Building an Internal Change Management Capability. Presented by Jesse Jacoby Founder & Managing Emergent

Transcription

1 Building an Internal Change Management Capability Presented by Jesse Jacoby Founder & Managing Emergent

2 Transformation & Change Insights White papers: 3 rd party contributions: Online publication: Online tools:

3 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

4 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

5 Formula for Project Success PM x CM = ROI MAX Quality business solution supported by strong program and project management Engagement of the people through effective change management Successful delivery of the business solution with maximum ROI 4

6 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 programs 1 YET 48% of executives and managers believe they do not have the necessary capabilities to effectively deliver change or sustain it 2 Companies under-invest in organizational change management, allocating, on average, only 5% of the overall system implementation budget to the change management effort 3 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

7 A Haphazard Approach 6

8 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

9 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

10 Designing a Change Management Capability 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

11 The Blueprint 10

12 Designing a Change Management Capability Change Capability Blueprint 11

13 Change Capability Blueprint Structure & governance Determine residence within the enterprise Establish who has accountability Set scope and boundaries Identify team structure & roles 12

14 Change Capability Blueprint Change methodology Select or develop change management model Create assessment and intake process Establish client engagement approach Identify set of service offerings 13

15 Change Capability Blueprint Change tools Establish a common set of change management tools Create role-specific toolkits (e.g., PMs, HRBLs) 14

16 Change Capability Blueprint Change tools Tools include: Assessments Templates Models Checklists In Microsoft PowerPoint, Excel, and Word 15

17 Change Capability Blueprint Resources & competency 16

18 Designing and Implementing Typically takes a few months 17

19 Capability Maturity 18

20 A Couple of Client Examples 19

21 Case Example #1 Fortune 50 retailer 20

22 Case Example #1 Fortune 50 retailer 21

23 Case Example #1 Fortune 50 retailer 22

24 Case Example #1 Fortune 50 retailer 23

25 Case Example #2 Midmarket aerospace company 24

26 Case Example #2 Midmarket aerospace company 25

27 Insights from Fortune 500 Change Leaders 26

28 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

29 Insights: Capabilities at Large Organizations 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

30 Insights: Capabilities at Large Organizations 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

31 Insights: Capabilities at Large Organizations Findings from interviews 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

32 Insights: Capabilities at Large Organizations Findings from interviews Primary Residence of Capability Large variance in the number of change management resources:

33 Insights: Capabilities at Large Organizations Findings from interviews 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

34 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

35 Your Turn! 34

36 As a Thank You Free change management tools A pack of change management tools from our Change Accelerator program Take a copy of the handout with the download link and instructions 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 Visit us at our booth 35