change management in an it methodology context · pdf filechange management in an it...

Change Management in an IT Methodology Context The Experience of TEDO (Technology Enterprise Delivery Office)

December 2012

Speakers:

Lydia Galanti ([email protected]) Iphigénie Ndiaye ([email protected]) Claude St-Hilaire ([email protected])

mailto:[email protected]



2

Agenda

Change Management Fundamentals

Change Management in IT Methodology: a TD Case Study

Lessons Learned

Conclusion

Questions

Change Management Fundamentals

4

“The number one obstacle to success for major change projects is employee resistance and the ineffective management of the people side of change”.

Data from 327 companies undergoing major change projects; Prosci Best Practices in Business Process Reengineering benchmarking study (2002).

5

What is Change Management?

Change management is the application of a set of tools, processes, skills, and principles for managing the people side of change to achieve the required outcomes of a project or initiative

A system for encouraging employees to embrace, adopt, and utilize a change to how they do their jobs

A framework for enabling successful individual transitions resulting from a project or initiative

Organizations introduce change through projects and initiatives

These changes impact how individuals do their work (behaviors, processes, tools)

The success of the organizational change is the result of individuals doing their work differently

6

What is Change Management?

Prosci® PCTTM Model

PCT: Project Change Triangle

17%

49%

80%

95%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Poor(n=177)

Fair(n=441)

Good(n=561)

Excellent(n=107)

Per

cent

of r

espo

nden

ts th

at m

et

or e

xcee

ded

proj

ect o

bjec

tives

Overall effectiveness of change management program

Correlation of change management effectiveness to meeting project objectives

*Data from 2007, 2009 and 2011© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

7

Change Management and Benefits Realization

6X!

“Participants with the highest level of change management effectiveness were nearly 6 times more likely to meet or exceed project objectives”.

n = Number of research participants within 650 companies

8

Change Management Objectives

Achieve: Desired business outcomes & results

Maximize: Speed of adoption

Pervasive utilization of

change Proficiency

Minimize: Resistance

Productivity loss Negative

customer impact Undesired turnover

Strengthen: Organizational

agility Personal resilience

9

Why Change Management?

When change management is not applied, or brought into a project too late, benefits realization is delayed and there are many “RE” costs:

REevaluate

REtrain

REscope

REschedule

The “RE” costs are a complete waste as they are unnecessary and do not add any value.

REdesign

REwork

REvisit

REdo

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States of Change

Current

Current

Current

Current

Current

Current

Current

Transition

Transition

Transition

Transition

Transition

Transition

Transition

Future

Future

Future

Future

Future

Future

Future

INDIVIDUALS

Future

ORGANIZATION

11

Incr

easi

ng re

sist

ance

Dec

reas

ing

prod

uctiv

ity

1st communication or1st rumor

Time

Worry / uncertainty

Comfort / security

Risk / flight

Prosci’s Flight Risk ModelCopyright Prosci 2009.

Change Journey Done Right!

12

Incr

easi

ng re

sist

ance

Dec

reas

ing

prod

uctiv

ity

Turnover of valued employeesTangible customer impactActive resistanceOpt-out of the change

1st communication or1st rumor

Time

Dept. A

Dept. B

Dept. C

Dept. D

Productivity lossEmployee dissatisfactionPassive resistance

Prosci’s Flight Risk ModelCopyright Prosci 2009.

Change Journey Gone Wrong…

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Change Management Roles

Project Team Project Support

Functions

Middle Managers & Supervisors

- Sponsors - Executives &

Senior Managers

Change Management Resource or

Team

- Sponsors- Executives & Senior

Managers

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Change Management Roles

Project Team

Project Support

Functions

Middle Managers & Supervisors

1. Participate actively and visibly throughout the project 2. Build a coalition of sponsorship and manage resistance 3. Communicate directly with employees

1. Communicate change rationale and impacts 2. Advocate change 3. Coach employees through change 4. Liaise with project team 5. Manage resistance

1. Design the actual change 2. Manage the technical side 3. Engage with CM team/resource 4. Integrate CM plans into project plan

1. Share knowledge 2. Provide experience and expertise 3. Share tools

Change Mgmt

Resources or Team

1. Apply a structured change management methodology 2. Formulate strategy 3. Develop and lead the deployment of plans 4. Support other change roles

15

Change Management Process & Outputs

Outputs:

Change characteristics profile

Organizational attributes profile

Change management strategy

Change management team structure

Sponsor assessment, structure and roles

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Outputs:

Plans: Communication plan

Sponsor roadmap

Training plan

Coaching plan

Resistance management plan

Executed plans

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Outputs:

Reinforcement mechanisms

Compliance audit reports

Corrective action plans

Individual and group recognition approaches

Success celebrations

After action review

Change Management in IT Methodology: a TD Case Study

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IT@TD: a Federated Model

Enterprise CIO

CIO TD Bank US

CIO TD Canada Trust & Insurance

CIO TD Wealth

Management

CIO TD Wholesale Banking

CIO TD Auto Finance

SVP Office of the CIO

CIO Corporate Services

CIO Direct Channels

SVP Enterprise

Architecture

SVP Risk & Information

Security

Lines of Business (LoBs)

Enterprise Services

TEDO

TEDO: Technology Enterprise Delivery Office

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IT@TD: Change Initiative

Problem: TD needs to improve IT project delivery performance

Solution: Delivery Excellence (DE) program including 6 workstreams (projects) to create a sustainable framework for improving TD’s performance and capabilities

Program Objectives: – Establish and adopt enterprise-wide processes and standards for

technology project delivery. – Measure Enterprise Technology performance using a standard set of

project delivery KPIs. – Deploy adherence processes across the enterprise with initial focus

on large projects.

Begin to act as One Technology Organization focused on creating a common IT experience for our business partners and technology employees.

1. Situational Awareness

Identify change characteristics for each workstream: – What is the scope of the changes? – How many people will be impacted in each IT group? – Which roles will impacted? – What is being changed - processes, systems, job roles, etc? – What are the timeframes for the changes?

Identify organizational attributes of each IT group: – Where do we start from? – What is the perceived need for change among employees and managers? – How have past changes been managed? – How much change is going on right now?

Identify specific impacts for in each IT group: – How will each role be specifically impacted?

.

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Phase 1 – Preparing for Change Define Change Management Strategy

2. Change Strategy Definition

Assess risks – What are the risks to consider for each IT group? – What are the risks to consider for each impacted role?

Anticipate resistance – Are some groups impacted differently than others? – Were certain groups advocating a different solution to the same problem? – Are some groups heavily invested with how things are done today?

Define special tactics – What do we need to do to overcome risks and resistance across IT groups?

.

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Challenges Strategies High impact in a short period • Ensure engagement of Senior Advisory Committee as sponsors and change

agents inside each IT group

• Ensure the participation of the right stakeholders and engage them in the deployment strategy

Stakeholder buy-in • Refine the approval and governance model for the DE Program outcomes

• Ensure the participation of stakeholders from each IT group in the Program work streams, workshops & change management activities

• Ensure the explicit commitment of IT Executive Team and the Senior Advisory Committee with the program objectives and outcomes

• Create a close relationship between the DE Program team and the Advisory Committee members

Dynamic Program scope • Identify criteria to measure the success of the program from a delivery and a change adoption standpoints

Stakeholders hard to identify and geographically distributed (no standard role definitions across IT groups)

• Engage Advisory Committee members in the identification of impacted roles inside each IT group

• Analyze different options to ensure delivery of training & support to geographically distributed teams

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Challenges Strategies Lack of support resources within TEDO to ensure change adoption

• Define a support model for each change involving champions inside each IT group

Alignment with Enterprise SDLC methodology varies across IT groups

• Align deployment strategies with the reality of each IT group

High # of parallel change initiatives that affect the DE Program scope, timeframe and stakeholders

• Ensure coordination with other initiatives to validate deployment dates, communications and training periods

• Frequently communicate DE Change Roadmap to Advisory Committee members and jointly identify high-risk periods for deployment activities

Low awareness about TEDO’s mission in IT groups

• Develop distinct communication plans for the DE Program and TEDO as an organization

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25

DE Senior Advisory Committee Executives from all IT groups

DE Advisory Committee PMO Directors from all IT groups

Workstream 1

Workstream 2

Workstream 3

Workstream 4

Workstream 5

Workstream 6

DE Change Management Team Lead & Specialists

- Sponsors -Executives &

Senior Managers

Middle Managers

Cross-IT Group Project

Teams & Support

Functions

Change Management

Team

Phase 1 – Preparing for Change Prepare Change Management Team & Develop Sponsorship Model

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1. Situational Awareness

2. DE Change Strategy

3. DE Sponsorship

Model

drive

DE Communication Plan

DE Sponsorship Roadmap

DE Coaching Plan

DE Training Plan

DE Support Model

Phase 2 – Managing Change Develop Change Management Plans

Execution

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Phase 2 – Managing Change Communication Plan & Execution

Audiences

Target Dates

Owner

Communication Channel

Key Messages

1

2

3

4

5

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Phase 2 – Managing Change Sponsorship Roadmap & Execution

Prosci® PCTTM Model

Communications Calendar

Draft Communications

Awareness Tools

Sponsorship Tools

SharePoint site

Change Story

1

2 3

PCT: Project Change Triangle

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Phase 2 – Managing Change Coaching Plan & Execution

Diff

eren

t Le

vels

-Sponsors- Executives & Senior

Managers

Middle Managers

Cross-LoB Project

Teams & Support

Functions

Coa

chin

g A

ctiv

ities

Change Management Training

Weekly Change Management follow up with Stream Lead

Change Management Workshop

Provide Communication and Training Toolkits

Biweekly One-to-One Meetings with each AC

member Advisory Committee

Program Stream Leads

Senior Advisory Committee

Change Management Summary Presentations

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Phase 2 – Managing Change Training Plan & Execution

Training Process 1

Training Requirements 2

Training Curriculum 3

Training Schedule 4

Training Agenda 5

Training Reporting 6

1

3

4

5 6

2

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Phase 2 – Managing Change DE Support Model & Execution

Support Cycle 1

Support Structure 2

Support Process 3

Support Matrix 4

Champions Meeting Workspace 5

5

4

3 2 1

-Training Surveys, - Champions feedback - ADKAR®* Assessment

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Phase 3 – Reinforcing Change

* Prosci ADKAR® Model: Awareness, Desire, Knowledge, Ability, Reinforcement

Listen to employees &

gather feedback

1

- Adoption KPIs - Gap Analysis

Diagnose gaps &

manage resistance

- Training - Communication - Coaching - Sponsorship

Implement corrective actions & celebrate

success

2

3

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Phase 3 – Reinforcing Change ADKAR Assessment

Dimension Definition

Aware of the need to change The impacted person or group understands the business reasons for the change, the impact on day-to-day activities and the risks of not changing.

Desire to participate and support the change

The impacted person or group is motivated to be part of the change, supports it and looks forward to it.

Knowledge of how to change The impacted person or group has the skills and knowledge required to be successful with the change.

Ability to implement the change on a day-to-day basis

The impacted person or group is able to perform the new duties required by the change and can get support for problems and questions.

Able to Reinforce to keep the change in place

The impacted person or group is committed to keep the change in place and is rewarded for performing the new way.

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Phase 3 – Reinforcing Change Gap Analysis

Observations

• Scores went from high to low for Awareness (no sense of urgency) and Desire (satisfaction with current estimating approach & mixed experience with pilot version of the tool)

• Low scores on Knowledge (lack of information about the new tool)

Workstream 1 - Deliverable A Deployment: October 2012 ADKAR Assessment Results:

Required Actions

• Controlled availability to further improve tool and increase desire

• Organize demo during AC meetings

• Develop change story to help AC members socialize the tool within their IT group

LoB1

LoB2

LoB3

LoB4

LoB5

LoB6

LoB7

LoB8

LoB9

LoB10

Lessons Learned

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Lessons Learned What would we do differently?

1. Obtain measurable Program benefits To better promote the Program in the impacted IT groups To be able to better measure change success at the end

of the Program

2. Allocate more efforts on phase 1 – Preparing for change To improve knowledge of stakeholders and change

impacts To better evaluate sponsorship in each IT group To better assess and fulfill changement management

team requirements To enhance risk and resistance assessments and

improve the effectiveness of the CM Strategy

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Lessons Learned What would we do differently?

3. Deliver change management training to Sponsors and Program team earlier To create awareness about importance of change

management on program success To officialize expectations and obtain buy-in about their

change management roles & responsibilities

4. Embed CM activities in Program Management activites To better plan and assign change management efforts

throughout the Program To be able to make more realistic Program delivery

commitments

Conclusion

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Conclusion Why Change Management in IT Methodology?

IT is strategic and critical to the success of financial organizations

The IT reality is complex and fast-changing

The application of IT methodology increases IT’s ability to achieve organizational benefits

IT methodology changes have significant impacts on the way IT people work

For changes and related benefits to quickly realize, specialized IT change management resources are required

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While it is called the “soft” side of change, managing the people side of a change is the most challenging and critical component of an organizational transformation. The people side of change is not the “soft” side of change; in reality, it is the “harder” side.

Prosci

Do you have any questions?

Questions

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References

Change Management references

Prosci: http://www.prosci.com/

Contacts

Lydia Galanti: [email protected]

Iphigénie Ndiaye: [email protected]

Claude St-Hilaire: [email protected]

http://www.prosci.com/




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