being human best practices in cm transport for nsw 211114
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Presented by Catherine Smithson Managing Director November 2014
Best Practices in Change Management
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Agenda
• Update on return on investment of Change Management
• Highlights of 2014 Best Practices Benchmarking Report
• Key contributors to success
• Application activity for Transport for NSW
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Introducing Being Human • Founded in 1993 • Our mission: develop change-capable people and organisations so they achieve the benefits of change.
• Prosci Affiliate Australia and New Zealand since 2006
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“People have two fears about the future. First, things will never get back to normal.
Second, they already have”.
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Prosci by the numbers • 1994 – Founded in Loveland
Colorado, USA • 8 global Benchmarking
Reports • 16 years of research • 3,400+ research participants • 63 countries • 70% Fortune 500 companies • 25,000+ Certified practitioners
worldwide • 3,000+ Certified practitioners
Australia/New Zealand
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Prosci Best Practices Report Overview
• 822 participants • 63 countries • Top 3 roles:
• Change Management team leader
• External consultant • Project team leader
• 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
2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
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Snapshot of Australia & New Zealand participants
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Change is the new “business as usual”
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• Volume • Speed • Complexity • Risk • Accountability &
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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Executives and Boards identify change as a key risk Standish Group Chaos Study 2014
8,380 IT projects globally IBM Making Change Work 2008
1,500 organisations
41% fully met objectives
44% did not meet time, budget or quality goals
15% missed all goals or were stopped
Reason for CEO departures: mismanaging change Mark Murphy, Leadership Excellence, 2005
16.2%
52.7%
31.1%
Successful
Challenged
Cancelled
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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
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76%
Executives globally recognise the need to invest 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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The evolution of Change Management as a profession and discipline • Global Professional Associations
• Education and accreditation • Vocational - AQF • Graduate and Postgraduate
• CMBOK - 2013 • Global Change Management Standard -2014
• Recognition by PMI and AIPM
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Current state in Australia
• Early adopter of Change Management
• Public and private sectors
• COMPRAC • Above global average:
• Use of a methodology • Actively working to deploy
enterprise Change Management
• Enterprise Change Management Maturity
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From warm fluffy stuff to key success factor: the business case for Change Management
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Organisations change for a reason
Performance Performance > © Prosci Inc. All rights reserved www.change-management.com
Current state
Transition state
Future state
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Organisational change requires individual behavioural change
Organisational change
Current Transition Future
Future
Current Transition Future
Current Transition Future
Individual change
© Prosci Inc. All rights reserved www.change-management.com
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“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 users drift back to the “old ways”? With a very large,
negative ROI
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Reframing the purpose of Change Management
achieve targets for adoption, utilisation and proficiency
and deliver expected benefits
Apply a structured approach to the people side of change
and equip leaders to lead change
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Why Change Management?
“The case for Change Management is inextricably connected to project connected to project and organisational success. If you are not talking about achieving results, then you are having the wrong conversation.” Tim Creasey Prosci Chief Development Officer
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Unified value proposition
Solution is designed, developed and delivered
effectively (Technical side)
Solution is embraced, adopted and utilised effectively
(People side)
+
Complementary disciplines with a common objective
Project management
Change management
Current Transition Future Current Transition Future
© Prosci Inc. All rights reserved www.change-management.com
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Top contributors to change success: Prosci 2014 Best Practices in Change Management Benchmarking Report
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Impact of Change Management on business results
Evolution of Change Management from “warm fluffy stuff” &
optional extra to critical success factor
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Project management
Change management
Current state
Transition state
Future state
2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
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Change Management increases success rates by a factor of 6
Change Management increases the probability of achieving outcomes
• "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
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 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
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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
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 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
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Which factor would you rate as the #1 success factor for change?
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Instant Poll
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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.
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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
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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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Start Change Management early for success
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68%
57%51%
41%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Initiation(n=234)
Planning(n=164)
Design(n=110)
Implementation(n=93)
Percent of respondents that met
or exceeded project objectives
When change management efforts beganCopyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of when change management efforts began to meeting project objectives
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Methodology use on projects now 79%
30 2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
2003 2005 2007 2009 2011 2013
Growth in use of a methodology
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Australia is an early adopter of Change Management methodology
• Countries higher than global average: • Latin America: 90% • Africa: 82%
United States: 81% • Australia and New Zealand:
80% • Industries higher than global
average: • Finance • Insurance • Telecommunications • Education • Pharmaceuticals • Government: Federal, State,
Local
31 2014 Best Practices in Change Management Report.
822 participants in 63 countries. Prosci copyright 2013.
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Major gap between methodology use 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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74% had dedicated Change
Management resources globally
81% had dedicated Change Management resources
in Australia and New Zealand
27% had dedicated Change Management budget
16% the average budget for Change Management as a % of the total
project budget
Resources and budget – the good news
2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
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Now the bad news…..
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60% Said the budget was sufficient or
more than sufficient
40% Said the budget was slightly or significantly less than sufficient.
Budget most lacking at implementation.
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Integration of Project Management & Change Management
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71%
22%
7%
Did you integrate Project Management and
Change Management?
Yes No Don't know 0%
10%
20%
30%
40%
50%
60%
70%
Did not integrate Integrated Per
cent
age
of re
spon
dent
s w
ho
met
or e
xcee
ded
proj
ect o
bjec
tives
Impact of integration on project success
© Prosci Inc. All rights reserved www.change-management.com
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Application activity: benchmark a current change against the top 7 success factors • Individual or table team
activity • Choose a current or
recently completed change • Assess against the top 7
success factors • Discuss and spokesperson
to report back • Keep doing – top 3 • Do differently – top 3
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