Being Human Best Practices in CM Transport for NSW 211114

Presented by Catherine Smithson Managing Director November 2014

Best Practices in Change Management

Agenda

• Update on return on investment of Change Management

• Highlights of 2014 Best Practices Benchmarking Report

• Key contributors to success

• Application activity for Transport for NSW

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Introducing Being Human • Founded in 1993 • Our mission: develop change-capable people and organisations so they achieve the benefits of change.

• Prosci Affiliate Australia and New Zealand since 2006

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“People have two fears about the future. First, things will never get back to normal.

Second, they already have”.

Prosci by the numbers •  1994 – Founded in Loveland

Colorado, USA •  8 global Benchmarking

Reports •  16 years of research •  3,400+ research participants •  63 countries •  70% Fortune 500 companies •  25,000+ Certified practitioners

worldwide •  3,000+ Certified practitioners

Australia/New Zealand

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Prosci Best Practices Report Overview

• 822 participants • 63 countries • Top 3 roles:

• Change Management team leader

• External consultant • Project team leader

• 38 new topics

The largest body of Change Management knowledge in the world.

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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

2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.

Snapshot of Australia & New Zealand participants

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Change is the new “business as usual”

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• Volume • Speed • Complexity • Risk • Accountability &

Transparency • Others?

“Life comes at us in waves. We can't predict or control those waves, but we can learn to surf.”

Dan Millman

Executives and Boards identify change as a key risk Standish Group Chaos Study 2014

8,380 IT projects globally IBM Making Change Work 2008

1,500 organisations

41% fully met objectives

44% did not meet time, budget or quality goals

15% missed all goals or were stopped

Reason for CEO departures: mismanaging change Mark Murphy, Leadership Excellence, 2005

16.2%

52.7%

31.1%

Successful

Challenged

Cancelled

Moving from “hit and miss” change….

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to consistent, successful implementation and benefit realisation with

high employee engagement

76%

Executives globally recognise the need to invest 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%

The evolution of Change Management as a profession and discipline • Global Professional Associations

• Education and accreditation •  Vocational - AQF •  Graduate and Postgraduate

• CMBOK - 2013 • Global Change Management Standard -2014

• Recognition by PMI and AIPM

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Current state in Australia

• Early adopter of Change Management

• Public and private sectors

• COMPRAC • Above global average:

•  Use of a methodology •  Actively working to deploy

enterprise Change Management

•  Enterprise Change Management Maturity

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From warm fluffy stuff to key success factor: the business case for Change Management

Organisations change for a reason

Performance Performance > © Prosci Inc. All rights reserved www.change-management.com

Current state

Transition state

Future state

Organisational change requires individual behavioural change

Organisational change

Current Transition Future

Future



Individual change

© Prosci Inc. All rights reserved www.change-management.com

“Soft side” drives success on “hard side”

• How much value does a new process deliver if no-one follows it?

• How much value does a new technology or system deliver if no-one uses it?

• How much benefit is realised if users drift back to the “old ways”? With a very large,

negative ROI

Reframing the purpose of Change Management

achieve targets for adoption, utilisation and proficiency

and deliver expected benefits

Apply a structured approach to the people side of change

and equip leaders to lead change

Why Change Management?

“The case for Change Management is inextricably connected to project connected to project and organisational success. If you are not talking about achieving results, then you are having the wrong conversation.” Tim Creasey Prosci Chief Development Officer

Unified value proposition

Solution is designed, developed and delivered

effectively (Technical side)

Solution is embraced, adopted and utilised effectively

(People side)

+

Complementary disciplines with a common objective

Project management

Change management

Current Transition Future Current Transition Future


Top contributors to change success: Prosci 2014 Best Practices in Change Management Benchmarking Report

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Impact of Change Management on business results

Evolution of Change Management from “warm fluffy stuff” &

optional extra to critical success factor

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Project management

Change management

Current state

Transition state

Future state


Change Management increases success rates by a factor of 6

Change Management increases the probability of achieving outcomes

•  "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"

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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)

Percent of respondents that met

or exceeded project objectives

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


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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)

Percent of respondents that

were on or under budget



Correlation of change management effectiveness to staying on budget

Per

cent

age

of re

spon

dent

s th

at m

et o

r exc

eede

d

proj

ect o

bjec

tives

Change Management drives staying on schedule

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16%

32%

54%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Poor(n=293)

Fair(n=793)

Good(n=1032)

Excellent(n=181)

Percent of respondents that were

on or ahead of schedule



Correlation of change management effectivenessto staying on schedule

Per

cent

age

of re

spon

dent

s th

at m

et o

r exc

eede

d

proj

ect o

bjec

tives

Which factor would you rate as the #1 success factor for change?

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Instant Poll

Greatest contributors to success

1.  Active and visible executive sponsorship

2.  Structured Change Management approach

3.  Dedicated Change Management resources and funding

4.  Frequent and open communications about the change and the need for change

5.  Employee engagement and participation

6.  Engagement and interaction with Project Management

7.  Engagement with and support from middle management

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✔

ê

é

é

✔

☐

ê

2011 rank


Sponsor effectiveness directly correlates to project success

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25%

34%

67%

85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sponsor was veryineffective (score < 2)

Sponsor was ineffective(score between 2 and 3)

Sponsor was effective(score between 3 and 4)

Sponsor was veryeffective (score between

4 and 5)

Percent of respondents that

met or exceeded project objectives

Average sponsor effectiveness ratingCopyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.

Correlation of sponsor effectiveness to meeting project objectives

Per

cent

age

of re

spon

dent

s th

at m

et o

r exc

eede

d

proj

ect o

bjec

tives

What Is meant by Sponsorship?

• Actively and visibly participate throughout the project

• Build a coalition of sponsorship with peers and managers

• Communicate directly with employees

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Start Change Management early for success

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68%

57%51%

41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Initiation(n=234)

Planning(n=164)

Design(n=110)

Implementation(n=93)

Percent of respondents that met

or exceeded project objectives

When change management efforts beganCopyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.

Correlation of when change management efforts began to meeting project objectives

Methodology use on projects now 79%

30 2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

2003 2005 2007 2009 2011 2013

Growth in use of a methodology

Australia is an early adopter of Change Management methodology

•  Countries higher than global average: •  Latin America: 90% •  Africa: 82%

United States: 81% •  Australia and New Zealand:

80% •  Industries higher than global

average: •  Finance •  Insurance •  Telecommunications •  Education •  Pharmaceuticals •  Government: Federal, State,

Local

31 2014 Best Practices in Change Management Report.

822 participants in 63 countries. Prosci copyright 2013.

Major gap between methodology use at project and enterprise levels

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of organisations apply a Change Management

methodology

of organisations applying Change Management

methodology to all projects


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74% had dedicated Change

Management resources globally

81% had dedicated Change Management resources

in Australia and New Zealand

27% had dedicated Change Management budget

16% the average budget for Change Management as a % of the total

project budget

Resources and budget – the good news


Now the bad news…..

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60% Said the budget was sufficient or

more than sufficient

40% Said the budget was slightly or significantly less than sufficient.

Budget most lacking at implementation.

Integration of Project Management & Change Management

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71%

22%

7%

Did you integrate Project Management and

Change Management?

Yes No Don't know 0%

10%

20%

30%

40%

50%

60%

70%

Did not integrate Integrated Per

cent

age

of re

spon

dent

s w

ho

met

or e

xcee

ded

proj

ect o

bjec

tives

Impact of integration on project success


Application activity: benchmark a current change against the top 7 success factors •  Individual or table team

activity • Choose a current or

recently completed change • Assess against the top 7

success factors • Discuss and spokesperson

to report back •  Keep doing – top 3 •  Do differently – top 3

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Being Human Best Practices in CM Transport for NSW 211114

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Transcript of Being Human Best Practices in CM Transport for NSW 211114