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Wave 1 Results - Change Management Survey

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Change Factory is investigating the factors that lead to the success or failure of a project. This presentation is the first round of analysis from around 76 organisations around the world.

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Wave 1 Results - Change Management Survey

  1. 1. Change Project Success Indicators Survey Results 3/03/2014
  2. 2. Executive Summary • Change Factory is investigating the factors that lead to change management project success or failure. By participating in the survey, respondents help validate theories about what works and what doesn’t. Leadership, user engagement, training and communication were some of the influencing factors investigated. • The key factors found to influence the success of a project include: • Documented strategy • Communication • Analysis of resistance and risk • Engagement tactics 3/03/2014
  3. 3. About Change Factory • Change Factory transforms businesses by changing people’s behaviour. • Change Factory is a Melbourne-based consulting company that specialises in change management and business transformation. We work across Australia, Pacific Islands and South East Asian countries. • Our services include: • Building change capability • Developing people • Driving performance • Creating strategy 3/03/2014
  4. 4. Purpose of Change Factory’s Survey • Change Factory is investigating the factors that lead to the success or failure of a project. This presentation is the first round of analysis from around 76 organisations around the world. • Currently, there exists many myths, self-help books and numerous models to explain how to manage a successful change project, however, change managers are still uncertain as to how specific factors lead to the success of their specific project. • This presentation demonstrates the correlation between a success of a project and specific factors, such as communication, training and documented strategy. • This presentation is filled with numerous hyperlinks to provide the reader with more research and best practice articles. To access these links, please have this in full presentation mode. 3/03/2014
  5. 5. Some published results 1993 Hamer and Champy published their estimate of 30% success rate 2008 Kotter observation of 100 companies: 30% success rate 2009 McKinsey study: 68% success rate 2013 Economist: 56% success rate • The most well known statistic for failed change projects is ‘70%’ • However, that figure had been based on ‘observations and estimates’ that do not produce valid and reliable data. • It was only in 2009 that McKinsey produced more valid data, showing that more than half of the projects succeeded. These statistics are very similar to those found in Change Factory’s current research • The irrational side of change management | McKinsey & Company 3/03/2014
  6. 6. SURVEY CRITERIA 3/03/2014
  7. 7. Factors Investigated During the Survey 1. Organisation demographics 2. Strategy 3. Tactics and Planning 4. Integration to business as usual 5. Implementation 6. Measurement and Outcomes 3/03/2014
  8. 8. Types of Respondents Questions Data Number of organisations respondents >100 organisations filled in the survey. Projects were based around the world, including Australia, USA and South Sudan. Completed projects 72% Near completion 9% Incomplete 12% Year completed Most projects were completed in 2013 (48.7%)
  9. 9. Demographics Length of Project Number of people affected 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 1-49 50-99 100-199 200-499 500-999 1000-1999 2000-4999 5000+ 3/03/2014
  10. 10. Position During Project 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Project manager Part of the project team Project sponsor Department head affected by the project Other Position during Project 3/03/2014
  11. 11. THE RESULTS 3/03/2014
  12. 12. What is a successful project • Change Factory is measuring three aspects required for the success of a project: 1. Delivered in the allocated timeframe 2. Delivered in the agreed quality measures 3. Demonstrated a return on investment • Although there are other factors that lead to the success of the project, these factors have been investigated in the question looking at internal success criteria. These criteria are based on previous result conducted by Change Factory 3/03/2014
  13. 13. Was your Project a Success? 84% 68% 71% 66% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Successful Time frame Quality ROI Success rate • When asked ‘Was your project considered a success?’, 84% of respondents responded yes. • However, when asked more detailed questions around meeting timeframes, quality measures and ROI (what Change Factory believes are the minimum success criteria of a project), a significantly lower number of respondents answered positively. • In this survey, Change Factory uses 3 factors as the key criteria of a project succeeding – Timeframe, quality and ROI 3/03/2014
  14. 14. Internal Criteria of Success • A large number of respondents measured their projects success by an increase in revenue and productivity. • Engagement was considered to be the third most important internal criteria of success. • Later in the presentation, it is demonstrated the importance of engagement in meeting the three criteria of success 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Increase of revenue Increase of productivity Engagement of employees Use of product Increase organisational engagement Internal Criteria of Success 3/03/2014
  15. 15. Explanation of the Data Graphics • The following bar charts in this presentation depict Change Factory’s 3 main factors of a success of a project: 1. Timeframe 2. Quality measures 3. ROI • The green bar depicts the success rate that had the title element (for example, documented strategy) • The red bar depicts the success rate of projects that did not have the title element. • Results, where a significant impact was found by including or not including a title element within a project, are part of the survey results. For example, where a documented strategy was included or not included. Based on Change Factory’s experience, research and observation, comments have been included on probable causes 3/03/2014
  16. 16. Explanation of the Data Graphics 66% 77% 76% 46% 70% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Documented Strategy The green bar depicts overall successful projects that had the title element (for example, documented strategy). In this case, those projects that were deemed a success and had a documented strategy were more likely to be successful than those who did not have a documented strategy. The red bar depicts the success of projects that did not have the documented strategy. This clearly shows that if there was no documented strategy, the success rate for reaching the quality measures dropped significantly. 3/03/2014
  17. 17. RESULTS: STRATEGY 3/03/2014
  18. 18. Documented Strategy 66% 77% 76% 46% 70% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Documented Strategy • If a project had a documented strategy, it was more likely to not meet the project timeframe. In Change Factory’s experience this could be due to a documented strategy taking longer to develop and the leadership team implementing longer decision making processes • By having a documented strategy, there is a significant positive impact in projects reaching their quality measures and achieving ROI • Implementing Strategy - Change Factory 3/03/2014
  19. 19. Analysis of resistance 65% 72% 75% 56% 72% 44% 0% 10% 20% 30% 40% 50% 60% 70% 80% Yes No Yes No Yes No Time frame Quality measures ROI Analysis of resistance • Conducting an analysis of resistance does not have a positive impact on timeframe, it did have a significantly positive impact on the quality measures and ROI being reached. • From our observations, measuring resistance of the employees undergoing change allows the leaders to ensure there are solutions in place to get employees engaged in the change process. • Investigating Resistance - Change Factory 3/03/2014
  20. 20. Risk Analysis 69% 68% 84% 44% 73% 52% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Risk analysis • Conducting a risk analysis at the beginning of a project allowed for more projects to reach their quality measures and ROI. • In our experience, conducting risk analysis allows project managers to prepare for the possible risks that could derail a project. • Managing Risk – Change Factory 3/03/2014
  21. 21. Critical Success Factors 71% 52% 74% 57% 71% 43% 0% 10% 20% 30% 40% 50% 60% 70% 80% Yes No Yes No Yes No Time frame Quality measures ROI Critical success factors • A project team that measures critical success factors are more likely to achieve the three main success factors than those projects that do not measure critical success factors. • By consistently measuring the success factors, the project can be assessed as to whether it is meeting the factors required to label it a success. 3/03/2014
  22. 22. RESULTS: TACTICS AND PLANNING 3/03/2014
  23. 23. Communication Strategy 66% 74% 77% 57% 74% 48% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Formal communications strategy • Implementing a communication strategy in a project may push the project time frame out, however, by having formal communication documentation, there is a significant positive impact on the meeting quality measures and ROI • Implementing an effective communication strategy encourages engagement during the change process • Communication choices during Evolutionary Change – Change Factory 3/03/2014
  24. 24. Communicating the Benefits 79% 46% 83% 46% 79% 38% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Calculated benefits • Clearly communicating the benefits of the change to employees positively impacts on the success of the project in all three factor. • In our experience and from our previous research, this clearly follows the principle of ‘what’s in it for me?’ and its benefit of communicating. By clearly communicating the benefits, employees are more engaged and more likely to work towards the success of the project • Driving EDRMS Adoption | Change Factory 3/03/2014
  25. 25. RESULTS: INTEGRATION TO BUSINESS AS USUAL 3/03/2014
  26. 26. Change Factory’s Engagement Model Level Description 1 Understanding the change and the details of the program (the WHAT) 2 Believing in the change (the WHY) and believing it will benefit them 3 Prioritising and caring about the change (the WHEN) 4 Planning to make the change (the HOW, WHO and WHERE) 5 Implementing the change (the DO) Click here for more information from our website Employee Engagement – Change Factory 3/03/2014
  27. 27. Engagement: Understand the purpose of the change 69% 60% 73% 40% 68% 40% 0% 10% 20% 30% 40% 50% 60% 70% 80% Yes No Yes No Yes No Time frame Quality measures ROI Understand the purpose of the change • When employees are clear about the purpose of the change, the success of a project increases significantly • What the purpose of the change is will vary in levels of importance to employees. Most employees respond more to one of the following when the purpose is reflected in: • The individual • Colleagues • Organisation • Society • Environment 3/03/2014
  28. 28. Engagement: Care about Change 69% 68% 80% 46% 64% 55% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Managers care about the change • Surprisingly, managers caring about the change do not have a significant impact on keeping within a timeframe or going above it • However, it does not have a large impact on whether quality measures were met within a project and slightly less of an impact of whether the ROI was met. • In our experience, managers caring about a project are more likely to make them prioritise meeting the quality measures. 3/03/2014
  29. 29. Engagement: Prioritise changes 70% 65% 83% 35% 73% 40% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Prioritise the change in day-to-day jobs • Another surprising result was that for those who prioritised the change versus those who didn’t prioritise, didn’t have a significant improvement in reaching the timeframe • Possible reasons could be that prioritising changes concentrated more on meeting the quality measures, thus having an impact on the ROI 3/03/2014
  30. 30. Engagement: Plan the change 68% 65% 84% 32% 74% 42% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Plan the change • The most significant difference in meeting the quality outcomes, was impacted by whether employees plan the change in their everyday work • Employees who plan the change in their everyday work were more likely to achieve the success factors of the project from our observation. This high level of engagement in the change project significantly impacted the projects success 3/03/2014
  31. 31. Nominated manager for business unit 70% 55% 80% 45% 77% 35% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Nominated manager for each business unit • Engaging a nominated manager to look after implementing the change in separate business units significantly leads to the success of a project • From our observations, by having a nominated manager in business units affected by change, they were more likely to have a type of ‘change champion’ to advocate the change. 3/03/2014
  32. 32. IMPLEMENTATION 3/03/2014
  33. 33. Post implementation support 68% 69% 78% 44% 70% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No Yes No Yes No Time frame Quality measures ROI Post change implementation support • Unsurprisingly, providing post implementation support had a positive impact on the quality measures and ROI of the project. However, a number of organisations did not provide post implementation support. • Post implementation support could include the continuation of change champions, post- implementation training and opportunities to speak to ‘change experts’ 3/03/2014
  34. 34. FINAL NOTES 3/03/2014
  35. 35. What was old is now new again • Change Factory conducted research to investigate the impact of certain factors on the success of a project. • Based on the analysis, it was found that the following factors had the most significant impact on the success of a project, specifically on timeframes, quality measures and ROI. • Documented strategy • Analysis of resistance • Risk analysis • Critical success factors • Communication strategy • Communicating benefits • Engagement strategy • Nominated manager • Post Implementation support 3/03/2014
  36. 36. Questions • Please contact Change Factory’s research team, if you have any questions about: 1. How we analysed the research 2. Any findings specific to your future projects 3. Change Factory’s change management services 4. Booking your 30 minute consultation 5. Ideas for future research Rohita Atri rohita.atri@changefactory.com.au +613 9614 8177 www.changefactory.com.au 3/03/2014

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