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11/08/16
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Ready, Set and Change: Building A Future Proof Organisation
Vicky Emery August 2016
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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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
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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
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.
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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.
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Snapshot of Australia & New Zealand participants
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Snapshot of participants Australia
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Why do we need to change the way we change?
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Change is the new “business as usual”
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• 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
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Don’t Log in!
• Desktop • Laptop • Tablet • Smart
phone
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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,
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And many organisations lack change capabilities
13 IBM Making Change Work Report While the Work Keeps Changing Report
August 2014 1,400 organisations globally, over 20 industries,
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%
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Moving from “hit and miss” change….
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to consistent, successful implementation and benefit realisation with
high employee engagement
Change Management increases the probability of success
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Of the 245 research participants who reported having excellent change management effectiveness, 94% met or exceeded project objectives
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Change Management drives staying on budget
A new definition of Change Management
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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
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Just under 50% of organisations globally are actively building enterprise Change Management
21 2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
53%
38%
8%
47% 43%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No Don’t know
Per
cent
of r
espo
nden
ts
Actively working to deploy Change Management
2013
2015
Australia & New Zealand are early adopters
22 2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
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
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Early adopting industries
23 2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
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
Major gap between Change Management at project and enterprise levels
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of organisations apply a Change Management
methodology
of organisations applying Change Management
methodology to all projects
2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
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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
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The Prosci Project Change Triangle
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?
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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
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
11/08/16
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PMOs are leading change capability building
2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
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
Most Change Management groups are located in the PMO
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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
2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
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Only 23% report high levels of success
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0%
10%
20%
30%
40%
50%
60%
70%
Very unsuccessful Unsuccessful Moderately successful
Successful Extremely successful
Success of deployment effort
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Features of organisational capabilities
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• 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
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
34 2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
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Mistakes to avoid
1. The training trap 2. Moving forward without Executive
Sponsorship 3. Failing to build the business case
for Change Management.
©Prosci. Used with permission www.change-management.com Source: 2012 Prosci Best Practices in Change Management Benchmarking Report
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 appliedAdhoc orAbsentLevel 1
Some elements of change management are being applied in isolated projects
IsolatedProjectsLevel 2
Comprehensive approach for managing change is being applied in multiple projects
MultipleProjectsLevel 3
Organization-wide standards and methods are broadly deployed for managing and
leading change
OrganizationalStandardsLevel 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 appliedAdhoc orAbsentLevel 1
Some elements of change management are being applied in isolated projects
IsolatedProjectsLevel 2
Comprehensive approach for managing change is being applied in multiple projects
MultipleProjectsLevel 3
Organization-wide standards and methods are broadly deployed for managing and
leading change
OrganizationalStandardsLevel 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
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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?
37 ©Prosci. Used with permission www.change-management.com
Prosci Change Management Maturity Audit
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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
2.882.38
1.582.08
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 AuditLevel
Level
Level
Level
Level
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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. 3400 participants in 63 countries. Prosci copyright 2013.
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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
2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
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
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What role can you play - enterprise level
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• 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
Q&A
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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
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More info
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Being Human beinghuman.com.au Prosci • change-management.com • prosci.com • portal.prosci.com
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