Successful Changes with Integrated Change and Project Management

Transcription

1 Successful Changes with Integrated Change and Project Management Markus F. Wanner, Managing Partner, Representative of Management, Tiba Management Consulting, Munich/ Germany 1

2 A way to success?? 2

3 Agenda Success of a change to be managed as project/ program Failed Changes/ Strategic Ini1a1ves Integrated Change and Project Management Transi1on on project and people side Different Change Types/ Nature of Change Focus on strategic ini1a1ves to implement the strategy Manage Business Transforma1on Successful changes/ strategic ini1a1ves Conclusion 3

4 Questions to be answered How can companies live and manage the permanent changes to be compe11ve? Changes par1cularly complex changes like implemen1ng execu1ve- driven strategic ini1a1ves fail osen, why? How could these changes be managed in a professional way to achieve the results and the benefits? How can organiza1ons close the osen given gap between defined strategies and implemented outputs? What is the miracle of effec1ve integrated project and change management as the reason to be successful in implemen1ng changes? 4

5 A change is started to achieve a desired state A Ini1al Situa1on Need for change/ Sense of urgency Change à managed as project/ program Achieved results Z Successful Change Benefits realized Improving the performance and posi=on of the organiza=on by moving from a current state to a future state 5

6 A change is a journey via programs/ projects PMI believes that all strategic change in organiza1ons is delivered through programs and projects. Successful organiza1ons lead change by managing their projects and programs effec1vely. A From Z To 6

7 Failed Changes/ Strategic Initiatives Only 30% of change ini1a1ves were successful. (Kocer 1996) Success rate remains at or about 30%. (PMI, 2014) Examples of significant and successful organiza1onal change are excep1onal. (Burke 2011) 50% of strategic ini1a1ves do not receive appropriate execu1ve- level acen1on. 28% admit that individual projects to implement strategy do not typically obtain the necessary senior- level sponsorship. (Econ. Intelligence Unit 2013) Improved sponsor involvement in organiza1onal change management (OCM) can improve these numbers. (PMI 2014) 7

8 Integrated Change and Project Management Project Management A Z Change Management 8

9 Transition on project and people side is needed 1. Treat it as a project/ program 4. Design Transi=on of Projects Side Assess Ini=al Situa=on 2 T r a n s i t i o n Define Successful Change 5. Design Transi=on of People Side 9

10 Balance project and people side of a change Alignment with Strategy Impact on Org Structure/Jobs Roles & Responsibili1es Infrastructure Informa1on Technology Processes & Tools Systems & Applica1ons Organiza1onal side Current Mode Transi1on Mode Future Mode People side Leadership / Sponsorship Cultural Transforma1on Communica1on Stakeholder Engagement Manage Resistance Teamwork / Involvement 10

11 Overview: Integrated Project and Change Management INTEGRATION Project Management Monitoring & Ini=a=ng Planning Execu=ng Closing Controlling Scope of the Change/ Strategic Ini=a=ve Pre- Project Phase 1 Change Management Preparing Change Planning Change Phases 2- n Managing Change Reinforcing Change Sources: PMI Managing Change in Organiza1ons A Prac1ce Guide, 2013; Prosci 3- phase Change Management process 11

12 Phases of Integrated Change Management Change Management Preparing Change Planning Change Managing Change Reinforcing Change Compelling Change Story/ Vision Stakeholder Assessment Leadership Coali=on Impact Analysis Formal CM- Plan (part of PMP) - Sponsor Ac=vi=es - Communica=on - Training - Coaching - Resistance Management Execu=on CM- Plan - Sponsor Ac=vi=es - Communica=on - Training - Coaching - Resistance Management Change Controlling Implementa=on Reinforcement Feedback Collec=on Correc=ve Ac=ons Con=nuous Improvement 12

13 Integrating Change and Project Management Communica1on Plan 91% Project Plan 81% Training Plan 79% Schedule 78% Stakeholder Stakeholder Analysis/Assessment 68% Impact Impact Analysis/Assessment Analysis/Assessment Scope Scope Lessons Learned Lessons Learned Risk Analysis/Assmt/Log Risk Analysis/Assmt/Log Business Case Business Case Readiness Assessment Readiness Assessment 65% 60% 56% 54% 52% 51% Source: Prosci s 2014 Best Practice in Change Management 13

14 Project management ac=vi=es Change management ac=vi=es Ini1ate project Scope project Plan project Establish objec1ves Document approach Define team and budget requirements Design solu1on Benchmark and gather data Generate ideas and select concepts Model solu1ons Document requirements Develop solu1on Evaluate alterna1ves Architect solu1on Conduct readiness assessments and impact analysis Iden1fy and begin building sponsor coali1on Select and prepare change management team Iden1fy and address an1cipated resistance Communicate why change is happening (sponsors) Prepare and equip managers and supervisors Con1nue communica1ons and sponsorship ac1vi1es Launch group and coaching sessions Reinforce key messages (sponsors) Con1nue communica1ons and sponsorship ac1vi1es Iden1fy training requirements and develop training Con1nue communica1ons, sponsorship and coaching ac1vi1es 14

15 Different Change Types/ Nature of Change PMI differen1ates first- order, second- order and third- order changes. The recipient of what is being changed differs in each category of change. With the differences in the recipient, the difficulty increases and the 1me to facilitate and sustain the change lengthens. Source: Managing change in organiza1ons: A prac1ce guide, PMI,

16 Do The Right Things Right Change Management 16

17 A Strategic Initiative needs program and change management All of an organiza1on s strategic ini1a1ves are projects or usually programs, which inevitably change the business. A strategic ini1a1ve should be managed with proper program management and integrated change management. It is characterized by the following features: - Transla1ng organiza1onal strategy into a specific ini1a1ve - Temporary endeavor as founda1on for related programs/ projects - Only top management can ini1ate these improvement processes - Has impact on one or several management elements (structure, processes, culture, people) and therefore always on business results 17

18 Non-successful strategic initiatives Though execu1ves know what they should be doing 88% say that strategy implementa1on is important to their organiza1ons 61% acknowledge that their firms osen struggle to bridge the gap between strategy formula1on and its implementa1on. Econom. Intelligence Unit 2013) This gap demonstrates a lack of understanding among organiza1on execu1ves that all strategic change happens through projects and programs. Most in the C- suite fail to realize this simple truth. (PMI, Pulse of the Profession 2014) Very few organiza1ons (9%) rate themselves as excellent on successfully execu1ng ini1a1ves to deliver strategic results. Consequently, only 56% of strategic ini1a1ves meet their original goals and business intent. This poor performance results in organiza1ons losing $109 million for every $1 billion invested in projects and programs. (PMI, Pulse of the Profession 2014) 18

19 Business Transformation is the most complex change Business transformation is about making fundamental changes in how business is conducted in order to help cope with shifted market demands. Business transformation is a 2 nd or 3 rd order change and definitely a challenge. As- Is/ Current State Need for business transforma=on: Organiza1on's products/ services being out of date Funding or income streams being changed New regula1ons coming into force Market compe11on becoming more intense To- Be/ Future State Achieved business transforma=on: to increase revenue or market share to improve customer sa1sfac1on to cut costs 19

20 Elements of a strategic initiative Key questions What are we going to do? When and how do we do it? Action planning Implementation programme Where do we stand now? What do we want to be? Key issues analysis Process stages What will it be like then? Ambition development Vision development Key issues & strategic options Initiative development Ambition, Goals & Targets Vision of future business processes Strategic initiatives Stage deliverables 20

21 Company model with elements to be managed and transformed Company Strategy/ Objec=ves Structure/ Organiza=on Requirements/ Challenges Culture (values, leadership, communica1on, decision- making) Business Results People Processes/ Systems 21

22 Managing the transformation from As-is to To-Be-State TO BE AS- IS Transforma1on Awareness Understanding Ownership Commitment 22

23 Structured way to transform an organization Strategy Benefits/ Value Why? What for? Programs/ Projects What to achieve/ to do? Ø Create understanding Ø Define scope and objec=ves People/ Stakeholder Who? + How? (to engage/ mo1vate) Ø Get buy- in, stakeholder acceptance Ø Build capabili=es Organiza=on (Structures + Processes) Who? + How to do it? Ø Ensure role- modeling Ø Align processes + systems 23

24 Key success factors: Strategic alignment and organizational agility The lack of alignment of projects to organiza1onal strategy most likely contributes to the result that nearly one half of strategic ini1a1ves (44%) are reported as unsuccessful. High Performing Organiza1ons have successful strategic ini1a1ves. Projects and programs that are aligned to an organiza1on s strategy are completed successfully more osen than projects that are misaligned (48% versus 71%). Organiza1ons that are highly agile, nimble and able to respond quickly to changing market dynamics complete more of their strategic ini1a1ves successfully than slower, less agile organiza1ons (69% versus 45%). Source: PMI Pulse of the Profession In- Depth Report: The High Cost of Low Performance,

25 High Performing Organizations An organiza1on s success is dependent on high project performance projects completed on 1me, on budget and mee1ng original goals. High- performing organiza1ons are more likely than their low- performing counterparts to focus on agility and strategic alignment. Source: PMI Pulse of the Profession Report: The High Cost of Low Performance,

26 Successful Strategic Initiatives Percentage of projects with ac1ve sponsors Effec1ve change management 26

27 2 supporting disciplines with a common objective: Success! Project Management Results are developed and implemented A Ini1al Situa1on Change Z Successful Change Change Management Results are adopted and used proficiently 27

28 A change is only successful with integrated change and project mgt. Sponsorship/ Leadership Vision, business reason, expected value, benefits; organiza1on s commitment, leading teams and individuals through change, Project Management = organiza1onal/ project side Project Mgt. processes & methods Success: Achieve- ment of expected results Projects meet objec=ves Projects finish on =me and on budget Return on Investment (ROI) realized Change Management = people side of the project Change Mgt. processes & methods Source: Prosci Project Change Triangle TM 28

29 Criteria for successful changes/ strategic initiatives Integrated project/ program and change management: Preliminary ac1vi1es before launching a strategic ini1a1ve Alignment to strategy and crea1ng the To Be vision Define and measure benefits of change/ transforma1on program Sponsorship engagement and role of management Program/ project governance/ decision- making Roles and resources for project and change management Project and Change monitoring and controlling Effec1ve stakeholder management ( Buy- in ) Targeted communica1on and resistance management Training and coaching for leading change/ transforma1on Reinforcement feedback and con1nuous improvements 29

30 Conclusion: Need for Integrated Change and Project Management All changes including major changes organized in strategic ini1a1ves could be managed successfully by Integrated Change and Project Management. It is important to integrate both: the organiza1onal/ project and the people side of a change. The most important success factor is the involvement of an ac1ve sponsor. By maturing project management capabili1es, focusing on change management, and insis1ng on a benefits realiza1on review, high performers successfully complete more projects. In agile organiza1ons, the probability of running a successful strategic ini1a1ve is two 1mes greater than those companies with low agility. A prerequisite to be successful with strategic ini1a1ves is the alignment of projects to organiza1onal strategy. 30

31 Thanks for your acen1on! 31

32 Questions and answers 32