leading people through change 011215

Leading Organisational Change: Global Best Practices Presented by Catherine Smithson December 2015

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.

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Getting back to Normal… it’s a town in Illinois USA.

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

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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.

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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

Snapshot of participants

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Topics • Change has changed • Best practices highlights •  The challenge of leading

people through change • Q&A

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“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

Change has changed

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The amount of change is expected to increase

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Yet 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,

And many organisations lack change capabilities

12 IBM Making Change Work Report While the Work Keeps Changing Report

August 2014 1,400 organisations globally, over 20 industries,

76%

Leaders 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%

Moving from “hit and miss” change….

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to consistent, successful implementation and benefit realisation with

high employee engagement

Reframing Change Management •  “Change Management is a

required consultation process in our Enterprise Agreement”.

•  “Change Management is a deliverable of Project Management.”

•  “Change Management is primarily training and communications”.

•  “Change Management is a nice to have”

• Change Management is performed by Change Managers”.

Organisations change for a reason

Performance Performance > © Prosci Inc. All rights reserved www.change-management.com

Current state

Transition state

Future state

Expected Results and Outcomes

Results and Outcomes Benefit Realisation

Value Creation Return on Investment (ROI)

Delivering on the project promise

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Future

© Prosci Inc. All rights reserved www.change-management.com

Individuals make their own transitions: Adoption and usage

The individual is the unit of change


Results and outcomes depend on employee adoption and usage

Solution must be: • Designed • Developed • Delivered

and • Embraced • Adopted • Used

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Future

Effectiveness = Quality x Acceptance General Electric – 1980s


“Soft side” drives success on “hard side”

• How much value does a new process deliver if no one follows it?

• How much value does a new technology or system deliver if no one uses it?

• How much benefit is realised if the people drift back to the “old ways”?

With a very large, negative ROI


The Swiss Cheese Syndrome

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“Most teams implemented, but the team in {Sydney} are still in transition.” “Key users are still struggling, they need more support.” “The new operating model has rolled out but teams are still operating in silos”. “There is a wide variation in the benefits being realised in different parts of the business.” “We need to start Phase 2 to capture all the expected benefits.”

Poll: What is the “people dependence” of the expected benefits of your change?

• Select a current or completed change

• Estimate the % of benefits that are dependent on “people doing their jobs differently”, i.e. adoption and usage.

• 0 – 25% • 26 - 50% • 51 – 75% • 76 -100%

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A new definition of Change Management

Change Management how we assist people to make the individual transitions required for the change to

succeed.

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Change Management is how we capture the behavioural change portion of the expected results.

Change Management Process and Plans Leadership at all levels

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"

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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)

Percent of respondents that met

or exceeded project objectives

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.

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Change Management drives staying on budget

48%

63%71%

81%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Poor(n=258)

Fair(n=737)

Good(n=1001)

Excellent(n=180)

Percent of respondents that

were on or under budget



Correlation of change management effectiveness to staying on budget

Per

cent

age

of re

spon

dent

s th

at m

et o

r exc

eede

d

proj

ect o

bjec

tives

Change Management drives staying on schedule

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16%

32%

54%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Poor(n=293)

Fair(n=793)

Good(n=1032)

Excellent(n=181)

Percent of respondents that were

on or ahead of schedule



Correlation of change management effectivenessto staying on schedule

Per

cent

age

of re

spon

dent

s th

at m

et o

r exc

eede

d

proj

ect o

bjec

tives

Which factor would you rate as the #1 success factor for change?

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Instant Poll

Greatest contributors to success

1.  Active and visible executive sponsorship

2.  Structured Change Management approach

3.  Dedicated Change Management resources and funding

4.  Frequent and open communications about the change and the need for change

5.  Employee engagement and participation

6.  Engagement and interaction with Project Management

7.  Engagement with and support from middle management

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✔

ê

é

é

✔

☐

ê

2011 rank

2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.

Sponsor effectiveness directly correlates to project success

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25%

34%

67%

85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sponsor was veryineffective (score < 2)

Sponsor was ineffective(score between 2 and 3)

Sponsor was effective(score between 3 and 4)

Sponsor was veryeffective (score between

4 and 5)

Percent of respondents that

met or exceeded project objectives

Average sponsor effectiveness ratingCopyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.

Correlation of sponsor effectiveness to meeting project objectives

Per

cent

age

of re

spon

dent

s th

at m

et o

r exc

eede

d

proj

ect o

bjec

tives

What Is meant by Sponsorship?

• Actively and visibly participate throughout the project

• Build a coalition of sponsorship with peers and managers

• Communicate directly with employees

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1. Participate Actively and Visibly

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•  Sponsorship is more than signing the check and launching the initiative

•  Examples: –  Set expectations and establish clear

objectives for the project

–  Hold the team accountable for results

–  Attend project review meetings frequently and actively monitor progress

Don’t be the vanishing sponsor!

2. Build a Sponsorship Coalition

•  The coalition is not just an organization chart

•  The coalition is based on ‘who is being impacted’

• Coalition building is a key role of effective change leaders

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p. 78

3. Communicate Directly with Employees

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Change management team leader

Change management team member

Project team leader

Project team member

Human Resources representative

The employee's supervisor

Department head

Senior manager

Executive manager

CEO/President

Percent of respondents

Business messagesPersonal messages

© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

Participants identified senior leaders as the preferred senders for organisational reasons for the change.

What Do Employees Want to See and Hear From You?

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Current state

Transition state

Future state

Messages •  Why is the change happening? •  What are the risks of not changing? •  Why now? •  How does this change align with our

strategy and direction?

Actions •  Celebrate successes •  Recognize individuals and groups •  Manage resistance •  Demonstrate commitment to

sustaining this change

Key challenges for change leaders

1.  Time and focus – “normal job” and “change job”

2.  Personal commitment – not delivering scripts or delegating

3.  Courage to lead the “hard to love” changes.

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“Life comes at us in waves. We can't predict or control those waves, but we can learn to surf.”

Dan Millman

More info

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Being Human beinghuman.com.au Prosci •  change-management.com •  prosci.com •  portal.prosci.com