show me the metrics from change management 2014
DESCRIPTION
At this year’s Change Management 2014 conference, Jeff Nevenhoven, one of our Prosci change management certified instructors and change management consultants, delivered a session titled “Show me the metrics – turning behavior into cold, hard data.”TRANSCRIPT
SHOW ME THE METRICS TURNING BEHAVIOR INTO COLD, HARD DATA
JEFF NEVENHOVEN SENIOR CONSULTANT
LIFE CYCLE ENGINEERING, INC.
2
SHOW ME THE METRICS
Behaviors
Metrics
Data
3
LEARNING OBJECTIVES
• Translating general or broad stated behavior changes into measurable actions
• Making the connection between behaviors & key performance indicators
• Measuring behavior change
4
CHANGE
Project X
5
THE BUSINESS DRIVER
6
CHANGE SPECIFICS
Job / Role Realignment
Organiza6onal Restructure
Standard Work
7
THE DESIRED OUTCOME
Reduced Opera6ng Cost
8
Iden6fying & measuring the new behaviors needed
to aFain the desired business
results
THE 1ST CHALLENGE
9
What? Who? How? KPIs? Results? Step 2
Define the change
(s)
Step 4
Define how people will
function differently
Step 3 Define who will be required to
change
Step 1
Define the Outcomes &
Benefits
Step 5
Define key performance indicators to
monitor progress
Re-Structure
Job / Role Alignment
Standard Work
Planners / Schedulers
Front Line Employees
Supervisors
Managers
Lower Operating Cost
Increased
Throughput
Increased Revenue
Schedule Compliance
Overtime
Rework
Backlog
CHANGE OUTCOME MAPPING BEGINNING WITH THE END IN MIND
Collaboration
Coordination
Disciplined
Leadership
10
What? Who? How? KPIs? Results? Step 2
Define the change
(s)
Step 4
Define how people will
function differently
Step 3 Define who will be required to
change
Step 1
Define the Outcomes &
Benefits
Step 5
Define key performance indicators to
monitor progress
Re-Structure
Job / Role Alignment
Standard Work
Planners Schedulers
CHANGE OUTCOME MAPPING
Discipline
Lower Operating Cost
Increase
Throughput
Increased Revenue
11
CHANGE TRANSLATION
• Discipline? – Standard Work Adherence
• Follow standardized process • Utilize planning systems & tools
– Job / Role Compliance • Develop Job Plans & Schedules, not:
– Supervising Employees – Troubleshooting Problems – Procuring & Delivering Materials
Planner Scheduler
12
Backlog
#’s Job Plans
#’s Bill of Materials
Estimation Accuracy
What? Who? How? KPIs? Results? Step 2
Define the change
(s)
Step 4
Define how people will
function differently
Step 3 Define who will be required to
change
Step 1
Define the Outcomes &
Benefits
Step 5
Define key performance indicators to
monitor progress
Re-Structure
Job / Role Alignment
Standard Work
Planners Schedulers
CHANGE OUTCOME MAPPING
Discipline
Lower Operating Cost
Increase
Throughput
Increased Revenue
Role Specific Measures
13
What? Who? How? KPIs? Results? Step 2
Define the change
(s)
Step 4
Define how people will
function differently
Step 3 Define who will be required to
change
Step 1
Define the Outcomes &
Benefits
Step 5
Define key performance indicators to
monitor progress
Re-Structure
Job / Role Alignment
Standard Work
Planners / Schedulers
Front Line Employees
Supervisors
Managers
Lower Operating Cost
Increased
Throughput
Increased Revenue
Schedule Compliance
Overtime
Rework
Backlog
CHANGE OUTCOME MAPPING
Collaboration
Coordination
Discipline
Leadership
14
BEHAVIOR / RESULTS CONNECTION
People
Behaviors
Individual KPIs
Departmental KPIs
Business Results
Planners & Schedulers
Discipline
Collabora5on
Coordina5on
Es5ma5on
Accuracy
# BOMs
# Job Plans
Schedule
Compliance
Rework
Over5me
Backlog
Improved Throughput Lower Opera5ng Cost Increased Revenue
15
Assessing if employees were making the change and impac6ng the
KPIs
THE 2ND CHALLENGE
16
ROI OF CHANGE MANAGEMENT
© Prosci. All Rights Reserved. Used With Permission. www.change-‐management.com
17
ROI OF CHANGE MANAGEMENT • The human factors that determine _inancial return or ROI – Speed of adoption
• How quickly are people up and running on the new systems, processes and job roles?
– Ultimate Utilization • How many employees (of the total population) are demonstrating “buy-‐in” and are using the new solution?
– Pro_iciency • How well are individuals performing compared to the level expected in the design of the change?
© Prosci. All Rights Reserved. Used With Permission. www.change-‐management.com
18
ROI OF CHANGE MANAGEMENT
© Prosci. All Rights Reserved. Used With Permission. www.change-‐management.com
19
MEASURING CHANGE -‐ PURPOSE
• Auditing Tool – Would Identify
• When and where the changes were being applied
• How many employees were applying the changes
• How well employees were applying the changes
Adop6on
U6liza6on
Proficiency
ROI of Change
20
MEASURING CHANGE -‐ DESIGN
• The Audit Tool – De_ined Key Behaviors
• Based on Standard Work
– De_ined Who • Areas, Groups & Individuals
– De_ined How & When • Observation, Documentation & Data Review
21
MEASURING CHANGE -‐ SCORING
1 = Behavior not evident 2 = Behavior is being applied inconsistently or by only a few employees 3 = Behavior is applied consistently by multiple employees but requires reinforcement 4 = Behavior is applied by all employees without reinforcement 5 = Behavior is valued & owned
*Red or low scoring areas iden5fied poten5al areas of resistance and or
implementa5on issues
22
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6Work ID Process 2 3 3 4 5 5 2 3 3 4 4 5Planning Process 2 3 3 4 5 5 2 3 3 4 4 5Scheduling Process 2 3 3 4 5 5 2 3 3 4 4 5Execution Process 2 3 3 4 5 5 2 3 3 4 4 5Closeout Process 2 3 3 4 5 5 2 3 3 4 4 5E/Break-in Process 2 3 3 4 5 5 2 3 3 4 4 5
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6Work ID Process 2 3 3 4 4 5 2 3 3 4 4 5Planning Process 2 3 3 4 4 5 2 3 3 4 4 5Scheduling Process 2 3 3 4 4 5 2 3 3 4 4 5Execution Process 2 3 3 4 4 5 2 3 3 4 4 5Closeout Process 2 3 3 4 4 5 2 3 3 4 4 5E/Break-in Process 2 3 3 4 4 5 2 3 3 4 4 5
Area D
Area BEvaluation Summary
Evaluation Summary Area C
Area A
MEASURING CHANGE -‐ RESULTS
• Ideal Results – The ROI would begin to be realized upon implementation as employees adopted and applied the changes
– As employees become ef_icient and effective with the changes the associated KPIs would improve
23
MEASURING CHANGE -‐ RESULTS
• Actual Results – Change was adopted almost immediately in all areas
– Employee utilization and pro_iciency varied considerably
– Change resistance was easily identi_iable
– Auditing identi_ied solution design _laws
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6Work ID Process 1 3 4 4 4 4 3 4 4 4 4 5Planning Process 2 3 3 3 3 4 2 3 3 3 3 4Scheduling Process 2 3 3 3 3 3 3 3 3 3 3 3Execution Process 2 3 3 4 4 4 3 3 3 4 4 4Closeout Process 3 3 3 3 3 3 3 3 3 3 3 3E/Break-in Process 3 3 3 4 4 4 3 3 3 4 4 4
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6Work ID Process 3 3 4 4 5 5 3 4 4 4 5 5Planning Process 2 3 3 3 4 4 2 3 3 4 4 4Scheduling Process 3 3 4 3 3 3 3 3 3 3 3 4Execution Process 3 3 3 4 3 4 2 3 3 4 4 4Closeout Process 3 3 3 3 3 4 3 3 3 3 3 3E/Break-in Process 3 3 3 3 3 4 3 3 3 4 4 4
Area D
Area BEvaluation Summary
Evaluation Summary Area C
Area A
*The Audit Results provided insight on where addi5onal change management
coaching was required
24
Business Management Baseline 6 Month Rx Target M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 YTD
1 55.0% 65.0% 75.0% 56.0% 56.0% 57.0% 58.0% 60.0% 65.0% 66.0% 70.0% 70.0% 79.0% 80.0% 85.0% 57.3%
2 65.0% 75.0% 85.0% 66.0% 66.0% 67.0% 70.0% 72.0% 74.0% 76.0% 80.0% 77.0% 81.0% 83.0% 82.0% 74.5%
3 $5.00 $4.75 $4.00 $5.00 $4.95 $4.93 $4.92 $4.90 $4.80 $4.50 $4.73 $4.50 $4.35 $4.30 $4.00 $4.66
4 $5.00 $2.50 $2.45 $5.00 $4.85 $4.88 $4.60 $3.00 $3.00 $2.85 $2.85 $2.85 $2.80 $2.50 $2.50 $3.47
5 $6.00 $6.00 $5.40 $6.00 $6.00 $5.95 $5.95 $5.75 $5.75 $5.75 $5.55 $5.55 $5.60 $5.40 $5.40 $5.72
6 67.0% 75.0% 99.0% 69.0% 70.0% 72.0% 75.0% 74.0% 74.0% 75.0% 75.0% 76.0% 77.0% 78.0% 80.0% 74.6%
7 5.0 2.5 1.0 5.0 4.5 4.0 3.0 2.0 2.0 2.5 2.3 2.4 2.0 2.0 1.8 2.8
8 $5.00 $2.50 $1.00 5.00 5.00 4.50 4.25 3.75 3.25 2.75 2.25 2.00 2.00 2.00 1.75 3.21
9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
10 0.0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
11 $50.00 $45.00 $40.00 $50.00 $50.00 $45.00 $45.00 $45.00 $42.00 $42.00 $43.00 $43.00 $42.00 $40.00 $40.00 $43.92
12 $50.00 $40.00 $32.00 $50.00 $35.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $35.42
13 50.0% 75.0% 75.0% 50.0% 60.0% 60.0% 65.0% 60.0% 70.0% 70.0% 72.0% 75.0% 75.0% 75.0% 75.0% 67.3%
14 50.0% 65.0% 75.0% 55.0% 55.0% 65.0% 65.0% 76.0% 76.0% 76.0% 77.0% 76.0% 76.0% 76.0% 76.0% 70.8%
15 50.0% 65.0% 75.0% 55.0% 55.0% 60.0% 60.0% 60.0% 62.0% 62.0% 63.0% 65.0% 70.0% 72.0% 75.0% 63.3%
16 50.0% 65.0% 75.0% 59.0% 56.0% 56.0% 66.0% 66.0% 60.0% 60.0% 66.0% 68.0% 68.0% 70.0% 71.0% 63.8%
17 30.0% 15.0% 10.0% 30.0% 30.0% 30.0% 30.0% 15.0% 15.0% 15.0% 15.0% 15.0% 10.0% 10.0% 10.0% 18.8%
18 $50.00 $25.00 $23.00 $25.00 $25.00 $26.00 $24.00 $23.00 $23.00 $22.00 $22.00 $24.00 $24.00 $22.00 $23.00 $23.58
19 $100.00 $75.00 $50.00 $100.00 $90.00 $75.00 $70.00 $60.00 $59.00 $57.00 $52.00 $53.00 $50.00 $49.00 $50.00 $63.75
20 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
21 $50.00 $45.00 $35.00 $44.00 $44.00 $43.00 $40.00 $37.00 $36.00 $37.00 $35.00 $35.00 $36.00 $35.00 $35.00 $38.08
22 $50.00 $45.00 $35.00 $50.00 $49.00 $48.00 $47.00 $46.00 $45.00 $42.00 $40.00 $38.00 $35.00 $35.00 $36.00 $42.58
23 50.0% 60.0% 75.0% 55.0% 56.0% 56.0% 58.0% 60.0% 62.0% 64.0% 66.0% 70.0% 72.0% 75.0% 75.0% 64.1%
24 50.0% 60.0% 75.0% 65.0% 65.0% 65.0% 68.0% 70.0% 74.0% 75.0% 75.0% 77.0% 78.0% 73.0% 75.0% 71.7%
25 50.0% 25.0% 20.0% 55.0% 55.0% 55.0% 44.0% 55.0% 33.0% 33.0% 33.0% 33.0% 22.0% 22.0% 22.0% 38.5%
26 20.0% 45.0% 55.0% 40.0% 45.0% 44.0% 43.0% 50.0% 50.0% 53.0% 50.0% 55.0% 54.0% 54.0% 55.0% 49.4%
27 30.0% 20.0% 10.0% 28.0% 27.0% 29.0% 24.0% 20.0% 22.0% 20.0% 15.0% 12.0% 10.0% 11.0% 10.0% 19.0%
28 $1.00 $0.75 $0.55 $0.90 $0.90 $0.85 $0.88 $0.80 $0.70 $0.65 $0.55 $0.55 $0.53 $0.55 $0.50 $0.68
29 5.0 3.0 1.0 5.0 5.0 4.0 4.0 3.0 3.0 3.0 2.0 2.0 1.0 1.0 1.0 2.7
30
Safety - Workers Comp Cost ($/Worker)
Total MRO Inventory Value ($/Unit Produced)
Maintenance Overtime (% Total Labor Cost)
Workforce Effectiveness (Labor Hours/Unit)
Maintenance Excellence
Direct Material Cost ($Unit Produced)
Direct Labor Cost ($/Unit Produced)
Production Overtime (% Total Labor Cost)
Direct Maintenance Work (% Total Payroll Hours)
Schedule Compliance (% Actual vs. Plan)
Yield (%/Total Units Produced)
Production Rate (%/Design or Sustainable Rate)
Operations ExcellenceTotal Production Cost ($/Unit Produced)
PM/PdM Compliance (% Actual vs. Plan)
Emergency Work (% Total Maintenance Work)
Total Maintenance Cost ($/Unit Produced)
Stock-Outs (#/Month)
Maintenance Variable Cost ($/Unit)
Schedule Compliance (% Actual vs. Plan)
Overall Equipment Effectiveness (OEE)
Asset Utilization (AU)
Production Variable Cost ($/Unit Produced)
Safety - Total Case Incident Rate (#/200K)
Executive Dashboard
Variable Cost ($/Unit)
Fixed Cost ($/Unit)
Delivery Compliance (%Plan)
Cost of Goods Sold (COGS) ($/Unit)
MEASURING CHANGE -‐ RESULTS
Audit Results Were Reflected in the Plant
Dashboard
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6Work ID Process 1 3 4 4 4 4 3 4 4 4 4 5Planning Process 2 3 3 3 3 4 2 3 3 3 3 4Scheduling Process 2 3 3 3 3 3 3 3 3 3 3 3Execution Process 2 3 3 4 4 4 3 3 3 4 4 4Closeout Process 3 3 3 3 3 3 3 3 3 3 3 3E/Break-in Process 3 3 3 4 4 4 3 3 3 4 4 4
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6Work ID Process 3 3 4 4 5 5 3 4 4 4 5 5Planning Process 2 3 3 3 4 4 2 3 3 4 4 4Scheduling Process 3 3 4 3 3 3 3 3 3 3 3 4Execution Process 3 3 3 4 3 4 2 3 3 4 4 4Closeout Process 3 3 3 3 3 4 3 3 3 3 3 3E/Break-in Process 3 3 3 3 3 4 3 3 3 4 4 4
Area D
Area BEvaluation Summary
Evaluation Summary Area C
Area A
25
IN REVIEW
As Behaviors Change
Performance Changes
Results are Realized
Leading Indicators
Lagging Indicators
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IN REVIEW
• Success Factors – Drill Down When De_ining Behaviors
– Establish “Standards” That Can Be Observed
– Ensure Behaviors Link to Individual and/or Departmental KPIs
– Ensure KPIs Rollup to Business Results
• Challenges – Global / Mul5-‐Site Change
– Limited Audi5ng Resources
– Subjec5vity or Bias by Auditors
COMMENTS OR QUESTIONS?