph.org.uk
The Steam Engine
1789 1712 18051699
Money
c5000BC
A 640 BC one-third stater electrum coin from Lydia
c9000BC c1500BCc1000BC
Sliced Bread
1924
http://www.publicdomainpictures.net/view-image.php?image=26198
1928 19301920
Roue primitive. John O'Neill, (User:Jjron)
The Wheel
c3500BC c9500BC c1500BCc1000BC
NASA -http://history.msfc.nasa.gov/rocketry/03.html
Gun Powder
700 900 1100500
Nuclear Weapons
1944 1945 19461943
Photo of Google Glass by Dan Leveille
Google Glass
2012 2013 20142011
The Telephone
1876
Alt Telefon Kornelia und Hartmut Häfele - http://www.pixeleye.com/
1899 18011816
The Car
1885 1895 18991870
The Opte Project - Originally from the English Wikipedia
The Internet
1980 1985 19901975
8500BC 3500BC 2014
frequency
0AD
Change Density
1000 1500500
year
Big Data
The next big thing..........
Growth and Digitization of Global Information Storage Capacity; Source:http://www.martinhilbert.net/WorldInfoCapacity.html
Nikolai Kondratiev (1892–1938), Russian economist
Understanding the context for change (1)
Steam Engine, Cotton
Railway, Steel
Electrical Engineering,
Chemistry
Petrochemicals, automobiles
Information Technology
P: prosperity R: recession D: depression E: improvement
1800 1850 1900 1950 1990
Economic lifecycle – long wave
1980
Competitiveness
Increasing Number of actors
Time
Survival ofthe fittest
Not viableFor new
companies
Poor investment
InnovationInnovation
Potential for large ROIDifferentiationthrough quality
& costi.e. TQM & CMMI
Differentiation throughagility, innovation and
adaptability
Understanding the context for change (2)
2014Big DataInnovation and investment lifecycle
2008
Ray Kurzweil
Moore’s Law‘number of transistors in a computer chip will double every two years’
In the years ahead, acceleration in the scope, scale, and economic impact of technology will usher in a new age of artificial intelligence, consumer gadgetry, instant communication, and boundless information while shaking up business in unimaginable ways.
McKinsey & Company - September 2014
At the same time, the shifting locus of economic activity and dynamism, to emerging markets and to cities within those markets, will give rise to a new class of global competitors.
Growth in emerging markets will occur in tandem with the rapid ageing of the world’s population—first in the West and later in the emerging markets themselves—that in turn will create a massive set of economic strains.
People
Robots
Capitalism
Hunter gatherer
Subsistence living
Capitalism
Individual materialism
££
Our world
Stakeholder Capitalisation
B Corporations
1,110 B Corporations
35 Countries
1 Unifying Goal
121 Industries
An alternative:
http://www.bcorporation.net/
We envision a new sector of the economywhich harnesses the power of private enterprise to create public benefit. This sector is comprised of a new type of corporation —the B Corporation — which is purpose-driven, and creates benefit for all stakeholders, not just shareholders.As members of this emerging sector and as entrepreneurs and investors in B Corporations,
We hold these truths to be self-evident:That we must be the change we seek in the world.That all business ought to be conducted as if people and place mattered.That, through their products, practices and profits, businesses should aspire to do no harm and benefit all.To do so, requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations.
We envision a new sector of the economywhich harnesses the power of private enterprise to create public benefit. This sector is comprised of a new type of corporation —the B Corporation — which is purpose-driven, and creates benefit for all stakeholders, not just shareholders.As members of this emerging sector and as entrepreneurs and investors in B Corporations,
We hold these truths to be self-evident:That we must be the change we seek in the world.That all business ought to be conducted as if people and place mattered.That, through their products, practices and profits, businesses should aspire to do no harm and benefit all.To do so, requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations.
B Corporations - Declaration of Interdependence
Choose people over machines
B Corporation behaviours
Trade with other B Corporations
Consistently consider the social consequences of change
Ensure that all stakeholders have a ‘voice’ in the company
Consider the impact of change on the environment
Attract partners and customers who share their beliefs
the predictable alongside the totally unexpected!
Our ever changing world
Retail Statistics
Companies affected in the last five years have included Comet, JJB Sports, Phones 4U, Clinton Cards, Game, Borders, Barratts, Alexon, T J Hughes, Jane Norman, Habitat, Focus DIY, Floors-2-Go, the Officers Club, Oddbins, Ethel Austin, Faith Shoes, Adams Childrenswear, Thirst Quench, Stylo, Mosaic, Principles, Sofa Workshop, Allied Carpets, Viyella, Dewhursts, Woolworths, MFI, and Zavvi/Virgin Megastore.
Companies failing
Stores Affected
Employees Affected
2014 (to Sept) 39 1,282 11,8922013 (12 months) 49 2,500 25,1402012 (12 months) 54 3,951 48,1422011 (12 months) 31 2,469 24,0252010 (12 months) 26 944 10,9302009 (12 months) 37 6,536 26,6882008 (12 months) 54 5,793 74,5392007 (12 months) 25 2,600 14,083
Goal
ChangeManagementKnowledgeEffort
c70% of change initiatives fail
Sad fact about our ability to manage change
De LoiteStandishMcKinsey
PWCetc
All report that
=CHANGE
Reasons for poor change performance
= CONFUSIONX
= GRADUALCHANGEX
= FALSESTARTSX
=ANXIETYX
= FRUSTRATIONX
Selected Change Management fundamentals that emphasise the importance of WHY
Individuals and Change – a Curve
Adams, Hayes & Hopson (1976)Adams, Hayes & Hopson (1976)
Change Challenge - Organisations
Financial Management Factor
£+
t£-
Change Benefits
Apparent‘equilibrium’
Refreeze
Change
Kurt Lewin’s change
model:
Unfreeze
Lewin, K (1952) Field Theory in Social Science
IP2 Spectrum of Public Participation
Increasing Level of Public Impact
Inform
Consult
Involve
Collaborate
Empower
IAP2: the International Association for Public Participation is the pre-eminent international organization promoting public participation
http://www.iap2.org/
HOW to use what we already know and HOW we can make Change work for us
APM’s Revised Competency Framework
26 competency areas in four domainsGovernancePlanning and controlManaging othersProfessionalism
It does not incorporate
Benefits Realisation ManagementChange Management
It incorporates: Proj, Prog & Portfolio Management & PMO
Business Change Management 3P [initiatives]
Benefits Realisation Management
Organisational Change
Management
Significant Organisational Disciplines
Organisation
Vision
Strat
egy
Objective
sBen
efits
Require
ments
Bene
fits
Reali
sation
Objec
tives
Achi
eved
Visio
n Re
alise
d
P2
Business Change Management
Sphere of influence and accountability
Outcom
es
Capab
ilities
Benefits Management
Organisational Change Management
Enab
lers
Organisational Change Lifecycle
Portfolio Management
An Organisational Change Lifecycle
2Organisation
Vision
1Operating
environment SWOT analysis
Business Objectives
Strategic Objectives
Business Benefits Enabling
ChangeRequirements
34
56
Enabling ChangeRequirements
Specification & Blueprint
High Level Design
DetailedDesign
EnablerProduction
Project(s)Requirements
(Outputs)
Programme Requirements(Capabilities)
Project(s)Plans
Capabilities
Outcomes
Outcomes
Outputs
Capabilities
7Benefits
Realisation
8Business
Objectives Achieved
9 Strategic Objectives Achieved
10Value Management
Agile Management
Projects [APM, BoK6]
Project, Programme, Portfolio Relationship
Programmes [MSP, 2011]
Business Change Managers responsible
for benefits realisation
Organisational Strategy
Portfolio
Significant Organisational Disciplines
The implied order of precedence describes the need for organisational change activity to be focused on business needs.
Unless the enabling changes are fit for purpose and delivered along with the required transition support products then Benefits Realisation will not happen
How effective BRM can be is wholly dependant on the capability maturity in the other disciplines
Benefits Management - Dependencies
Unless the Business is ready to take and incorporate the enabling changes Benefits Realisation will not happen
Unless change initiatives are managed within organisation-wide change policy and methods with due respect for people then Benefits Realisation performance will be impaired
“Insanity: doing the same thing over and over again and expecting different results.”Albert Einstein
“Anyone who has never made a mistake has never tried anything new.” Albert Einstein
“To err is human, to forgive, divine.” Alexander Pope
“We learn from failure, not from success!” Bram Stoker
Experiential learning – a necessary cultural leap
“Success does not consist in never making mistakes but in never making the same one a second time.” George Bernard Shaw
Capability Maturity Levels
1
22
55
44
33
Process unpredictable, poorly controlled and reactive
Process characterized for projects and is often reactive
Process characterized for the organization and is proactive
Process measuredand statistically controlled
Emphasis on continuousimprovement
Quantitatively Managed
Initial
Managed
Optimizing
Defined
Maturity Levels Characteristics
Business Change Management 3P [initiatives]
Benefits Realisation Management
Organisational Change
Management
Significant Organisational Disciplines
Organisation
Capability Maturity Approach to BRM
Reasons for using capability maturity approach:
• capitalises on pre-existing wealth of continuous improvement knowledge
• respects the variable nature of organisational capability maturity
• provides a reference point from which to identify capability improvement needs
• provides an aiming point for the development of capability needs
• enables organisations to prioritise their areas of need
• accommodates the behavioural change required to maximise BRM method
Strategic Direction
Vision“Describes an end state. Short, inspirational, aspirational and memorable.
The cornerstone for delivery of a strategy”
Strategic ObjectivesPOLITICS EXAMPLE
BRM Process OverviewAssures that an organisation’s investment in change is wholly beneficial and aligned to its business development strategy
Vision
Strategic Objectives
Functional Objectives
ManageBenefits
Changes
A Benefits Management Model
5Practices
7 Principles
BenefitsManagement
Practices
Benefits Management – 5 Practices Identify & Quantify
Value & Appraise
Plan
Realize
ReviewBenefitsManagement
Practices
Align benefits with strategy
Start with the end in mind
Utilize successful delivery methods
Integrate benefits with performance management
Manage Benefits from a portfolio perspective
Apply effective governance
Develop a value culture
Benefits Management - 7 Principles
Benefits Management – Line of Sight
Benefits Realisation and Stakeholders
Organisation’s objectives
BRM enables us to make considered choices
Benefits
Benefits
£
It might not appear to be a change driver today but through regulation, growing social conscience or imperative, the capability to balance the benefits ‘tally’ will be a significant differentiator
Summary
Change yesterday, today and tomorrow and WHY we have no choice but to be able to respond
Selected Change Management fundamentals that emphasise the importance of WHY
HOW to use what we already know and HOW we can make Change work for us
The need for Why and the importance of How!
Neil WhiteManaging Director – ChangeVista Ltd07890397046
Questions?
