towards a professional approach to organizational change · pdf filetowards a professional...

Dansk Change Management Konference 2017

6th April 2017

Towards a Professional Approach to Organizational Change

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A personal introduction….

Richard Smith

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Change Management Examination panel since 2006Chief Examiner for Change Management since 2012

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Towards a professional approach …

1. The Challenge of Organizational Change

2. Building Best Practice: the story so far

3. Delivering Changes: change with a little ‘c’

4. Delivering Change: change with a big ‘C’

5. Developing Change Professionals

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"There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.”

Niccolo MachiavelliThe Prince (1532)

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The Organizational Change failure rate

Kotter (1995)

Beer & Nohria (2000)

Laclair & Rao (2002)

King & Peterson (2007)

IBM (2008)

Moorhouse Consulting (2013)

Surveyed 200 UK Board members of companies with an average strategic change spend of £22M p.a.

42% delivered over cost

53% behind schedule

High growth companies performed best.

Moorhouse Consulting Barometer on Change (2013)

In their sample:

The top 20% organizations had a success rate in excess of 80%.

The bottom 20% had a success rate of only 8%.

IBM Making Change Work (2008)

BUT


Studied 1500 change practitioners around the world. Found on average:

“Only 41% of projects were considered successful in meeting project objectives within planned time, budget and quality”


49 studies of major change projects: complex initiatives fail 67-81% of the time.

King & PetersonHow Effective Leaders Achieve Success In

Critical Change Initiatives: Why change leadership must transcend project

management for complex initiatives to be successful

(Healthcare Quarterly, 2007)

Studied 40 change initiatives. Found that 58% of initiatives failed to meet targets, with 20% delivering less than 1/3 of the value expected.

Laclair & Rao Helping Employees Embrace Change (McKinsey, 2002)

Most ... initiatives – installing new technology, downsizing, restructuring, or trying to change corporate culture – have had low success rates. The brutal fact is that about 70% of all change initiatives fail.

Beer & Nohria Cracking the Code of Change (HBR, 2000)

100 companies over 10 years seeking to transform themselves. There were great successes and abject failures: most fell somewhere in between -

“with a distinct tilt towards the lower end of the scale.”

Kotter Leading Change (HBR, 1995)

Only 20% of companies have a strike rate of 75%+ in achieving the goals of their change projects.

These organizations were described in the study as ‘Change Architects’.

IBM Global Business ServicesMaking Change Work 2014

and (2014)

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So what can organizations do ...?

?

Nature abhors a vacuum!

A problem ... ... and a solution!

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OD P3M

Ch

ange

Man

age

me

nt

kno

wle

dge

an

d s

kills

Organizational Change Management emerged… and began to build its reputation

OrganizationalDevelopment

focus

Project, Programme& Portfolio

focus

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Organizational Change Management emerged

Nobody ‘invented’ organisational change

management (OCM)

OCM is a mongrel nation with lots of different DNA!

People got involved from their existing job bases

o Project and programme management

o Organizational development

o General management

o Others ....

They recognized in ‘Change Management’ a way of

describing the critical difference they make

There has been a steady increase in focus on OCM

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2005

ACMP

incorporated

2004 –

A brief history of time!

2007

2009

2011

2013

Accredited Change Manager (ACM)

Effective Change Manager’s Handbook

BoK – The Effective Change Manager

2006 Change Management Foundation examinations

2014 New ACM (Foundation) level

2015 New CM2015 syllabusbased on CMBoK

Managing Change in

Organizations

Change Management

Standards

2008 Change Management Competence Model

2010 Change Management Practitioner examinations

2012 OCM Maturity Model

Qualified Education Provider®

(QEP®) APMG course endorsed

2016Certified Change Management

Professional® (CCMP®)Copyright © 2014-2016 Richard Smith Associates

Change Management time!

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Drivers of change

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Changes with a small ‘c’?

Office move

New IT rollout

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Improving Change Management success

Laclair & Rao (2002)

PwC (2004)

IBM (2008)

Prosci (2012)

Ferris (2013)

Studied key management factors (skills, leadership etc.) in 40 change initiatives at three levels: senior, mid-level and frontline.

Organizations effective at all 3 levels captured 143% of expected value.

Laclair & Rao Helping Employees Embrace Change (McKinsey, 2002)

The survey reveals an undeniable correlation between project performance, maturity level and change management. The majority of the best performing and most mature organisations always or frequently apply change management to their projects.

PwC Boosting Business Performance through Programme and Project Management (2004)

Prepare - get deep, realistic insight into the complexity of the change, plan accordingly.

Use change methodology aligned with project management methodology

Build and apply skills in sponsors and all involved.

Invest in Change Management.


The success rate of change projects using a dedicated change manager rose by 19% compared to those that did not.


Effective change requires:

• Effective sponsorship.

• Consistent communication

• Appropriate methodology

• Properly resourced change support

• Employee engagement.

Prosci Best Practices in Change Management(2012)

Effective change management delivers improved:

• adoption speed

• utilization rate

• employee proficiency

Karen Ferris ITSM Solution Projects Need Organisational Change Management (2013)

Problems arise when:

There is no consideration given to the need for an organisational change management capability on the project [to] ensure the changes being brought about ... become truly embedded into the organisation.

Karen Ferris ITSM Solution Projects Need Organisational Change Management (2013)

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Organizations as ‘Change Architects’

Source: IBM Global Business Services

Making Change Work 2014

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Changes with a small ‘c’?

Office move

New IT rollout

Restructuring?

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A case study in restructuring – to discuss

Sales

CEO

MktingCust.

ServiceFinance

Supply Chain Key

accounts

Mid- size

Corner shops

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ead

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Change with a big “C” Organizations are always Changing …

… the question is: “How intentional is the Change?”

Planned change initiatives must align with both the Change direction and the way it is managed

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Working with ‘emergent’ change

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Source: NHS Improving Quality: Helen Bevan and Steve Fairman, 2014

The New Era of Thinking and Practice in Change and Transformation:

a call to action for leaders of health and care

A case study of ‘people change’

IT in financial services: issue with service level

CEO appointed a new ‘Quality Manager’

Senior commitment tested (‘best people as agents for change’)

Engagement process developed (simulation)

Senior commitment and willingness to ensure

sponsorship.(Prosci)

Senior commitment and willingness to ensure

sponsorship.(Prosci)

Skills development.(Laclair & Rao; IBM)

Properly resourced support. (Prosci)

Clear purpose for change. (IBM)

Attitudinal change needed.

Build and apply skills at all levels.

(IBM)Build and apply skills at all levels.(IBM)

Properly resourced change support and staff

engagement.(Prosci)

Trained the ‘agents’

Used simulation to

o engage staff (all levels)

o develop change agents

o build agents’ credibility

1000+ staff, 18 months

CEO attended all (but 4)

Service level increased by order of magnitude

Consistent communication and staff engagement.

(IBM)

Leadership.(Laclair & Rao)

Effective sponsorship.

(Prosci)

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If you learn only methods, you’ll be tied to your methods, but if you learn principles you can devise your own methods.

Ray BradburyAuthor of Farenheit 451

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What a practitioner

does

What practitioners

know

What practitioners

know

2013

What an organisation

does

2012

2008

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OCMMM - How well are we exploiting OCM to improve the

performance of our organisation?

CMPCM – What should our Change Managers

be doing to enable success of each

change?(Current standards focus mainly

on the project level of the maturity model)

CMBoK – What core and non-core OCM knowledge underpins practice at all

levels of the maturity model?

Organisational Performance + Practitioner Performance + Underpinning knowledge

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CMI’s CMBoK

‘Change Management Body of Knowledge’o full, professional BoK

o published by a professional association

o independent of particular toolsets

o defines and describes ‘underpinning knowledge’

o credible basis for APMG’s CM examinations

o robust assessment independent of trainers

CMI uses ‘gold standard’ accreditationo based on what candidates do in practice

o knowledge is one aspect of this

o CMI’s ACM assessments test ‘knowledge in use’

The APMG professional qualification,

the CMI CMBoK and the ECMH

1. A Change Management Perspective 7. Change Readiness, Planning & Measurement

2. Defining Change 8. Project Management

3. Managing Benefits 9. Education and Learning Support

4. Stakeholder Strategy 10. Facilitation

5. Communication and Engagement 11. Sustaining Systems

6. Change Impact 12. Personal and Professional Management

13. Organizational Considerations

Relative amount of Foundation and Practitioner content

Relative amount of Practitioner only content

APMG CM examination takeup (to 31/03/2017)

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017at Q1

Foundation(MSCM: 7542 total)

Foundation2015 (6004 to date)

Practitioner(MSCM: 4031 total)

Practitioner2015 (3884 to date)

2017forecast:

c.7700

APMG CM 2015 exams by region (to 31/03/2017)

FoundationN = 6004

UK

+ EMEA

AMERICAS

ASIA

Australia& NZ

PractitionerN = 3884

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Personal advice to organizations

Assess change maturity – ensure appropriate to

support strategy and develop as needed

Baseline recruitment process for change support

professionals using CMI competence model/CMBoK

Build change capability – deptho Ensure senior, credible, well-developed change support

for change sponsors [e.g. CMI’s ACM (Master)]

o Ensure well-trained CM support for change projects[e.g. CMI’s ACM (Foundation), APMG Practitioner]

Build change capacity – breadtho Good proportion of line managers trained in change

principles and practices [e.g. APMG Practitioner]

o Project managers and others involved in changes[e.g. APMG Foundation or Practitioner]

o Local change agents (see McKinsey, February 2017)[e.g. APMG Foundation – or watch this space!]

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Personal advice to individual professionals

Change management skills are valuable in many careers – a specialism is not for all

o Note: still develop your change management skills!

Be clear on your career intentions – many options!

o What aspects of work are lifegiving/life-draining?

o From what skillset do I approach change?

o How would that look to an employer (or client)?

If you decide to focus on change

o What would best build on my current skills?

o Find a supportive professional community

o Invest in yourself (with employer’s help if possible!)

o How to position yourself to employers/clients

+44 (0)20 8954 9588www.richardsmithassociates.com

[email protected]

towards a professional approach to organizational change · pdf filetowards a professional...

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