Change Better Change, Creating a Change Capable Organisation. 16 June 2015

Change Better Change Faster: The Race to Build Enterprise Change Capability Presented by Catherine Smithson June 2015

Introducing Being Human • Founded in 1993 • Our mission: develop change-capable people and organisations so they achieve the benefits of change.

• Exclusive Prosci Affiliate Australia and New Zealand.

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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

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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.

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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

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Topics •  The need for enterprise

change capability • What is enterprise Change

Management? • Global outlook – latest

research •  Top Contributors to

success • Mistakes to avoid •  The role of change

practitioners

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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

Why are organisations investing in building change capability?

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Change has changed

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• Change is the new “business as usual”

• Volume • Speed • Complexity • Risk • Others?

“Life comes at us in waves. We can't predict or control those waves, but we can learn to surf.”

Dan Millman

Strategic advantage being replaced by transient advantage

“Learning to launch new strategic initiatives again and again and creating a portfolio of advantages that can be built quickly or abandoned just as rapidly”. Rita Gunther McGrath, Harvard Business Review June 2013

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Executives and Boards are more aware that change is risky

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%

What Executives want: consistent, successful implementation and benefit realisation

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with high employee engagement

Look again: a select group of organisations have become “change masters”

IBM Making Change Work Report While the Work Keeps Changing Report August 2014

1,400 organisations globally, over 20 industries,

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"

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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.

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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?

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

Change Management Maturity

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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

©Prosci. Used with permission www.change-management.com Source: 2014 Prosci Best Practices in Change Management Benchmarking Report

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 ?


Instant poll: Where is your organisation in building enterprise Change Management capability?

1.  We haven’t even thought about it 2.  Early discussions taking place 3.  We’ve started to mobilise 4.  We’re on the first year of deployment 5.  We are over a year into deployment

Three levels of capabilities in organisations

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Source: Change Power – Turner and Crawford,1998

Individual Collective Organisational Owned by individuals Owned by a number of

people Owned by the organisation

They bring in and take out

More continuity, less erosion

Hard-wired: endure when people leave

Hired, not owned Systems and standards often created around them

Embedded in key processes, systems, values, technologies

Highly valuable when aligned with strategy

Also highly valuable Cannot be bought, copied or matched

Risky – can produce success or disaster

Potential source of competitive advantage

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

Which capabilities has your organisation already embedded? •  What are its differentiates you from

competitors?

•  Marketing?

•  Customer focus?

•  Innovation?

•  Logistics and distribution

•  What did it take to build this capability? How did your organisation get there?

•  How is it maintained?

•  What can you take from this to build change capability?

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

27 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



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



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

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

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


Key ingredients for success 1.  Treat ECM as a project 2.  Secure sponsorship

before moving forward 3.  Build a strong case for

Change Management 4.  Multi pronged approach 5.  Adopt a single, effective,

consistent methodology and upskill people to use it

6.  Position Change Management as everyone’s job



Mistakes to avoid 1. Failing to treat it as a project with a

vision, outcomes & plan 2. Moving forward without

Sponsorship.. 3.  Failing to build the case for

Change Management. 4.  Applying a single solution. 5. Not adopting a consistent

methodology. 6. Not making change everyone’s job. 7. Not using Change Management on

Change Management

©Prosci. Used with permission www.change-management.com Source: 2014 Prosci Best Practices in Change Management Benchmarking Report

Change Managers play a critical role: Project level •  Make the business case for

Change Management •  Educate Sponsors and

Project Managers to utilise the right measures of project success: •  Employee adoption and usage •  Benefits realisation

•  Start Change Management at business case stage

•  Integrate and align Change Management and Project Management

•  Secure adequate funding

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Change Managers play a critical role: Enterprise level

• Baseline Change Management Maturity

• Apply Change Management to ECM

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Apply Change Management and Project Management to “Project ECM”

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Project management

Change management

Current Transition Future Current Transition Future


More info

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§  Being Human www.beinghuman.com.au

§  Prosci www.change-management.com

Change Better Change, Creating a Change Capable Organisation. 16 June 2015

Leadership & Management

Transcript of Change Better Change, Creating a Change Capable Organisation. 16 June 2015