Perfect Match: Partnering Successfully with Change Management AIPM QLD 2015 by Being Human

The Perfect Match: Partnering Successfully with Change Management Presented by Catherine Smithson March 2015

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

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 •  25,000+ Certified practitioners worldwide •  3,500+ Certified practitioners

Australia/New Zealand

Agenda •  Update on Best Practices

in Change Management •  Mythbusting •  The new business case for Change Management •  Tips for partnering for success “People have two fears about the future. First, things will never get back to normal. Second, they already have”.

Test drive on-line polling

Instant Poll

â&#x20AC;˘â&#x20AC;ŻOne word to

describe change in your organisation

Overview of Prosci 2014 Best Practices in Change Management Benchmarking Report •  822 participants •  63 countries •  Top 3 roles:

2% 2% 3% 5%

Middle East Latin America

34% 14%

Asia and Pacific Islands

•  Change Management team

leader •  External consultant •  Project team leader

•  244 pages •  38 new topics

Africa Europe 15%

Canada Australia and New Zealand

25%

United States

The largest body of Change Management knowledge in the world. 6

Snapshot of Australia & New Zealand participants

A thought starter…

Instant Poll

•  Choose a current or

recent project •  Estimate the percentage of the expected benefits that are dependent on “people change”, ie people changing the way they do their jobs. 8

Greatest contributors to success 1.  2.  3.

5.  6.  7.

Active and visible executive sponsorship Structured Change Management approach Dedicated Change Management resources and funding Frequent and open communications about the change and the need for change Employee engagement and participation Engagement and interaction with Project Management Engagement with and support from middle management

2011 rank ✔ é é ê

✔ ☐ ê

Change Management increases the probability of success 100% t e m t a th ts n e d n o p s e r f o t n e c r e P

s e iv t c je b o t c je ro p d e d e e c x e r o

•  "Of the 165 research

Correlation of change management effectiveness to meeting project objectives

90%

96%

80% 77%

70% 60% 50% 46%

40% 30% 20% 10%

16%

0% Poor (n=244)

Fair (n=653)

Good (n=834)

Excellent (n=165)

Change Management increases success rates by a factor of 6

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"

10 10

Major gap between Change Management at project and enterprise levels

of organisations apply a Change Management methodology

of organisations applying Change Management methodology to all projects

Global trend: integration of Project Management & Change Management Did you integrate Project Management and Change Management?

Impact of integration on project success

7% 22% 71%

Yes

Don't know

Percentage of respondents who met or exceeded project objectives

70% 60% 50% 40% 30% 20% 10% 0% Did not integrate

Integrated

Time to bust some myths about Change Management

From warm fluffy stuff to key success factor: the business case for Change Management

Organisations change for a reason Current state

Performance

Transition state

Future state

Performance

Organisational change requires individual change

The individual is the unit of change

Success with individual change drives success with organisational change

Current

Transition

Future

Current

Transition

Future

Current

Transition

Future

Individual change

Future

Organisational change

If 100% of end users donâ&#x20AC;&#x2122;t change, we lose benefits Current

Transition

Current

Transition

Future

Current

Individual change

Organisational change

“Soft side” drives success on “hard side” •  How much value does a

new process deliver if noone follows it? •  How much value does a new technology or system deliver if no-one uses it? •  How much benefit is realised if users drift back to the “old ways”?

With a very large, negative ROI

Three people factors drive benefits and ROI 1.

Speed of adoption: How fast?

Ultimate utilisation: How many?

3. Proficiency How effectively?

©Prosci. Used with permission under terms of license agreement. www.change-management.com

The three people factors and ROI This slope and shape is determined by speed of adoption +

Net cash flow of project period

Benefits are based on assumptions about: •  Speed of adoption •  Ultimate utilisation •  Proficiency

The height of the benefit is based on ultimate utilization and proficiency

Activity: What do the three people factors look like for your project? Impacted group

What is the target What is the target What type of speed od utilisation rate? proficiency will be adoption? needed?

Group 1:

Reframing the purpose of Change Management Engage Get buy in Equip leaders to lead change

achieve targets for adoption, utilisation and proficiency and deliver expected benefits

How Project Managers can quantify the investment required in Change Management Benefits depend on: •  Technical Solution + •  People side

A doption Usage

Assessing contribution of Change Management to benefits Scenario 1: People Side Benefit Contribution : 45%

•  Estimate the expected benefits •  Estimate the percentage of “people dependency” •  Use as guide for investment in Change Management

Expected benefits: $1 million

Contribution of Change Management: $450k

Scenario 2: People Side Benefit Contribution : 95%

Expected benefits: $1 million

Contribution of Change Management: $950k

Tips for partnering successfully with Change Management

1.  People 2.  Process 3.  Tools

People •  Clarify roles •  Foster collaboration •  Cross training in

Project Management and Change Management

Team Structure Examples

Sponsor

Project team

CM team

Process •  Integrate Change

Management and Project Management plans •  Align timelines

Tools •  Align •  Integrate •  Stakeholder mapping •  Risk Logs •  Impact assessments •  Current state mapping •  Communications Plans •  Training Plans

“So, does anyone else feel that their needs aren’t being met?”

What PMs say they value about Change Management •  Identify all the people

who need to adopt the change

Executives and senior managers

•  Assess the degree of

impact •  Assess readiness to change •  Develop tailored Change Management plans

Middle managers and supervisors

Change management resource/team

Project team

Project support functions

•  Foster leader-led

change

Unified value proposition Project management

Current

Transition

Future

Change management

Solution is designed, developed and delivered effectively (Technical side)

Solution is embraced, adopted and utilised effectively (People side)

Complementary disciplines with a common objective

Next steps §

Download your free Prosci Best Practices Executive Overview from our online Bookstore

§

Being Human www.beinghuman.com.au Prosci www.portal.prosci.com www.changemanagement.com Visit the Tutorials page

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