The document discusses how Intrascope software can help reduce costs and risks for large-scale change management projects. It provides an example of a $10 million implementation project with a $1.25 million change management budget. The software is estimated to save 30-40% of change costs through faster hypothesis testing, identifying bottlenecks earlier, and reducing workforce time spent on surveys and focus groups. It could also reduce total project risk by $7.8 million by helping to achieve higher performance in culture change management and organizational alignment, moving the project closer to the returns achieved by top performers.

1. CONFIDENTIAL
How intrascope can help you Reduce
execution cost and risk
Across large scale change management and
transformation projects

2. CONFIDENTIAL
1.
Intrascope
so.ware
reduces
the
cost
of
large
scale
change
• Using
an
illustra9ve
$1.25m
change
management
budget,
we
demonstrate
how
savings
of
30-­‐40%
are
possible
2.
Intrascope
so.ware
reduces
the
risk
of
change
disasters
• On
the
same
project
we
demonstrate
risk
reduc9on
of
c.$8m
(or
c.30%
of
business
case
return)
3.
Reducing
your
change
costs
will
save
you
millions
• Sensi9vity
analysis
examining
cost
impact
across
a
range
of
large
scale
cultural
transforma9on
projects
/
M&A
4.
Reducing
your
change
risk
will
save
you
tens
of
millions
• Examining
dollar
impact
of
project
risk
reduc9on
at
small,
medium
and
large
scales
2
Summary and table of contents

3. CONFIDENTIAL 3
Business
case
return2
Implementa1on
budget1
Total
project
risk3
Change
Management
$10m
$25m
$27m
Total
project
risk
is
c.$27
million
(at
c.108%
of
return
case)
This
presenta1on
uses
the
illustra1ve
example
of
a
large
scale
change
project,
with
an
implementa1on
budget
of
$10
million
(of
which
$1.25
million
is
direct
change
management
spend)
The
business
case
return
is
$25
million
(2.5:1
on
implementa1on)
The Illustrative, large scale change
management project
Notes:
1. PWC,
ChangeFirst
(Benchmark
external
change
management
cos9ng
of
12.5-­‐15%)
2. ChangeFirst,
The
ROI
for
Change
Management
(Average
first
year
return
case
for
large
change
management
projects
>
£1
million)
3. McKinsey
&
Company,
Helping
Employees
Embrace
Change
(Risk
calculated
as
the
difference
between
realised
return
of
top
quar9le
performers
at
average
143%
of
business
case
benefit,
and
bodom
quar9le
at
average
of
only
35%
of
business
case.)

4. CONFIDENTIAL
1
Intrascope software
reduces the cost of
executing large
scale change
management
4

5. CONFIDENTIAL
execution cost savings Given $1.25m
change management spend
Consultant
spending
Hypothesis
forming
and
tes9ng
Roadblocks
and
bodlenecks
Focus
groups
and
interviews
Reduce
spending
Reduce
the
workforce
9me
commitment
in
inves9ga9on
and
pulse
checking
Quicker,
more
accurate
hypothesis
forming
and
tes9ng
–
Agile,
responsive
change
team
Iden9fy
and
mi9gate
bodlenecks
and
roadblocks
before
they
slow
or
stall
change
Produc9vity
benefit
through
elimina9on
of
one
survey/yr
and
50%
of
focus
group
commitment
Quickly
form
and
test
hypothesis
with
project
team
(saving
2
weeks
in
overall
project
9meline)
Iden9fy
one
manager
blocking
a
core
team
(saving
a
2
month
project
delay)
Key
change
factor
Target
Illustra1ve
saving
BoOom
line
impact
($1.25m
change
management
spend)1
$63-­‐125k2
$52k4
$208k4
$116k3
$439-­‐501k
5-­‐10%
of
external
change
management
budget,
through
accelerated
project
start-­‐up
Total
execu1on
cost
saving
Notes:
1. Bodom
line
impact
on
the
basis
of
a
project
with
a
$10m
implementa9on
budget
/
$1.25m
external
change
management
spend.
Es9ma9ons
on
the
basis
of
1,000
people
directly
affected
with
average
annual
salary
of
$100k.
Project
implemented
over
48
months.
2. Benchmark
external
change
management
cos9ng
from
PwC
and
ChangeFirst.
3. Elimina9on
of
one
annual
survey
for
project
dura9on.
Comple9on
9me/produc9vity
impact
30
minutes
per
survey
per
employee.
Focus
group
reduc9on
from
20%
to
10%
of
total
workforce
on
an
annual
basis.
Produc9vity
impact
of
one
hour
per
focus
group
per
employee.
4. Assumes
core
change
management
spend
completed
over
ini9al
12
months
at
run
rate
$104k/month.
5

6. CONFIDENTIAL
2
Intrascope software
reduces the risk of
change disasters
6

7. CONFIDENTIAL
risk reduction given $10m
implementation budget
Culture
and
people
change
management
(19%
of
marginal
risk
moving
from
low
performing
change
to
top
quin9le)
Organisa9onal
alignment
(9%
of
marginal
risk
moving
from
low
performing
change
to
top
quin9le)
Key
marginal
risk
factor1
Prac1cal
risk
reduc1on
The
business
impact2
Risk
reduc1on
in
moving
to
high
performance3
($10m
implementa1on
budget)4
$5.4m
$2.7m
$7.8m
Total
risk
impact
Notes:
1. IBM,
Breaking
Away
with
Business
Analy9cs
and
Op9misa9on
(Culture
and
People
Change
Management
measured
at
a
19%
contribu9on
to
top
quin9le
performance.
Organisa9onal
Alignment
measured
at
a
9%
contribu9on
to
top
quin9le
performance.)
2. IBM,
Breaking
Away
with
Business
Analy9cs
and
Op9misa9on
3. McKinsey
&
Company,
Helping
Employees
Embrace
Change
(Top
change
performers
achieve
on
average
143%
of
business
case
benefit,
whereas
bodom
performers
achieve
only
35%
of
business
case.)
4. Example
uses
2.5:1
return
on
the
basis
of
$10m
implementa9on
budget
for
theore9cal
business
case
benefit
of
$25m.
High
performers
use
analy9cs
to
challenge
the
business
21.9x
more
than
low
performers
Track
underlying
behavioural
change
over
9me
Iden9fy
behavioural
regression,
even
years
a.er
ini9al
implementa9on
Iden9fy
and
mi9gate
roadblocks
and
bodlenecks
as
the
organisa9on
con9nues
to
evolve
The
data
to
drive
conversa9ons
with
management
at
all
levels
High
performers
use
analy9cs
to
analyse,
decide
and
act
5.6x
more
than
low
performers
7

8. CONFIDENTIAL
3
Reducing your
change costs will
save you millions
8

9. CONFIDENTIAL
Reducing change costs will save
millions
1000
10,000
$5.9m
saving
$2.0m
saving
$0.5m
saving
$6.9m
saving
$3.1m
saving
$1.5m
saving
5,000
$6.4m
saving
$2.5m
saving
$1.0m
saving
$10m
$50m
$150m
Number
of
directly
affected
employees
Notes:
1. All
assump9ons
and
references
consistent
with
those
shown
on
page
5
Implementa9on
budget
Case
shown
9

10. CONFIDENTIAL
4
Reducing your
change risk will save
you tens of millions
10

11. CONFIDENTIAL
Reducing change risk will save tens of
millions
$27.0m
Current
marginal
change
risk
Modified
marginal
change
risk
(Reflec9ng
best
prac9ce
people
and
change
management
and
organisa9onal
alignment)
Probability
weighted
saving
in
moving
to
high
performance
$19.2m
$7.8m
saving
$135.0m
$405.0m
$95.9m
$39.2m
saving
$287.6m
$117.5m
saving
Notes:
1. All
assump9ons
and
references
consistent
with
those
shown
on
page
7
2. Numbers
do
not
add
due
to
rounding
$10m
$50m
$150m
Implementa9on
budget
Case
shown
11

12. CONFIDENTIAL
Summary and next steps:
We
set
out
to
show
how
Intrascope
could
save
you
millions
in
execu9on,
and
tens
of
millions
in
risk
The
illustra9ve
project
set
out
in
this
presenta9on
clearly
shows
the
quantum
of
impact
possible
We
will
work
with
you
to
calculate
ROI
given
your
project
specifics
12

13. CONFIDENTIAL
APPENDIX
13

14. CONFIDENTIAL
A
Failing to change
kills companies
(large organisations have to
change more than ever before)
14

15. CONFIDENTIAL
Source:
McKinsey,
Crea9ve
Destruc9on
Total
return
to
shareholders
of
new
entrants
rela1ve
to
industry
average
Es1mated
life
span
of
S&P
500
companies
based
on
company
exits
Half
of
companies
in
the
S&P
500
in
2013
are
likely
to
be
gone
by
2020
There
seems
to
be
a
“survivors
curse”
whereby
beyond
a
20
year
life
cycle
organisa1ons
will
struggle
to
remain
compe11ve
and
effec1ve
AOackers
Survivors
15%
10%
5%
0%
-­‐5%
-­‐10%
1
5
10
15
20
25
2008
14
1995
19
1975
26
1955
45
1935
90
Failing to change kills companies
15

16. CONFIDENTIAL
B
But change also
kills companies
(disasters happen with huge
frequency)
16

17. CONFIDENTIAL
Why change kills companies
CONFIDENTIAL
Failed
change
damages
companies
in
four
key
areas:
High
dollar
cost,
High
people
cost,
Reduced
leadership
credibility
and
reduced
compe11veness1
“Most
studies
and
reports
on
project
performance
have
focused
on
telling
us
about
failure
rates
in
the
60
to
80%
range.”
-­‐
ChangeFirst,
The
ROI
for
Change
Management
“About
75%
of
all
organiza9onal
change
programs
fail,
largely
because
employees
feel
le.
out
of
the
process
and
end
up
lacking
the
mo9va9on,
skills
and
knowledge
to
adopt
new
systems
and
procedures.”
-­‐
PWC,
Human
Change
Management
“Most
studies
s9ll
show
a
60-­‐70%
failure
rate
for
organiza9onal
change
projects
—
a
sta9s9c
that
has
stayed
constant
from
the
1970's
to
the
present.”
-­‐
Ron
Ashkenas,
Harvard
Business
Review
Source:
1. David
Miler,
Successful
Change
17

18. CONFIDENTIAL
C
ANALYTICS HAVE A
MATERIAL IMPACT ON
BUSINESS
PERFORMANCE
18

19. CONFIDENTIAL 19
THE IMPACT OF ANALYTICS in improving
decision making
Analy1cs
empowers
beOer
decision
making
1.5%
1.5%
4.4%
32.5%
22.7%
25.0%
0%
10%
20%
30%
40%
Challenging
An1cipa1ng
Empowered
Lower
performers
Top
performers
Excep9onal
organisa9onal
performance
(%)
Source:
1. IBM,
Breaking
Away
with
Business
Analy9cs
and
Op9misa9on
Disrupt
the
status
quo
to
improve
the
business
and
create
new
opportuni9es
Predict
and
prepare
for
the
future
by
evalua9ng
trade-­‐offs
proac9vely
Enable
employees
to
analyse,
decide
and
act
21.9x
more
15x
more
5.6x
more
19

20. CONFIDENTIAL
D
The difference
between high and
low change
performance
20

21. CONFIDENTIAL
THE DIFFERENCE BETWEEN LOW AND HIGH
change PERFORMANCE
19%
17%
16%
14%
9%
9%
7%
5%
2%
1%
0%
5%
10%
15%
20%
Culture
and
people
change
management
Data
governance
Business
process
change
Program
governance
Project
objec9ves
Organisa9onal
alignment
Mul9-­‐phased
execu9on
roadmap
Building
sponsorship
Capability
assessments
Funding
and
budget
process
management
Ac1vi1es
in
support
of
driving
change
(contribu1on
of
analy1cs
to
marginal
performance
in
change)
Note:
1. Percent
contribu9on
to
top
quin9le
performance
predicted
by
Business
Analy9cs
and
Op9misa9on
project
ac9vi9es
2. Sourced
from
IBM,
Breaking
Away
with
Business
Analy9cs
and
Op9misa9on
21

22. CONFIDENTIAL
Contact Details
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PRESENTATION
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INTRASCOPE
PTY
LTD
(INTRASCOPE)
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DELIVERS
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CONFIDENTIAL 22