Ready, Set and Change: Building a Future Proof Organisation

Ready, Set and Change: Building A Future Proof Organisation

Vicky Emery August 2016

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.

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Topics • Why we need to change

the way we change • Global outlook – latest

research •  Triggers to get started • Highest impact activities • Mistakes to avoid •  Finding a home for

Change Management • What role can Project

Managers play? • Q&A

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“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

Prosci 2016 Best Practices in Change Management Benchmarking Report •  1,120 participants •  56 countries •  Top 3 roles:

•  Change Management team leader

•  External consultant •  Project team leader

•  6 new topics •  Culture •  Cultural awareness and global

literacy •  Change Agent Networks •  Complementary roles •  Vertical industry customisation •  Certification in Change

Management

The largest body of Change Management knowledge in the world.

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Objectives of the Best Practices Report 1.  Uncover lessons learned

from practitioners and consultants so current change Management Teams can benefit.

2.  Focus on what is working and what is not working

3.  Emerging trends & future direction of the discipline.

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Snapshot of Australia & New Zealand participants

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Why do we need to change the way we change?

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Change is the new “business as usual”

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•  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

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

11 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….

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to consistent, successful implementation and benefit realisation with

high employee engagement

Change Management increases the probability of success

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Of the 245 research participants who reported having excellent change management effectiveness, 94% met or exceeded project objectives

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Change Management drives staying on budget

A new definition of Change Management

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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

Just under 50% of organisations globally are actively building enterprise Change Management

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53%

38%

8%

47% 43%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No Don’t know

Per

cent

of r

espo

nden

ts

Actively working to deploy Change Management

2013

2015

2016 Best Practices in Change Management Report. 4500 participants in 56 countries. Prosci copyright 2016.

Australia & New Zealand are early adopters

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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

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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

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of organisations apply a Change Management

methodology

of organisations applying Change Management

methodology to all projects


What does it mean to be a “change-capable organisation”?

•  Three capabilities required for successful change

• Not roles or jobs • Need strength in all three

capabilities • Missing capabilities

increase project risk

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The Prosci Project Change Triangle

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 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

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

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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


Only 23% report high levels of success

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0%

10%

20%

30%

40%

50%

60%

70%

Very unsuccessful Unsuccessful Moderately successful

Successful Extremely successful

Success of deployment effort

Features of organisational capabilities

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•  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

Highest impact activities •  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

31 2016 Best Practices in Change Management Report.

4500 participants in 56 countries. Prosci copyright 2016.

Common Traps 1.  The training trap 2.  Moving forward without Executive

Sponsorship 3.  Failing to build the business case

for Change Management.

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?

34 ©Prosci. Used with permission www.change-management.com

Prosci Change Management Maturity Audit

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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

Change Management maturity by region Region

(plus % of study participants from region) Average Maturity Level

All regions (100%) 2.59 United States (34%) 2.70

Australia and New Zealand (25%) 2.56

Canada (15%) 2.57 Europe (14%) 2.37 Africa (5%) 2.89 Asia and Pacific Islands (3%) 2.65

Latin America (2%) 2.67

Middle East (2%) 2.64


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


What role can you play - project level •  Aligning training with the overall

Change Management strategy •  Equipping managers to be

effective change leaders •  Measuring success of change –

individual “knowledge” and “ability”.

•  Advocating for Change Management as a key success factor on Projects & BAU

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What role can you play - enterprise level

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•  Being part of the ECM effort •  Build individual capabilities

via role based Change Management training •  Executives •  People Leaders •  Professionals and Technical

specialists •  Project Managers and teams •  Employees

•  Embedding change leadership in competency frameworks and curricula

•  Measuring Change Management maturity

Q&A

Where to find today’s slides and recording

• Being Human Company Linked in Profile – Follow us • Catherine Smithson’s Linked In profile • Being Human’s Facebook page • www.slideshare.net Search for Being Human Pty Ltd

(now includes option to listen to recording) • YouTube - Search for Being Human Pty Ltd

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More info

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Being Human beinghuman.com.au Prosci •  change-management.com •  prosci.com •  portal.prosci.com

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Ready, Set and Change: Building a Future Proof Organisation