The need for why and the importance of how! Thames Valley Guildford 26th February 2015
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The need for Why and the importance of How! Neil White Managing Director – ChangeVista Ltd 07890397046
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Transcript of The need for why and the importance of how! Thames Valley Guildford 26th February 2015
The need for Why and the
importance of How!
Neil White Managing Director – ChangeVista Ltd
07890397046
Neil White Change Management Specialist
20+ yrs RAF (Systems Engineering+) Change Management for last 20yrs Business Improvement (SEI CMMI) - Assessment Team Lead Transformation Change Manager Portfolio Benefits & Business Change MSc Change Management
‘an ardent believer that the ability to change is more important than the required changes themselves’
Association for Project Management (APM)
Benefits Management SIG – Secretary
Look after the ‘Why’ and the ‘How’ and the Who, Where, When and What will take care of themselves.......
Some words adapted from an adage remembered from my youth – do you know which one?
Never a truer word.......
‘the only constant in life is change itself’
The simple truth about change
Herakleitos of Ephesus
(c.535 BC -475 BC)
Greek philosopher
Three distinct ‘topic areas’
A look at the nature of change yesterday, today and tomorrow and at WHY we often have little choice
about how we respond
Considering some of the fundamentals about Change Management that emphasise the importance of WHY
Describing HOW to use what we already know to be better at change - with a focus on the role that Benefits
Management can play in supporting change
A look at the nature of change yesterday, today
and tomorrow and at WHY we often have little
choice about how we respond
1 – Guess the year 2 – Describe the benefits 3 – Describe the disbenefits (if any)
A ‘just for fun’ Quiz
For each of the following inventions:
Just put up your hand and get ready to ‘catch’ the microphone..........
Please join in to help us to think more widely about change and what it means to us..........
Roue primitive. John O'Neill, (User:Jjron)
The Wheel
c3500BC c9500BC c1500BC c1000BC
Stott Park Bobbin Mill Steam Engine Chris Allen - From geograph.org.uk
The Steam Engine
1789 1712 1805 1699
The Telephone
1876
Alt Telefon Kornelia und Hartmut Häfele - http://www.pixeleye.com/
1899 1801 1816
Sliced Bread
1924
http://www.publicdomainpictures.net/view-image.php?image=26198
1928 1930 1920
The Opte Project - Originally from the English Wikipedia
The Internet
1980 1985 1990 1975
Photo of Google Glass by Dan Leveille
Google Glass
2012 2013 2014 2011
8500BC 3500BC 2014
frequency
0AD
Increasing Change Density
1000 1500 500
year
Big Data
The next big thing..........
Growth and Digitization of Global Information Storage Capacity; Source:http://www.martinhilbert.net/WorldInfoCapacity.html
Ray Kurzweil
Moore’s Law
‘number of transistors in a computer chip will double every two years’
Today!
the predictable alongside the totally unexpected!
Our ever changing world
In the years ahead, acceleration in the scope, scale, and economic impact of technology will usher in a new age of artificial intelligence, consumer gadgetry, instant communication, and boundless information while shaking up business in unimaginable ways.
McKinsey & Company - September 2014
At the same time, the shifting locus of economic activity and dynamism, to emerging markets and to cities within those markets, will give rise to a new class of global competitors.
Growth in emerging markets will occur in tandem with the rapid ageing of the world’s population—first in the West and later in the emerging markets themselves—that in turn will create a massive set of economic strains.
http://www.mckinsey.com/insights/strategy/management_intuition_for_the_next_50_years
People
Robots
The ‘rise’ of capitalism
Hunter gatherer
Subsistence living
Capitalism £££
Individual materialism
Our world
Stakeholder Capitalisation
B Corporations
1,110 B Corporations
35 Countries
1 Unifying Goal
121 Industries
An alternative:
http://www.bcorporation.net/
We envision a new sector of the economy which harnesses the power of private enterprise to create public benefit. This sector is comprised of a new type of corporation —the B Corporation — which is purpose-driven, and creates benefit for all stakeholders, not just shareholders. As members of this emerging sector and as entrepreneurs and investors in B Corporations,
We hold these truths to be self-evident: That we must be the change we seek in the world. That all business ought to be conducted as if people and place mattered. That, through their products, practices and profits, businesses should aspire to do no harm and benefit all. To do so, requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations.
B Corporations - Declaration of Interdependence
Choose people over machines
B Corporation behaviours
Trade with other B Corporations
Consistently consider the social consequences of change
Ensure that all stakeholders have a ‘voice’ in the company
Consider the impact of change on the environment
Are increasingly attracting partners and customers who share their values and their beliefs
Considering some of the fundamentals about Change Management that emphasise the importance of WHY
c70% of change initiatives fail
Sad fact about our ability to manage change
Deloitte Standish McKinsey
PWC etc
All report that
Change Challenge - Organisations
Out of 15 researched change models 13 had the following two impacts
Financial management – the confidence factor
£+
t
£-
Change Benefits
Goal
Change Management
Knowledge Effort
Change doesn’t have to be an uphill struggle!
Nikolai Kondratiev (1892–1938), Russian economist
Understanding the context for change (1)
P: prosperity R: recession D: depression E: improvement
Steam Engine, Cotton
Railway, Steel
Electrical Engineering,
Chemistry
Petrochemicals, automobiles
Information Technology
1800 1850 1900 1950 1990
Kondratiev’s long wave - an economic lifecycle
1980
Competitiveness
Increasing Number of actors
Time
Survival of the fittest
Not viable For new
companies
Poor investment
Innovation Innovation
Potential for large ROI
Differentiation through quality
& cost i.e. TQM & CMMI
Differentiation through agility, innovation and
adaptability
Understanding the context for change (2)
Innovation and investment lifecycle
2008
2015
Industrialisation
of Internet
e.g. Big
Data
The impact of ‘Determinism’
Self
Technological
Economic
Sociological
Stakeholder
Political (Dogma)
Reactive
Proactive
Determinism – influencing & shaping how we change....
The impact of reactive determinism
The wider the gap between what stakeholders want to do (their preferred agenda) and what they are obliged to do the more ‘difficult’
change becomes
Resistance/Difficulty factor
What people ‘must’ do
What people are willing to do
= CHANGE
Reasons for poor change performance
= CONFUSION X
= GRADUAL CHANGE X
= FALSE
STARTS X
= ANXIETY X
= FRUSTRATION X
Individuals and Change – a Curve
Adams, Hayes & Hopson (1976)
Spend a couple of minutes considering the ‘Individuals and Change’ curve and use the numbered dots to indicate on the sheet provided where you have personally experienced one or more (max 5) of the suggested emotions when faced with change.
Please add any comments you may have on the sheet provided.
An activity
When you are ready take your sheets and add your spots to the curve chart on the wall.
Apparent ‘equilibrium’
Refreeze
Change
Kurt Lewin’s change model:
Unfreeze
Lewin, K (1952) Field Theory in Social Science
Describing HOW to use what we already know to be better at change - with a focus on the role that Benefits
Management can play in supporting change
Business Change Management
3P [initiatives]
Benefits Realisation Management
Organisational Change
Management
Significant Organisational Disciplines
Organisation
Significant Organisational Disciplines/Functions
The order of precedence emphasizes the need for change activity to be focused on organizational needs
Projects [APM, BoK6]
Project, Programme, Portfolio Relationship
Programmes [MSP, 2011]
Business Change Managers responsible for benefits realisation
Organisational Strategy
Portfolio
P2
Business Change Management
Sphere of influence and accountability
Benefits Management
Organisational Change Management
Organisational Change Lifecycle
Portfolio Management
BRM Process Overview
Vision
Strategic Objectives
Functional Objectives
Manage Benefits
Changes
Realise Benefits
A Benefits Management Model
5 Practices
7 Principles
Align benefits with strategy
Start with the end in mind
Utilize successful delivery methods
Integrate benefits with performance management
Manage benefits from a portfolio perspective
Apply effective governance
Develop a value culture
Benefits Management - 7 Principles
Benefits Management
Practices
Benefits Management – 5 Practices
Identify & Quantify
Value & Appraise
Plan
Realize
Review Benefits Management
Practices
Benefits Realisation and Stakeholders
Steve Robinson – June 2014 Project Magazine
Without ‘Enabling Changes’ there is no Benefits Realisation
Benefits Realisation Management – highly dependent on the capability maturity of other key disciplines:
Benefits Management - Dependencies
Business first to last – if the Business is not prepared to take and incorporate changes Benefits Realisation will not happen
Benefits Realisation performance impaired if not supported by organisation-wide change management
Business Change Management
3P [initiatives]
Benefits Realisation Management
Organisational Change
Management
Capability Maturity
Organisation
Capability Maturity Levels
1
2
5
4
3
Process unpredictable, poorly controlled and reactive
Process characterized for projects but is often reactive
Process characterized for the organization and is proactive
Process measured and statistically controlled
Emphasis on continuous improvement
Quantitatively Managed
Initial
Managed
Optimizing
Defined
Maturity Levels Characteristics
Spend a couple of minutes considering the 5 maturity level descriptions and use your numbered dots to indicate on your A4 sheets the maturity level of your organisation with respect to each of the four disciplines (functions) i.e. one spot per discipline
Please state your industry sector on your sheet!
An activity
When you are ready take your sheets up to the chart on the wall and add your spots accordingly
Process unpredictable, poorly controlled and reactive
Process characterized for projects but is often reactive
Process characterized for the organization and is proactive
Process measured and statistically controlled
Emphasis on continuous improvement 5
4 3 2 1
Defining each maturity level
Organisational Change Management
Benefits Realisation Management
Business Change Management
3P [initiatives]
How mature is your organisation?
1 2 3 4 5
Summary
A look at the nature of change yesterday, today and tomorrow and at WHY we often have little choice
about how we respond
Considering some of the fundamentals about Change Management that emphasise the importance of WHY
Describing HOW to use what we already know to be better at change - with a focus on the role that Benefits
Management can play in supporting change
The need for Why and the
importance of How!
Neil White Managing Director – ChangeVista Ltd
07890397046
Questions?
