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The Technology Change Imperative



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The Technology Change Imperative

  1. 1. All A Survey of CIO’s & Technology Leaders opinions and experience with Organizational Change Management The Technology Change Imperative ™
  2. 2. Technology leaders are experiencing unprecedented change across their organizations. Insourcing or Outsourcing core IT services. Evaluating the role of automation and robotics for IT and business operations. Adoption of new service models such as Agile and DevOps to meet growing stakeholder expectations and leveraging new platforms such as Cloud to achieve new levels of flexibility. Each of these changes are impacting IT employees in ways never before experienced. For technology leaders to achieve the performance and operational efficiency necessary to deliver this accelerating agenda, technology teams must become ‘change enabled’ by developing the internal capability to adopt and optimize transformative initiatives. SCM Institute Confidential © 2017 All Rights Reserved The Technology Change Imperative ™
  3. 3. 12-Oct-17 About This Research To better understand IT leaders current opinion and usage of change management services, the Sourcing Change Management Institute conducted the Technology Change Imperative Survey. The survey was designed to identify the effectiveness and usage of Organizational Change Management (OCM) to support the following transformation areas: SCM Institute Confidential © 2017 All Rights Reserved ™ Survey Execution: Between September 25th and October 9th, the SCM Institute received a total of 37 responses from CIO’s and IT Leaders to the Technology Change Imperative survey posted on The following analysis is based upon these responses and represents the opinion and recommendations of the SCM Institute. Sourcing: Outsourcing, Insourcing & incumbent changes. Automation: Core IT and business process targeted for AI & RPA. Methodology: Collaborative methodologies are impacting traditional processes and work environments.
  4. 4. Effectiveness of Change Management: Sourcing Scenario SCM Institute Confidential © 2017 All Rights Reserved ™ Understood nature and impact of the change Established Stakeholder & Operational committee Monitored Change Adoption Effectively Identified Resistance and took mitigation actions Developed communications for operational teams OCM Level of Satisfaction Not Satisfied Satisfied Overall OCM Effectiveness 2.2 1 5 To date, CIO’s indicate general dissatisfaction and limited effectiveness of organization change management practitioners for sourcing transformations.  Only 30% of respondents indicated the use of OCM practitioners to support an IT sourcing transformation.  Respondents who did use an OCM practitioner to support a sourcing transformation indicated a low level of effectiveness with a score of 2.2 on a scale of 5.  CIO’s overall satisfaction with OCM in support of sourcing transformations is low. Respondents sited very poor scores for ability to address resistance, effectively monitor adoption and establish stakeholder coalitions as extremely poor.
  5. 5. Effectiveness of Change Management: Automation Scenario Organizational Change Management practitioners have a tremendous opportunity to support CIO’s automation transformation of technology and business processes. SCM Institute Confidential © 2017 All Rights Reserved ™ Train internal experts to manage automation Trained internal IT team to support the automation platform Documented workflows to facilitate knowledge management Reassigned staff impacted by automated process Released staff impacted by automated process Actions to Support AI Adoption Will Deploy Will Not Deploy Did Not Consider  Two Thirds of CIO’s have implemented or will consider implementing automation (AI) or robotics (RPA) in their environment.  Nearly half of the CIO’s (43%) indicate they have or will consider utilizing an OCM practitioner to support the automation transformation.  Despite the high level of interest in OCM support, CIO’s do not appear to have focused significantly on employee change issues. The focus to date appears to be on technology and process workflow.
  6. 6. Effectiveness of Change Management: Methodology Scenario CIO’s do not engage OCM practitioners when they deploy new, collaborative methodologies. Potential is it is perceived targeted methodology training may address individual change issues. SCM Institute Confidential © 2017 All Rights Reserved ™ 0 5 10 15 20 25 30 35 40 Enabling Team Collaboration Balance Collaboration with Individual Assignments Make available legacy methodology opportunities Recognize Individual contribution as well as team Monitor resistance & passive aggressive dynamics Change Adoption Support Considered Did Not Consider Will Consider  Only 5% of the CIO’s indicated they have or are considering engaging a change management practitioner to support adoption of collaborative methodologies such as Agile and DevOps.  10% of the respondents indicated they believe methodology training addressed individual change needs. Potentially indicating respondents do not believe any change management investment is required to support adoption and optimization of the model.  CIO’s scored activities associated with an individuals need to adopt change very low. Focusing instead on the methodology elements exclusively.
  7. 7. Summary of Findings Overall, the Technology Change Imperative Survey indicates a low level of interest and usage of OCM capabilities by CIO’s when implementing transformative agendas. Potential contributors to this are:  OCM perceived to be corporate responsibility  OCM practitioners, by focusing on Communications Plans, miss the root challenge of change in IT operations  Change management is viewed as a 3rd Party effort and not integrated with IT operations  Change management is viewed as an event and not a core required capability ™
  8. 8. SCM Institute Confidential © 2017 All Rights Reserved SCM Institute Recommendations ™ Based on the Technology Change Imperative Survey results, the Sourcing Change Management Institute offers the following recommendations and guidance to CIO’s:  Ineffective change management impacts productivity, budget and culture. Look internal to build a cross- functional team to support the broad change agenda.  Establish a change management methodology that supports operational adoption and supports team members develop competency.  Collaborative methodologies impact an individuals need of self-esteem and self-actualization. Go beyond the methodology and address the people dimension to achieve productivity.  When deploying automation, impacted employees will likely embrace ‘survivor syndrome’ tactics. Be clear with your vision and define Future State team roles and responsibilities.
  9. 9. The SCM Institute is dedicated to continual development of change management best practices supporting sourced IT services, automated business processes and new IT methodologies. The SCM Institutes’ 12- module methodology provides a unique operational framework built to cover the full change life cycle and the unique needs of individuals and impacted teams. The methodology features multiple tools, activities, calendars and events to firmly establish change optimization. SCM Institute Confidential © 2017 All Rights Reserved About the Sourcing Change Management Institute
  10. 10. © 2017 SCM Institute, Inc.. All rights reserved. Reproduction of this publication in any form without prior permission is strictly prohibited. Information contained in this report is based on the best available and reliable resources. Opinions expressed in this report reflect SCM Institute’s judgment at the time of this report and are subject to change without notice. SCM Institute, Inc. has no liability for omissions, errors or completeness of information in this report. . SCM Institute Confidential © 2017 All Rights Reserved Disclaimer™
  11. 11. Thank you.Thank you. SCM Institute Confidential © 2017 All Rights Reserved