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The Power of Measuring Change

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Presentation on theme: "The Power of Measuring Change"— Presentation transcript:

1 The Power of Measuring Change
Paul O’Keeffe June 2011

2 Introduction Paul O’Keeffe Change Measurement Lead
Talent & Organization Performance Principal Accenture

3 Today’s 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 O’Keeffe June 2011

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 Organisational change is often described as a journey. Everyone understands this. Yet accurate maps showing the complex interactions between people, change, resources and performance have not been available on which to plot the journey. ChangeTracking® takes the guesswork out of planning and managing change, giving leaders the information they need to navigate with confidence. It provides a means to engage people actively in the change process, focusing their energies and efforts on the factors that really make a difference. Used properly, ChangeTracking® accelerates change and delivers sustainable improvement in performance. ChangeTracking® helps leaders get on the right path to realising expected benefits and sustaining outcomes

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 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 Fast feedback and clarity about what is required to deliver high performance Get onto the path to high performance and help to stay there

7 Maintaining Performance through Change
Research shows only 1 in 9 work groups improve their performance across times of change: Project preparation Business blueprint Final preparation Go live and support Continuous improvement Benefits Realisation Feb Mar April May Jun July Aug Sept Oct Nov Dec Jan Feb Mar April May The norm is actually over budget, over schedule, with a lack of benefits realization! High Performance Effective change Performance Leaders implementing change need to know what actions to take that will give them the best chance of success – HOW DO YOU KNOW WHAT ACTIONS LEAD TO HIGH PERFORMANCE? – what is normal at this stage, how do you know where you are and what you need to do? Groups that improve performance across times of change define the benchmarks for high performance. We will take you through how ChangeTracking® helps to overcome these issues and makes change more successful. First step is understand how change impacts on performance, improved performances is the outcome of successful change It needs to be recognised that the norm is associated with over budget, over schedule and a lack of benefits realisation! Successful change is NOT just a matter of on time and on budget! What is the cost of off-track change? - Cost to the project - Cost to the business - Personal cost to leaders - Loss of future capability to respond to change THERE IS AN UP-FRONT COST FOR RUNNING CHANGETRACKING®, BUT WHAT IS THE TRUE COST OF BEING OFF TRACK OR UNSUSTAINABLE? CHANGETRACKING®, PROVIDES A DETAILED AND ACCURATE NAVIGATIONAL TOOLSET FOR MANAGING COMPLEX CHANGE PROGRAMS, ALLOWING LEADERSHIP AN ACCURATE PICTURE OF THE ACTIONS REQUIRED TO ENSURE THAT CHANGE REMAINS ON-TRACK AND TO BUDGET. ChangeTracking® allows leaders to identify under-performing areas, and address these before they become risks or issues, or before that have a cost impact to the organisation. Source for metrics used on slide: The state of IT project management in UK 2002–2003, Chris Sauer and Christine Cuthbertson, University of Oxford 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 Norm Stage of project

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

10 What is Critical to Success?
Based on Accenture’s 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 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 Change Measurement Maturity Levels
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 Value Change Agility Measures Change Value Measures Lifecycle Project Measures Go-live Measures Complexity

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 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 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 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 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. Link to AMC Way: Pace, Certainty, Strategic Agility

19 Tools: ChangeTracking®

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

21 ChangeTracking Drivers
Change Capability Change Capability Turbulence Resources Aligned Direction Change Leadership Work Roles Emotional Energy 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. The drivers page provides the high level summary of the team’s results – Blue bars are the team’s scores White bars are the scores for the whole organisation that participated OK if above norm, Caution if below norm – quick and easy way to get overall picture This page shows where they need to take action to reach High Performance. If their result is completely different from the rest of the organisation, it also shows if it is a team issue or a change issue – an important point to know for project teams, as it answers who needs to take action. Typically, Aligned Direction is a whole organisation or change process issue – top team often needs to action this If Engagement, this is generally at a Business Unit level – BU Manager needs generally to action this If Team Leadership it is at the Team Level – often immediate supervisors need to be involved Emotional Energy is for everyone

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? Is the change on track to high performance? Realizing Business Benefits Improving Business Performance Performance Change Capability Turbulence Resources Aligned Direction Change Leadership Work Roles Emotional Energy Drivers Risks and Roadblocks Training and Capability Vision and Direction Clusters Changes Taking Place Systems and Processes Communication © CTRE Pty. Ltd • v1.0 ChangeTracking®

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

24 Achieved with loss of heart Struggling under pressure
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 State-of-the-art pattern recognition tools were applied to analyse the ChangeTracking® database and formulate a universal change landscape on which any change journey can be plotted. The Change Map (opposite) defines a three-dimensional, consolidated view of all of the major coordinates of change. With the vertical axis showing improvement or decline in business performance, each point on the landscape is a unique combination of strengths and weaknesses in the factors that drive performance improvement. Points are grouped so that similar combinations are adjacent to one another. Different regions then define different patterns of strength and weakness across the change terrain. Each region is a unique combination of scores derived from the ChangeTracking® questionnaire. Managers who understand this landscape and where their groups are positioned can more effectively use resources and focus actions to have the greatest impact on performance. Positioning starts with collection of data using web-based or paper questionnaires. Benefits from Using the Change Map: Continually staying on course requires a package of highly focused actions sequenced across time, and a sustained commitment from management. A piecemeal approach to change leaves managers questioning and employees cynical. Rather than following a pre-defined path up the mountain, they wander lost, wasting energy and dissipating resources. With ChangeTracking®, people at all levels in the organisation get the visibility, guidance and confidence they need to effectively manage change. It allows potential problems to be resolved before they happen, serving as an effective early warning system, and because actions required to stay on the path to high performance are clear, wise decisions can be made about what resources to apply. Furthermore, since ChangeTracking® is based on sound statistical research and hard data, it takes the guesswork out of change.

25 Action Planning: ‘Yes, but..’ to ‘Cruising’
Off Track Unsustainable On Track Cruising Bumpy ride Pushing 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 Washed 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 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 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 Accenture’s 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 organization’s 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 Macro Micro 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 Supply Demand

30 Dashboard A one-stop dashboard will be presented for each month of the project. This allows for quick and easy reporting. How do we show the predictive nature of the tool…

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. Note: Initial aim would be for a specific project or a release within a project. Key dates needs to include post go-live to track sustainability of the change

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 Stakeholder Management
The Stakeholder tab will capture the segmentation of the key stakeholders and track each group as they move up the Commitment curve. Potential link in this section to Journey Management

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. Key is that this continues beyond go-live so there is a key tie in to sustaining the change Link to CE Methods: CE319 Behavior Change Measurement Plan and CE317 Behavior Change Plan html

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. Key is that this continues beyond go-live so there is a key tie in to sustaining the change This provides the analytics link back to project success so future projects can be more predictive. The faster that the anticipated results are achieved the greater the link for future success

36 Quadrant Model Survey Based on Accenture’s 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. Nick’s idea of the white circle. Survey should continue post go-live. At least one cycle 3-4 months post go-live

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 Monday Morning Quarterback
What will you do different on Monday?

40 Thank You

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… Alerts: Build an excel pilot version to collect base data (3-6 months) Recommendations: Insight developed based on the pilot projects (5-10 months) Extrapolation: Transition from excel to a robust tool and develop greater insight (9-15 months) Prediction: Once the robust tool is rolled-out the data can be used to develop true predictive powers (12-24 months) 3 1 4 2 This slides is also the Journey Map 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. * Analytics at Work; Davenport, Harris, Morison; Pg 7

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