Presented by Jamie Donoghue, Principal Consultant, UXC Consulting at ISS-UXC Seminar: Move IT from Cost to Value Centre using IT Service Management and COBIT on 25 July 2014.

1. Integrating Organisational Change within IT Transition
and Transformation
Helping make technology projects successful

2. Objectives of the Session
o Where are you now in terms of ITSM processes and automation?
o Are you just at the typical implementation that only focuses on
Incident/Problem and Change?
o Or are you already carrying out other ITSM processes (including
Service Strategy processes)?
o This talk will use one of the leading ITSM tools as a benchmark of
the wide range of processes and automation possible to compare
against what your organisation is currently doing.

3. Agenda
1. Why do we need Organisational Change?
2. What Factors Contribute to our Success?
3. Organisational Change ‘in action’
4. Integrating Organisational Change

4. Why do we need Organisational Change?
4
o In order to remain successful,
businesses must be able to
manage substantial change
o Implementing substantial
change is typically delivered
through Projects
o Therefore, in order to
successfully implement
substantial change, businesses
must be great at Project
Management and Change
Management.

5. Prosci Correlation Analysis (1/3)
17%
49%
80%
95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=177)
Fair
(n=441)
Good
(n=561)
Excellent
(n=107)
Percentofrespondentsthatmet
orexceededprojectobjectives
Overall effectiveness of change management program
Correlation of change management effectiveness to
meeting project objectives
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
*Data from 2007, 2009 and 2011

6. Prosci Correlation Analysis (2/3)
16%
34%
57%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=215)
Fair
(n=532)
Good
(n=679)
Excellent
(n=116)
Percentofrespondentsthatwere
onoraheadofschedule
Overall effectiveness of change management program
Correlation of change management effectiveness to
staying on schedule
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
*Data from 2007, 2009 and 2011

7. Prosci Correlation Analysis (3/3)
48%
63%
71%
82%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=188)
Fair
(n=498)
Good
(n=661)
Excellent
(n=116)
Percentofrespondentsthat
wereonorunderbudget
Overall effectiveness of change management program
Correlation of change management effectiveness to
staying on budget
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
*Data from 2007, 2009 and 2011
7

8. The Business Imperative
A global McKinsey study which
examined many project variables
and in particular effect of an OCM
program on a project’s ROI
6x more likely to
reach project
objectives
1.6x more likely
to meet budget
4x more likely
to meet
deadlines
From a people perspective, similar research from the 2011 Corporate
Leadership Council showed:
o Almost 2/3 all employees are only 33% as productive as they could be
because they don't understand what they are being asked to do
o Businesses with more engaged employees have 51% higher productivity

9. Agenda
1. Why do we need Organisational Change?
2. What Factors Contribute to our Success?
3. Organisational Change ‘in action’
4. Integrating Organisational Change

10. 10Arras People Benchmark Report 2010
Percentage of reasons for Project Failure
10
Contributing Factors

11. Benchmark Studies
Prosci’s benchmarking study highlighted active and visible sponsorship
as the #1 contributor to project success. The study reports were
published in the following years:
1998, 2000, 2003, 2005, 2007, 2009, 2011, 2013
They have just released requests to the business market to participate
in the 2014 study.
Given the trends over the last 15 years, what would you assume the #1
contributor to success is ?
11

12. What are the keys roles of Sponsors?
o Active support for the project – being visible.
o Engaging with peers – building support for the project.
o Managing resistance – at peer and employee level.
o Communicating directly with employees – the employees listen
more to an executive sponsor or their own manager than they will to
a project or Organisational Change Manager.
12

13. Agenda
1. Why do we need Organisational Change?
2. What Factors Contribute to our Success?
3. Organisational Change ‘in action’
4. Integrating Organisational Change

14. What is it Worth to do it Well?
Organisational change management can pay for itself many times over in actual benefits achieved.
Assume a 12 month project has $4 million per annum in projected benefits. The impact of poor change
management could result in delayed, and permanently reduced, take up of capability:
1
3
Benefits
$ million p.a.
3 6 9 12 15 18
3 months delay
months
$1 million +
in benefits lost
4
2
$1 million p.a. in benefits
foregone
Projected benefits ramp up
Actual benefits ramp up

15. Certainty of
expected ROI or
benefit from
change
Amount of change to how people do their jobs
– ‘people change’
Changes that have no ‘people
change’ have high certainty in the
expected ROI; ie a change in
electricity supplier or a new PABX
box
Changes that are highly
dependent on ‘people change’
have low certainty; ie changing
from Outlook to Lotus Notes or
upgrading desktop software
High
Low High
Low
The Bottom Line
© Prosci 2012

16. Agenda
1. Why do we need Organisational Change?
2. What Factors Contribute to our Success?
3. Organisational Change ‘in action’
4. Integrating Organisational Change

17. Integrating Change Management (1/2)
Organisations must undergo continual change to compete: some strategic and
others more operational in nature. These programs can generally be
categorised:
o Structural change-seek to achieve greater overall performance by reconfiguring the
organisation e.g. acquisitions, mergers, new executive management
o Process change –focus on altering ‘how things get done’ e.g. reengineering
process(es) or introducing new technology
o Cultural change-concentrate on a company’s operating values, norms of behaviour
and the relationship between its management and employees; e.g. Moving to a
culture of continual improvement, from a customer focus to a commercial focus
o Revenue uplift change-aim is to increase revenues e.g. charging for services to inline
with their costs instead of making a loss
o Cost-cutting change – focus on elimination of nonessential activities or on other
methods for squeezing costs out of operations e.g. headcount, expense, partnering
o Strategic purpose change-objective is to reinvent an organisation by changing its
strategic intent, core purpose, or mission; e.g. shift from selling individual products to
selling complete solutions that add value for the customer
Source: Adapted from Harvard Manage Mentor 2012- Change
17

18. Integrating Change Management (2/2)
o Change Management, whichever approach you take, is a
progressive set of steps to be taken to help take your employees
through the phases of being aware of the change, of wanting to
know more, understanding how the Change impacts them, training
on how to make the best of the new technology/process, and
management and subject matter experts to help guide them
through the Change.
o If you already have a methodology or approach to Project
Management, I.e. PRINCE2 or Agile, then blend the Organisational
Change Management tools into these approaches. It minimises
change impacts to your project and delivery teams and ensures that
they have the tools that they require to manage the people side of
their project.

19. Thank You!
For further info on related course/s, please see:
http://www.iss.nus.edu.sg/ProfessionalCourses/CourseCatalogue.aspx
Jamie Donoghue
Principal Consultant
jamie.donoghue@uxcconsulting.com