Presentation on how to build enterprise Change Management capabilities, delivered to the Change Management Institute, Canberra, by Catherine Smithson, Being Human June 16 2015.

1. Change Better Change
Faster:
The Race to Build
Enterprise Change
Capability
Presented by
Catherine Smithson
June 2015

2. 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.
2

3. 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
3

4. 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.
4
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

5. Snapshot of participants - ANZ
5

6. 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
6
“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

7. Why are organisations investing in
building change capability?
7

8. Change has changed
8
• 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

9. 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
9

10. 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,

11. 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,

12. 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%

13. What Executives want: consistent, successful
implementation and benefit realisation
13
with high employee engagement

14. 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,

15. 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"
15
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
s
p
o
n
d
e
n
ts
th
a
t
m
e
t
o
r
e
xc
e
e
d
e
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.
15

16. 16

17. 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?

18. 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
18
The Prosci Project Change Triangle

19. Change Management Maturity
19
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
©Prosci. Used with permission www.change-management.com
Source: 2014 Prosci Best Practices in Change Management Benchmarking Report

20. 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

21. 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

23. 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

24. Three levels of capabilities in organisations
24
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

25. Features of organisational capabilities
25
• 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

26. 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?
26

27. 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

28. 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

29. 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

30. 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

31. Most Change Management groups are located
in the PMO
31
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.

32. Only 23% report high levels of success
32
0%
10%
20%
30%
40%
50%
60%
70%
Very unsuccessful Unsuccessful Moderately
successful
Successful Extremely
successful
Success of deployment effort

33. Major gap between Change Management at
project and enterprise levels
33
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.

34. 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.

35. 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

36. 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
36

37. Change Managers play a critical role:
Enterprise level
• Baseline Change
Management Maturity
• Apply Change
Management to ECM
37

38. Apply Change Management and Project
Management to “Project ECM”
38
Project management
Change management
Current Transition FutureCurrent Transition Future
©Prosci. Used with permission www.change-management.com

39. Q&A

40. More info
40
§ Being Human
www.beinghuman.com.au
§ Prosci
www.change-
management.com