How to build Enterprise Change Capability, best practices and practical tips

1. Ready, Set, Change!
Building a change
capable organisation
Presented by
Catherine Smithson
November 2015
Prosci Change Management
Webinar
Series 4, 2015

2. Introducing Being Human
• Founded in 1993
• Our mission: develop
change-capable
people and
organisations so they
achieve the benefits of
change.
• Prosci Primary Affiliate
Australia and New
Zealand.
2
Getting back to Normal…
it’s a town in Illinois USA.

3. Prosci by the numbers
• 1994 – Founded in Loveland
(Denver) Colorado, USA
• 8 global Benchmarking
Reports
• 16 years of longitudinal
research
• 3,400+ research participants
• 63 countries
• 80% Fortune 500 companies
• 30,000+ Certified practitioners
worldwide
• 4,000+ Certified practitioners
Australia/New Zealand
3

4. Prosci 2014 Best Practices in Change
Management Benchmarking Report
• 822 participants
• 63 countries
• Top 3 roles:
• Change Management team
leader
• External consultant
• Project team leader
• 244 pages
• 38 new topics
The largest body of Change Management knowledge in the world.
4
2% 2% 3%
5%
14%
15%
25%
34%
Middle East
Latin America
Asia and Pacific
Islands
Africa
Europe
Canada
Australia and New
Zealand
United States

5. Snapshot of participants - ANZ
5

6. Topics
• Why organisations needed
to move to enterprise level
Change Management
• What are the triggers for
starting?
• Which activities have the
biggest impact?
• Who owns or should own,
the Change Management
function?
• Q & A
6
“Change is the law of life. And those who look
only to the past or present are certain to miss
the future.” John F. Kennedy

7. Why do we need to change the way
we change?
7

8. Change is the new “business as usual”
8
• Volume
• Speed
• Complexity
• Risk
• Transparency
• Others?
“Life comes at us in waves. We can't predict or
control those waves, but we can learn to surf.”
Dan Millman

9. Yet success rates of change remain low
IBM Making Change Work Report While the Work Keeps Changing Report
August 2014
1,400 organisations globally, over 20 industries,

10. And many organisations lack change
capabilities
10
IBM Making Change Work Report While the Work Keeps Changing Report
August 2014
1,400 organisations globally, over 20 industries,

11. 76%
CEOs see the need for investing in enterprise
change capability
“Our ability to adapt is
a key source of
competitive
advantage.”
Pricewaterhousecoopers 2008
“Organisational agility
is critical to business
success.”
McKinsey 2009
90%

12. Moving from “hit and miss” change….
12
to consistent, successful implementation and
benefit realisation with
high employee engagement

13. 13

14. Change Management increases
success rates by a factor of 6
Change Management increases the probability
of success
• "Of the 165 research
participants who reported
having excellent change
management effectiveness,
96% met or exceeded
project objectives"
• "Participants with the highest
level of change management
effectiveness were 6X more
likely to meet or exceed
project objectives"
14
16%
46%
77%
96%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=244)
Fair
(n=653)
Good
(n=834)
Excellent
(n=165)
P
e
rc
e
n
t
o
f
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xc
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p
ro
je
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je
c
tiv
e
s
Overall effectiveness of change management program
* Data from 2007, 2009, 2011 and 2013
Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of change management effectiveness
to meeting project objectives
2014 Best Practices in Change Management Report.
822 participants in 63 countries. Prosci copyright 2013.
14

15. 15
Change Management drives staying on budget
48%
63%
71%
81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=258)
Fair
(n=737)
Good
(n=1001)
Excellent
(n=180)
P
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f
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p
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ts
th
a
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w
e
re
o
n
o
r
u
n
d
e
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b
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d
g
e
t
Overall effectiveness of change management program
* Data from 2007, 2009, 2011 and 2013
Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of change management effectiveness to staying on budget
Percentageofrespondentsthatmetorexceeded
projectobjectives

16. Sponsor effectiveness directly correlates to
project success
16
25%
34%
67%
85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sponsor was very
ineffective (score < 2)
Sponsor was ineffective
(score between 2 and 3)
Sponsor was effective
(score between 3 and 4)
Sponsor was very
effective (score between
4 and 5)
P
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p
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tiv
e
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Average sponsor effectiveness rating
Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of sponsor effectiveness to meeting project objectives
Percentageofrespondentsthatmetorexceeded
projectobjectives

17. A new definition of Change Management
17

18. A new definition of Change Management
The processes, tools and techniques to manage the
people side of change to achieve the required
business outcome.
Common set of process
and tools
Leadership capability
Strategic capability that enables the
organisation to be flexible &
responsive
©Prosci. Used with permission under terms of license agreement.
www.change-management.com

19. “So, does anyone else feel that their needs aren’t being met?”

20. Just over 50% of organisations globally are
actively building enterprise Change Management
20
2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No Don’t know
Actively working to deploy Change Management
2011 2013

21. Australia & New Zealand are early adopters
21
2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Middle East
Latin America
Europe
Asia and Pacific Islands
Canada
United States
Entire study population
Africa
Australia and New Zealand
Actively working to deploy Change Management by region

22. Early adopting industries
22
2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Entire Study Population
Oil and Gas
Information Services
Utilities
Retail Trade
Mining
Services - Other (except Public Administration)
Banking
Finance
Insurance
Pharmaceutical
Participants actively working to deploy by industry

23. Major gap between Change Management at
project and enterprise levels
23
of organisations apply a
Change Management
methodology
of organisations applying
Change Management
methodology to all
projects
2014 Best Practices in Change Management Report.
822 participants in 63 countries. Prosci copyright 2013.

24. Triggers to get started
• Volume and complexity of
change underway
• Past program or project
failure
• Demonstrated success of
projects applying Change
Management
• Risk Management
• Employee Engagement and/
or Culture Survey results
• Others?

25. Project level vs enterprise level
Change Management
Change Management is like
building a house
How do we effectively manage the
people side of change on one
project or initiative?
ECM is like designing a subdivision
How do we bring Change
Management to our entire
organisation?
©Prosci. Used with permission under terms of license agreement.
www.change-management.com

26. Institutionalizing change
management practices,
processes, capabilities and
competencies
Building organizational change
management capabilities and
competencies
Deploying change management
broadly throughout the
enterprise
All employees have internalised
their role in leading change
“Great change management” is
second nature & part of our DNA
Change management is the
organisation’s Standard
Operation Procedure
Change management is
the norm on projects
and initiatives
What is Enterprise Change Management ?
©Prosci. Used with permission www.change-management.com

27. PMOs are leading change capability building
2014 Best Practices in Change Management Report.
822 participants in 63 countries. Prosci copyright 2013.
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Other
Grassroots
Within business units, Operations
Independent change management group
Corporate and Shared Services
Strategy, Transformation, Planning
Executive Leadership
Information Technology (IT)
Organisational Development (OD)
Human Resources (HR)
Project Management Office (PMO)
Percentage of respondents
Originator of the effort

28. Most Change Management groups are located
in the PMO
28
38%
Had a Change Management Office or
functional group globally
45%
Australia & New Zealand
Top Locations
• PMO: 28%
• HR: 24%
• OD: 17%
• IT: 14%
• Strategy/Transformation:13%
Key Roles
1. Own & maintain methodology
2. Own & maintain tools
3. Consulting support to Change
Management resources on
projects
4. Maintain CoP
5. Provide resources for projects
2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.

29. Only 23% report high levels of success
29
0%
10%
20%
30%
40%
50%
60%
70%
Very unsuccessful Unsuccessful Moderately
successful
Successful Extremely
successful
Success of deployment effort
2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.

30. Features of organisational capabilities
30
• Take years or decades to
build
• Pay off is long term
• Become an asset – intangible
• Difficult for competitors to
identify, imitate or match
• Can erode or disappear
• Can be difficult to change
• Consistent investment
• Robust if embedded across
multiple processes and
systems
Source: Change Power – Turner and Crawford,1998

31. Prosci Change Management Maturity Model™
People-dependent
without any formal
practices or plans
Many different
tactics used
inconsistently
Examples of best
practices evident
Selection of
common approach
Continuous
process
improvement in
place
Highest rate of
project failure,
turnover and
productivity loss
Little or no change management applied
Adhoc or
Absent
Level 1
Some elements of change management are
being applied in isolated projects
Isolated
Projects
Level 2
Comprehensive approach for managing
change is being applied in multiple projects
Multiple
Projects
Level 3
Organization-wide standards and methods
are broadly deployed for managing and
leading change
Organizational
Standards
Level 4
Highest
profitability and
responsiveness
Change management competency is evident
in all levels of the organization and is part of
the organization’s intellectual property and
competitive edge
Organizational
CompetencyLevel 5
People-dependent
without any formal
practices or plans
Many different
tactics used
inconsistently
Examples of best
practices evident
Selection of
common approach
Continuous
process
improvement in
place
Highest rate of
project failure,
turnover and
productivity loss
Little or no change management applied
Adhoc or
Absent
Level 1
Some elements of change management are
being applied in isolated projects
Isolated
Projects
Level 2
Comprehensive approach for managing
change is being applied in multiple projects
Multiple
Projects
Level 3
Organization-wide standards and methods
are broadly deployed for managing and
leading change
Organizational
Standards
Level 4
Highest
profitability and
responsiveness
Change management competency is evident
in all levels of the organization and is part of
the organization’s intellectual property and
competitive edge
Organizational
CompetencyLevel 5
Copyright Prosci 2010
©Prosci. Used with permission www.change-management.com

32. Five Capability areas
• Leadership – who is leading or sponsoring the
deployment of Change Management?
• Application – What % of projects apply Change
Management processes? What is the ‘reach’ or ‘breadth’
of application across the organisation?
• Competencies – what level of training is available for all
levels? How do all levels demonstrate competency?
• Standardisation – what is the standard approach? Who
‘housekeeps’ Change Management?
• Socialisation – How do we share success stories and
maintain commitment to better managing change?
32©Prosci. Used with permission www.change-management.com

33. Prosci Change Management Maturity Audit
33
2.06
0
1
2
3
4
5
Prosci
®
Change Management Maturity ModelTM
Audit
Level
Level
Level
Level
Level
Overall Change Management Maturity Model Audit Score
2.88
2.38
1.58
2.08
1.40
0
1
2
3
4
5
Capability
Area 1:
Leadership
Capability
Area 2:
Application
Capability
Area 3:
Competencies
Capability
Area 4:
Standardization
Capability
Area 5:
Socialization
Prosci
®
Change Management Maturity ModelTM
Audit
Level
Level
Level
Level
Level
2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.

34. Change Management maturity by region
Region
(plus % of study participants from region)
Average Maturity Level
All regions (100%) 2.66
United States (34%) 2.69
Australia and New Zealand (25%) 2.68
Canada (15%) 2.62
Europe (14%) 2.66
Africa (5%) 2.59
Asia and Pacific Islands (3%) 2.88
Latin America (2%) 2.67
Middle East (2%) 2.31
2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.

35. Level of maturity Australia & NZ
0% 10% 20% 30% 40% 50% 60%
Level 1
Level 2
Level 3
Level 4
Level 5
Maturity Model data for Australia and New Zealand
2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.

37. Key ingredients for success
• Treat ECM as a project
• Secure sponsorship before moving
forward
• Build a strong case for Change
Management
• Multi pronged approach
• Adopt a single, effective, consistent
methodology and upskill people to
use it
• Position Change Management as
everyone’s job
37
2014 Best Practices in Change Management Report.
3400 participants in 63 countries. Prosci copyright 2013.

38. Mistakes to avoid
1. The training trap
2. Moving forward without Executive
Sponsorship
3. Failing to build the business case
for Change Management.

39. Q&A

40. More info
40
Being Human
beinghuman.com.au
Prosci
• change-management.com
• prosci.com
• portal.prosci.com
• Change Management Maturity
Audit (Enterprise tool)
• CMROI Calculator (start up/
business case: project/
program level)
• E Best Practices Audit (project
level tool)

41. Use the right tool for the job
Tool Project/Program
Level
Or
Enterprise Level?
Who should participate?
CMROI Calculator Project level
Ideally at business
case, or early
planning stage
• Change manager (facilitate it
• Project/Program manager
• Project Sponsor
• Business owner
• Steering committee
PCT Analyzer Project
Commencement and
key milestones
• Change manager (facilitate it
• Project/Program Manager
ADKAR Dashboard
(coming soon)
Project/Program
Commencement and
key milestones
• Impacted groups who need to adopt the change
• Managers
• Team members
eBest Practices Audit Project
Key milestones
Completion - PIR
• Change Managers
• Project team
• Selected sections – managers, staff
41

42. Use the right tool for the job
42
Change Management
Maturity Audit
Enterprise • Change Managers
• Sponsor of the ECM effort
• Program/Project managers
ECM Roadmap Enterprise • Change Managers
• Sponsor of the ECM effort
• Program/Project managers
Change Management
Maturity Audit
Enterprise • Change Managers
• Sponsor of the ECM effort
• Program/Project managers
• Others involved in ECM (eg HR/OD)