Building Future Proof Organisations with Change Management

Vicky Emery,
Director – Change Capability
Services, Being Human
September 2015
Ready, Set, Change:
Building a Future Proof
Organisation

Introducing Being Human
•  Founded in 1994
•  Our mission: develop
change-capable people and
organisations so they
achieve the benefits of
change.
•  Exclusive Prosci Primary
Affiliate Australia and New
Zealand.
•  The 3 Prosci Certified
Instructors in the APAC
region
2

Programs coming in 2016
• ‘Prosci Change
Management Certification
Program’
•  4 Public programs - Auckland &
Wellington (Feb, May, Aug, Nov)
•  Dates and venues announced
end of September
•  PMI, AIPM and CMI endorsed
• ‘Building Organisational
Change Capability’
• ‘Delivering Project Results’
3

Topics
•  Why we need to change
the way we change
•  Global outlook – latest
research
•  Triggers to get started
•  Highest impact activities
•  Mistakes to avoid
•  Finding a home for
Change Management
•  What role can Project
Managers play?
•  Q&A
4
“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

Why do we need to change the way
we change?
5

Change is the new “business as usual”
6

Success rates of change remain low
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
8
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%

We can’t afford “hit and miss” change….
10
We need consistent, successful implementation and
benefit realisation with
high employee engagement

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.
11
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

Snapshot of participants from Aus & NZ
12

Effective Change Management
increases success rates by a factor of 6
Effective 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"
13
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)
P
e
rc
e
n
t
o
f
re
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p
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ts
th
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xc
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d
p
ro
je
c
t
o
b
je
c
tiv
e
s
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.
13

14
Effective Change Management contributes to
staying on budget
48%
63%
71%
81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=258)
Fair
(n=737)
Good
(n=1001)
Excellent
(n=180)
P
e
rc
e
n
t
o
f
re
s
p
o
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d
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ts
th
a
t
w
e
re
o
n
o
r
u
n
d
e
r
b
u
d
g
e
t
Overall effectiveness of change management program
* Data from 2007, 2009, 2011 and 2013
Correlation of change management effectiveness to staying on budget
Percentageofrespondentsthatmetorexceeded
projectobjectives

Sponsor effectiveness directly correlates to
project success
15
25%
34%
67%
85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sponsor was very
ineffective (score < 2)
Sponsor was ineffective
(score between 2 and 3)
Sponsor was effective
(score between 3 and 4)
Sponsor was very
effective (score between
4 and 5)
P
e
rc
e
n
t
o
f
re
s
p
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th
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xc
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p
ro
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t
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je
c
tiv
e
s
Average sponsor effectiveness rating
Correlation of sponsor effectiveness to meeting project objectives
Percentageofrespondentsthatmetorexceeded
projectobjectives

A new definition of Change Management
16

A new definition of Change Management
The processes, tools and techniques to manage the
people side of change to achieve the required
business outcome.
Common set of process
and tools
Leadership capability
Strategic capability that enables the
organisation to be flexible &
responsive
©Prosci. Used with permission under terms of license agreement.
www.change-management.com

Where are we in
building change
muscle?

Just over 50% of organisations globally are
actively building enterprise Change Management
19
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
20
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
21
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

Major gap between Change Management at
project and enterprise levels
22
of organisations apply a
Change Management
methodology
of organisations applying
Change Management
methodology to all
projects

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
increases project risk
23
The Prosci Project Change Triangle

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?

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 does Best Practice look like?

PMOs are leading change capability building
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

Where is CM work ‘located’?
28
38%
Had a Change Management Office or
functional group globally
45%
Of Australia & New Zealand
participants had a central CM
office/team
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

Only 23% report high levels of success
29
0%
10%
20%
30%
40%
50%
60%
70%
Very unsuccessful Unsuccessful Moderately successful Successful Extremely successful
Success of deployment effort

Features of organisational capabilities
30
•  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

Highest impact activities
•  Treat ECM as a project
•  Secure sponsorship before moving
forward
•  Build a strong case for Change
Management
•  Multi pronged approach
•  Adopt a single, effective, consistent
methodology and upskill people to
use it
•  Position Change Management as
everyone’s job
31

Things that don’t help…
1.  The Training Trap
2.  Moving forward without Executive
Sponsorship – someone’s Soap Box
3.  Ignoring the lessons of the past
4.  Failing to connect managing change
well with the single purpose of
achieving the benefits of the project/
program with engaged employees
Source: 2012 Prosci Best Practices in Change Management Benchmarking Report

Prosci Change Management Maturity Model™
People-dependent
without any formal
practices or plans
Many different
tactics used
inconsistently
Examples of best
practices evident
Selection of
common approach
Continuous
process
improvement in
place
Highest rate of
project failure,
turnover and
productivity loss
Little or no change management applied
Adhoc or
Absent
Level 1
Some elements of change management are
being applied in isolated projects
Isolated
Projects
Level 2
Comprehensive approach for managing
change is being applied in multiple projects
Multiple
Projects
Level 3
Organization-wide standards and methods
are broadly deployed for managing and
leading change
Organizational
Standards
Level 4
Highest
profitability and
responsiveness
Change management competency is evident
in all levels of the organization and is part of
the organization’s intellectual property and
competitive edge
Organizational
CompetencyLevel 5
People-dependent
without any formal
practices or plans
Many different
tactics used
inconsistently
Examples of best
practices evident
Selection of
common approach
Continuous
process
improvement in
place
Highest rate of
project failure,
turnover and
productivity loss
Little or no change management applied
Adhoc or
Absent
Level 1
Some elements of change management are
being applied in isolated projects
Isolated
Projects
Level 2
Comprehensive approach for managing
change is being applied in multiple projects
Multiple
Projects
Level 3
Organization-wide standards and methods
are broadly deployed for managing and
leading change
Organizational
Standards
Level 4
Highest
profitability and
responsiveness
Change management competency is evident
in all levels of the organization and is part of
the organization’s intellectual property and
competitive edge
Organizational
CompetencyLevel 5
Copyright Prosci 2010

Five Capability areas
•  Leadership – who is leading or sponsoring the
deployment of Change Management?
•  Application – What % of projects apply Change
Management processes? What is the ‘reach’ or ‘breadth’
of application across the organisation?
•  Competencies – what level of training is available for all
levels? How do all levels demonstrate competency?
•  Standardisation – what is the standard approach? Who
‘housekeeps’ Change Management?
•  Socialisation – How do we share success stories and
maintain commitment to better managing change?
34©Prosci. Used with permission www.change-management.com

Prosci Change Management Maturity Audit
35
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
2.88
2.38
1.58
2.08
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
Audit
Level
Level
Level
Level
Level

Change Management maturity by region
Region
(plus % of study participants from region)
Average Maturity Level
All regions (100%) 2.66
United States (34%) 2.69
Australia and New Zealand (25%) 2.68
Canada (15%) 2.62
Europe (14%) 2.66
Africa (5%) 2.59
Asia and Pacific Islands (3%) 2.88
Latin America (2%) 2.67
Middle East (2%) 2.31

Level of maturity Australia & NZ
0% 10% 20% 30% 40% 50% 60%
Level 1
Level 2
Level 3
Level 4
Level 5
Maturity Model data for Australia and New Zealand

What role can you play @ project level
•  Aligning Project or Program Management
and Change Management strategy
•  Building in time and budget to equip
managers to be effective change leaders
•  Measuring success of the project and the
adoption – individual “knowledge” and
“ability” and how it connects with results
•  Being realistic about the ‘load’ of
effectively managing the changes
underway
•  Giving Senior Leaders good reason to
say ‘yes’ or to say ‘no’ and what it will
take to land the benefits through
‘adoption’
39

What role can you play @ enterprise level
40
•  Being part of the ECM effort and
bringing PM as your superpower
•  Building individual capabilities for
key roles:
•  Executives
•  People Leaders
•  Professionals and Technical
specialists
•  Project Managers and teams
•  Employees
•  Embedding change leadership in
competency frameworks and
curricula
•  Treating ‘getting better at landing
change around here’ as a project in
its self

More info
42
Being Human
beinghuman.com.au
Prosci
•  change-management.com
•  prosci.com
•  portal.prosci.com

Building Future Proof Organisations with Change Management

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