Upload
catherine-smithson
View
742
Download
1
Embed Size (px)
Citation preview
Ready, Set, Change! Building a change capable organisation Presented by Catherine Smithson November 2015
Prosci Change Management Webinar
Series 4, 2015
Introducing Being Human • Founded in 1993 • Our mission: develop change-capable people and organisations so they achieve the benefits of change.
• Prosci Primary Affiliate Australia and New Zealand.
2
Getting back to Normal… it’s a town in Illinois USA.
Prosci by the numbers • 1994 – Founded in Loveland
(Denver) Colorado, USA • 8 global Benchmarking
Reports • 16 years of longitudinal
research • 3,400+ research participants • 63 countries • 80% Fortune 500 companies • 30,000+ Certified practitioners
worldwide • 4,000+ Certified practitioners
Australia/New Zealand
3
Prosci 2014 Best Practices in Change Management Benchmarking Report
• 822 participants • 63 countries • Top 3 roles:
• Change Management team leader
• External consultant • Project team leader
• 244 pages • 38 new topics
The largest body of Change Management knowledge in the world.
4
2% 2% 3% 5%
14%
15%
25%
34%
Middle East
Latin America
Asia and Pacific Islands
Africa
Europe
Canada
Australia and New Zealand
United States
Snapshot of participants - ANZ
5
Topics • Why organisations needed
to move to enterprise level Change Management • What are the triggers for starting? • Which activities have the biggest impact? • Who owns or should own, the Change Management function? • Q & A
6
“Change is the law of life. And those who look only to the past or present are certain to miss
the future.” John F. Kennedy
Why do we need to change the way we change?
7
Change is the new “business as usual”
8
• Volume • Speed • Complexity • Risk • Transparency • Others?
“Life comes at us in waves. We can't predict or control those waves, but we can learn to surf.”
Dan Millman
Yet success rates of change remain low
IBM Making Change Work Report While the Work Keeps Changing Report August 2014
1,400 organisations globally, over 20 industries,
And many organisations lack change capabilities
10 IBM Making Change Work Report While the Work Keeps Changing Report
August 2014 1,400 organisations globally, over 20 industries,
76%
CEOs see the need for investing in enterprise change capability
“Our ability to adapt is a key source of
competitive advantage.”
Pricewaterhousecoopers 2008
“Organisational agility is critical to business
success.” McKinsey 2009
90%
Moving from “hit and miss” change….
12
to consistent, successful implementation and benefit realisation with
high employee engagement
13
Change Management increases success rates by a factor of 6
Change Management increases the probability of success
• "Of the 165 research participants who reported having excellent change management effectiveness, 96% met or exceeded project objectives"
• "Participants with the highest level of change management effectiveness were 6X more likely to meet or exceed project objectives"
14
16%
46%
77%
96%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor(n=244)
Fair(n=653)
Good(n=834)
Excellent(n=165)
Percent of respondents that met
or exceeded project objectives
Overall effectiveness of change management program* Data from 2007, 2009, 2011 and 2013
Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of change management effectiveness to meeting project objectives
2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
14
15
Change Management drives staying on budget
48%
63%71%
81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor(n=258)
Fair(n=737)
Good(n=1001)
Excellent(n=180)
Percent of respondents that
were on or under budget
Overall effectiveness of change management program* Data from 2007, 2009, 2011 and 2013
Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of change management effectiveness to staying on budget
Per
cent
age
of re
spon
dent
s th
at m
et o
r exc
eede
d
proj
ect o
bjec
tives
Sponsor effectiveness directly correlates to project success
16
25%
34%
67%
85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sponsor was veryineffective (score < 2)
Sponsor was ineffective(score between 2 and 3)
Sponsor was effective(score between 3 and 4)
Sponsor was veryeffective (score between
4 and 5)
Percent of respondents that
met or exceeded project objectives
Average sponsor effectiveness ratingCopyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of sponsor effectiveness to meeting project objectives
Per
cent
age
of re
spon
dent
s th
at m
et o
r exc
eede
d
proj
ect o
bjec
tives
A new definition of Change Management
17
A new definition of Change Management The processes, tools and techniques to manage the
people side of change to achieve the required business outcome.
Common set of process and tools
Leadership capability
Strategic capability that enables the organisation to be flexible &
responsive ©Prosci. Used with permission under terms of license agreement.
www.change-management.com
“So, does anyone else feel that their needs aren’t being met?”
Just over 50% of organisations globally are actively building enterprise Change Management
20 2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No Don’t know
Actively working to deploy Change Management
2011 2013
Australia & New Zealand are early adopters
21 2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Middle East
Latin America
Europe
Asia and Pacific Islands
Canada
United States
Entire study population
Africa
Australia and New Zealand
Actively working to deploy Change Management by region
Early adopting industries
22 2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Entire Study Population
Oil and Gas
Information Services
Utilities
Retail Trade
Mining
Services - Other (except Public Administration)
Banking
Finance
Insurance
Pharmaceutical
Participants actively working to deploy by industry
Major gap between Change Management at project and enterprise levels
23
of organisations apply a Change Management
methodology
of organisations applying Change Management
methodology to all projects
2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
Triggers to get started
• Volume and complexity of change underway
• Past program or project failure
• Demonstrated success of projects applying Change Management
• Risk Management • Employee Engagement and/
or Culture Survey results • Others?
Project level vs enterprise level Change Management
Change Management is like building a house
How do we effectively manage the
people side of change on one project or initiative?
ECM is like designing a subdivision
How do we bring Change Management to our entire
organisation?
©Prosci. Used with permission under terms of license agreement. www.change-management.com
Institutionalizing change management practices,
processes, capabilities and competencies
Building organizational change management capabilities and
competencies
Deploying change management broadly throughout the
enterprise All employees have internalised
their role in leading change
“Great change management” is second nature & part of our DNA
Change management is the organisation’s Standard
Operation Procedure
Change management is the norm on projects
and initiatives
What is Enterprise Change Management ?
©Prosci. Used with permission www.change-management.com
PMOs are leading change capability building
2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Other
Grassroots
Within business units, Operations
Independent change management group
Corporate and Shared Services
Strategy, Transformation, Planning
Executive Leadership
Information Technology (IT)
Organisational Development (OD)
Human Resources (HR)
Project Management Office (PMO)
Percentage of respondents
Originator of the effort
Most Change Management groups are located in the PMO
28
38% Had a Change Management Office or
functional group globally
45% Australia & New Zealand
Top Locations • PMO: 28% • HR: 24% • OD: 17% • IT: 14% • Strategy/Transformation:13%
Key Roles 1. Own & maintain methodology 2. Own & maintain tools 3. Consulting support to Change
Management resources on projects
4. Maintain CoP 5. Provide resources for projects
2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
Only 23% report high levels of success
29
0%
10%
20%
30%
40%
50%
60%
70%
Very unsuccessful Unsuccessful Moderately successful
Successful Extremely successful
Success of deployment effort
2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
Features of organisational capabilities
30
• Take years or decades to build
• Pay off is long term • Become an asset – intangible • Difficult for competitors to
identify, imitate or match • Can erode or disappear • Can be difficult to change • Consistent investment • Robust if embedded across
multiple processes and systems
Source: Change Power – Turner and Crawford,1998
Prosci Change Management Maturity Model™
People-dependent without any formal practices or plans
Many different tactics used
inconsistently
Examples of best practices evident
Selection of common approach
Continuous process
improvement in place
Highest rate of project failure, turnover and
productivity loss
Little or no change management appliedAdhoc orAbsentLevel 1
Some elements of change management are being applied in isolated projects
IsolatedProjectsLevel 2
Comprehensive approach for managing change is being applied in multiple projects
MultipleProjectsLevel 3
Organization-wide standards and methods are broadly deployed for managing and
leading change
OrganizationalStandardsLevel 4
Highest profitability and responsiveness
Change management competency is evident in all levels of the organization and is part of the organization’s intellectual property and
competitive edge
Organizational CompetencyLevel 5
People-dependent without any formal practices or plans
Many different tactics used
inconsistently
Examples of best practices evident
Selection of common approach
Continuous process
improvement in place
Highest rate of project failure, turnover and
productivity loss
Little or no change management appliedAdhoc orAbsentLevel 1
Some elements of change management are being applied in isolated projects
IsolatedProjectsLevel 2
Comprehensive approach for managing change is being applied in multiple projects
MultipleProjectsLevel 3
Organization-wide standards and methods are broadly deployed for managing and
leading change
OrganizationalStandardsLevel 4
Highest profitability and responsiveness
Change management competency is evident in all levels of the organization and is part of the organization’s intellectual property and
competitive edge
Organizational CompetencyLevel 5
Copyright Prosci 2010 ©Prosci. Used with permission www.change-management.com
Five Capability areas • Leadership – who is leading or sponsoring the
deployment of Change Management? • Application – What % of projects apply Change
Management processes? What is the ‘reach’ or ‘breadth’ of application across the organisation?
• Competencies – what level of training is available for all levels? How do all levels demonstrate competency?
• Standardisation – what is the standard approach? Who ‘housekeeps’ Change Management?
• Socialisation – How do we share success stories and maintain commitment to better managing change?
32 ©Prosci. Used with permission www.change-management.com
Prosci Change Management Maturity Audit
33
2.06
0
1
2
3
4
5
Prosci® Change Management Maturity ModelTM Audit
Level
Level
Level
Level
Level
Overall Change Management Maturity Model Audit Score
2.882.38
1.582.08
1.40
0
1
2
3
4
5
Capability Area 1:
Leadership
Capability Area 2:
Application
Capability Area 3:
Competencies
Capability Area 4:
Standardization
Capability Area 5:
Socialization
Prosci® Change Management Maturity ModelTM AuditLevel
Level
Level
Level
Level
2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
Change Management maturity by region Region
(plus % of study participants from region) Average Maturity Level
All regions (100%) 2.66 United States (34%) 2.69
Australia and New Zealand (25%) 2.68
Canada (15%) 2.62 Europe (14%) 2.66 Africa (5%) 2.59 Asia and Pacific Islands (3%) 2.88
Latin America (2%) 2.67
Middle East (2%) 2.31
2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
Level of maturity Australia & NZ
0% 10% 20% 30% 40% 50% 60%
Level 1
Level 2
Level 3
Level 4
Level 5
Maturity Model data for Australia and New Zealand
2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
Key ingredients for success
• Treat ECM as a project • Secure sponsorship before moving
forward • Build a strong case for Change
Management • Multi pronged approach • Adopt a single, effective, consistent
methodology and upskill people to use it
• Position Change Management as everyone’s job
37 2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
Mistakes to avoid
1. The training trap 2. Moving forward without Executive
Sponsorship 3. Failing to build the business case
for Change Management.
Q&A
More info
40
Being Human beinghuman.com.au Prosci • change-management.com • prosci.com • portal.prosci.com
• Change Management Maturity Audit (Enterprise tool)
• CMROI Calculator (start up/business case: project/program level)
• E Best Practices Audit (project level tool)
Use the right tool for the job Tool Project/Program
Level Or
Enterprise Level?
Who should participate?
CMROI Calculator Project level Ideally at business case, or early planning stage
• Change manager (facilitate it • Project/Program manager • Project Sponsor • Business owner • Steering committee
PCT Analyzer Project Commencement and key milestones
• Change manager (facilitate it • Project/Program Manager
ADKAR Dashboard (coming soon)
Project/Program Commencement and key milestones
• Impacted groups who need to adopt the change • Managers • Team members
eBest Practices Audit Project Key milestones Completion - PIR
• Change Managers • Project team • Selected sections – managers, staff
41
Use the right tool for the job
42
Change Management Maturity Audit
Enterprise • Change Managers • Sponsor of the ECM effort • Program/Project managers
ECM Roadmap Enterprise • Change Managers • Sponsor of the ECM effort • Program/Project managers
Change Management Maturity Audit
Enterprise
• Change Managers • Sponsor of the ECM effort • Program/Project managers • Others involved in ECM (eg HR/OD)