PeopleFirm: "Why Enterprise Change Heat Maps?"

If change is a like the weather,
how can you predict it?
and
what should you do to prepare for the
storm?

© 2012 1
PeopleFirm. All rights reserved.

Enterprise Change Heat Maps:
Are you at Change Saturation levels?

© 2012 PeopleFirm. All rights reserved. 2

Wikipedia defines a heat map as a
graphical representation of data
where the values taken by a
variable in a two-‐dimensional table
are represented as colors.

Wikipedia has no definition for a

yet!

© 2012 3

But people are talking
about Change Saturation
and Change Fatigue

© 2012 4

Why?

saturated
employees are fatigued.

© 2012 5

In 2010, 82% of
employees experienced
significant change at
their organization.

% of employees anticipate
additional change in the next six months,
including layoffs of team members, significant
organizational restructuring, and changes in
one or more senior leaders.

© 2012 6
Source: CLC Building Engagement Capital, 2010

Per Towers 2011 Talent
Management & Rewards Survey,
most organizations (65%) expect
employees to work more hours
than before the recession; and over
half (53%) expect this to continue
putting particular strain on
professional level employees.

As a result, when the labor market does recover, companies can expect a sharp

Laurie Bienstock, North America leader at Towers Watson

© 2012 7
Source: 2011 North American Towers Watson Talent Management and Rewards Survey

Organizations are
reporting increasing
Change Saturation
100%
80%
60% 66% 73%
40% 59%
20%
0%
2007 2009 2011

© 2012 8
PeopleFirm. All rights reserved. Best Practices in Change Management

Corporate Change Saturation
becomes most apparent when
we evaluate the change burden Enterprise
employees are carrying. Programs
Strategic
Initiatives
Business
Unit
Priorities
Employee stress is heightened Program
when changes collide when Management
multiple changes from different Agendas
sources hit an employee group at
the same time.

© 2012 9

The results when survey participants were

15% The few who are working to
address the change
YES saturation and collision risks
NO 24% identified portfolio
61% management tools and
prioritization as the top two
mitigation tactics.

© 2012 10

Surprisingly, most
the organizations
with awareness of
their own change
saturation, report
doing to
address the risks.

© 2012 11

Disengagement and apathy
Frustration and stress
Individual behaviors Fatigue and burnout
exhibited in a change-‐ Resistance
saturated environment Confusion
The Cynicism
symptoms Unrealized benefits
Symptoms of change
of change saturation with Projects
Lack of resources
Changes were not sustained
are real and and project teams Projects failed to gain momentum
Higher turnover
Organizational Productivity decline
symptoms of a change-‐ Increased absenteeism
saturated environment Loss of focus on business basics
Negative morale

© 2012 12

59% of projects were
considered unsuccessful
IBM 2008 Study

$63 billion is spent on IT
projects that fail in the U.S
How much is annually
change CIO Insight, June 2010

saturation
Employee turnover costs range from
costing your 50% -‐ 150% of salary + benefits for
organization? each employee loss from burn-‐out

Unplanned absences drove a 54%
decrease in productivity/output and a
39% drop in sales and customer service.
2008 Mercer/Marsh Survey on health, productivity and absenteeism

© 2012 13

So, where is your organization in understanding
and managing change saturation?

Lacking Admiring Taking action,
visibility the mitigating
problem risks

© 2012 14

Do you know . . .
The top strategic change initiatives in your
organization this year?
The degree and volume of change your
employees will face?
The changes that are likely to collide?
How much change is too much?
How your bottom line will be impacted?
How can you mitigate the risks?

© 2012 15

If change is a like the weather,
how can you predict it?
and
what should you do to prepare for the
storm?

© 2012 16

Step 1: visualize your risk
Initiative View
Audience
Impact April May June July August September October
UW / UA RVP / TM/AS Agents EMG
Sales Activities
WC BOR Expires X X X 1-‐Jul
WC -‐ Propel Book Renewals X X 1-‐Oct
National Sales Meeting X 8/9-‐8/13
President's Award Incentives Trip X X X X 5/17-‐5/20
Agent Golf Tournaments X X 7/13 -‐ OR 9/9 -‐ ID
Agency Roundtables -‐ Coos Bay X 6/1-‐6/3
Bandon Dunes meeting 10/5-‐10/7
Payne Financial Rope & Stroke X MT: 6/2-‐6/4
Conference / External Activities
Insurance Conventions X X 5/24 -‐ 5/26
IABI -‐ Insurance Agent Brokers of Idaho 8/16-‐8/18
IABI -‐ Insurance Agent Brokers of Montana 7/14-‐7/15
Oregon Convention 8/29-‐8/31
PIA Convention for Oregon 10/24-‐10/26
Montana Governor's Cup X X 8/4-‐8/6
Montana Chamber Golf Tournament
Idaho Golf Tournament
Julie Out 17-‐Se p
LNW Normal Business Activities
Agency Reviews X X X
Agency Profit Sharing Development work X
Audits Due X 15-‐Se p
Mid Year Performance Reviews X X X X
Talent Reviews X
LNW Planning Season X X
Employee Town Halls X X X X 6/9-‐10: SEA
COR X 7/21: SEA
RCG Planning Prep X 29-‐Jun
Alaska Roadtrip (Julie, Gary et al)
Projects
New Audit Database X
Billing System
Authorities Implementation X
Documentation??
Vista Roll-‐out X X X X
CCCA -‐ Guidwire Implementation??
Safeco Personal Lines Conversion

Enterprise View

© 2012 18

Step 1: visualize your risk
The Goal
Improved decisions on strategic priorities and timing, leveraging
change initiative insight and awareness.
Assess Benefits
Increase visibility

across functions, departments
Identify the levels of impact and/or business units;
Understand the volume of move away from siloed
change thinking
Overlay key business events Mitigate change saturation
such high work spikes, heavy risks
employee vacation Increase adoption / success
timeframes, normal yearly
Ensure planned business
business events
results are achieved

© 2012 19

Step 2: Build your mitigation plan

Adapt: Can you change the deployment timing of your effort
to maximize the best possible timing for adoption?

Adjust
Take the time that can be changed delayed, removed or scaled back?
to consider
your options! Integrate: Should the initiatives be consolidated for certain
stakeholder groups e.g. Could training efforts be rolled into
one?

Shift: Should one project go before the other to mitigate
change saturation and risk?

Intervene: What intervention should be applied to mitigate
the risk of change saturation? More resources added to the
project? Additional change management activities to ensure
readiness?

© 2012 20

Step 2: Build your mitigation plan

Client Change Heat Mitigation Steps Results
Our clients are Map Type
successfully
1.
mitigating their from Corporate to
Met Adoption
Scorecard
risk and Fortune Initiative View for have grace period on
Indicators
Transformative audits that were to
associated costs 100
Technology, occur at the same time
Insurance Successful
Process & Product 2. Delayed implementing
related to change Provider Project Windows 2010/Office
deployment as
proven by
saturation. 7 until 3 months post-‐
launch
project results

Enterprise View 1. Forming Enterprise-‐
Regional as defined by wide Governance
In early stages of
Utilities Large, Strategic, Committee
implementing
Provider Enterprise 2. Researching how best
Initiatives to mitigate Q4 impacts

© 2012 21

Step 3: Increase change resiliency throughout the
organization

-‐
Change Heat Maps
are a key enabler to
aligning the
organization and
becoming more
Change-‐Capable.

© 2012 22

PeopleFirm, LLC Tamra Chandler Beth Montag Schmaltz
2201 Sixth Ave. Suite 150
Seattle, WA 98121 e mtc@peoplefirm.com e bethms@peoplefirm.com
o 206.462.6462 x120 o 206.462.6462 x120
c 206.399.8701 c 425.591.3400

Thank You
www.peoplefirm.com

Your People = Your Business

PeopleFirm: "Why Enterprise Change Heat Maps?"

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