Towards a Professional Approach to Organizational Change · PDF fileTowards a Professional...
Transcript of 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
IBM Making Change Work (2008)
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”
IBM Making Change Work (2008)
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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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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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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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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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.
IBM Making Change Work (2008)
The success rate of change projects using a dedicated change manager rose by 19% compared to those that did not.
IBM Making Change Work (2008)
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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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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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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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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Working with ‘emergent’ change
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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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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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es (1993)
(2004)
(2006)
(1994)
(2011)
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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