Prosci © 2009 © Prosci 2009. Reproduction or distribution prohibited. Managing the portfolio of change Tim Creasey Prosci, Director of R&D www.change-management.com
Prosci © 2009 © Prosci 2009. Reproduction or distribution prohibited.
Managing the portfolio of change
Tim CreaseyProsci, Director of R&D
www.change-management.com
Prosci © 2009 © Prosci 2009. Reproduction or distribution prohibited.
Agenda
• Change saturation
• Change Portfolio Management
Prosci © 2009 © Prosci 2009. Reproduction or distribution prohibited.
Acme 2008Alpha
Beta
Gamma
Delta
EpsilonZeta
Six Sigma deployment
IT upgrades
ERP roll out
Cost Cutting 101New benefits package
New performance management systems
New compensation plan
Reorganization of field officesChange A
Change B
Change C
Change D
Change E
Chang
e F
Lean manufacturing
What are the chances that, amongst all the mess, this will
be a High-Impact Change?
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Change saturationWhen:
Change disruption
>Change capacity
How much can
we handle?
How much is
going on?
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Saturation foundation:Why it happens?
• No one has a high-level view of the entire portfolio of change and the collective impact
Project A Project B Project C
Project D Project E Project F
Project GProject H
Project I Project JProject K
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Saturation foundation:Why it happens?
Project teams are focused solely on their solution (“key”)
Employees are the ones who feel the brunt
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Saturation foundation:Why it happens?
• Change velocity on the rise– Frequency– Number– Size– Importance
• Over ¾ of 2009 study participant expect an increase in change over the next two years
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0%
10%
20%
30%
40%
50%
Decrease significantly
Decrease slightly
Remain unchanged
Increase slightly
Increase significantly
Per
cent
of r
espo
nden
ts
Benchmarking results: expected change in next two years
* From Prosci’s 2009 benchmarking study
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Saturation consequences
• Individualbehaviors
• Projects and project teams
• Organizationalsymptoms
What costs of change saturation have you seen in
your organization?
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Levels of saturation
0% 5% 10% 15% 20% 25% 30%
Do not know
My organization has plenty of spare capacity for change
My organization has quite a bit of spare capacity for change
My organization has some spare capacity for change
My organization is nearing the point of change saturation
My organization is at the point of change saturation
My organization is past the change saturation point
Percent of respondents
2009
2007
* From Prosci’s 2009 benchmarking study
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Prosci Change Saturation ModelChange saturation
Change capacity Change disruptionNumber of changes
Disruption of each
Nature of the change
Change management effectiveness
History
Structure
Change mgmt competency
Culture
Perceived need for change
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Why we need Portfolio Management?
• Change saturation– Individual– Projects– Organization
• Change collision– Funding– Human resources
for project/change teams
– Timeframe– Mindshare– Collective impact
on people in the org
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Why we need CHANGE Portfolio Management?
• There has been some progress in portfolio management coming out of the PM world
• A portfolio view must go beyond a list
• The portfolio perspective must address the cumulative and collective impact of the changes on the people in the organization
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Conceptual build
Goal of Change Portfolio Management:
– Bring clarity to the entire portfolio of change impacting the organization.
– Utilize a process for understanding, evaluating and managing the portfolio.
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Change Portfolio Management Process
• Step-by-step process for creating portfolio perspective
• Requires you to wear your “Sherlock Holmes” hat
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
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Identify:Scope the portfolio
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
Scope of change portfolio
• Entire enterprise
• Single division
• Change source (e.g. IT changes)
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Identify:Identify changes
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
AB C D E
F
Changes
Scope of change portfolio
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Identify:Identify groups
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
AB C D E
F
Changes
Groups
1 23 64 5
7 8
Scope of change portfolio
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AB C D E
F
Changes
Groups
1 23 64 5
7 8
Scope of change portfolio
Investigate:Change details
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
A
• Who is involved?• How big is it?• How much impact?• When will it cause disruption?
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Investigate:Change assessments
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
Risk evaluation• Small change /
Large change• Change ready /
Change resistant
Project health• Leadership /
Sponsorship• Project Mgmt• Change Mgmt
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Tool: Change Scorecard
• One-pager for each change with common data set of details and assessment results
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Investigate:Groups impacted
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
AB C D E
F
Changes
Groups
1 23 64 5
7 8
Scope of change portfolio
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Investigate:Groups impacted
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
AB C D E
F
Changes
Groups
1 23 64 5
7 8
Scope of change portfolio
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Investigate:Groups impacted
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
AB C D E
F
Changes
Groups
1 23 64 5
7 8
Scope of change portfolio
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Analyze:
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
Making sense of the
portfolio
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Heat Map build
AB C D E
F
12 3 64 5
78
Changes
Groups
Scope of change portfolio
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Heat Map build
Cha
nge
A
Cha
nge
B
Cha
nge
C
Cha
nge
D
Cha
nge
E
Cha
nge
F
Group 1 3
Group 2 1
Group 3
Group 4 5
Group 5
Group 6
Group 7 3
Group 8
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Heat Map build
1 542 3
Saturated and disrupted
environment
Little or no change
Fully engaged in change
CEO
Group 1
Group 2 Group 3
Group 4
Group 5
Group 6
Group 7
Group 8
CEO
Group 1
Group 2 Group 3
Group 4
Group 5
Group 6
Group 7
Group 8
CEO
Group 1
Group 2 Group 3
Group 4
Group 5
Group 6
Group 7
Group 8
CEO
Group 1
Group 2 Group 3
Group 4
Group 5
Group 6
Group 7
Group 8
CEO
Group 1
Group 2 Group 3
Group 4
Group 5
Group 6
Group 7
Group 8
All
Prosci © 2009 © Prosci 2009. Reproduction or distribution prohibited.
President / CEO
COO VP Finance
Mgr Infrastructure
Planning
Mgr Corp IT
Mgr Accounting
Supervisor Accts
Receivable
Supervisor Accts
Payable
Supervisor Cost Accting
VP HRVP IT
Mgr Finance
Mgr IT Helpdesk
Mgr Staffing
Mgr Performance
Mgmt
Mgr Benefits
Director of HR Consulting
Director of PMO
President Business Unit 3
President Business Unit 2
President Business Unit 1
BU 1 Mgr Mkting
BU 1 Mgr Sales
BU 1 Mgr Mfging
BU 1 Acct Mgr
BU 1HR
BU 2 Mgr Mkting
BU 2 Mgr Sales
BU 2 Mgr Mfging
BU 2 Acct Mgr
BU 2HR
BU 3 Mgr Mkting
BU 3 Mgr Sales
BU 3 Mgr Mfging
BU 3 Acct Mgr
BU 3HR
1 542 3
Saturated and disrupted
environment
Little or no change
Fully engaged in change
Tool: Change Heat Maps
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Tool: Schedule collision plot2008Q4 2009Q1 2009Q2 2009Q3 2009Q4
Change A
Change B
Change C
Change D
Change E
Change F
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Tool: Plots
Investment $$$
Scope
Importance
Disruption
0
1
2
3
4
5
6
$0 $2 $4 $6 $8 $10
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Tool: PlotsPeople risk analysis
10
35
60
10 35 60Change characteristics score
Org
aniz
atio
n at
tribu
tes
scor
e
Low risk
High riskMedium risk
Medium risk
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Investment vs Risk vs HealthInvestment vs Risk vs Health
0
1
2
3
4
5
6
7
8
9
10
$0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10
Investment (in millions)
Peop
le ri
sk s
core
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Real-time portfolio analysis
Cut out the triangles you need to show your project health and plot on
the Investment vs Risk vs Health graph in the back of your workbook
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Real-time portfolio analysis data sheetProject Inv ($$$) Risk
scorePCT scores
L/S PM CM
Project: Name of the project in the portfolio
Inv ($$$): Investment in the project (estimate a value)
Risk score: Score between 1 and 9 – in the Portfolio Toolkit, this score comes from the result of two assessments: a Change characteristics assessment and an Organizational attributes assessment. For this exercise, you will assign a value:
PCT scores: These scores result from Prosci’s Project Change Triangle assessment which looks at Leadership/Sponsorship, Project Management and Change Management. For this exercise, you will be assigning one of three values:
• Jeopardy (red)• Alert (yellow)• Strength (green)
Small change tochange-ready groups
Small change tochange-resistant groups ORLarge change tochange-ready groups
Large change tochange-resistant groups
1 = Low –2 = Low3 = Low +
4 = Medium –5 = Medium6 = Medium +
7 = High –8 = High 9 = High +
Leadership / Sponsorship
corner
Project Management
corner
Change Management
corner
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Largechange
People risk analysis
10
35
60
10 35 60
Change characteristics score
Org
aniz
atio
nal a
ttrib
utes
sco
re
Low risk
High riskMedium risk
Medium risk
Smallchange
Changeresistant
Changeready
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Leadership / Sponsorship
corner
Project Management
corner
Change Management
corner
<20 High risk / jeopardy –needs immediate action
20-25 Alert / potential risk –needs further investigation
>25 Strength – should be leveraged and maintained
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Investment vs Risk vs Health
0
1
2
3
4
5
6
7
8
9
10
$0 $2 $4 $6 $8 $10Investment
Peo
ple
risk
scor
e
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Portfolio DashboardPortfolio Dashboard Changes in portfolio: 0
For use with Prosci's Change Portfolio Management Toolkit
Investment analysis Change efforts at risk (and why)Total investment in the portfolio: -$ % of changes fully funded NA% of changes fully resourced NANumber of "large investment" changes 0% of budget in "large investment" changes NANumber of "medium investment" changes 0% of budget in "medium investment" changes NANumber of "small investment" changes 0% of budget in "small investment" changes NA
Scope distribution Count % of portfolio5 = entire enterprise 0 NA4 = multiple divisions 0 NA
Strategic importance distribution Count % of portfolio5 = top 5 projects 0 NA4 = critical buisness initiative 0 NA Change efforts that are not fully funded
Gap distribution Count % of portfolio5 = no resemblance to today 0 NA4 = dramatically different 0 NA
People risk distribution Count % of portfolioHigh risk quadrant 0 NA Change efforts that are not fully resourced (human perspective)Medium risk quadrant 0 NALow risk quadrant 0 NA
Project health from PCT Assessment Count % of portfolioChanges with 0 jeopardy areas (red) 0 NAChanges with 1 jeopardy area (red) 0 NAChanges with 2 jeopardy areas (red) 0 NA Groups in organization at risk (and why)Changes with 3 jeopardy areas (red) 0 NA
Leadership/Sponsorship health Count % of portfolioLeadership/Sponsorship as strength 0 NALeadership/Sponsorship as alert 0 NALeadership/Sponsorship as jeopardy 0 NA
Project Management health Count % of portfolioProject Management as strength 0 NA Points in time facing risk from schedule collisionProject Management as alert 0 NAProject Management as jeopardy 0 NA
Change Management health Count % of portfolioChange Management as strength 0 NAChange Management as alert 0 NAChange Management as jeopardy 0 NA
Prosci © 2009 © Prosci 2009. Reproduction or distribution prohibited.
Act
• Identifying risks
• Presenting the portfolio
• Acting on the portfolio
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
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Act:Risks you can identify
• To projects
• To groups
• At points-in-time
• To entire organization
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
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Monitor, Manage and Control• Projects entering
– What impact would this initiative have on the current portfolio of change in the organization?
• Projects exiting– Removing the change from
the portfolio– Evaluating change impacts– Learning from changes
leaving the portfolio
Scope the portfolioIdentify changesIdentify groups
Change detailsChange assessmentsGroups impacted
Heat MapsPlotPortfolio Dashboard
Identifying risksPresenting the portfolioActing on the portfolio
Identify
Investigate
Analyze
Act
Monitor, Manage and Control
Prosci © 2009 © Prosci 2009. Reproduction or distribution prohibited.
Prosci’s newChange Portfolio Toolkit
• The toolkit enables you to:– Inventory the change efforts underway in the organization– Segment effected groups throughout the organization– Map changes to the groups being impacted– Collect a common set of data on each initiative– Assess the risk and health of each change effort– Create Heat Maps to illustrate change saturation– Produce numerous plots showing portfolio positioning– Identify change efforts, groups and points in time at risk
Prosci © 2009 © Prosci 2009. Reproduction or distribution prohibited.
Someone needs to make sense of the portfolio of change
Acme 2008Alpha
Beta
Gamma
Delta
EpsilonZeta
Six Sigma deployment
IT upgrades
ERP roll out
Cost Cutting 101New benefits package
New performance management systems
New compensation plan
Reorganization of field officesChange A
Change B
Change C
Change D
Change E
Chang
e F
Lean manufacturing
Prosci © 2009 © Prosci 2009. Reproduction or distribution prohibited.
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