Strategies for Measuring Organizational Change. Jennifer Baker PfMP, PgMP, PMP, MSPM, ITIL, BRMP, ITIL, SSMBB

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1 Strategies for Measuring Organizational Change Jennifer Baker PfMP, PgMP, PMP, MSPM, ITIL, BRMP, ITIL, SSMBB

2 Agenda Explore the benefits of measuring organizational change Introduce measurement stages and tools/instruments Recognize challenges and identify solutions to change measurement difficulties Examples from the field Q & A

3 What Do We Mean by Organizational Change? A broad impact on what and how the organization delivers Examples of organizational change: Providing a completely new service Altering the way training is delivered online courses Introducing a new application or software tool Creating a new market or product Merger, divestiture or acquisition

4 What is the benefit of measuring change?

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6 The Fundamentals of Measuring Change What is your purpose for measuring change? Monitor implementation for some documentation purpose? Measure change for improvement? Measure your change process and/or change outcomes? What is the most appropriate way to measure change? What data will you need and what is the best approach to collecting and analyzing this data? What is the process and/or outcomes?

7 Key steps in measuring change Planning a) Identify change goals b) Make sure goals are realistic and measurable c) Identify what data are needed to measure change d) Identify source of data e) Identify timeline for collecting data Identifying methods for measuring change a) Using organizational records and documents b) Using questionnaires and interviews c) Using observational techniques Analyzing results and dissemination of lessons a) Identify audience of interest for lessons b) Identify effective dissemination tools c) Integrating lessons into future decisions

8 What to Measure

9 Stop & Think What types of change are you engaging in? What specific goals are you hoping to achieve through change? Are you or is a research partner documenting what is happening as you work towards those goals? Have you identified specific milestones that you expect along the way?

10 Methodologies for Measuring Change

11 Expect challenges, but don t be defeated! Change takes time Identifying WHAT to measure can be an arduous experience How to measure changes at different levels (e.g. macro level vs. micro level) Time and capacity to measure Shifting priorities What if no one cares? Unpacking the link between change variables (often multiple) and outcomes That which we persist in doing becomes easier, not that the task itself has become easier, but that our ability to perform it has improved Ralph Waldo Emerson

12 Stop & Think How can you systematically collect data and information to measure the change process and outcomes? What will you use that information for? What real challenges do you see in measuring change in your organization? What can we do to help you tackle those challenges?

13 Overcoming Management Challenges Use internal resources (committees, interns, motivated staff) Seek out individuals who have the knowledge, skills and abilities (KSA) to plan and implement change measurement Establish formal partnerships with academic organizations Identify whether measurement tools already exist Experiment (with measurement) and learn

14 Wrapping up Measurement will help us understand change and will inform future decisions The quality of your design (i.e. systematic process) improves the insights gained Measuring change should start early and be done often You do not have to go it alone Engage, communicate and reflect to ensure change process legitimacy and sustainability

15 Resources Change Leader s Network Free Management Library ange/index.htm

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17 How Strategic PMOs Play a Role in Driving Business Outcomes Jennifer Baker PfMP, PgMP, PMP, MSPM, ITIL, BRMP, ITIL, SSMBB

18 4 Key Findings about Successful PMOs They have a seat at the executive table. They are a vital part of the strategic planning team. They embrace core competencies. They use consistent objectives across industry and regions.

19 Relationships of Project Implementation and Financial Performance

20 Why Did Strategic Initiatives Fail?

21 Primary Reasons for Creating Strategic PMOs

22 Evolution Toward Strategic Initiative Management PMO Focus on actively supporting delivery of full program value with minimum sufficiency. Providing meaningful, forward looking information tied to delivery of strategic impact. Focus on minimum sufficiency in processes in order to generate progress. Fostering the Talent Triangle, project & program management skills, business acumen and leadership. Establishing clear alignment with senior leaders accountable for change.

23 Case Study Example: Duke Energy In November 2007, Duke Energy received approval from the Indiana Utility Regulatory Commission to build a cleaner-coal integrated gasification combined cycle (IGCC) plant at Duke Energy's former 160-megawatt Edwardsport Station in Knox County, Indiana. The 618-megawatt IGCC facility is one of the cleanest and most efficient coal-fired power plants in the world. It emits less sulfur dioxide, nitrogen oxides and particulates than the plant it replaces while providing more than 10 times the amount of megawatt-hours. The project created more than 2,500 construction jobs and began commercial operation in June 2013.

24 Services Provided by the Strategic PMO

25 PMO Leader Responsibilities Create a clearly defined strategic vision. Drive business success through consistent delivery practices. Enable the organizational change needed for growth. Playing an active role in brand ownership.

26 Challenges PMO Leaders Face Inconsistent assessment of current capabilities Lack of a common language Organization resistance to change Inconsistent project management expertise

27 Talent Triangle

28 Common Characteristics of Successful PMOs They carry a strategic title Business environments change at a rapid pace Inconsistent data drives reactive strategic decisions Highest level executives dictated the need for change PMOs report to the highest executive levels

29 Reporting Structure of PMO Leaders

30 Transformation Guidelines Setting a vision while still paying attention to fundamentals Making change management a high priority Creating a culture that embraces organizational excellence Using gained transparency to make strategic moves

31 The Relationship Between Change Management & Risk

32 Case Study Example: Wells Fargo Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo in 2008, Wachovia was the fourthlargest bank holding company in the United States based on total assets and operating financial centers in 21 states and Washington, D.C., with global services through more than 40 offices around the world. The purchase of Wachovia by Wells Fargo and Company was completed on December 31, Wells Fargo acquired Wachovia after a government-forced sale to avoid a failure of Wachovia. Starting in 2009, the Wachovia brand was absorbed into the Wells Fargo brand in a process that lasted three years. On October 15, 2011, the Wachovia brand was retired when the last bank branches in North Carolina were converted to Wells Fargo.

33 Have the Vision But Start with Fundamentals

34 Focus and Approach of Immediate Business Concerns

35 Recognition of Regional and Industry Effects Customer Facing PMOs directly affect revenue and strategy Internal PMOs are a delivery organization Regional and cultural differences play an important role

36 Geographic Differences in Approach

37 Use Standard Metrics: Simple, Focused & Actionable KPIs Simple is better Focus is critical The only acceptable KPI is an actionable one Measuring PMO value is difficult but necessary

38 PMO Value

39 Why Measure PMO Value? Strategic Value

40 Key Recommendations Corporate commitment is essential; pragmatism, speed and measurable results sustain it. Consider elevating the organizational structures. Do the upfront work needed for successful change management. Get the right people involved on the ground floor and at the top. Invest in a common tool set early and bring transparency to the executive level.

41 References Strategic PMOs Play a Vital Role in Driving Business Outcomes: A Part of PMI s Thought Leadership Series. Forrester Research & PMI. November 2013 Strategic Initiative Management: The PMO Imperative. Boston Consulting Group & PMI. November 2013 Talent Management: Powering Strategic Initiatives in the PMO. PMI s Thought Leadership Series. PwC & PMI. November 2014 The Impact of PMOs on Strategy Implementation. PMI. November 2013 Why Good Strategies Fail: Lessons for the C-Suite. The Economist & PMI. March 2013