Change Better Change Faster: The Race to Build Enterprise Change Capability Presented by Catherine Smithson June 2015
Aug 12, 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
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
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 ?
©Prosci. Used with permission www.change-management.com
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
28 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
29 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
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
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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
2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
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
2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
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
34 2014 Best Practices in Change Management Report.
822 participants in 63 countries. Prosci copyright 2013.
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
©Prosci. Used with permission www.change-management.com