Ready, Set and Change: Building a Future Proof Organisation
1 like871 views
The document discusses the necessity of evolving change management methods to enhance organizational adaptability and success rates in implementing change. It highlights key findings from the Prosci 2016 Best Practices in Change Management report, emphasizing the roles of various stakeholders and the importance of enterprise-wide change management capabilities. The report identifies common pitfalls and best practices for organizations to improve their change management processes.
Ready, Set and Change: Building a Future Proof Organisation
- 1. Ready, Set and Change: Building A Future Proof Organisation Vicky Emery August 2016
- 2. Introducing Being Human • Founded in 1993 • Our mission: develop change-capable people and organisations so they achieve the benefits of change. • Prosci Primary Affiliate Australia and New Zealand. 2
- 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 3 “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
- 4. Prosci 2016 Best Practices in Change Management Benchmarking Report • 1,120 participants • 56 countries • Top 3 roles: • Change Management team leader • External consultant • Project team leader • 6 new topics • Culture • Cultural awareness and global literacy • Change Agent Networks • Complementary roles • Vertical industry customisation • Certification in Change Management The largest body of Change Management knowledge in the world. 4
- 5. Objectives of the Best Practices Report 1. Uncover lessons learned from practitioners and consultants so current change Management Teams can benefit. 2. Focus on what is working and what is not working 3. Emerging trends & future direction of the discipline. 5
- 6. 6 Snapshot of Australia & New Zealand participants 6
- 7. Why do we need to change the way we change? 7
- 8. Change is the new “business as usual” 8 • Volume • Speed • Complexity • Risk • Transparency • Others? “Life comes at us in waves. We can't predict or control those waves, but we can learn to surf.” Dan Millman
- 10. 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,
- 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. Moving from “hit and miss” change…. 13 to consistent, successful implementation and benefit realisation with high employee engagement
- 14. Change Management increases the probability of success 14 14 Of the 245 research participants who reported having excellent change management effectiveness, 94% met or exceeded project objectives
- 15. 15 Change Management drives staying on budget
- 16. A new definition of Change Management 16
- 17. 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
- 19. Just under 50% of organisations globally are actively building enterprise Change Management 19 53% 38% 8% 47% 43% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Don’t know Percentofrespondents Actively working to deploy Change Management 2013 2015 2016 Best Practices in Change Management Report. 4500 participants in 56 countries. Prosci copyright 2016.
- 20. 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 2016 Best Practices in Change Management Report. 4500 participants in 56 countries. Prosci copyright 2016.
- 21. 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 2016 Best Practices in Change Management Report. 4500 participants in 56 countries. Prosci copyright 2016.
- 22. 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 2016 Best Practices in Change Management Report. 4520 participants in 56 countries. Prosci copyright 2015.
- 23. 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 23 The Prosci Project Change Triangle
- 24. 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?
- 25. 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
- 26. 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
- 27. 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 2016 Best Practices in Change Management Report. 4500 participants in 56 countries. Prosci copyright 2016.
- 28. Most Change Management groups are located in the PMO 28 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 2016 Best Practices in Change Management Report. 4500 participants in 56 countries. Prosci copyright 2016.
- 29. 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
- 30. 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
- 31. 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 2016 Best Practices in Change Management Report. 4500 participants in 56 countries. Prosci copyright 2016.
- 32. Common Traps 1. The training trap 2. Moving forward without Executive Sponsorship 3. Failing to build the business case for Change Management.
- 33. 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 ©Prosci. Used with permission www.change-management.com
- 34. 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
- 35. 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
- 36. Change Management maturity by region Region (plus % of study participants from region) Average Maturity Level All regions (100%) 2.59 United States (34%) 2.70 Australia and New Zealand (25%) 2.56 Canada (15%) 2.57 Europe (14%) 2.37 Africa (5%) 2.89 Asia and Pacific Islands (3%) 2.65 Latin America (2%) 2.67 Middle East (2%) 2.64 2016 Best Practices in Change Management Report. 4500 participants in 56 countries. Prosci copyright 2016.
- 37. 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 2016 Best Practices in Change Management Report. 4500 participants in 56 countries. Prosci copyright 2016.
- 38. What role can you play - project level • Aligning training with the overall Change Management strategy • Equipping managers to be effective change leaders • Measuring success of change – individual “knowledge” and “ability”. • Advocating for Change Management as a key success factor on Projects & BAU 38
- 39. What role can you play - enterprise level 39 • Being part of the ECM effort • Build individual capabilities via role based Change Management training • Executives • People Leaders • Professionals and Technical specialists • Project Managers and teams • Employees • Embedding change leadership in competency frameworks and curricula • Measuring Change Management maturity
- 40. Q&A
- 41. Where to find today’s slides and recording • Being Human Company Linked in Profile – Follow us • Catherine Smithson’s Linked In profile • Being Human’s Facebook page • www.slideshare.net Search for Being Human Pty Ltd (now includes option to listen to recording) • YouTube - Search for Being Human Pty Ltd 41
- 42. More info 42 Being Human beinghuman.com.au Prosci • change-management.com • prosci.com • portal.prosci.com