Presenter. Jonathan Spittle Managing Director, Accenture Strategy Global Change Tracking Delivery Lead

Transcription

1 Managing

2 Presenter Jonathan Spittle Managing Director, Accenture Strategy Global Tracking Delivery Lead Presentation at the Annual FICPI Australia Conference and AGM 23 rd August, 2014 Copyright 2014 Accenture All rights reserved. 2

3 Lodged patents in 16 countries. Copyright 2014 Accenture All rights reserved. 3

4 Facing constant change without competence has meant failure for most A. CONSTANT CHANGE Continual and accelerating pace of change Multiple drivers and triggers of change - technology change, competition, costcutting, M&A, new operating models Large-scale change across all dimensions of the enterprise + = B. UNSKILLED CHANGE Little organisational capability to effectively implement change Lack of understanding of how effectively sustain implemented changes and results Lack of rigorous tools, approaches and measurement all art, no science C. FAILED CHANGE 1. A track record of project failure 2. Legacy of un-realised benefits 3. fatigue & resistance 70% of reengineering efforts fail to get implemented 74% projects are not successful¹ 53% projects cost 189% more than planned² Over-budget, over-schedule programs Lack of benefits realisation and ROI Widespread resistance to change across the organisation Source: 1. Mike Hammer The Agenda 2001 Copyright 2014 Accenture All rights reserved. 2. Business Decision Reengineering, Stephen Bevan, The Work Foundation, March

5 But organisations continue to tackle multiple change challenges Deploy large-scale, deep transformation programs (M&A, innovation, market de-regulation, sustainability, simplification) in an increasingly global market Implement and sustain changes from a series of change projects with minimum disruption to the business (program driven change) Manage multiple, enterprise-wide continuous improvement programs or the impact of shortterm cost-cutting in response to market conditions (evolutionary change) Copyright 2014 Accenture All rights reserved. 5

6 How change capable are organisations? Accenture research of 674 global executives learnt that... 48% Are not confident their organisations can quickly mobilise to serve new markets and customers 50% Do not believe their culture is adaptive enough to respond positively to change 44% Are not sure their workforces are prepared to adapt and manage change during economic uncertainty Source: Accenture s 2010 High Performance Workforce Study Copyright 2014 Accenture All rights reserved. 6

7 An ability to execute change well is now part of an organisation s formula for success From our research we concluded... management must be an internal, and eternal capability present within the organisation at every moment... organisations now have to be change capable all the time. Building a change capability that can support continuous, concurrent change is another change challenge in itself! Copyright 2014 Accenture All rights reserved. 7

8 So what is a change capability? 1 2 A core competence of high-performing organisations A domain of the many, not the few Alongside Process Excellence, Customer Focus and Talent Management Capability is a critical component of the DNA of a high-performing organisation to be fit to exploit the opportunities in an economic down-turn and accelerate out of it The capability affects multiple layers of the operating model. It starts at the top with change capable leaders; provides a framework and tools for both managing the current portfolio of change programmes and individual change initiatives; and creates a network of experienced practitioners within the business and support functions to repeatedly deliver planned outcomes as part of business as usual Capability Management. 3 4 A proving ground for leadership and talent at all levels A differentiating organisational capability The experience gained in managing successful change becomes an expected step in the career of a high-performer, and a way of developing talent in the organisation. Experience is recycled through structured communities of practice and locked-in to the organisation through a curriculum and knowledge-sharing tools Competitors can replicate a CoE, but lasting differentiation and sustainable advantage comes from embedding the capability for executing change in all aspects of how the organisation functions Copyright 2014 Accenture All rights reserved. 8

9 7 capabilities for change capability Accenture defined 7 capabilities for establishing organisational change capability and a change-receptive and adaptive culture Strategic Alignment Measurement Capable Leadership Network & Centre of Excellence Enterprise Wide Framework Benefits Management Competency Building 1. Strategic Alignment A critical management process that works across organizational silos should be in place to address the question is the change effort focused on building the key capabilities needed to achieve our current strategy? Copyright 2014 Accenture All rights reserved. 9

10 7 capabilities for change capability Accenture defined 7 capabilities for establishing organisational change capability and a change-receptive and adaptive culture Strategic Alignment Measurement Capable Leadership Network & Centre of Excellence Enterprise Wide Framework Benefits Management Competency Building 2. Capable Leadership sponsorship needs should be understood from board-level to mid-level leadership, all of whom should be able to act as an active role-model in leading the change agenda Copyright 2014 Accenture All rights reserved. 10

11 7 capabilities for change capability Accenture defined 7 capabilities for establishing organisational change capability and a change-receptive and adaptive culture Strategic Alignment Measurement Capable Leadership Network & Centre of Excellence Enterprise Wide Framework Benefits Management Competency Building 3. Enterprise Wide Framework The organization should have a shared set of consistent and comprehensive change management practices, tools, and templates, which are adopted and accessible by all, and used in every project and program in an actionoriented way Copyright 2014 Accenture All rights reserved. 11

12 7 capabilities for change capability Accenture defined 7 capabilities for establishing organisational change capability and a change-receptive and adaptive culture Strategic Alignment Measurement Capable Leadership Network & Centre of Excellence Enterprise Wide Framework Benefits Management Competency Building 4. Competency Building Critical skills and competencies required of different players in change management should be defined and embedded in core organizational competency and performance models Copyright 2014 Accenture All rights reserved. 12

13 7 capabilities for change capability Accenture defined 7 capabilities for establishing organisational change capability and a change-receptive and adaptive culture Strategic Alignment Measurement Capable Leadership Network & Centre of Excellence Enterprise Wide Framework Benefits Management Competency Building 5. Measurement There should be a culture of accountability, supported by a set of processes and scorecards, that allow the organisation to measure progress against the change plan, the contribution of the people, processes, and tools leveraged to deliver the plan, and the capacity of the business to absorb the change. Copyright 2014 Accenture All rights reserved. 13

14 7 capabilities for change capability Accenture defined 7 capabilities for establishing organisational change capability and a change-receptive and adaptive culture Strategic Alignment Measurement Capable Leadership Network & Centre of Excellence Enterprise Wide Framework Benefits Management Competency Building 6. Network & Centre of Excellence Develop an embedded set of change-capable people within the organisation, whether part-time change networks or a full-time Centre of Excellence. Copyright 2014 Accenture All rights reserved. 14

15 7 capabilities for change capability Accenture defined 7 capabilities for establishing organisational change capability and a change-receptive and adaptive culture Strategic Alignment Measurement Capable Leadership Network & Centre of Excellence Enterprise Wide Framework Benefits Management Competency Building 7. Benefits Management A benefits management approach should be defined and established to focus program stakeholders on maximizing the ROI from the change Copyright 2014 Accenture All rights reserved. 15

16 7 capabilities for a change capable organisation Accenture defined 7 capabilities for establishing organisational change capability and a changereceptive and adaptive culture Copyright 2014 Accenture All rights reserved. 16

17 ... but even today s change capable organisations do not have it all Start smart...and grow from there Most organisations with an established change capability started with a focus on 1 or 2 key capabilities relevant for their situation and then extended into other capabilities over time Building change capability is a change journey itself... Copyright 2014 Accenture All rights reserved. 17

18 Capability Roadmap The next 12 months? Start smart...and grow from there What are you going to focus on over the next 12 months? Maturity The Next 12 Months Copyright 2014 Accenture All rights reserved. 18

19 Appendix

20 Empirically derived, data-based model defining new benchmarks Tracking database 15 years of organizations in change Over 150 global clients 250 change programs 420 Tracking cycles 750,000 individual responses Acquisitions Transformations Restructuring Mergers IT implementations Cost reduction Turnarounds Culture change Growth Shared services Sales strategies New business strategies Copyright 2014 Accenture All rights reserved. 20

21 Validated research sits behind Tracking A proven track record of driving benefits realisation and improvements in performance across times of change. Copyright 2014 Accenture All rights reserved. 21

22 Our research shows 1 in 9 groups improve their performance across times of change Projects typically take longer than planned and cost more over budget, over schedule is the norm, not the exception Copyright 2014 Accenture All rights reserved. 22

23 When change is over budget, over schedule MANAGERS FAILED TO PICK UP THE EARLY WARNING SIGNS OF GOING OFF TRACK Copyright Copyright Accenture Accenture. All rights All reserved. rights reserved

24 Where is your organisation on the change landscape? Sleepy in Success Business as Usual Building Momentum Cruising On Track Pushing the limits High Performance Good, but not yet great In the Dark Achieved with loss of heart Bumpy ride On the Run Yes, but Battling it out Where would we be without maps? The obvious answer is, of course, lost Jerry Brotton, A History of the World in Twelve Maps Flatlining Washed up Burning platform Off Track Unsustainable Just get on with it Case for Action Rocky ground Struggling under pressure 20 regions define patterns of strength and weakness in change programs. Downward Spiral Visit: enterprise.changetracking.com/demo Copyright 2014 Accenture All rights reserved. 24