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The Power of Measuring Change Paul OKeeffe June 2011.

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Presentation on theme: "The Power of Measuring Change Paul OKeeffe June 2011."— Presentation transcript:

1 The Power of Measuring Change Paul OKeeffe June 2011

2 2 Introduction Paul OKeeffe Change Measurement Lead Talent & Organization Performance Principal Accenture

3 3 Todays Agenda –Why Measure Change –Change Measurement Maturity Levels –Tools to Measure Change ChangeTracking Change Measurement Diagnostic –Your Change Measurement Journey

4 Why Measure Change? Paul OKeeffe June 2011

5 5 The measurement of change has always been our greatest challenge. When was the last time a senior executive asked you: –How are we doing relative to other companies who go through this type of change? –How do we make the link between change management and business benefits more tangible? –How do we know if the change program is truly impacting business results? –What tools do you have to measure change? Companies continue to manage change poorly and destroy value. As Change professionals we repeatedly fail to position ourselves to influence the outcome

6 6 Critical factors in successful change Insight without action does not produce sustainable change, and action that has no insight behind it is wasted effort Taking a data centered approach, the purpose of our analysis is to enable more accurate, high impact change interventions Fast feedback and clarity about what is required to deliver high performance INSIGHT + ACTION = SUCCESSUL CHANGE Asking the right questions so leaders can clearly see if they are on track or not ….. and if not, what corrective action they can take Get onto the path to high performance and help to stay there

7 7 Maintaining Performance through Change Research shows only 1 in 9 work groups improve their performance across times of change: Feb Mar April May Jun July Aug Sept Oct Nov Dec Jan Feb Mar April May Project preparation Business blueprint Benefits Realisation Final preparation Go live and support Continuous improvement Performance Even with the best intentions, change projects typically take longer than planned and cost more – 84% of projects do not hit their targets – 18% average overrun on budgets – 23% average over run on schedule – 7% do not achieve scope/functionality Stage of project High Performance Effective change Norm The norm is actually over budget, over schedule, with a lack of benefits realization!

8 8 The most important aspects driving successful change Rank to following based on your experience… Involvement Training Passion and Drive Communication Systems and Processes Management Skills Vision and Direction Change Leadership Accountability

9 9 ChangeTracking® research has identified the main drivers of successful change Relative Importance of Factors in Driving Improvement in Business Performance

10 10 What is Critical to Success? Based on Accentures deep Change Management experience we know what drives a change project success. With data we will be able to prove the following are critical to project success: –Experience of the client team –Experience of client with types of project (e.g. Big SAP) –Sponsorship engagement early and continued –Navigation activities (e.g. Journey Map) –Leadership activities –Resource Balancing and other org design activities are important –Continuation of the Change effort 6-9 months post go-live For instance, Adoption and Commitment does not come till after go-live …and that the following is true: –Five to ten critical behaviors drive the dollars –Communication decreases resistance But what is the best timing? –People predict that change is worse than it is when asked in advance (with the caveat that the technology works)

11 11 We expect to find… …that we can definitely answer a number of questions that arise at the start of every change project: –When is the right time to begin communication and when do we drive communications into the organization? –What is the optimal (and the minimum) number of people to attend training? –What is the best curriculum mix? –How much training is actually required? –What activities drive people up the Commitment Curve? –What activities drive Sponsorship commitment and understanding? –What critical behaviors need to change for the project to be successful?

12 Change Measurement Maturity Levels Where are you today?; and Where do you want to get to?

13 13 Change Measurement Maturity Levels Value Complexity Go-live Measures Lifecycle Project Measures Change Value Measures Change Agility Measures Most organizations measure change to some extent; very few have built a robust capability that drives how change is managed as a critical business driver

14 14 Go-live Measures Answer the question; Are we ready to go-live from a people perspective? –Data is collected monthly or weekly leading up to go-live –Usually begin collection 6-8 weeks prior to go-live –Very tactical in nature Most projects have some type of go-live measures, but very little consistency from project to project

15 15 Lifecycle Project Measures Answer the question; Is the project proceeding to plan from a people perspective? –Data is collected monthly throughout the project lifecycle –Begin collection at the start of the project –Still tactical in nature Very few companies measure the entire project lifecycle; or have a repeatable process that is used from project to project

16 16 Change Value Measures Answer the question; Is the organization creating value through the intended changes? –Data is collected monthly across many projects –Ongoing data collection –Very strategic in nature Projects measure ROI and Business Case achievement; but few link it back to change activities. It is all financial driven; not change capability driven. No project to project change lessons.

17 17 Change Capability Measures Answer the question; Is the organization building capabilities so that future changes are easier and more effective? –Data is collected monthly across many projects –Ongoing data collection –More strategic in nature Change capability and agility are new topics; but no-one measures it as a capability across time

18 18 Our Change Measurement Vision The Change Measurement Diagnostic (CMD) will revolutionize the way we plan and deliver Change programs. A heightened focus on Analytics will drive more consistent results and a tighter link to value. Our Vision: –All projects use a comprehensive, data-driven approach to guide people and change decisions. –The tool and outputs are integrated with the Accenture Change Framework and drive the day-to-day work of the project team. –The outputs are easy to read, create a compelling story for our clients and lead to predictive insights and clear actions on a project.

19 Tools: ChangeTracking®

20 20 ChangeTracking Model Validated research that sits behind ChangeTracking® has proven what drives performance improvement Improving Business Performance Realizing Business Benefits Change Capability Performance Is the change on track to high performance? TurbulenceResources Aligned Direction Change Leadership Work Roles Emotional Energy Drivers Passion and Drive Training and Capability Vision and Direction Management Commitment Team Leadership Risks and Roadblocks Changes Taking Place Disturbance Systems and Processes Communication Involvement Accountability Clusters © CTRE Pty. Ltd v1.0 ChangeTracking ® How is change impacting business performance? Have change program objectives been achieved?

21 21 ChangeTracking Drivers Turbulence - Roadblocks and risks that get in the way of benefits being realised and the type and amount of change taking place. Resources - Teams need training and resources (capabilities, systems and processes) to achieve their objectives. Aligned Direction - People need to understand the future vision, have the information needed and trust their leaders. Change Leadership - Change must be well managed, with people actively involved, learning and initiating improvements. Work Roles- Teams leaders need a high level of competence, with people feeling valued and accountabilities understood. Emotional Energy – Groups need strong positive feelings and manage the negative, providing the power to achieve exceptional results. Change Capability TurbulenceResources Aligned Direction Change Leadership Work Roles Emotional Energy Drivers

22 22 ChangeTracking® measures the factors that drive improved performance How effective is your change strategy? Are you making the best use of resources, given the conditions you are operating under? Improving Business Performance Realizing Business Benefits Change Capability Performance Is the change on track to high performance? TurbulenceResources Aligned Direction Change Leadership Work Roles Emotional Energy Drivers Training and Capability Vision and Direction Risks and Roadblocks Changes Taking Place Systems and Processes Communication Clusters © CTRE Pty. Ltd v1.0 ChangeTracking ®

23 23 ChangeTracking® measures the factors that drive improved performance What can people do to make a difference? Corporate Business Units TeamsEveryone! Improving Business Performance Realizing Business Benefits Change Capability Performance Is the change on track to high performance? TurbulenceResources Aligned Direction Change Leadership Work Roles Emotional Energy Drivers Passion and Drive Training and Capability Vision and Direction Management Commitment Team Leadership Risks and Roadblocks Changes Taking Place Disturbance Systems and Processes Communication Involvement Accountability Clusters © CTRE Pty. Ltd v1.0 ChangeTracking ®

24 24 The Change Map –Group responses to the ChangeTracking® questionnaire are plotted on the Change Map. The Change Map is divided into 4 Zones: Off Track Unsustainable On Track High Performance –The Change Map divides the zones into 20 Regions. For even greater precision, the Change Map divides the Regions into 625 Cells change typologies. –Knowing where a group is, and knowing the characteristics (strengths and weaknesses) of the regions around you to make choices about the actions and direction you take Off Track Unsustainable On Track Pushing the limits Cruising Achieved with loss of heart On the Run Battling it out Yes, but… In the Dark Bumpy ride Sleepy in Success Building Momentum Business as Usual Good, but not yet great Washed up Rocky ground Burning platform Case for Action Downward Spiral Struggling under pressure Flatlining Just get on with it… High Performance

25 25 Action Planning: Yes, but.. to Cruising Off Track Unsustainable On Track Cruising Bumpy ride Pushin g the limits Achieved with loss of heart On the run Battling it out Yes, but… In the dark Sleepy in success Building momentum Business as usual Good moving to great Washe d up Rocky ground Burning platform Case for Action Downward spiral Flatlining Just get on with it… High Performance Struggling under pressure Current location Current result Target result

26 26 Lets Complete the Demo and Build the Change Map Looking for a volunteer to answer the questions based on their current project. You can complete your own Demo at

27 Tools: Change Measurement Diagnostic: Pilot Version

28 28 Change Measurement Across the Project Lifecycle The overall tool will include different elements that cover all aspects of the project. The pilot is excel based to streamline data collection. –A tab for each major area; but none are mandatory –Dashboard updated monthly –Project setup completed once at project inception; update as needed –Data entry tabs updated monthly –Report printing capabilities for each tab –Straight forward change survey for pulse/full surveys –Data will be combined at end of the pilot for initial Analytics; trend analysis, research, and root cause analysis across projects

29 29 Accentures Change Model At a strategic level we think of change across four dimensions… Change Navigation What management mechanisms will help the organization optimize its investment? Program management framework (direction and pace of change) Models/methodologies Measurement strategies Technical/business architecture Set change objectives and priorities Change Leadership How can we help the organizations leaders effectively champion the change? Establish shared executive vision and communicate it to organization Develop a sponsorship program Provide leadership with coaching/facilitation Set expectations during change Change Enablement How do we give users the tools and support to be successful with the change? Design the organization/jobs Revise workflows/procedures Redesign physical environment Design new/modified jobs Training and performance support Change Ownership How do we help users feel like part of a change vs. victims of change? Plan communications and involvement activities Educate impacted personnel on the change process Develop local action teams and facilitate implementation Deliver focused benefits DemandSupply Macro Micro

30 30 Dashboard A one-stop dashboard will be presented for each month of the project. This allows for quick and easy reporting.

31 31 Project Set-up This tab will include all the specific details on the project. Depending on the size and nature of the project different tracking elements in the tool will be turned on or off. The underlying business case value will also be captured.

32 32 Sponsorship The Sponsorship tab utilizes a detailed sponsorship monitoring process that should be started in the Blueprint phase. Action items are developed each month and marked when completed.

33 33 Stakeholder Management The Stakeholder tab will capture the segmentation of the key stakeholders and track each group as they move up the Commitment curve.

34 34 Monitoring Behavior Change The holy grail of Change Management is tying the detailed, desired behavior change to business value and then monitoring the actual observed behavior change through the lifecycle of the project.

35 35 Business Metrics A predictive approach to business metrics allows us to communicate expectations with leadership, and ultimately, customers. The y axis on the model becomes these business metrics. This ensures the Program Management and Change Management efforts are aligned and ensures a link back to the original business case.

36 36 Quadrant Model Survey Based on Accentures 15+ years experience with the Quadrant Model we will reinvigorate the Change Readiness survey. Questions are focused on the quadrants of the model. They are very specific to the change process and the current challenges facing projects.

37 37 Change Readiness (or Go-Live Readiness) A consistent and comprehensive approach to change readiness is critical. It needs to cover all elements of the Quadrant Model. The Change Readiness results can then be included in the project wide Go/No Go decision making process.

38 Your Change Measurement Journey Where are you going?

39 39 Monday Morning Quarterback What will you do different on Monday?

40 Thank You

41 41 Our Progress to Date The Change Measurement Diagnostic is a work and progress and we are ready to move to second step in the evolution of the tool… 1.Alerts: Build an excel pilot version to collect base data (3-6 months) 2.Recommendations: Insight developed based on the pilot projects (5-10 months) 3.Extrapolation: Transition from excel to a robust tool and develop greater insight (9-15 months) 4.Prediction: Once the robust tool is rolled-out the data can be used to develop true predictive powers ( months) * Analytics at Work; Davenport, Harris, Morison; Pg Key Questions Addressed by Analytics …And, we are looking for a series of pilot clients and projects to test the first version of the tool and to begin the data collection process.


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