The Power of Measuring Change Paul OKeeffe June 2011.

The Power of Measuring Change

Paul O’Keeffe

June 2011

2

Introduction

Paul O’Keeffe• Change Measurement Lead• Talent & Organization Performance• Principal• Accenture

• 414-460-4406• [email protected]

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Today’s Agenda

– Why Measure Change– Change Measurement Maturity Levels– Tools to Measure Change

• ChangeTracking• Change Measurement Diagnostic

– Your Change Measurement Journey

Why Measure Change?

Paul O’Keeffe

June 2011

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The measurement of change has always been our greatest challenge.

When was the last time a senior executive asked you:

– “How are we doing relative to other companies who go through this type of change?

– “How do we make the link between change management and business benefits more tangible?”

– “How do we know if the change program is truly impacting business results?”

– “What tools do you have to measure change?”

Companies continue to manage change poorly and destroy value. As Change professionals we repeatedly fail to position ourselves to influence the outcome

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Critical factors in successful change

Insight without action does not produce sustainable change, and action that has no insight behind it is wasted effort

Taking a data centered approach, the purpose of our analysis is to enable more accurate, high impact change interventions

Fast feedback and

clarity about what

is required to

deliver high

performance

INSIGHT + ACTION = SUCCESSUL CHANGE

Asking the right questions so

leaders can clearly see if they

are on track or not ….. and if

not, what corrective action

they can take

Get onto the path

to high

performance and

help to stay there

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Maintaining Performance through Change

Research shows only 1 in 9 work groups improve their performance across times of change:

Feb Mar April May Jun July Aug Sept Oct Nov Dec Jan Feb Mar April May

Project preparation

Business blueprint

Benefits Realisation

Final preparation

Go live and support

Continuous improvement

Perf

orm

ance

Even with the best intentions, change projects typically take longer than planned and cost more – 84% of projects do not hit their targets– 18% average overrun on budgets – 23% average over run on schedule– 7% do not achieve scope/functionality

Stage of project

High Performance

Effective change

Norm

The norm is actually over budget, over schedule, with a lack of benefits realization!

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The most important aspects driving successful change

Rank to following based on your experience…

Involvement

Training

Passion and Drive

Communication

Systems and Processes

Management Skills

Vision and Direction

Change Leadership

Accountability

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ChangeTracking® research has identified the main drivers of successful change

Relative Importance of Factors in Driving Improvement in Business

Performance

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What is Critical to Success?

Based on Accenture’s deep Change Management experience we know what drives a change project success. With data we will be able to prove the following are critical to project success:

– Experience of the client team– Experience of client with types of project (e.g. Big SAP)– Sponsorship engagement early and continued– Navigation activities (e.g. Journey Map)– Leadership activities– Resource Balancing and other org design activities are important– Continuation of the Change effort 6-9 months post go-live

• For instance, Adoption and Commitment does not come till after go-live

…and that the following is true:– Five to ten critical behaviors drive the dollars– Communication decreases resistance

• But what is the best timing?– People predict that change is worse than it is when asked in advance

(with the caveat that the technology works)

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We expect to find…

…that we can definitely answer a number of questions that arise at the start of every change project:

– When is the right time to begin communication and when do we drive communications into the organization?

– What is the optimal (and the minimum) number of people to attend training?

– What is the best curriculum mix?– How much training is actually required?– What activities drive people up the Commitment Curve?– What activities drive Sponsorship commitment and understanding?– What critical behaviors need to change for the project to be successful?

Change Measurement Maturity Levels

Where are you today?; and Where do you want to get to?

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Change Measurement Maturity Levels

Value

Complexity

Go-live Measures

Lifecycle Project Measures

Change Value Measures

Change Agility Measures

Most organizations measure change to some extent; very few have built a robust capability that drives how change is managed as a critical business driver

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Go-live Measures

Answer the question; “Are we ready to go-live from a people perspective?”

– Data is collected monthly or weekly leading up to go-live– Usually begin collection 6-8 weeks prior to go-live– Very tactical in nature

Most projects have some type of go-live measures, but very little consistency from project to project

Value

Complexity

Go-live Measures




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Answer the question; “Is the project proceeding to plan from a people perspective?”

– Data is collected monthly throughout the project lifecycle– Begin collection at the start of the project– Still tactical in nature

Very few companies measure the entire project lifecycle; or have a repeatable process that is used from project to project

Value

Complexity

Go-live Measures




Off Track

Unsustainable

High Performance

OnTrack

1

1

1

1

1

1

Unit A 17

Unit B 60

Unit C 66

Planning 29

Production 139

Unit E 52

Over budget, more staff than required and high percentage of manual over-rides in a fully automated system were indicative that a major IT system had been installed and not implemented

Off Track

Unsustainable

High Performance

OnTrack

1

1

1

1

1

1

Unit A 17

Unit B 60

Unit C 66

Planning 29

Production 139

Unit E 52

Unit A 17

Unit B 60

Unit C 66

Planning 29

Production 139

Unit E 52


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Answer the question; “Is the organization creating value through the intended changes?”

– Data is collected monthly across many projects– Ongoing data collection– Very strategic in nature

Projects measure ROI and Business Case achievement; but few link it back to change activities. It is all financial driven; not change capability driven. No project to project change lessons.

Value

Complexity

Go-live Measures




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Change Capability Measures

Answer the question; “Is the organization building capabilities so that future changes are easier and more effective?”

– Data is collected monthly across many projects– Ongoing data collection– More strategic in nature

Change capability and agility are new topics; but no-one measures it as a capability across time

Value

Complexity

Go-live Measures




Off Track

Unsustainable

On Track

Cruising

Bumpy ride

Pushing the limits

Achieved with loss of heart

On the run

Battlingit out

Yes, but…

In the dark

Sleepy insuccess

Building momentum

Business as usual

Good moving to great

Washed up

Rocky ground

Burning platform

Case for Action

Downward spiral

Flatlining

Just get on with it…

High Performance

Struggling under pressure

24%

15%

19%

14%

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Our Change Measurement Vision

The Change Measurement Diagnostic (CMD) will revolutionize the way we plan and deliver Change programs. A heightened focus on Analytics will drive more consistent results and a tighter link to value. Our Vision:

– All projects use a comprehensive, data-driven approach to guide people and change decisions.

– The tool and outputs are integrated with the Accenture Change Framework and drive the day-to-day work of the project team.

– The outputs are easy to read, create a compelling story for our clients and lead to predictive insights and clear actions on a project.

Tools: ChangeTracking®

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ChangeTracking Model

Validated research that sits behind ChangeTracking® has proven what drives performance improvement

Improving Business

Performance

Realizing Business Benefits

Change Capability

Performance

Is the change on track to high performance?

Turbulence Resources Aligned Direction

Change Leadership

Work Roles

Emotional Energy

Dri

ve

rs

Passion and Drive

Training and Capability


ManagementCommitment

Team Leadership

Risks and Roadblocks

Changes Taking Place

DisturbanceSystems and

ProcessesCommunication

Involvement

AccountabilityClu

ste

rs

© CTRE Pty. Ltd. 2009 • v1.0 ChangeTracking®

How is change impacting business performance?

Have change program objectives been

achieved?

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ChangeTracking® measures thefactors that drive improved performance

How effective is your change

strategy?

Are you making the best use of

resources, given the conditions you are operating under?

Improving Business

Performance


Change Capability

Performance



Change Leadership

Work Roles

Emotional Energy

Dri

ve

rs





Systems and Processes

CommunicationClu

ste

rs


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ChangeTracking® measures thefactors that drive improved performance

What can people do to

make a difference?

CorporateBusiness

Units Teams Everyone!

Improving Business

Performance


Change Capability

Performance



Change Leadership

Work Roles

Emotional Energy

Dri

ve

rs

Passion and Drive



ManagementCommitment

Team Leadership



DisturbanceSystems and

ProcessesCommunication

Involvement

AccountabilityClu

ste

rs


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The Change Map

– Group responses to the ChangeTracking® questionnaire are plotted on the Change Map. The Change Map is divided into 4 Zones:

• Off Track• Unsustainable• On Track• High Performance

– The Change Map divides the zones into 20 Regions. For even greater precision, the Change Map divides the Regions into 625 Cells - 625 change typologies.

– Knowing where a group is, and knowing the characteristics (strengths and weaknesses) of the regions around you to make choices about the actions and direction you take

Off Track

Unsustainable

On Track

Pushing the limits

Cruising

Achieved with loss of

heart

On the Run

Battlingit out

Yes, but…

In the Dark

Bumpy ride

Sleepy inSuccess

Building Momentum

Business as Usual Good, but not

yet great

Washed up

Rocky ground

Burning platform

Case for Action

Downward Spiral


Flatlining


High Performance

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Action Planning: ‘Yes, but..’ to ‘Cruising’

Off Track

Unsustainable

On Track

Cruising

Bumpy ride

Pushing the limits

Achieved with loss of heart

On the run

Battlingit out

Yes, but…

In the dark

Sleepy insuccess

Building momentum

Business as usual

Good moving to great

Washed up

Rocky ground

Burning platform

Case for Action

Downward spiral

Flatlining


High Performance


25%

13%

13%

6%

10%

Current location

Business Performance

Achieving Objectives

Risks & Obstacles


Disturbance 32%

Vision & Direction 19%

Management Commitment 44%

Involvement 47%

Communication 62%

Team Leadership 70%

Training & Capability 66%

Passion & Drive 76%

Accountability 81%

Systems & Processes 80%

Low P erf. Norm High P erf.

Supply Chain From current location to '2 - Cruising'

Current result

Target result

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Lets Complete the Demo and Build the Change Map

Looking for a volunteer to answer the questions based on their current project.

You can complete your own Demo at www.ChangeTracking.com

Off Track

Unsustainable

High Performance

OnTrack

1

1

1

1

1

1

Unit A 17

Unit B 60

Unit C 66

Planning 29

Production 139

Unit E 52


Off Track

Unsustainable

High Performance

OnTrack

1

1

1

1

1

1

Unit A 17

Unit B 60

Unit C 66

Planning 29

Production 139

Unit E 52

Unit A 17

Unit B 60

Unit C 66

Planning 29

Production 139

Unit E 52


http://www.changetracking.com/

Tools:Change Measurement Diagnostic:Pilot Version

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Change Measurement Across the Project Lifecycle

The overall tool will include different elements that cover all aspects of the project. The pilot is excel based to streamline data collection.

– A tab for each major area; but none are mandatory– Dashboard updated monthly– Project setup completed once at project inception; update as needed– Data entry tabs updated monthly– Report printing capabilities for each tab– Straight forward change survey for pulse/full surveys– Data will be combined at end of the pilot for initial Analytics; trend

analysis, research, and root cause analysis across projects

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Accenture’s Change Model

At a strategic level we think of change across four dimensions…

Change Navigation“What management mechanisms will help the organization optimize its investment?”

Program management framework (direction and pace of change)

Models/methodologies Measurement strategies Technical/business architecture Set change objectives and

priorities

Change Leadership“How can we help the organization’s leaders effectively champion the change?”

Establish shared executive vision and communicate it to organization

Develop a sponsorship program

Provide leadership with coaching/facilitation

Set expectations during change

Change Enablement“How do we give users the tools and support to be successful with the change?”

Design the organization/jobs Revise workflows/procedures Redesign physical

environment Design new/modified jobs Training and performance

support

Change Ownership“How do we help users feel like part

of a change vs. victims of change?”

Plan communications and involvement activities

Educate impacted personnel on the change process

Develop local action teams and facilitate implementation

Deliver focused benefits

Navigation Leadership

Enablement Ownership

DemandSupply

Macro

Micro

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Dashboard

A one-stop dashboard will be presented for each month of the project. This allows for quick and easy reporting.

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Project Set-up

This tab will include all the specific details on the project. Depending on the size and nature of the project different tracking elements in the tool will be turned on or off. The underlying business case value will also be captured.

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Sponsorship

The Sponsorship tab utilizes a detailed sponsorship monitoring process that should be started in the Blueprint phase. Action items are developed each month and marked when completed.

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Stakeholder Management

The Stakeholder tab will capture the segmentation of the key stakeholders and track each group as they move up the Commitment curve.

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Monitoring Behavior Change

The holy grail of Change Management is tying the detailed, desired behavior change to business value and then monitoring the actual observed behavior change through the lifecycle of the project.

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Business Metrics

A predictive approach to business metrics allows us to communicate expectations with leadership, and ultimately, customers. The “y” axis on the model becomes these business metrics. This ensures the Program Management and Change Management efforts are aligned and ensures a link back to the original business case.

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Quadrant Model Survey

Based on Accenture’s 15+ years experience with the Quadrant Model we will reinvigorate the Change Readiness survey. Questions are focused on the quadrants of the model. They are very specific to the change process and the current challenges facing projects.

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Change Readiness (or Go-Live Readiness)

A consistent and comprehensive approach to change readiness is critical. It needs to cover all elements of the Quadrant Model. The Change Readiness results can then be included in the project wide “Go/No Go” decision making process.

Your Change Measurement Journey

Where are you going?

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Monday Morning Quarterback

What will you do different on Monday?

Thank You

The Power of Measuring Change Paul OKeeffe June 2011.

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