IBM Global Making Change Work Study

7/28/2019 IBM Global Making Change Work Study

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CONTINUING THE ENTERPRISE OF THE FUTURE CONVERSATION

MAKINGCHANGEWORK


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About IbM GlobAl busIness servIces strAteGy & chAnGe PrActIce

IBM Globl Bsiness Seices offes one of he lges Seg & Chnge

pcices in he wol, wih oe 3,250 seg pofessionls. O Seg &

Chnge pcice fses bsiness seg wih echnolog insigh o help

ognizions eelop, lign n implemen hei bsiness ision coss fo

segic imensions bsiness seg, opeing seg, ognizion

chnge seg n echnolog seg o ie innoion n gowh.


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closing the change gap

ExECutIvE SuMMary

the IBM Globl Ming Chnge Wo S emines how ogniz-

ions cn mnge chnge n ienifies segies fo impoing

pojec ocomes. this epo conines he conesion h begn

in he IBM Globl CEO S 2008 eging fow-hining com-

pnies h e Hng fo Chnge.1 Fo is e sil, he

Enepise of he Fe ms bee pepe iself s he pce, i-e n pesieness of chnge conine o incese.

Oe wo-e peio, he pecenge of CEOs epecing sb-

snil chnge climbe fom 65 pecen in 2006 o 83 pecen in

2008 b hose epoing he h sccessfll mnge chnge in

he ps ose js 4 pecenge poins, p fom 57 pecen in 2006

o 61 pecen in 2008.2 this ispi beween epecing chnge

n feeling ble o mnge i he Chnge Gp nel iple

beween 2006 n 2008.3

O Ming Chnge Wo S focses on how o close he Chnge

Gp. thogh ses n fce-o-fce ineiews wih moe hn

1,500 pciiones wolwie pojec lees, sponsos, pojec

mnges n chnge mnges we gine pcicl nowlege

bo how o incese he lielihoo of pojec sccess.

Mos CEOs consie hemseles n hei ognizions o be ee-

cing chnge pool, b some pciiones he begn o len

how o impoe hei ocomes. Fom he pciiones hemseles,


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making change work2

we fon h, on ege, 41 pecen of pojecs wee consiee

sccessfl in meeing pojec objecies wihin plnne ime, b-

ge n qli consins, compe o he emining 59 pecen

of pojecs which misse les one objecie o file eniel.

Een hogh js 41 pecen of pojecs wee escibe s sccess-

fl, hose wih he highes pojec sccess e (he op 20 pecen

of o smple) we cll hem Change Masters epoe n 80

pecen pojec sccess e, nel oble h ege. In shp

cons, he boom 20 pecen of o smple he gop we

escibe s Change Noices epoe isppoining pojec sc-

cess e of 8 pecen.

Wh ccons fo hese sl iffeen es of pojec sccess?

We fon in o eile nlsis of s esls h chieing

pojec sccess oes no hinge pimil on technology inse,

sccess epens lgel on people. B wh is moe illmining ishe iscoe h fo common fcos helpe hese pciiones

ess hei gees pojec chllenges. When used in combina-

tion, these factors proided a synergistic benefit h ws een

gee hn he sm of hei iniil impcs, esling in highe

es of pojec sccess:


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reAl InsIGhts, reAl ActIons

Sie fo fll, elisic weness n nesning of he pcom-

ing chllenges n compleiies, hen follow wih cions o ess

hem.

solId Methods, solId benefIts

use ssemic ppoch o chnge h is focse on ocomes

n closel ligne wih foml pojec mngemen mehoolog.

better skIlls, better chAnGe

Leege esoces ppopiel o emonse op mngemen

sponsoship, ssign eice chnge mnges n empowe

emploees o enc chnge.

rIGht InvestMent, rIGht IMPAct

alloce he igh mon fo chnge mngemen b nesn-

ing which pes of inesmens cn offe he bes ens, in ems ofgee pojec sccess.

these fo chnge-ele focs es e epesene gphicll

s fo fces of wh we cll he Change Diamond. Neglecing een

one e cn inhibi chnge ecellence. Pcicl insighs fom he

epeience of Chnge Mses show h he mos powefl

ppoch is o e cions h ess ech of he imons fo

fces n help gie he Enepise of he Fe in is qes o

me chnge wo.


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making change work4

HOW Our rESEarCH WaS CONduCtEd

the IBM Globl Ming Chnge Wo S eploe iffeences in

how chnge ws implemene b oe 1,500 pciiones wol-

wie, sing wih he weness h e few ognizions o i

well. IBM conce ses n fce-o-fce ineiews wih poj-

ec lees, sponsos, pojec mnges n chnge mnges fom

mn of he wols leing ognizions.

We inesige he el-wol epeiences of hese pojec lees

esponsible fo wie nge of pojecs, incling smll- n lge-

scle effos inene o eece segic, ognizionl, ope-

ionl n echnolog bse chnge. this iese nge of pojecs

h objecies h incle: csome sisfcion impoemen,

sles n eene gowh, cos ecion, pocess innoion, ech-

nolog implemenion, new me en n ognizionl

chnge. the Cene fo Elion n Mehos (ZEM) he

uniesi of Bonn, Gemn, ggege he n poie

sisicl sppo fo nlsis of he esls.

15

21

14

22

%

%

nAtIonsfroM Aroundthe world

dIfferentIndustrIes

Are coMPAnIeseMPloyInG More thAn100,000 eMPloyees

hAve less thAn 1,000eMPloyees


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fIGure 1 deMoGrAPhIcs: GlobAl MAkInG chAnGe work study

The Global Making Change Work 2008 Study covered organizations o all sizes, balanced aroundthe globe and across industries.N = 1,532

ProJect teAMMeMber

7%

chAnGeMAnAGer

17%

ProJectMAnAGer

38%

InItIAtor/ProJectsPonsor

25%

Job roles Organizational size

Geographic region Breakdown by industry

others

6%subJect MAttereXPert/revIewer

7%

1,000-10,000

32%

uP to 100

7%

100-1,000

15%

10,000-100,000

32%

More thAn100,000

14%

IndustrIAl

18%

fInAncIAlservIces

16%

coMMunIcAtIons

17%

dIstrIbutIon

13%

others

7%

ProfessIonAlservIces

8%

PublIc

21%euroPe

34%

AMerIcAs

29%

AsIA PAcIfIc

37%


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making change work6

Maig ag

CHaNGE IS tHE NEW NOrMaL

tos nmic wo enionmen is csing ognizions o e-

fme he iionl iew of wh noml is. We e winessing he

effecs of globlizion, echnolog nces, comple mlinionl

ognizions, moe feqen pneing coss nionl boes n

compn bonies js o menion few of he enbles n c-

celeos of chnge.

No longe will compnies he he l of epecing -o-

opeions o fll ino sic o peicble pen h is ine-

pe onl occsionll b sho bss of chnge. to pospe, le-

es will nee o bnon sch oe noions of chnge. In eli,

he new noml is coninos chnge no he bsence of chnge.

HOW tHE ENtErPrISE OF tHE FuturE FaCESCHaNGE

the IBM CEO S 2008 ienifie fie coe is of he Enepise

of he Fe n fon h opefoming compnies e hng

fo chnge.4

GLOBALLY

INTEGRATED

HUNGRY

FORCHANGE

INNOvATIvE

BEYONDCUSTOMERIMAGINATION

GENUINE,

NOT JUSTGENEROUS

DISRUPTIvE

BYNATURE


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these ognizions e cpble of chnging qicl n sccess-

fll. Inse of meel esponing o ens, he shpe n le

hem. Howee, we lso lene fom he CEO S h hee is

chnge gp n i is gowing.

the bili o mnge chnge ms be coe compeence n

e, s he leel of epece chnge conines o ise, mn e

sggling o eep p. Eigh o of en CEOs nicipe substantial

o ery substantial chnge oe he ne hee es, e he e

hei bili o mnge chnge 22 pecen lowe hn hei epece

nee fo i a change gap that has nearly tripled since 2006.5

the gowing chnge gp sems fom chnge h is moe comple

n moe ncein, n hppening n ccelee pce. CEOs

e wesling wih boe se of chllenges hn in he ps, which

inoces een gee is n ncein.

fIGure 2 the chAnGe GAP

The gap between the expectation o change and an organizations history o managing it is growing.

2006

2008

65%

57%

eXPect substAntIAl chAnGe

chAnGed successfully In the PAst 8%chAnGeGAP83%

61%

eXPect substAntIAl chAnGe

chAnGed successfully In the PAst

22

%chAnGeGAP


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making change work8

Inbili o close he chnge gp hs he boom line. toble

pojecs picll cee cos oens while flling sho of esie

objecies ele o ime, bge n/o qli, n filing o

elie bsiness le. the e cos of oble pojecs is ifficl

o mese, b Eopen esech s fon h he low-en

of sch esimes cies n ege cos moning o 134 pecen of

he oiginl pln ohe esimes of he ege cos of oble

pojecs wee mch highe.6

Bombe b chnge on ill ll fons, finncill opefom-

ing compnies h mch smlle chnge gp hn hei pees in

finncill nepefoming compnies.7 Nobl, he opefomes

i no fce fewe chllenges hn ohes; he simpl nicipe

moe chnge n wee moe effecie mnging he chnge.

fIGure 3 GAP Is sMAller for outPerforMers

Because outperormers manage change well, they can get ahead o and even

be the drivers o change.

19%chAnGeGAP

29%chAnGeGAP

outPerforMers

underPerforMers

eXPect substAntIAlchAnGe

chAnGed success-fully In the PAst

85%

83%

66%

54%


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HOW PraCtItIONErS dEaL WItH CHaNGE

Mos CEOs consie hemseles n hei ognizions o be ee-

cing chnge pool, e few opefomes o ecel elieing

n benefiing fom meningfl chnge. B how is his cll

ccomplishe? Wh e he ciicl chllenges n which e fc-

os cn le o chnge h cll wos?

O Ming Chnge Wo S conines he conesion fom he

CEO S, escibing bse on new se he pcicl seps

ognizions ms e o bee pepe fo he nelening b-

ge of chnge h seems o be eewhee. this epo loos moe

closel he enepise i, Hng fo Chnge. We engge

1,532 e pciiones i ses n fce-o-fce ineiews,

eeling mn sefl insighs bse on hei el-wol epeiences

wih wie nge of pojecs.

this secion of o epo highlighs some of he mos compelling

s finings, incling eepe ie ino he impc of chnge on

ognizions n he es o sccessfl chnge. Le, we will

eploe specific, pcicl cions h helpe pciiones o in

eoin esls in chnge effos.

Most ProJects fAll short of obJectIves

Pojec lees confime h pojec sccess is inee h o

come b. In o s, we lene h 41 pecen of pojecs wee

consiee sccessfl in meeing pojec objecies wihin plnne


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making change work10

ime, bge n qli consins. Conesel, nel 60 pecen

of pojecs file o fll mee hei objecies: 44 pecen misse

les one ime, bge o qli gol, while fll 15 pecen eihe

misse ll gols o wee soppe b mngemen.

the Most successful 20 Percent: chAnGe MAsters

On ege, pciiones e onl 41 pecen of pojecs s suc-

cessful, efine s meeing ime, bge n qli gols. ye, he

op 20 pecen we cll hem Change Masters epoe n 80

pecen pojec sccess e, nel double the aerage.

In shp cons, he boom 20 pecen of o smple is he gop

we escibe s Change Noices hei epoe pojec sccess

e ws isml 8 pecen. thei low sccess e eflecs he iffi-

cl of geing ll pojec fcos o wo s plnne: js one bo-

en lin in he chin cn le o pojec file.

fIGure 4 ProJect success rAtes: ProJect leAders rePorted thAt 41 Percent of ProJects were

consIdered successful

Forty-our percent o all projects ailed to meet either time, budget or quality goals, while 15 percent

eitherstop or ail to meet all objectives.

ProJects thAt dId notMeet eIther tIMe, budGetor QuAlIty GoAls

44%

ProJects thAt fullyMet theIr obJectIves

41%

ProJects thAteIther MIssed AllGoAls or werestoPPed

15%


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fIGure 5 shAre of successful ProJects

The top 20 percent o organizations reported an average project success rate o 80 percent, nearlydouble the average.

95%success rAteIncreAse

Share o successul projects

8%

41%

80%

Top 20%Change Masters

AverageBottom 20%Change Novices

chAnGe chAllenGes: the soft stuff Is hArd

toble o file pojecs cee cos oens n, b efiniion,

fll sho of chieing he esie objecies. When nel 60 pe-

cen of pojecs fil o mee objecies, significn epense is

ince in ems of wse mone, los opponi n lc of

focs. Chnge Mses nesn h ecing he lielihoo of

oble pojecs, een slighl, cn he cle n pi

pbc.

O esponens ienifie seel of he e bies o chnge.

alhogh ngible ss lie change of IT systems o essing

technology barriers m be epece o pesen ifficlies, o

pciiones i no epo hem mong hei gees chllenges.

Leaders are unrealisticabout how change is goingto happen. They moveahead anyway and get intoproblems.

Change Manager, UK, Energy and

Utilities company


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Sot Factors Hard Factors

fIGure 6 MAJor chAnGe chAllenGes

The most signicant challenges when implementing change projects are people-oriented topping thelist are changing mindsetsand corporate culture.

58%

49%

35%

33%

32%

20%

18%

16%

15%

12%

8%

Inse, he min obscles he ienifie wee changing mindsets

and attitudes (58 pecen), corporate culture (49 pecen) n

underestimating project complexity (35 pecen). Pojec pofes-

sionls who picll eqes moe ime, moe people n moe

mone epoe h hese sof chllenges e cll moe pob-

lemic hn shortage of resources!

Spisingl, i ns o the soft stuff is the hardest to get right.

Chnging minses, ies n cle in n ognizion picll

eqie iffeen echniqes, pplie consisenl n oe ime

someimes coss seies of sccessie pojecs n


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ofen conining fe he foml pojec hs finishe. Pciiones

picll fin sch less concee chllenges oghe o mnge n

mese hn chllenges ele o bsiness pocesses o echnol-

og, which e moe ngible n possibl cpble of being chnge

pemnenl hogh single ineenion.

fActors for successful chAnGe

the lis of gees pojec chllenges ws op-he wih sof fc-

os. When se o ienif e fcos fo sccessfl chnge, pc-

iiones eiee he ifficl in eling wih less ngible specs

of pojec.

Culture isnt just one aspeco the game, it is the game

Lou Gerstner, U.S., ormer IBM

CEO 8

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fIGure 7 whAt MAkes chAnGe successful?

Leadership, employee engagement and honest communication are prerequisites or successulchange.

92%

72%

70%

65%

55%

48%

38%

36%

33%

19%

Sot Factors Hard Factors


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Pciiones fiml plce e esponsibili fo he fe of chnge

pojecs in he eecie sie n oewhelming 92 pecen nme

top management sponsorship s he mos impon fco fo sc-

cessfl chnge. roning o he op fo sccess fcos wee

employee inolement (72 pecen), honest and timely communica-

tion (70 pecen), n corporate culture that motiates and pro-

motes change (65 pecen).

In fc, he op si nswes ll efeence sof specs of chnge,

ning hem boe efficient organiation structure, n monetary

and non-monetary incenties. Chnge Mses he elize h

behiol n cll chnge e ccil o pojec sccess n e

consiebl oghe o ess hn he so-clle h fcos,

sch s sce, pefomnce meses n incenies.

why the chAnGe MAsters eXcel

We he seen h ognizions iffe gel in es of pojecsccess, b wh? deile nlsis of o s esls eele

highl significn coelion beween pojec sccess n fo

impon es of focs: el insighs, soli mehos, bee sills

n igh inesmen.

these fo chnge-ele focs es e epesene gphicll

s fo fces of wh we cll he Change Diamond. When combine

effeciel, ing cions o ess ech of he imons fo fc-

es cn help gie he Enepise of he Fe in is qes o mechnge wo.

I you dont have leadershipsupport, youre doomed.

Project Manager, U.S., Media and

Entertainment


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Real Insights, Real Actions. Sie fo fll, elisic nesning of

he pcoming chllenges n compleiies, hen follow wih cions

o ess hem.

Solid Methods, Solid Benefits. use ssemic ppoch o chnge

h is focse on ocomes n closel ligne wih foml pojec

mngemen mehoolog.

Better Skills, Better Change. Leege esoces ppopiel o

emonse op mngemen sponsoship, ssign eice

chnge mnges n empowe emploees o enc chnge.

Right Inestment, Right Impact. alloce he igh mon fo chnge

mngemen b nesning which pes of inesmens cn

offe he bes ens, in ems of gee pojec sccess.

REAL INSIGHTS

REAL ACTIONS

SOLID METHODS

SOLID BENEFITS

RIGHT INvESTMENT

RIGHT IMPACT

BETTER SKILLS

BETTER CHANGE

fIGure 8 the chAnGe dIAMond

By ocusing on the our acets o the change diamond, practitioners achieved signicantly higherrates o project success.


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fAcets ofthe chAnGedIAMond:

closInG thechAnGe GAPChnge Mses e clel oing mn

hings igh, s eience b hei high

leels of pojec sccess. those wih

ege sccess es, s well s he

lgging Chnge Noices, col boh

benefi b oping simil pcices.


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18

Sccessfl pojecs eqie fll, elisic nesning of he

pcoming chllenges n compleiies, followe b specific cions

o ess hem. Lc of el insigh les o high is h com-

plei will be neesime o een oelooe. In picl, he

complei of behiol n cll chnges is ofen neesi-

me in he el pojec plnning n scoping sges.

When se if hee ws sfficien weness of he chllenges

ssocie wih implemening n ssining chnge, pciiones

epling yes epoe 52 pecen pojec sccess e wihin hei

ognizions. Pojec sccess es oppe s ognizions

weness leels ecese, own o low 25 pecen sccess e

fo hose pciiones who nswee no o he qesion.

yes tendInGtowArd yes

43%

35%

25%

52%

tendInGtowArd no

no

fIGure 9 we found A stronG correlAtIon between successful ProJects And A reAlIstIcAwAreness of the chAnGe chAllenGe

Responses to the question, Within your organization, do you think there is sucientawareness o the challenges associated with implementing and sustaining change?

Percentage o successul projects

reAlInsIGhts,reAlActIons


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I believe there is a strongawareness; however, theinternal capabilities andability to execute is achallenge.

Initiator/Project sponsor, Canada,

Consumer Products

B weness of complei lone is no enogh cion is he il

ne sep. Onl 18 pecen of pojec lees in o s epoe

h hei ognizions h sfficien weness of he chllenges

ssocie wih implemening n ssining chnge. B of h

smll gop, 85 pecen si h hei weness le o he ino-

cion of specific meses o sppo chnge.

fIGure 10 beInG Merely AwAre of chAnGe coMPleXIty Is InsuffIcIent

Action as a result o awareness is critical to more successul change eorts.

tendInGtowArd yes

33%

no

13%

tendInG towArd no

26%

30%

yes

18%

55% 13% 2%

Does this awareness o the challenges o

implementing change normally lead to theintroduction o specifc measures to supportthe change?

Within your organization, do you think there issufcient awareness o the challenges associated withimplementing change?

Yes

Tending toward yes

Tending toward no

No


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GaINING rEaL INSIGHtS aNd turNING tHEMINtO aCtIONS

El weness n cions e ciicl o ess he op ogniz-

ionl chllenges inheen in chnge pojecs shown elie: min-

ses, ies, cle n complei. Sch chnges o no hppen

omicll Chnge Mses ess hem el, pln cefll

n eece igoosl.

Chnging n ognizion eqies comple chnge simlneosl

mn leels n ognizions en o bil in of immne

ssem o fen off ispie inflences. El weness n con-

seqen cion help o ess he nl esponse of n ogniz-

ion o esis emps o chnge i. Some pcicl seps incle:

hook Into the hIstory

Poie chnge lees wih ccess o hisoicl , people s-

es, cle ssessmens n w soies, s well s he people

inole in peios pojecs, if possible. Len fom boh goo n

b epeiences n be especill igiln in seeing insighs ino

he sof specs of he ognizion negoing chnge.

oPen your eyeswIde!

Emine he pojecs scope, liel impcs n epece ocomes

cefll. assess he imensions of he chnge people, cle,


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behio n ognizionl specs, s well s pocess n echnol-

og impcs. Be elisic in efining he necess chnge n com-

mnice h infomion wiel wihin he ognizion.

PlAn And AdJust

Wih hoogh nesning of pojec compleiies, bil

chnge pln o ess hem. as he pln is commnice, ese

n eece, be pepe o p i feqenl s neee o hn-

le he nepece.

tAke A lonG vIew

Be pepe o bil n eece plns o ess he sof sff

well beon he foml en e of he pojec o elie bsiness

le. Chnging hese specs es ime, pience, n consisen

n coninos cii. Be pepe o conine hese ciiies

beon pojec bonies eepe ino he ognizion.


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making change work22 solIdMethods,solIdbenefIts

Fo mos ognizions, clssic pojec mngemen, wih is foml

n sce elemens, hs been se fo eces. B foml

chnge mngemen mehos he no e pemee bsiness o

pojec opeions o significn egee. tos chnge mnge-

men, if eplicil pefome ll, ofen occs in he fom of impo-ise solions.

B consisen n sce chnge mngemen ppoch

iele ngible benefis fo compnies in o s. Pciiones

who always follow specific and formal change management proce-

dures h 52 pecen pojec sccess e, compe o 36 pe-

cen sccess e fo pciiones who improise according to the

situation. I is ineesing o noe h een hose who h foml

meho b i no se i consisenl fe slighl bee hn

hose who impoise (39 pecen, ess 38 n 36 pecen).

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fIGure 11 forMAl chAnGe MAnAGeMent Methods cAn only IMProve ProJect success If

they Are APPlIed

Project success rates were best or organizations that consistently used structured changemanagement methods a variety o less ormal approaches all resulted in success ratesbelow average (41 percent).

52%

39%

38%

36%

Inormal change management approach Formal change management approach


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Onl 24 pecen of pciiones in o s consisenl se fo-

ml chnge mngemen mehos. Seen-si pecen si hei

ppoch o chnge mngemen ws sll infoml (25 pecen),

hoc (8 pecen) o impoise (43 pecen). In cons, js oe

hlf of o esponens pplie foml pojec mngemen poce-

es consisenl.

fIGure 12 chAnGe MAnAGeMent Methods Are usuAlly InforMAl, Ad hoc or IMProvIsed

Seventy-six percent o organizations use a change management approach that is typically inormal,ad hoc or improvised; by contrast, 49 percent o organizations ailed to use ormal projectmanagement methods consistently.

24%

ProjectManagement

ChangeManagement

51%

Formal methods are used consistently Formal methods exist but not used on a consistent basis, ad-hoc or improvised

76%

49%

Oewhelmingl, he chnge mngemen ppoches of pojec

lees e qie imme. as ognizions fce inceses in boh

he bsole olme of chnge n is leel of complei, wie-

spe impoision ms iel o pofessionl, foml chnge mn-

gemen mehos pioi mos e beginning o ecognize.

When se whehe sn chnge mngemen ppoches

e necess, 87 pecen of pciiones nswee eihe yes o

tending toward yes. this cons beween hose seeing he le

of sn mehos n hose cll sing hem inices h

he nee fo chnge is opcing ognizions cen cpbili

o mnge i ssemicll: in essence, i is Mehos Gp.


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MakING GOOd uSE OF MEtHOdS

Gowing pojec complei n incese sensiii eging he

sofe o hien imensions of chnge is cceleing he esb-

lishmen of foml chnge mngemen in he pojec minsem

n is inegion ino pojec mngemen. Chnge mngemen

is nsfoming gll fom n o pofession, simil o he

eolion of he pojec mngemen iscipline, which hs ne-

gone fomlizion h se bo fo eces go.

Ping soli mehos ino pcice begins wih llocing esoces

o enc chnge meho h is ligne wih he ognizions

pojec mngemen ppoch. then i ms be se consisenl

hogho he ognizion. deeloping sn chnge meh-

oolog shol incle hese pcicl seps:

INTEGRATE, INTEGRATE, INTEGRATE

Mnge chnge s foml wosem wihin ech n ee poj-

ec, inege closel wih pojec mngemen n mnge wih

he sme igo.

Following a good solidmethodology that integrateswith the project really helpsto make a quicker start onthe change journey

Change Manager, Australia, Govern-

ment

fIGure 13 the Methods GAP

Despite the overwhelming majority o project leaders who recognize the value in standardizing changemanagement practices, very ew consistently use a systematic approach.

Need FormalMethods

87%

24%

Use FormalMethods

63%MethodsGAP

Percent answering "yes"


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KEEP ALL EYES ON THE PRIzE

Conol he scope of he chnge effo o emin focse on cii-

ies h ie he elizion of benefis efine b he oiginl bsi-

ness cse.

DRIvE CONSISTENCY

deelop n pomoe sn chnge meho h cn be

pplie consisenl fom pojec o pojec wihin o ognizion.

Commnice his wiel n monio is opion.

EMBED IN THE CULTURE

Incle he chnge meho n ssocie compeencies s p of

he eelopmen pogm fo fe lees.


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using moe epeience n sille chnge mnges n pojec

sponsos cn men ece is of oble pojecs. Effecie

chnge leeship in he fom of eice chnge mnges n

ceible n epeience sponsos is ciicl. I is eqll impon

o csce leeship esponsibili o ll leels of he ognizion,ceing empowee emploees who sppo n enc chnge.

tHE IMPaCt OF dEdICatEd CHaNGE MaNaGErS

Pciiones fon h eicing chnge mnge o pojec

incese he lielihoo of pojec sccess. ye 20 pecen of chnge

pojecs i no inole chnge mnge ll. Pojecs wih po-

fessionl chnge mnge h 43 pecen sccess e, compe

o 36 pecen sccess e fo pojecs wiho one.

fIGure 14 shAre of successful ProJects, InvolveMent of chAnGe MAnAGers

Success rates rose when a change manager was used on a project.

No ProfessionalChange Managers

36%

43%

ProfessionalChange Managers

19%success rAteIncreAse


betterskIlls,betterchAnGe


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tOP MaNaGEMENt SPONSOrSHIP

O finings showe h pciiones consie op mngemen

sponsoship o be he mos ciicl fco fo ming chnge sc-

cessfl. to impoe seg eecion, lees nee o engge,

enble n empowe emploees ll leels of he ognizion.9

top sponsoship is eqll il in ohe es lie seing copoe

cle n llocing esoces, incling he chnge mngeshemseles.

EMPLOyEE INvOLvEMENt MakES SuCCESSMOrE LIkELy

O finings sgges he nee fo boe inclsion of people if-

feen leels in he ognizion. Besies he fmili op-own hie-

ch h fomll csces ni-specific infomion, Chnge Mses

see he le in n me se of infoml, moe self-ognize com-

mnicions sces, sch s socil newos, he gpeine, ninfoml commniies of inees h eis in ll ognizions.

Engging emploees hogh inolemen n wo-w commni-

cion is powefl combinion: 72 pecen of pciiones beliee

emploee inolemen is ccil n 70 pecen beliee hones n

imel commnicion is impon. Bee commnicions n

emploee inolemen enble n empowe people, hen chnge

hppens through hem no js to hem.

Facilitate involvement oemployees and allow themto exercise infuence overthe change process.

Project Sponsor, Canada, Lie Sciencand Pharmaceuticals


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PARTICIPATIvE LEADERSHIP

Chnge lees wih picipie leeship sles wee moe liel

o he sccessfl pojecs. a song cle of empowemen n

elegion of ecision-ming powe isibes esponsibili fo

chnge hogho he ognizion. Lees who elege he

ecision pocess o hei sboines h 46 pecen pojec sc-

cess e, compe o 39 pecen sccess e fo hose who con-

sl wih sboines, hen me ecisions on hei own.

fIGure 15 shAre of successful ProJects, A coMPArIson of leAdershIP styles

Leadership styles had an important impact on project outcomes..


LEvEraGING SkILLS FOr BEttEr CHaNGE

Fo ems inole in chnge, enbling sills n enggemen

coss he ognizion shol be e pioi o help bil he

cpbiliies o sppo coninos chnge. Some pcicl sgges-

ions incle:

LEAD FROM THE TOP

Se ision n iecion clel, llocing esoces n esblish-

ing copoe cle fom he op. a chnge sponso shol be

ciel n isibl inole in seing oell iecion, pblicl

commnicing ll leels n sing iffeen echniqes n

mei, n eicing he igh sille esoces o he chnge

effo.

After consulting theirsubordinates, managers

decide on their own

39%

46%

Managers delegate theirdecision process to their

subordinates18%success rAteIncreAse


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INvOLvE THE PEOPLE

Emphsize emploee inolemen o ese esisnce o chnge,

boh iniil n gop leels, n se in plce mechnisms o

encoge his inolemen.

COMMUNICATE OR FAIL

Enble hones n imel wo-w commnicion o bil s n

commimen o chnge pogms n lees, n ece esis-

nce. use mliple chnnels n iffeen mei. te ime o

nesn he ience n how he lie o commnice.

GET THE RIGHT SKILLS EvERYWHERE

Enble pi eelopmen of inenl sills o eep pce wih

chnges in he eenl enionmen. Consie he esblishmen of

ssinble chnge mngemen cpbili wihin he

ognizion.


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making change work30 rIGhtInvestMent,rIGhtIMPAct

the igh bge fo chnge mngemen, spen effeciel on he

igh hings nsle ino significnl highe lielihoo of pojec

sccess. Howee, epening pon he objecies of picl

pojec, he igh leel of inesmen in chnge mngemen will

. reinfocing he nicipe le fom sch inesmens, mssie 72 pecen of pojec lees wol lie o ines moe in

chnge mngemen fo fe pojecs.

fIGure 16 the MAJorIty of ProJect leAders would lIke to Invest More to close the chAnGe GAP

Comparing current investments to plans or uture projects.

Invest Aboutthe sAMe

26%

Invest less

2%

Compared to current investment in changemanagement, on uture projects would you...

Invest More

72%

In fc, op ognizions inese onl 18 pecen moe in chnge

hn ohes, b wee ewe wih significnl highe pojec sc-

cess. this incemenl mon ws picll se o focs on eel-

oping insighs, mehos n he igh sills o be l effecie.

Pojec sccess es wee 23 pecen highe when he moninese in chnge ws gee hn 11 pecen of he pojec

bge.


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Ming moe effecie inesmens in chnge is no bo blinlieing nlimie sms of mone ino pojecs. rhe, i is bo

cing he imon pecisel, hogh focse inesmens in he

igh hings fo ech specific siion.

INvEStING WISELy IN CHaNGE MaNaGEMENt

Ognizions nee he igh bge o bil segic cpbiliies

n inege hem ino ognizionl pocesses n sces

inesing js lile moe hn ege pe pojec cn gel

impoe esls. Chnge Mses consie mone spen on chngemngemen s n inesmen, he hn n epenie. Some

pcicl ies incle:

tAckle coMPleXIty before It tAckles you

Ines p fon in gining n cing pon insighs h cn help o

oi n oecome boh epece n nepece hles ing

he cose of pojec.

fIGure 17 InvestMent levels

Organizations that invested less than 11 percent in change had a 35 percent success rate; those thatinvested more than 11 percent had a 43 percent success rate.

Investment 11%

23%success rAteIncreAseShare o successul projects

The ability to demonstratethe benets o a changeprogram was key in the shi

in thinking.

Project Manager, Canada, Lie Sci-

ences and Pharmaceuticals


34/48


REMEMBER TO EMPHASIzE THE HUMAN TOUCH

Ines in sills b sing well-ine chnge mnges moe consis-

enl n enble wiespe commnicions h engge emplo-

ees coss ll ognizionl leels.

PUT SOME METHOD INTO YOUR MADNESS

Ines in esblishing snize mehos o bil moe effecie

n long-em cpbiliies h sppo chnge effos, n emin

igiln bo pojec spening oell.


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CHaNGE MaStErS: tHEIr SECrEtS FOrSuCCESS

O sech fo he e o gee pojec sccess bings s bc o

he Chnge Mses, who chiee sccess es nel oble he

ege. We iscoee h Chnge Mses i no limi hei focs

o js one fce of he Chnge dimon.

Inse, his gop oo cions ele o ech of he fo fces of

he Chnge dimon n pojec sccess impoe sbsnill

s esl. Conesel, Chnge Noices neilize ee fce

n h f infeio esls, een when compe o js he

ege.

fIGure 18 how chAnGe MAsters And chAnGe novIces utIlIzed or underutIlIzed eAch fAcet

High concentration on all acets o the Change Diamond correlated to signicantly higherproject success rates.

8%

41% 95%success rAteIncreAse

80%

Top 20%Change Masters

AverageBottom 20%Change Novices

46% 61% 79%

12% 24% 37%

73% 79% 84%

10% 11% 13%

Real Insights - Pecenge of ognizions hing cle nesning of he chnge chllenge

Solid Methods - Pecenge of ognizions singfoml mehos consisenl

Better Skills - Pecenge of ognizions singchnge mnges fo chnge pojecs

Right Investment - Pecenge of pojec bgeinese in chnge mngemen

shInInG thedIAMond foreXtrAordInAryresults


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tHE WHOLE CHaNGE dIaMONd: GrEatEr tHaNtHE SuM OF ItS PartS

While ech Chnge dimon fce h isinc benefi inii-

ll, when compnies combine ll fo fces hei oell pojec

sccess incese micll f moe hn he sm of he ps

wol inice. Neglecing een one e cn inhibi chnge

ecellence.fIGure 19 IndIvIduAl versus AGGreGAte effect of vArIous ActIons

Combining all our Change Diamond acets resulted in an outstanding increase in project success.

52%

Real Insights:aweness of

Chnge Chllenge

43%

Better Skills:Pofessionl

Chnge Mnges

ChangeChampions:

Combining allFo Fces

43%

Right Investment:>11% Chnge

Bge

52%

Solid Methods:Consisen se ofFoml Mehos

Project success rate o individual acets

41%aegepojecsccesse

Increase in project success due tosynergy eect o all our acets together

19%80%


37/48


to l shine in encing chnge, ognizions nee o polish ll

fo fces of hei Chnge dimon.

B combining ll fo fces, Chnge Mses ine n 80 pecen

sccess e n incese f beon he sm of he iniil

effecs. togehe, Figes 18 n 19 emonse he poenil

ews of eoing enion o:

reAl InsIGhts, reAl ActIons

better skIlls, better chAnGe

solId Methods, solId benefIts

rIGht InvestMent, rIGht IMPAct.


38/48


arE yOu rEady?

as oself he lis of qesions below, eneing checm in he

pplicble colmn. yo checms cn help o ienif o c-

en senghs n wenesses eging ech of he fo fces of

he Chnge dimon. the esling pen cn help o ogniz-

ion pinpoin whee o e cions now o len how o bee el

wih chnge n ep he benefis of hnling i well.

YES

fIGure 20 how do you rAnk on the chAnGe dIAMond fAcets

Look or patterns in your answers to see where your organization most needs to improve.

TENDINGTOWARD YES

TENDINGTOWARD NO NO

GAINING REAL INSIGHTS AND TURNING THEM INTO ACTIONS

does o ognizion he goo common nesning of wh pojecshe file o scceee in he ps?

ae he people n cll specs of he chnge pln gien emphsis eql oh plce on pocess n echnologicl chnges?

Is chnge iewe s long-em nsfomion hs p of seg, soppose being seen s sccession of iniil sepe pojecs?

MAKING GOOD USE OF METHODS

does o ognizion he consisen, ie n ccepe meho fo chngemngemen h is pplie o ee pojec?

do ll pojecs he n ppoe bsiness cse, n meho fo ienifing ncing benefis gins h cse?

Is chnge mnge s foml wosem in ll significn pojecs?

LEVERAGING SKILLS FOR BETTER CHANGE

does o ognizion ines in biling chnge mngemen sills which cnbe leege coss pojecs?

Is he ole of pojec sponso well-efine, n is h ole hel cconble fospecific commnicion n iecion seing ss?

ae hee pocesses n echnologies in plce o llow people o become

inole in he chnge, ge cce infomion n poie feebc?

INVESTING WISELY IN CHANGE MANAGEMENT

does o ognizion incle chnge s line iem when bgeing pojecs?

Is o chnge mngemen bge se elie o pojec complei n is, soppose o sigh pecenge?

Is he chnge bge focse lgel on nesning n ecing ocomplei, eeloping consisen mehos n cqiing he bes chnge sills?


39/48


CONCLuSION

While he Enepise of he Fe is inee hng fo chnge, o

Ming Chnge Wo s shows h eecing chnge well

emins he ecepion, hogh ceinl n chieble gol. O

esech wih pciiones eele pcicl insighs bo closing

he chnge gp incling he insigh h sof, people-ele

fcos picll pesen gee chllenges hn h, echnolog-ele fcos h e picll esie o ienif n mese.

Compnies cn no longe jsif o ffo n ad hocppoch o

chnge mngemen. We iscoee h chnge mngemen is

ning poin fom n o pofessionl iscssion, fom

impoision o iche, moe ssemic ppoch, bse on cle

empiicl pespecies on wh wos n wh oes no.

Impoing pojec ocomes eqies enion o combinion of

cing on el insighs, emploing bee sills, esblishing soli

mehos n llocing he igh inesmens. B focsing on ll fo

fces of he Chnge dimon, ognizions cn gin snegies

h me chnge wo in hei fo: elieing moe sccessfl

pojecs n biling chnge mngemen cpbili h is il

o becoming n Enepise of he Fe.


40/48


tHE IBM INStItutE FOr BuSINESS vaLuE

IBM Globl Bsiness Seices, hogh he IBM Insie fo Bsiness

vle, eelops fc-bse segic insighs fo senio bsiness

eecies on ciicl ins-specific n coss-ins

isses. this eecie bief is bse on n in-eph s b he

Seg & Chnge em. I is p of n ongoing commimen b IBM

Globl Bsiness Seices o poie nlsis n iewpoins hhelp compnies elize bsiness le. yo m conc he hos

o sen n e-mil o [email protected] fo moe infomion. Fo he

IBM 2008 Globl CEO S efeence in his s, go o: ibm.com/

enepiseofhefe. Fo ohe elen sies, o m lso

bowse o Web sie ibm.com/iib.


41/48


aBOut tHE autHOrS

Hns Heni Jgensen is n associe Pne in IBM Globl Bsiness

Seices n Globl Le of he Chnge Mngemen Commni. He

hs le nmeos pojecs in he e of mngemen n seg

consling in Eope, ameics n asi oe he ps 15 es. Hns

Heni cn be eche [email protected].

Lwence Owen is he Globl Lee of he Ognizion n

Chnge Seg Pcice, wihin IBM Globl Bsiness Seices. He is

esponsible fo leing he eelopmen of ognizionl n

chnge segies fo cliens o ie hei nsfomion gens,

n mnges one of he lges ognizion n chnge consling

ems globll. Lwence cn be eche [email protected].

anes Nes is Senio Mnging Consln wih he Seg n

Chnge pcice of IBM Globl Bsiness Seices n les he se-

ice innoion esech he klshe Seice resech Insie

(kSrI), fone joinl b klshe uniesi n IBM. anes cn

be eche [email protected].


42/48


CONtrIButOrS

Sl Bemn, Globl n ameics Seg n Chnge Lee, IBM

Globl Seices

Pee kosen, Globl Lee of he IBM Insie fo Bsiness vle,

IBM Globl Seices

M Bcinghm, Senio Mnging Consln, Seg n

Chnge, IBM Globl Bsiness Seices

Mie ash, Senio Mnging Consln, Seg n Chnge, IBM

Globl Bsiness Seices

Json Seng, Senio Consln, Seg n Chnge, IBM Globl

Bsiness Seices

Jcqi Wen, Pne, Ognizion Chnge Seg, uk n

Ieln, IBM Globl Bsiness Seices

Pofesso d. Geog ringe, dieco, Cene fo Elion n

Mehos (Zenm f Elion n Mehoen ZEM), uniesiof Bonn

Sn Piengeli, Pojec Mnge, Cene fo Elion n

Mehos (Zenm f Elion n Mehoen ZEM), uniesi

of Bonn


43/48


aCkNOWLEdGMENtS

te collboie innoion ws ehibie b moe hn 1,500 cliens

n mn ohe colleges hogho IBM who conibe o his

ppe. In picl, his ppe benefie fom iionl inp n

esech fom Jg albech, ann Bisch, Coln Bgemeise, Ewin

e Goo, rosne Giois, Ls Goschling-knsen, dniel Hmpe,

Chisoph kfn, to kneo, Pic kme, Enice kwon, JnNemnn, Si yong P, Gelle Pjo, aoele Sebille, Nhlie

Sie, Gce to, r Wng n Shi rong Zhng.

FOr FurtHEr INFOrMatION

to fin o moe bo his s, plese conc one of he Seg

& Chnge lees below:

Global and Americas Saul Berman [email protected]

Asia Pacific Steen Daidson [email protected]

Japan Ryuichi Kanemaki [email protected]

Northeast Europe Sara Longworth [email protected]

Southwest Europe John Papatheohari [email protected]


44/48


rEFErENCES1 the Enepise of he Fe: IBM Globl CEO S 2008. IBM

Copoion. M 2008. www.ibm.com/enepiseofhefe

2 Ibi.

3 Ibi.

4 the Enepise of he Fe: IBM Globl CEO S 2008. IBM

Copoion. M 2008. www.ibm.com/enepiseofhefe

5 Ibi.

6 Jgensen, M. n k.J. Molen-sol. How Lge ae

Sofwe Cos Oens? Ciicl Commens on he Snish

Gops CHaOS repos. Information and Software Technology

48(4). 2006. hp://siml.no/esech/engineeing/pblic-

ions/Jogensen.2006.4

7 Bse on eene CaGr 2003 o 2006. the Enepise of he

Fe: IBM Globl CEO S 2008. IBM Copoion. M 2008.www.ibm.com/enepiseofhefe


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8 Gesne, Lo. Who Says Elephants Cant Dance? Leading a Great

Enterprise Through Dramatic Change. HpeBsiness. New yo.

2003.

9 the finings fom his s lign wih he cemic liee.

See fo emple: koe, John. Leing Chnge: Wh

tnsfomion Effos Fil. Harvard Business Review. Mch-apil

1995.


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