Change Agility
Organisational Change
       Maturity Model


    Caroline Perkins
Agenda


 • Background
 • Organisational Change Maturity
   Model
 • Survey results
 • So what...
 • Where are you?
Background

 Changes are being driven constantly and
  at great speed
 Big Programs are still failing despite
  advances in Project Management, Change
  Management , Governance & Leadership
 Mismatch of Agile Software Development
  & lean methodologies to traditional
  Waterfall governance
 Organisational change is bigger than the
  sum of its project parts
‘Change Agility’ Required

 A fully mature organisation manages all
 change consistently
 - Leading from the top
 - Clear vision & measures
 -Constantly adapting change portfolio
 - OK to fail
 - Feedback & collaboration of the whole
 business

 High performing organisations do not
 experience the dips in productivity currently
 considered normal for change initiatives
Research Based Analysis

Carbon Group, Change Consulting
• Change Management Institute (CMI)
   • International survey to verify results
   • White paper
• Change Tracking
   • Cross referencing with data from over
     2000 organisations

Published in 2012
The Agile Change Management Methodology
Definition of Change Management

Three key category areas required for
  effective organisational Change
    Strategic leadership of change
    Business readiness to receive
     change
    Project change management


Each category requires very different
  capabilities ate each maturity level
Organisational Change Maturity
Model (OCMM)
Strategic Change Leadership


• Active sponsorship to articulate the vision
  and drive the change
• Culture supports innovation, it is safe to
  fail
• Accurate feedback to enable leadership to
  react and adapt
• Boards have a thorough understanding of
  how change is managed
• Correct measures available to challenge
  and recalibrate

• Agile Governance (Step -> Test -> Adjust)
Business Change Readiness

• Business areas manage and control the
  change being received
• Middle management and employees
  collaborate and shape the change
• Clear maps of the change journey they
  are facing & leading
• Standard processes for rolling out
  continuous change (knowledge
  management, training and
  communication)
• Managers have the ability to lead change
  effectively
Project Change Management


• Change Management expertise a key role
  in projects
• Consistent change methodologies in place
  and aligned to project management
  methodology
• Effective Change budgetary
  planning, support available after project
  closure
• Design of projects driven & frequently
  adjusted by change feedback and
  scenario testing
• Change (lead) rather than financial (lag)
  KPI’s
CMI Survey Results

• No organisation reported an overall
  maturity level of 4 or 5

• 5% of respondents reported some
  capability at the Optimised maturity level
• 14% of respondents report full capabilities
  at the lowest maturity levels

• Smaller organisations rated more highly in
  overall maturity than larger organisations

• Highest overall capability was a
  large, decentralised global organisation
CMI Survey Results

• Strategic Change
  Leadership capabilities
  generally more mature
  than the Business and
  Project Change
  categories

• Project Change
  Management capability is
  the easiest to build &
  increases in line with the
  organisations strength in
  Project Management
Consistent Low Maturity

• Monthly assessment of Change Key Performance Indicators across
  the organisation
• Clear process for ongoing prioritisation of change impacts across
  the organisation
• Comprehensive change feedback is available for executive and
  board
• Change feedback assessed early & often to determine viability &
  direction
• Organisational change Impacts and progress are reported to the
  Board (quarterly)
• An executive level office is in place to manage Change across the
  organisation.
• Organisational structure is organic and adept at adjusting to the
  nature of change
• Managers have the skills to lead teams during change (even when
  personally impacted)
• Managers are able to track impacts to their areas from multiple
  projects to guide pace and timing
So What?
Project Change   Business    Strategic    Outcome
Management       Change      Change
                 readiness   Leadership
                                          Constant push back (resistance) from business, complaints
1                0           0            about sponsorship, lack of involvement, little benefit
                                          realisation, projects re-inventing the wheel to roll out
                                          implementation
                                          Business training/comms controlled and cheaper, push back
1 or 2 2                     0            from projects as not sufficient for needs. Cynicism about value
                                          of Change Management
                                          Change management part of project approach, focus on
2 or 3 3                     1            deliverables rather than engagement, execs start to question
                                          approach, CM’s invited to steering committees, Watermelon
                                          Projects!
                                          Agile software development/lean concepts struggling, as
4                2 or 3 0 or 3            organisation does not support

                                          Execs frustrated with speed/non-delivery of projects, middle
2                0      3                 management un involved, unsure and overload of initiatives,
                                          change fatigue
                                          Sophisticated Change Management, mismatch with rest of
4                0           0            organisation and project governance, confusion (often result
                                          of consulting recommendations!)
Where is your organisation?
Questions
                         Caroline Perkins
               cperkins@carbon-group.com
president@Change-Management-Institute.com

CMI Presentation on Organisational Change Maturity Model

  • 1.
    Change Agility Organisational Change Maturity Model Caroline Perkins
  • 2.
    Agenda • Background • Organisational Change Maturity Model • Survey results • So what... • Where are you?
  • 3.
    Background  Changes arebeing driven constantly and at great speed  Big Programs are still failing despite advances in Project Management, Change Management , Governance & Leadership  Mismatch of Agile Software Development & lean methodologies to traditional Waterfall governance  Organisational change is bigger than the sum of its project parts
  • 5.
    ‘Change Agility’ Required A fully mature organisation manages all change consistently - Leading from the top - Clear vision & measures -Constantly adapting change portfolio - OK to fail - Feedback & collaboration of the whole business High performing organisations do not experience the dips in productivity currently considered normal for change initiatives
  • 7.
    Research Based Analysis CarbonGroup, Change Consulting • Change Management Institute (CMI) • International survey to verify results • White paper • Change Tracking • Cross referencing with data from over 2000 organisations Published in 2012 The Agile Change Management Methodology
  • 8.
    Definition of ChangeManagement Three key category areas required for effective organisational Change  Strategic leadership of change  Business readiness to receive change  Project change management Each category requires very different capabilities ate each maturity level
  • 9.
  • 10.
    Strategic Change Leadership •Active sponsorship to articulate the vision and drive the change • Culture supports innovation, it is safe to fail • Accurate feedback to enable leadership to react and adapt • Boards have a thorough understanding of how change is managed • Correct measures available to challenge and recalibrate • Agile Governance (Step -> Test -> Adjust)
  • 11.
    Business Change Readiness •Business areas manage and control the change being received • Middle management and employees collaborate and shape the change • Clear maps of the change journey they are facing & leading • Standard processes for rolling out continuous change (knowledge management, training and communication) • Managers have the ability to lead change effectively
  • 12.
    Project Change Management •Change Management expertise a key role in projects • Consistent change methodologies in place and aligned to project management methodology • Effective Change budgetary planning, support available after project closure • Design of projects driven & frequently adjusted by change feedback and scenario testing • Change (lead) rather than financial (lag) KPI’s
  • 13.
    CMI Survey Results •No organisation reported an overall maturity level of 4 or 5 • 5% of respondents reported some capability at the Optimised maturity level • 14% of respondents report full capabilities at the lowest maturity levels • Smaller organisations rated more highly in overall maturity than larger organisations • Highest overall capability was a large, decentralised global organisation
  • 14.
    CMI Survey Results •Strategic Change Leadership capabilities generally more mature than the Business and Project Change categories • Project Change Management capability is the easiest to build & increases in line with the organisations strength in Project Management
  • 15.
    Consistent Low Maturity •Monthly assessment of Change Key Performance Indicators across the organisation • Clear process for ongoing prioritisation of change impacts across the organisation • Comprehensive change feedback is available for executive and board • Change feedback assessed early & often to determine viability & direction • Organisational change Impacts and progress are reported to the Board (quarterly) • An executive level office is in place to manage Change across the organisation. • Organisational structure is organic and adept at adjusting to the nature of change • Managers have the skills to lead teams during change (even when personally impacted) • Managers are able to track impacts to their areas from multiple projects to guide pace and timing
  • 16.
    So What? Project Change Business Strategic Outcome Management Change Change readiness Leadership Constant push back (resistance) from business, complaints 1 0 0 about sponsorship, lack of involvement, little benefit realisation, projects re-inventing the wheel to roll out implementation Business training/comms controlled and cheaper, push back 1 or 2 2 0 from projects as not sufficient for needs. Cynicism about value of Change Management Change management part of project approach, focus on 2 or 3 3 1 deliverables rather than engagement, execs start to question approach, CM’s invited to steering committees, Watermelon Projects! Agile software development/lean concepts struggling, as 4 2 or 3 0 or 3 organisation does not support Execs frustrated with speed/non-delivery of projects, middle 2 0 3 management un involved, unsure and overload of initiatives, change fatigue Sophisticated Change Management, mismatch with rest of 4 0 0 organisation and project governance, confusion (often result of consulting recommendations!)
  • 17.
    Where is yourorganisation?
  • 18.
    Questions Caroline Perkins cperkins@carbon-group.com president@Change-Management-Institute.com

Editor's Notes

  • #4 There’s not one company that you would talk to that you would tell them to stop run big programs who would say “No”. If we can’t predict the future; if open and honest feedback needs to be available to those making the decisions and project failure is the natural order of things; Change Management concepts become even more important to a company’s survival.
  • #5 Change coming from everywhere – these are the headlines from the newspapers for one day!Regulatory Change – complianceEconomic – expense reduction – outsourcingEconomic – new MarketsDemographic changes – Technology improvements
  • #6 There are five levels defined along the continuum of the CMMInitial (chaotic, ad hoc, individual heroics) - the starting point a new capabilityRepeatable - the capability has developed such that it is possible to repeat effectivelyDefined - the capability is defined to a level that it has become standard across the businessManaged - the capability has matured to a level that it is quantitatively managed and reported against agreed metrics.Optimized – The capability has been optimized and is providing competitive advantage to the organization.
  • #7 Lets have a look at some more headlines – It’s not new, but it’s not being thought of in it’s entirety, spot of the old Systems thinking
  • #8 A second period of research then identified and clarified the different levels of maturity for each of the categories; Change Leadership (Drivers of the change), Business Change Readiness (Receivers of the change) and Project Change Management (Implementers of the change).  A global survey of Change Management practitioners was undertaken by the Change Management Institute and Carbon Group over a two month period at the end of 2011. They helped us to classify the capabilities that would be in place for each of the categories at each of the maturity levels. Initial research was carried out while working with a number of large organizations in Australia, what worked and what did not. There is often confusion in explaining ‘what’ change management, and this may be due in part to these three categories.
  • #9 A second period of research then identified and clarified the different levels of maturity for each of the categories; Change Leadership (Drivers of the change), Business Change Readiness (Receivers of the change) and Project Change Management (Implementers of the change).  A global survey of Change Management practitioners was undertaken by the Change Management Institute and Carbon Group over a two month period at the end of 2011. They helped us to classify the capabilities that would be in place for each of the categories at each of the maturity levels. Initial research was carried out while working with a number of large organizations in Australia, what worked and what did not. There is often confusion in explaining ‘what’ change management, and this may be due in part to these three categories.
  • #10 This research identified that each of these change management categories has a different purpose and needs; they can develop differing levels of maturity at the same time and for different reasons. However there are a number of key dependencies, and if a capability was missing in one category, another may develop increased maturity to fill the gap.
  • #11 The new normal’ requires an approach with far greater flexibility and a different way of working for top teamsAn organisation that has developed to level five maturity has full executive sponsorship of change and is constantly accessing customer and employee feedback to review and adjust change portfolios.
  • #12 Maturity in Business Change readiness begins with the recognition that it is not the project that ‘owns’ the changes in the business, rather each area has a responsibility to manage and control the change being received. Managers are often unclear about the best ways to manage change, their focus is on maintaining the status quo rather than on how to constantly change or adjust what they are doing
  • #13 Developing capability in Project Change Management starts with an understanding that the ‘people’ side of projects should be addressed with training and communications through to an optimized situation where project change feedback and collaboration is leveraged to accurately initiate, design and direct the approaches takenThere are a number of recognized methodologies that have been developed to help projects manage the people side of change. However, a change methodology will not in itself ensure effective change, the change process is interactive, complex and non linear and requires the support of experienced change practitioners who are able to test scenarios and work effectively with key business stakeholders and leaders to adjust the approach
  • #14 Developing capability in Project Change Management starts with an understanding that the ‘people’ side of projects should be addressed with training and communications through to an optimized situation where project change feedback and collaboration is leveraged to accurately initiate, design and direct the approaches taken
  • #15 Developing capability in Project Change Management starts with an understanding that the ‘people’ side of projects should be addressed with training and communications through to an optimized situation where project change feedback and collaboration is leveraged to accurately initiate, design and direct the approaches taken
  • #16 Developing capability in Project Change Management starts with an understanding that the ‘people’ side of projects should be addressed with training and communications through to an optimized situation where project change feedback and collaboration is leveraged to accurately initiate, design and direct the approaches taken