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Metrics on the Money: The Art & Science of Change Measurement

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Centric's Colleen Campbell, National Organizational Change Management Practice Lead, spoke on the importance of metrics in change management at Midwest Change Connect. In her presentation, focused on measuring the success of a project, and how to measure any change effort from technology adoption to culture shift.

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Metrics on the Money: The Art & Science of Change Measurement

  1. 1. METRICS ON THE MONEY THE ART AND SCIENCE OF CHANGE MEASUREMENT cc: Nanagyei - https://www.flickr.com/photos/32876353@N04 COLLEEN CAMPBELL, NATIONAL ORGANIZATIONAL CHANGE MANAGEMENT PRACTICE LEADER, CENTRIC CONSULTING
  2. 2. QUICK POLL: DO YOU MEASURE CHANGE IN YOUR ORGANIZATION? 1. No change success measurements 2. Some basic change metrics – training surveys or basis project stats 3. Standardized change and project success metrics including ongoing measurement in place 4. Enterprise approach to measuring project, program and enterprise change success cc: wwarby - https://www.flickr.com/photos/26782864@N00
  3. 3. WHY STRATEGIC TRANSFORMATION INITIATIVES FALL SHORT OF RESULTS 1. Change Fatigue 2. Change Leadership and Execution Skills 3. Lack of Employee Engagement cc: Johannes Ortner - https://www.flickr.com/photos/34936566@N02 Source: PWC – Culture’s Role in Enabling Organizational Change Change Metrics can help identify and address these challenges early.
  4. 4. METRIC SUCCESS: A SIMPLE PROCESS 1. Engage leaders in understanding, appreciating and committing to measuring change progress 2. Create and prioritize metrics and the timing of collection and reporting 3. Finally, communicate results powerfully through a scorecard and ongoing communications cc: Emily Barney - https://www.flickr.com/photos/60162443@N00
  5. 5. WHY MEASURING THE CHANGE IS COOL • Creates clearly defined and aligned picture of success that everyone can understand • Identifies challenges early-on • Provides the opportunity to adjust your strategy along the way with incoming feedback • Gathers proof that your strategy is working which builds engagement, provides helpful project updates and makes your sponsor and project team look great! cc: Horia Varlan - https://www.flickr.com/photos/10361931@N06
  6. 6. - No clear project or executive metrics - Lack of accountability from senior leadership - Trying to measure everything - Not measure the ‘right’ metrics THE BAD cc: Reportergimmi - https://www.flickr.com/photos/55544800@N00
  7. 7. OKMOVING PAST THE TYPICAL CHANGE BASICS - One-Time Project or Change Metrics - Smiley Training Sheets - Training Stats - Number of Communicationscc: circulating - https://www.flickr.com/photos/26835318@N00
  8. 8. MOST EXCELLENT - Metrics Established Early with Ongoing Measurement - Clear Value, Adoption, Utilization and Proficiency metrics - Metrics Shared Appropriately in Communications/Scorecards cc: Juliana Coutinho - https://www.flickr.com/photos/10217810@N05
  9. 9. QUICK POLL: What are the Biggest Obstacles to Measuring Change Success 1. Leadership or project team’s knowledge of how to measure change success 2. Unable to clearly articulate project measurements due to unclear project vision 3. Leadership and/or project team’s fear of accountability 4. No or limited change resources to create measurement vehicles 5. If you have others…put them in the chat space cc: wwarby - https://www.flickr.com/photos/26782864@N00
  10. 10. SPONSOR AND PROJECT TEAM ENGAGEMENT • Get all the key sponsors engaged early • Consider how to approach all key stakeholders and especially likely resistors • Engage team in use of metrics through scorecards and communications cc: laverrue - https://www.flickr.com/photos/23912576@N05
  11. 11. THE METRICS DISCUSSION 1. Invite key decision makers to the meeting. Educate them on the purpose, process and payoff. 2. Create metrics that are outcome driven. Bring possible examples for their effort. Assuming this will take a while. 3. Prioritize the metrics to collect, the frequency to measure and how to report out through scorecards and communications. cc: hjl - https://www.flickr.com/photos/92605333@N00
  12. 12. WHAT CHANGE OUTCOMES TO MEASURE • Value • Speed of Adoption • Ultimate Utilization • Proficiency cc: avrene - https://www.flickr.com/photos/23212428@N00
  13. 13. VALUE OUTCOME Is the project achieving the expected value? cc: epSos.de - https://www.flickr.com/photos/36495803@N05
  14. 14. EXAMPLES OF VALUE OUTCOME METRICS cc: Horia Varlan - https://www.flickr.com/photos/10361931@N06 What It Measures • Whether the initiative/project achieves intended business outcomes • Benefit Realization • Specific Amount • Timing Examples (Date and Amount) • 1.8 million website visits within first month • Reduce order to cash process time 15 days by Nov 2016 • Reduce department operational costs $1.5 million by Dec. 2015 • Increase pricing profitability margins 5% by Aug 2015
  15. 15. SPEED OF ADOPTION OUTCOME How fast are we moving? Is everyone on board? cc: Nick-K (Nikos Koutoulas) - https://www.flickr.com/photos/33284937@N04
  16. 16. EXAMPLES OF SPEED OF ADOPTION METRICS cc: Horia Varlan - https://www.flickr.com/photos/10361931@N06 What It Measures •How quickly is the change being embraced •Is communications and training working to get impact groups on board quickly Examples (Date and Amount) •80% of branches are compliant with new standards within 5 weeks •75% of partners are certified in the new partner program within 3 month of launch
  17. 17. ULTIMATE UTILIZATION OUTCOME Are they using the new approach? cc: Holtsman - https://www.flickr.com/photos/27551984@N08
  18. 18. EXAMPLES OF UTILIZATION OUTCOME METRICS cc: Horia Varlan - https://www.flickr.com/photos/10361931@N06 What It Measures •Are they using the tool, process, structure, etc. Examples (Date and Amount) •Distributors now order 75% online in our new tool •HR is now using the new recruiting process with all new recruits and the old system is no longer in use
  19. 19. PROFICIENCY OUTCOME Does everyone fully understand what they need to do to be effective? cc: highersights - https://www.flickr.com/photos/65339210@N02
  20. 20. EXAMPLES OF PROFICIENCY OUTCOME METRICS cc: Horia Varlan - https://www.flickr.com/photos/10361931@N06 What It Measures •Are impacted groups using the tool, process, etc. as well as expected…i.e., all features utilized as expected •How well are they performing overall because of the change Examples (Date and Amount) •The call center assesses and routes 90% of “high priority” calls to the HP specialists •The finance team now pulls reports from the CRM tool on 1st of each month and adds projections to the scorecard.
  21. 21. WHEN TO MEASURE Start Early Agree on When to Measure Movement on the Adoption Curve Measure with surveys, focus groups, reports, etc. cc: zoutedrop - https://www.flickr.com/photos/24028533@N03
  22. 22. cc: JD Hancock - https://www.flickr.com/photos/83346641@N00 HOW TO MEASURE Surveys (Past and Present) Focus Groups Leader Alignment Changes System Usage System Audit (Review Quality) Change Network Feedback Financial Number (Increase in sales, etc.)
  23. 23. KNOW WHEN TO COMMUNICATE cc: Kris Krug - https://www.flickr.com/photos/49503002894@N01 What Story do you need to be telling? Who Needs the Communication – Leadership, Employees, Customers, Vendors Simple Clear Comprehensive Comm Approach, Not Fancy
  24. 24. Using metrics in your communications to educate and build support for your effort or to adjust your strategy prior to go-live. These can be leader, all impacted groups, customer or project team communications. Examples of Using Change Metrics in Your Communications COMMITMENT TIME AWARENESS UNDERSTANDING ADOPTION OWNERSHIPAWARENESS UNDERSTANDING ADOPTION OWNERSHIP 24 How many leaders are on board now? How well impacted groups (employees, clients, etc.) understand and want the change How successful were we in reaching our goals How many users are using the tool/process and how well are they doing? How prepared is leadership and our support teams? Training stats and gauge on readiness before go-live
  25. 25. 25 Pricing Program Goals – Communicating to Leaders Example 50% reduction in Turn Around Time on sales orders by Dec. 20xx 75% decrease Special Pricing Agreements volume by March 20xx Pricing operational cost at $7 million by Dec. 20xx 20% increase in margin by increasing pricing floor or right pricing Goal Progress: Two week progress Next Steps: Needs and what to expect Green = on track, Yellow = goals may not be met, areas of concern, Red = not likely to achieve goals, need to create plan of action to address SMART Goals: Specific (key impact TAT) Measurable (amount reduction) Actionable (What we are doing) Realistic (yes, doable) Time based (Dec. 20xx)
  26. 26. YES YOU CAN So push yourself outside to your boundaries and grow! You are more valuable to your team as a change leader. cc: Philo Nordlund - https://www.flickr.com/photos/22839942@N00
  27. 27. Colleen Campbell National Organizational Change Management Practice Leader Colleen.Campbell@centricconsulting.c om 331-220-4999 THANK YOU! QUICK POLL: Was This Useful? Using a scale from 1-4. Was this useful? 1=Waste of My Time to 4=Absolutely! Please send any additional feedback or questions to Colleen.

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