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So the objective of running an INPACT assessment is to change mindsets
In order to do this we need to provide clear and simple top-level indicators that managers can understand quickly
We use a dashboard approach, including route-maps and RED / AMBER / GREEN traffic light indicators
V.HighV.HighV.High
V.HighV.HighHigh
V.HighHighHigh
HighHighHigh
HighHighHigh
HighHighMedMedMed
MedMedMedLow
MedLowLow
LowLow
5432Level 1
9. Pragmatic/Empowered
8. Systemist
7. Imaginist
6. Empiricist
5. Pragmatic/ Aligned
4. Aligned
3. Dialectic
2. Structuralist
1. Pragmatic/ Anarchic
Management Culture
Business Process Capability
V.HighV.HighV.High
V.HighV.HighHigh
V.HighHighHigh
HighHighHigh
HighHighHigh
HighHighMedMedMed
MedMedMedLow
MedLowLow
LowLow
5432Level 1
9. Pragmatic/Empowered
8. Systemist
7. Imaginist
6. Empiricist
5. Pragmatic/ Aligned
4. Aligned
3. Dialectic
2. Structuralist
1. Pragmatic/ Anarchic
Management Culture
Business Process Capability
V.HighV.HighV.High
V.HighV.HighHigh
V.HighHighHigh
HighHighHigh
HighHighHigh
HighHighMedMedMed
MedMedMedLow
MedLowLow
LowLow
5432Level 1
9. Pragmatic/Empowered
8. Systemist
7. Imaginist
6. Empiricist
5. Pragmatic/ Aligned
4. Aligned
3. Dialectic
2. Structuralist
1. Pragmatic/ Anarchic
Management Culture
9. Pragmatic/Empowered
8. Systemist
7. Imaginist
6. Empiricist
5. Pragmatic/ Aligned
4. Aligned
3. Dialectic
2. Structuralist
1. Pragmatic/ Anarchic
Management Culture
Business Process Capability
9 Pragmatist/Empowered9
8SystemistImaginist
7
6Empiricist
5
3Dialectic
INTERNALFOCUS
(Individual)
EXTERNALFOCUS
(Organisation)
Pragmatist1
3Rationalist
4Aligned
Structuralist2
5 Pragmatist/Aligned
9 Pragmatist/Empowered9
8SystemistImaginist
7
6Empiricist
5
3Dialectic
INTERNALFOCUS
(Individual)
EXTERNALFOCUS
(Organisation)
Pragmatist1
3Rationalist
4Aligned
Structuralist2
5 Pragmatist/Aligned
9 Pragmatist/Empowered9
8SystemistImaginist
7
6Empiricist
5
3Dialectic
INTERNALFOCUS
(Individual)
EXTERNALFOCUS
(Organisation)
Pragmatist1
3Rationalist
4Aligned
Structuralist2
5 Pragmatist/Aligned
9999
8SystemistImaginist
7Imaginist
7
6Empiricist
6Empiricist
6Empiricist
55555
3Dialectic
3Dialectic
INTERNALFOCUS
(Individual)
INTERNALFOCUS
(Individual)
INTERNALFOCUS
(Individual)
EXTERNALFOCUS
(Organisation)
EXTERNALFOCUS
(Organisation)
EXTERNALFOCUS
(Organisation)
Pragmatist1Pragmatist1
3Rationalist
3Rationalist
4Aligned
Structuralist2
Structuralist2
StructuralistStructuralist2
5 Pragmatist/Aligned
1.InitialAd hoc process
Chaotic
2.RepeatableStable process
Controlled environmentBasic
management control
3.DefinedStandard process
Consistent ExecutionProcess
definition
4.ManagedMeasured process
Quality and Productive Improvement
Process measurement
5.OptimisedEffective process
Continuing ImprovementProcess control
1.InitialAd hoc process
Chaotic
2.RepeatableStable process
Controlled environmentBasic
management control
3.DefinedStandard process
Consistent ExecutionProcess
definition
4.ManagedMeasured process
Quality and Productive Improvement
Process measurement
5.OptimisedEffective process
Continuing ImprovementProcess control
1.InitialAd hoc process
Chaotic1.InitialAd hoc process
Chaotic
2.RepeatableStable process
Controlled environmentBasic
management control
2.RepeatableStable process
Controlled environmentBasic
management control
3.DefinedStandard process
Consistent ExecutionProcess
definition
3.DefinedStandard process
Consistent ExecutionProcess
definition
4.ManagedMeasured process
Quality and Productive Improvement
Process measurement
4.ManagedMeasured process
Quality and Productive Improvement
Process measurement
5.OptimisedEffective process
Continuing ImprovementProcess control
5.OptimisedEffective process
Continuing ImprovementProcess control
75 4803600
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2000025000
3000035000
4000045000
5000055000
6000065000
7000075000
80000
1 2 3 4 5 6
Simple project
Not simple -needs some
project management
A complex project –needs an
experienced project
manager
Beyond this point your project is too complex –
break it down into separate projects
and employ a programme
manager
75 4803600
10800
32400
72000
05000
1000015000
2000025000
3000035000
4000045000
5000055000
6000065000
7000075000
80000
1 2 3 4 5 6
Simple projectSimple projectSimple project
Not simple -needs some
project management
Not simple -needs some
project management
A complex project –needs an
experienced project
manager
A complex project –needs an
experienced project
manager
Beyond this point your project is too complex –
break it down into separate projects
and employ a programme
manager
Beyond this point your project is too complex –
break it down into separate projects
and employ a programme
manager
- %Total potential impact on benefits
+ %Total potential impact on project timescales/costs
Other factors impact estimated at:
IT Solution9
Relationship with suppliers8
OTHER FACTORS
Delivery of Project Impact estimated at:
Benefits Realisation7
Distrust factor6
Visibility of process5
DELIVERY OF PROJECT
Project Impact estimated at:
Complexity of project4
Clarity of objectives3
PROJECT
Capability Impact estimated at:
Capability Maturity2
Management Culture1
ORGANISATION
Benefits-%
Time/Cost +%
Potential ImpactStatusComponent
- %Total potential impact on benefits
+ %Total potential impact on project timescales/costs
Other factors impact estimated at:
IT Solution9
Relationship with suppliers8
OTHER FACTORS
Delivery of Project Impact estimated at:
Benefits Realisation7
Distrust factor6
Visibility of process5
DELIVERY OF PROJECT
Project Impact estimated at:
Complexity of project4
Clarity of objectives3
PROJECT
Capability Impact estimated at:
Capability Maturity2
Management Culture1
ORGANISATION
Benefits-%
Time/Cost +%
Potential ImpactStatusComponent
Time & Cost
Distrust
(Trust % - 100)
People trust each other, relationships are good = Speedy change = Low cost = SUCCESS Levels of trust are poor, relationships
difficult = Slow or no change = Costs go up = FAILURE
Time & Cost
Distrust
(Trust % - 100)
People trust each other, relationships are good = Speedy change = Low cost = SUCCESS Levels of trust are poor, relationships
difficult = Slow or no change = Costs go up = FAILURE
Possible OutcomesAccountability?
Plan in place?
No
No
Yes
Yes
This project will not achieve its savings objectivesNo
Without formal framework, local managers will not be held accountable in practice – put one in place
Yes
Make local managers accountable for adopting the new processes and redeploying released resources to drive improved performance, or the benefits will not be realised
No
This project has a good chance of achieving the planned benefits
Yes
Possible OutcomesAccountability?
Plan in place?
No
No
Yes
Yes
This project will not achieve its savings objectivesNo
Without formal framework, local managers will not be held accountable in practice – put one in place
Yes
Make local managers accountable for adopting the new processes and redeploying released resources to drive improved performance, or the benefits will not be realised
No
This project has a good chance of achieving the planned benefits
‘The Change Equation’ shows you how to take two models:
1. the Organisational Culture Evolution spiral
2. the Business Process Capability ladder
…and combine them to provide a baseline:the Organisational Capability Indicator
It then shows you how to assess the complexity and risks of a change project (3)
By analysing and quantifying the gap between Organisational Capability and Project Complexity, you can predict the likely success or failure of a change project
We can then add other tools to enrich the gap analysis
The Harvard Business School tracked the impact of change efforts among the Fortune 100 and they also found that only 30% produced a positive bottom-line improvement…
A recent survey of change programmes in <400 European organisations quoted by Prof. John Oakland, Emeritus Professor, Leeds University Business School found that:
• 90% of change programmes faced major implementation problems
• Only 30% delivered measurable business improvements
2004: HM Prison Service commissions C-NOMIS to give prison and probation officers real-time access to offenders’ records
June 2005: the approved lifetime cost of the project is quoted as £234m
March 2007: Home Secretary John Reid: “the main C-NOMIS base release, encompassing full prison and probation functionality, will be available no later than July 2008"
July 2007: [just 4 months later!] £155m has been spent, C-NOMIS is two years behind schedule; estimated lifetime project costs are now £690m. The Ministry of Justice suspends the project
How can they have let a Minister do that? Surely someone knew…?
National Audit Office report:• The project board accepted assurances that the project was “all
going well” and nobody knew what was being delivered for the money being spent
• There were insufficient resources and structures in place to deliver such a complex project
• Over time policy developed and stakeholder requirements changed, but there was no cumulative view of the impact of change requests on costs and timescales
• No resources were allocated to simplifying and standardising business processes across the 139 prisons and 42 probation areas, each of which had their own ways of working
The Commons Public Accounts Committee report verdict: “a spectacular failure – in a class of its own”
Passport Office: • In 1999 delays in processing British passport applications,
following the introduction of the Passport Agency’s new system, cost £12 million
• £16,000 was allegedly spent on umbrellas to shelter those queuing in the rain to collect their passports!
MOD: • In 2002 a project to replace the British Army, Royal Navy and
Royal Air Force inventory systems with a single system (the Defence Stores Management Solution) was brought to a halt after £130 million had been spent
• Hardware worth a little over £12 million was able to be used elsewhere but the remaining £118 million was written off as a loss.
“The the small software error was the straw that broke the camel's back, but the responsibility for the LAS's CAD system failure does not lie solely on the single developer who made the error or even the developing organization to which he belonged. Rather, the attitudes of key LAS members toward the project and the unreasonable restraints they placed on the project allowed the failure to occur.” National Audit Office report
MFI• 2004/05: MFI’s new ERP system brought in - and crashes• Total loss of customer order data reported• 2005/06: UK retail division reports a ‘substantial loss’ following
the discovery of significant issues with the system which are affecting its ability to dispatch orders
• MFI said they needed to spend another £30 million on it• 26 Nov 2008 - MFI goes into administration with the loss of
HP• In 2004, HP's project managers knew all of the things that could
go wrong with their ERP centralisation programme. But they just didn't plan for so many of them to happen at once.
• The project eventually cost HP $160 million in order backlogs and lost revenue—more than five times the project's estimated cost.
• Gilles Bouchard, then-CIO of HP's global operations, says: "We had a series of small problems, none of which individually would have been too much to handle. But together they created the
perfect storm." There’s a clue in there, somewhere…
We’re surrounded by examples of exponential growth: For example, compound interest:
• "Scientists have developed a powerful new weapon that destroys people but leaves buildings standing – it's called the 17% interest rate.” Johnny Carson, The Tonight Show, 1980
• All that we had borrowed up to 1985 was around $5 billion, and we have paid about $16 billion; yet we are still being told that we owe about $28 billion. If you ask me what is the worst thing in the world, I will say it is compound interest.
We live in a world that can change exponentially – but we have brains that are hardwired to plot things out linearly - the software in our brains compels us to think about progressions as being simple arithmetic ones
"The greatest shortcoming of the human race is our inability to understand the exponential function." Prof Albert Bartlett, emeritus Professor of Physics at the University of Colorado
So as a species, and a society, we deal poorly with uncertainty in non-linear domains.
Most risk management approaches work something like this:• Make a list of risks• Give them a weighting• Add up the scores• That is supposed to tell you something useful – it might be the
amount of contingency you need for the risk, or something like that
• When the risks you anticipated happen, they become issues• When the risks you didn’t anticipate happen, you become a
Think about a project you are familiar with. Where do you think you are? Now do the numbers: Stakeholders x Processes x Time (in months) Where are you actually?
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75 4803600
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0
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25000
30000
3500040000
45000
50000
55000
60000
6500070000
75000
80000
1 2 3 4 5 6
Not simple –needs
experienced project
management
A complex project –
needs dedicated
project team
Beyond this point your project is too complex – break it down into smaller
projects and employ a skilled programme
manager
Simple project – needs some
project management
Co
mp
lexi
ty F
ac
tor
75 4803600
10800
32400
72000
0
5000
1000015000
20000
25000
30000
3500040000
45000
50000
55000
60000
6500070000
75000
80000
1 2 3 4 5 6
Not simple –needs
experienced project
management
Not simple –needs
experienced project
management
Not simple –needs
experienced project
management
A complex project –
needs dedicated
project team
A complex project –
needs dedicated
project team
Beyond this point your project is too complex – break it down into smaller
projects and employ a skilled programme
manager
Beyond this point your project is too complex – break it down into smaller
The Imaginist Company is a change management consultancy We specialise in helping private and public sector clients identify
and overcome barriers to change and performance improvement Under our 'bethechange' brand, we work with non-profit
organizations across the world, advising them on strategic development and transformational fundraising programmes
Working with a team of associates and partners, Imaginist undertakes projects and programmes which require: • ‘Quantum’ thinking and the creation of new approaches
• Research, diagnostic assessment, analysis and evaluation
• Development of clearly articulated guidelines and policy documentation