Emergent LLC - PMI Mile Hi

Transcription

Building an
Internal Change
Management
Capability
Presented by Jesse Jacoby
Founder & Managing Principal
@ Emergent
Transformation & Change Insights
White papers:
3rd party contributions:
Online publication:
www.EmergentJournal.com
Online tools:
www.ChangeAccelerator.com
www.SavvyTransition.com
www.TransformationReady.com
Emergent LLC | www.EmergentConsultants.com | PMI Rocky Mountain Symposium 2015
1
What You’ll Take Away
╬ Blueprint for designing a change management capability
╬ Insights from change leaders at Fortune 500 companies
╬ Real-life case examples from our work with clients
╬ Complimentary change management tools
2
The Issue
Volatility, Uncertainty, Complexity
and Ambiguity abound…
…creating waves of change:
organizations must increasingly
manage a portfolio of multiple,
overlapping change initiatives.
Without a structured change management capability,
we see a number of symptoms:
 Inconsistent delivery of change across projects
 Varying levels of change expertise within the enterprise
 Disorganized proliferation of change methodologies and tools
3
Formula for Project Success
PM
x
CM
=
ROI
MAX
Quality business
Engagement of the
Successful delivery
solution supported by
people through
of the business
strong program and
effective change
solution with maximum
project management
management
ROI
4
Why Change Management Matters
6x
Projects with excellent change management practices were
six times more likely to meet or exceed their objectives than
those with poor change management programs1
YET…

48% of executives and managers believe they do not have the necessary
capabilities to effectively deliver change or sustain it2

Companies under-invest in organizational change management, allocating, on
average, only 5% of the overall system implementation budget to the change
management effort3
Sources:
1) 2014 Best Practices in Change Management (Prosci, 2014)
2) Culture’s Role in Enabling Organizational Change (Katzenbach Center at Booz & Co, 2013), a survey of 2,219 executives and managers worldwide
3) 10 Best Practices in Organizational Change for Project Managers (Gartner, 2011)
5
A Haphazard Approach
6
The Change-Capable Organization

Integrates change management
activities into the program and
project plans

Invites change experts into the
process early to assess the
change needs

Budgets for change, allocating an
average of 15% of program
budget to change management
activities

Knows what good change
management practices look like
7
Designing a Change Management Capability
Design Criteria
 Practical and easy to understand
 Resonates with multiple audiences
 Integrates with existing project
management approaches
 Demonstrates tangible value
8
Factors to consider
 Organization size
(including employees, contractors, customers, external partners)
 Geographic distribution
(centralized or spread out, national versus international, remote workers)
 Project Pipeline
(number of strategic initiatives undertaken in a given period)
 Domain complexity
(engineering vs. manufacturing vs. store operations vs. professional services)
 Structure
(flat vs. hierarchical, collaborative vs. command and control, matrix)
 Culture
(shared values, visions, social norms, working language, systems)
9
The Blueprint
10
Change Capability Blueprint
11
Structure & governance
 Determine residence within the
enterprise
 Establish who has accountability
 Set scope and boundaries
 Identify team structure & roles
12
Change methodology
 Select or develop change
management model
 Create assessment and intake
process
 Establish client engagement
approach
 Identify set of service offerings
13
Change tools
 Establish a common set of
change management tools
 Create role-specific toolkits
(e.g., PMs, HRBLs)
14
Change tools
Tools include:




Assessments
Templates
Models
Checklists
In Microsoft PowerPoint,
Excel, and Word
15
Resources & competency
16
Designing and Implementing
Typically takes a few months
17
Capability Maturity
18
A Couple of
Client Examples
19
Case Example #1
Fortune 50 retailer
20
Case Example #1
Fortune 50 retailer
21
Case Example #1
Fortune 50 retailer
22
Case Example #1
Fortune 50 retailer
23
Case Example #2
Midmarket aerospace company
24
Case Example #2
Midmarket aerospace company
25
Insights from
Fortune 500 Change
Leaders
26
Insights: Capabilities at Large Organizations
Profile of organizations
 Interviewed change leaders at 28 Fortune 500 companies
 Revenues ranging from $5 to $137 billion
 Employee bases ranging from 6,000 to 176,000
 Industries: healthcare, financial services, technology,
pharmaceuticals, automotive, retail, food production,
transportation, and conglomerate
27
Profile of change leaders
 Director/Senior Director, Vice President, or Leader/Head
with one of these functional titles:
- Change Management
- Transformational Change
- Organizational Change Management
- Enterprise Transformation
- Organizational Development
28
Findings from interviews
Change Capability* Relative to Revenue (in US$ Billions)
*Change capability assessed six areas
on a scale of 1-5:
- Demand for change management
- Integration with the project lifecycle
- Internal/external practitioner mix
- Change management methods
- How change management is valued
- How change resources are deployed
29
Change Capability* Relative to Number of Employees
*Change capability assessed six areas
on a scale of 1-5:
- Demand for change management
- Integration with the project lifecycle
- Internal/external practitioner mix
- Change management methods
- How change management is valued
- How change resources are deployed
30
Primary Residence of Capability
Large variance in the
number of change
management resources:
1-80
31
Change Methodology Used
Off the Shelf Methodologies Used:
 Prosci’s ADKAR
 Kotter’s 8-Step Process for Leading Change
 GE’s Change Acceleration Process
 LaMarsh’s Managed Change Approach
Most homegrown methodologies were inspired
by approaches used by large management
consulting firms and Bridges’ Transition Model.
32
Benefits of Building a Change Capability
In summary…
 Able to adopt solutions more quickly and
realize greater ROI
 Better able to adapt to the VUCA
business environment
 Organizational agility providing a
competitive advantage
33
Your Turn!
34
As a “Thank You”…
Free change management tools
A copy of Value Stream
 Value Stream written by
Mark Kennaley, Emergent
strategic partner and
founder of Software
Development Experts
 First 50 people to visit our
booth and ask for the
book will receive a
complimentary copy
 A pack of change management tools from
our Change Accelerator program
 Take a copy of the handout with the
download link and instructions
Visit us at our booth
35

Emergent LLC - PMI Mile Hi

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