Assess and Build Change Capability

Transcription

1 Assess and Build Change Capability Research Methodology Training Advisory Services Karen Ball, Solution Portfolio September 20, Capability: noun ca pa bil i ty \ˌkā-pə-ˈbi-lə-tē 1 : the quality or state of being capable; also : ability 2 : a feature or faculty capable of development : potentiality 2 1

2 3 Why Build Change Capability? External Stakeholders 1 Shareholders 2 Customers 3 Suppliers 4 Community 5 6 Business/trade/ professional body Government/ regulators Short-term priority issues and opportunities Longer-term futurefocused issues and opportunities 4 2

3 Why Build Change Capability? Internal Stakeholders Executives & Senior Leaders Middle Managers & Supervisors Front-Line Associates 4 Contractors Short-term priority issues and opportunities Longer-term futurefocused issues and opportunities 5 Top changes impacting Utilities Identified by study participants Market Operational Technological Rise in popularity of renewable energy Government regulation related to carbon dioxide emissions Changes to demand Consolidation Increased competition Changes to processes and business models Increased attention to environmental concerns Changes to customer relations Digitalization of the energy market Remote meter reading Popularization of smartgrid technology 6 3

4 7 Changes Become Projects Top 5 Strategic Projects Top 5 Operational Projects % 80% 60% 40% 20% 0% Percent of study participants who met or exceeded objectives 20% 15% 43% 44% 76% 76% -Utilities - All 100% 94% Poor Fair Good Excellent Change management effectiveness 8 4

5 Demographics Summary: Utilities Data Demographics Revenue of Utilities participants More than $5B 15% $2.5B - $5B 15% $1B - $2.5B 22% $500M - $1B 15% $250M - $500M 10% $100M - $250M 7% $50M - $100M 2% $25M - $50M 2% $10M - $25M 0% Less than $10M 12% 0% 20% Number of employees More than 35,000 0% 20,000-34,999 7% 10,000-19,999 4% 5,000-9,999 27% 2,500-4,999 20% 1,000-2,499 31% Less than % 0% 20% Type of project reported on by Utilities participants IT software Safety programs Regulatory policies ERP system Human Resources system installation Process optimization Culture change 4% 4% 4% 7% 7% 9% 0% 20% 24% 9 Assess & Build Change Capability Enterprise Capability Project Application Individual Competencies Research ADKAR 10 5

6 Assess & Build Change Capability Enterprise Capability Project Application Individual Competencies Research ADKAR 11 Prosci Research The body of knowledge on change management 9 studies 17 years 4500 participants What works? What doesn t? What to do differently? Culture Global awareness Complementary roles Change Agent Networks Vertical industry customization Justifying CM Job roles and locations Advice for new practitioners Complex change Aligning CM with other disciplines Measurement and metrics Integrating CM and PM Readiness Trends in CM Reinforcement and sustainment Saturation and portfolio management Organizational change capability Team member attributes Resources and budgets Resistance management Manager Role Greatest contributors Biggest obstacles Methodology Sponsorship Communications Training

7 Prosci Research The body of knowledge on change management Top industries represented: 1. Health Care 2. Government State 3. Banking 4. Finance 5. Consulting 6. Oil and Gas 7. Government Federal 8. Insurance 9. Education Services 10.Manufacturing 11.Utilities Including study participation from: BC Hydro Duke Energy Corporation Electricity Supply Board Enbridge Gas Distribution ENMAX Genesis Energy Hawaiian Electric Iberdrola USA Pacific Gas and Electric Sydney Water 13 Top Contributors to Success: Utilities Uniqueness? The Goal: Employee adoption and usage Sponsorship Communications Middle Management Engagement Employee Engagement Change Management Approach Change Management Resources Integrating with PM Top Contributors to Success Relationship to Adoption and Usage Copyright 2016 Prosci Inc. Best Practices in Change Management 2016 Edition 14 7

8 Assess & Build Change Capability Enterprise Capability Project Application Individual Competencies ADKAR 15 Change ultimately comes to life One person at a time 16 8

9 How does this person make a successful personal change? 17 Prosci ADKAR Model Awareness Of the need for change Desire To participate and support the change Knowledge On how to change Ability To implement required skills and behaviors Reinforcement To sustain the change 18 9

10 Assess & Build Change Capability Enterprise Capability Project Application Individual Competencies Research ADKAR 19 Assess Individual Competencies Change Managers: Build Competencies Follow a Structured Change Management Process Execs & Senior Leaders Middle Managers & Supervisors Plus Front-Line Associates 20 10

11 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 9/26/2016 Individual Competencies Internalize ABC of sponsors Internalize CLARC role in change Execs & Senior Leaders Middle Managers & Supervisors Design solutions with adoption and usage in mind Expect and Thrive in Change Front-Line Associates 21 Utilities Spotlight Prosci Research Pulse Sponsorship Sponsorship correlates with projects success Percent of projects that met or exceeded objectives 29% 42% 54% 72% Very ineffective sponsors Sponsors do not understand their role None Slight understanding Ineffective sponsors Some understanding Moderately effective sponsors Adequate understanding Extremely effective sponsors Complete understanding Sponsorship effectiveness Actively and visibly participate All: 5% 15% 33% 32% 16% 7% 13% 17% 39% 24% Build a coalition of support All: Extremely Somewhat Ineffective Effective Ineffective Effective Extremely Effective 9% 22% 33% 24% 12% 9% 17% 26% 37% 11% All: 6% 19% 33% 30% 12% 0% 20% 40% 60% 80% 100% 2% 17% 37% 33% 11% 0% 20% 40% 60% 80% 100% Less than adequate understanding: All: 58% 56% Communicate directly All: 6% 20% 31% 29% 14% 24% 22% 33% 22% 22 11

12 Build Individual Competencies Hiring Objectives On-boarding Training Coaching Execs & Senior Leaders Middle Managers & Supervisors Front-Line Associates Must be Intentional Competency Models Development Plans Performance Reviews 23 Assess & Build Change Capability Enterprise Capability Project Application Individual Competencies Research ADKAR 24 12

13 Just because it is common sense does not mean it is common practice! Will Rogers 25 Assess Project Application General Project Lifecycle Kick off Major events Go Live Initiate Plan Design Develop Deploy Individual Change Journey Milestones Prosci ADKAR Model A D K A R Organizational Change Mgmt Activities Prosci 3-Phase Process Phase 1: Preparing for Change Phase 2: Managing Change Phase 3: Reinforcing Change Strategy Plans Measures 26 13

14 Integrating CM and PM 77% Integrated CM & PM Unified Value Proposition Didn t Did Project Management Design, Develop, Deliver Solution Effectively And it mattered: Good or Excellent CM People Processes Tools 60% Did 33% Didn t Solution is Embraced, Adopted and Used Proficiently Change Management 27 Utilities Spotlight Project management integration Integration with project management: All: 85% 77% Prosci Research Pulse Dimensions of integration: People Integration All: 90% 86% Those who integrated CM and PM were more effective Processes Integration 85% 78% 60% Results Integration 54% 56% Did 33% Didn t Tools Integration 59% 51% 28 14

15 Assess & Build Change Capability Enterprise Capability Project Application Individual Competencies Research ADKAR 29 Organizational CM Capability DNA/fabric/norm through individual competencies and integrated CM approaches Change Management Catalyzing individual transitions to deliver organizational results 30 15

16 Assess Enterprise Capability: Maturity Level 5 Level 4 Level 3 Organizational Competency Organizational Standards Multiple Projects Prosci Change Management Maturity Model Level 2.2 Level 2 Isolated Projects Level 2.3 Level 3.0 Level 1.9 Level 2.3 Level 1.6 Level 1 Ad hoc or Absent Audit and Diagnostics Maturity Model Data Organizational maturity: Project success rate by maturity level: Level 5 2% Level 5 65% Level 4 12% Level 4 61% Level 3 37% Level 3 52% Level 2 40% Level 2 45% Level 1 9% Level 1 37% 0% 50% 0% 70% 32 16

17 20% 49% 9/26/2016 Utilities Spotlight Prosci Research Pulse Enterprise change capability Higher CM maturity means higher project success rates Organizational maturity in CM All: Project success rate by maturity level: Level 5 Level 4 Level 3 0% 11% Level 5 Level 4 42% Level 3 2% 12% 37% Level 2 33% Level 2 40% Level 5 Level 4 Level 3 Level 2 Level 1 Overall 65% 61% 52% 45% 37% 49% Level 1 13% 0% 50% 66% Level 1 9% 0% 50% Is your organization actively working to build org change capability? All: 47% 33 Agility: noun agil i ty \ə-ˈji-lə-tē\ : the quality or state of being agile: nimbleness, dexterity 34 17

18 Agility Attributes We have an embedded CM capability We anticipate and plan for changes We have reduced silos We are fast at decision making We encourage crossorganizational collaboration We effectively prioritize and manage our change portfolio We rapidly develop and deploy new capabilities We effectively initiate change efforts We have human capital (talent) strategies and practices for agility We have enhanced risk management practices 35 We have an embedded CM capability We anticipate and plan for changes We have reduced silos We are fast at decision making We encourage crossorganizational collaboration We effectively prioritize and manage our change portfolio We rapidly develop and deploy new capabilities We effectively initiate change efforts We have human capital (talent) strategies and practices supporting agility We have enhanced risk management practices 36 18

19 Standing in the Future Write a short description of what I would see if I walked around your organization three years from now because you ve been identified as the most change capable organization in the utility industry. 37 Enterprise Capability Project Application Individual Competencies Your Maturity Goals/Aspirations Your Pilot Projects and Change Methods Your Leaders and Your People Research ADKAR Research ADKAR Outcome: Build your Change Capability to Drive Business Results 38 19

20 Craft a Compelling Why for Change Capability Inspire People to Take Action. Story Action Result Destination Steps Imagination Visual Context Progress Benefits Facts Figures Logic Features Lists Principles Values Emotion Beliefs Ego

21 Assess and Build Change Capability Research Methodology Training Advisory Services Karen Ball, Solution Portfolio September 20, Assess and Build Change Capability WHY: Build change capability to meet short & long-term opportunities External Stakeholders 1 Shareholders 2 Customers 3 Suppliers 4 Community 5 Business/trade/ professional body 6 Government/regulators Internal Stakeholders 1 2 Executives & Senior Mgmt. Middle Managers & Supervisors 3 Front-Line Associates 4 Contractors Short-term priority opportunities Longer-term future-focused opportunities Top 5 Strategic Projects HOW: Changes become projects Top 5 Operational Projects WHAT: Build change capability on a foundation of Research & ADKAR Research Enterprise Capability Project Application Individual Competencies Awareness I understand why Desire I have decided to Knowledge I know how to Ability I am able to ADKAR Reinforcement I will continue to Individual Competencies Project Application Enterprise Capability WHO: Change Manager Plus Level 5 Level 4 Level 3 Level 2 Organizational Competency Organizational Standards Multiple Projects Isolated Projects Level 1 Ad hoc or Absent 21