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The purpose
 of a Change
 Management
 Office



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Overview
                        We all know that managing change is a vital
                        skill set. Changes result from new systems
                        and new information we use to develop
                        products and deliver services. This innovation
                        is an unstoppable force, where inability to
                        engage leads to business failure. However,
                        innovation without a strong business case
                        can also lead to failure so it is essential that
                        we filter opportunities to ensure that only the
                        most viable i.e.those offering the greatest
                        benefits for the costs involved, are actually
                        implemented.

                        This decision making needs to happen within
                        every department and management function
                        and there needs to be a single, complete
                        picture of change taking place across the
                        whole organisation. This need has led many
                        organisations to create a central information
                        hub for change related information. In
                        some organisations this hub is aligned to
                        project management, and in others project
                        management is seen as part of the skill-set but
                        not the entire picture.

                        In this paper I explore the functions and
                        benefits of establishing an office that supports
                        the implementation of change including the
                        delivery of the components of change through
                        effective project management, and the
                        development of a network of skilled change
                        managers who guide their colleagues through
                        the process of changing their ways of working.




2   Share this eBook:
The purpose of a
  Change Management
  Office
The purpose of a change management office          The change management office answers
(CMO) is to provide the organisation with          questions including:
a focal point for governing, structuring and       •	 Are the changes planned and underway
implementing change initiatives. This office          capable of achieving the strategic
provides oversight of all change initiatives          objectives?
planned and underway and ensures each is
delivered effectively through the application      •	 What other initiatives should be added to fill
of a consistent methodology and performance           any gaps between strategic ambition and
metrics.                                              current changes?
                                                   •	 What initiatives are failing to deliver
The CMO supports the decision making                  expected improvements?
associated with evaluating proposals for
                                                   •	 Should they be prematurely terminated?
change and supports the delivery of those
that are authorised. The users of this function    •	 Should a task force be assigned to their
are a wide cross section of roles across the          repair?
organisation including those responsible for       •	 How can we filter initiatives at the ideas
strategic planning, project managers and              stage to prevent authorisation of the
departmental managers and business leads              'wrong' initiatives
whose work is impacted by the changes.
                                                   •	 What steps in the decision making process
                                                      can we remove or amend to increase the
To be effective the remit of the CMO must be
                                                      speed of decision making?
organisation-wide as change is rarely confined
to one area, and even small changes to a
relatively self-contained process can have
knock on effects further in the customer journey
that must be understood and addressed.
Organisations are complex systems where
there is a high degree of interconnectivity
between components and the boundary of
ownership, especially of information, is hard to
establish. For this reason change cannot be
implemented using a silo-based approach and
co-ordination and communication are critical
to success.




                                                               Share this eBook:                   3
Benefits
Many of the benefits of an effective Change
Management Office occur as a result of
improved decision making on what changes
to commit to, as a result of senior managers
having access to a complete picture of
what change is taking place and how those
changes align to the strategic direction of the
organisation.

Benefits at an organisation-wide level:
•	 One source of reporting leads to more           •	 Improved understanding of resource
   effective communication of issues, risks and       requirements and allocation across change
   progress:                                          initiatives, with the opportunity to build skills
   - Information gathering, analysing and             and competencies through the application
      report creation takes less time as the          of an organisation wide change
      processes for these activities are defined      management method
      and understood by all those involved         •	 Total cost of delivery of each change
   - The same information is gathered from            initiative is reduced as the CMO is able
      each change initiative, speeding up the         to achieve economies of scale across
      process of comparison and identification        common change activities including
      of any work that falls outside of               communication, implementation, planning,
      acceptable parameters                           risk analysis and project management
•	 Development of a complete picture of all        •	 By enabling true cost of delivery to be
   change taking place, at a functional and           visible to the business, managers can
   organization wide level, enables much              contribute more effectively to decisions on
   quicker identification of likely ‘change           which changes to endorse and which to
   overload’ or destabilisation of the business       put on hold
   as usual environment
•	 An increase in the focus of how changes
                                                   Benefits specific to change management
   are contributing to strategic direction         initiatives:
   increases the speed at which senior             •	 Reduction in number of external consultants
   managers can intervene to suspend or               required to support change activities as the
   terminate initiatives that are not on course       organisation develops capability internally
   to deliver their expected strategic benefits       through the application of its change
                                                      management method, guided by the CMO
                                                   •	 The CMO acts as an internal consultancy
                                                      service, supporting individual change
                                                      managers, assuring the quality of their work
                                                      and continuously improving the change
                                                      management method
                                                   •	 Reduction in the level of stress felt by those
                                                      managing change as the CMO provides
                                                      support, guidance and advice, facilitating
                                                      solutions to issues that impede the progress
                                                      of change



4     Share this eBook:
Success criteria
  for a change
management office
   Sponsor is a board member/director responsible for strategy, change or
    projects


   Sponsor demonstrates commitment and enthusiasm

   Change information is reported by the CMO to the board on a regular and
    frequent basis

   The manager of the CMO has experience and knowledge of organisational
    change, portfolio, programme and project management and strategic
    planning

   There is a clear set of strategic objectives which is known and understood
    across the organisation

   CMO staff have high degree of practical experience in running change
    initiatives and have a strong skill set in project and change management
    methods and techniques

   The CMO defines and owns the organisational change framework and
    method and provides training in this to all relevant staff

   There are opportunities for those managing and impacting change to
    influence the way that the CMO operates through forums and regular
    discussions

   CMO staff build strong relationships with their stakeholders

   There is clarity over the remit of the CMO versus it's key stakeholders
    including any Portfolio, Project or Programme offices (PMO), the corporate
    communications function, corporate risk management and audit functions,
    and the learning and development function




                                                    Share this eBook:            5
Consideration when
             building a change
            management office

        There is no ‘one size fits all’ solution. The model that is right for your organisation
        will be a product of a number of factors including:


       The scale of change that is taking place - if your organisation plans to
        undertake transformational change it is unlikely to be able to achieve its goals
        without multiple change projects in the majority of business functions which will
        require a higher degree of control than small scale incremental change that
        takes place within individual departments and teams

       The existing level of structure for portfolio, programme and project
        management - if there is already an established PMO function then consider
        widening the CMO remit to include organisational change rather than
        building a separate change management office that may have to compete
        for similar resources

       The level of maturity that exists within your organisation in its approach
        to change management – if organisation-wide change management
        framework, methodology, documentation and performance metrics are
        already defined, understood and successfully in use then the driving force
        of the CMO will be to exploit economies of scale and drive improvements in
        quality through a process of continuous improvement. If organisation wide
        change management does not yet exist, then the main function of the CMO
        will be to build this approach, educate users in its use and guide its application

       The level of centralised control that your organisation wishes to apply to how
        changes are made in a distributed organisation, whilst change cannot be
        effected in a silo based approach, a great deal of decision making will be
        delegated across the business units so the role of the CMO will be information
        provision and co-ordination. In organisations where decision making is
        concentrated at board level or equivalent then the CMO will take the lead
        on information gathering from individual change managers and providing
        summary reports across all of the change initiatives




6   Share this eBook:
Responsibilities of a
         change management
                         office
Organisation-wide change management method
comprising core elements of best management practice:

•	 Portfolio, programme and project management
•	 Change management
•	 Risk management
•	 Benefits management




                      Services

                      •	 Quality assurance
                      •	 Resource management and capacity planning
                      •	 Financial planning and budgeting
                      •	 Performance monitoring
                      •	 Stakeholder engagement and communications
                      •	 Definition of processes, tools and techniques
                      •	 Support for individual change managers
                      •	 Reporting to decision makers
                      •	 Ownership, maintenance and dissemination of the
                         organisation wide change plan
                      •	 Risk and issue management across all change
                         initiatives




                  Central repository of information from all change managers




                                                        Share this eBook:      7
Organisation
    As stated earlier in this paper there is no ‘one size fits all’ structure for CMOs, and this is
    reflected in the roles set out below which highlight the key responsibilities that a typical
    office would include, and is based on the example governance structure set out below:




                            Change Management Office structure



           Board of Directors

        CMO Sponsor / Owner




           Change Management Office                                      •	 IT
                                                  Sharing specialist     •	 Corporate
                  •	 Process expert                                         Communications
                                                     knowledge
                  •	 Risk and issues expert                              •	 Facilities Management
     CMO                                            on the scope
                  •	 Communications                and impact of         •	 Legal and Regulatory
    Manager
                     expert                           change                Service
                  •	 Planning expert                                     •	 Audit
                  •	 Finance expert                                      •	 Human Resources




Change management                      Change information
   methodology,                         reported against
  documentation,                           pre-agreed
     guidance                             performance
                                             metrics



                  Change managers and change teams located in departments
                            and functions across the organisation




8     Share this eBook:
Sponsor/Owner of the Change
Management Office

This role may be known as Director of Change       CMO manager
or Strategy, or Head of Organisational Change.
The role is performed by a senior manager          This role reports to the sponsor, and has line
who is responsible for the change agenda           management authority for all those assigned to
for the organisation, which is driven by the       the Change Management Office but will also
strategic objectives set by the board or senior    need the confidence and support of all those
management team. The sponsor owns the              change managers supported by the CMO.
blueprint for how the organisation is expected
to evolve over time, which is devised from         The level of authority needed by the CMO
functional strategies and plans including the      manager is dependent upon the remit of
IT architecture plan, the facilities plan, sales   the function. For example, if the change
forecasts and market analysis and operational      management office is responsible for ensuring
plans. The sponsor is responsible for reporting    that the change management methodology
progress against the change agenda to the          is applied to all initiatives irrespective of which
board or senior management team using              function is funding them, then the Manager
the information provided by the Change             will need the authority to insist on use of the
Management Office.                                 method, and have the support of the Sponsor
                                                   to address those that are not applying this
This reporting means the sponsor has oversight     organisation wide approach. If the CMO is
of all the change initiatives that are planned     a central information hub then the Manager
and underway and provides a summary of how         must have the authority to request progress, risk
the totality of change is impacting the day-to-    and issue information from all those within the
day operational capability of the organisation.    organisation who are running change projects,
The sponsor draws attention to the risks and       programmes or other initiatives.
issues associated with the totality of change
and will require decisions to be taken about
the results to date and any re-prioritising
of initiatives that senior colleagues feel is
necessary to achieve strategic objectives.




                                                               Share this eBook:                     9
CMO staff:

Process expert – this role may be performed         Planning expert – whilst individual change
by those with business analysis skills. The role    managers will identify the change activities
acts as a source of information about end-          relevant to their work, there is a need to collate
to-end processes across the organisation,           all of this activity across the organisation and
pinpointing where change in one area can            be able to understand how much is changing,
impact systems, processes, inputs, outputs and      where and for how long so that the risk of
behaviours in other areas                           destabilising the ability of the organisation to
                                                    deliver ‘business as usual’ is understood. This
Risk and issues expert – this role is responsible   role requires excellent technical estimating,
for the identification, analysis and definition     scheduling and resource management skills.
of responses to risks and issues that have
the capability to prevent change being              Finance expert – although many changes
implemented successfully. A key aspect of this      are made at a micro level to the way in
role is information sharing as risks and issues     which individuals work, there is still a need to
occurring in one change initiative might also       identify the required funding for system and
apply to other initiatives of which the relevant    infrastructure acquisition, loss of productivity
change managers need to be made aware.              and back-filling of roles during periods of
This role has a coaching element as it is in the    change. Decision makers need a clear picture
interests of the organisation to develop an         of the expected budgetary impact of change
ability to analyse and situations for potential     and the progress of change initiatives against
and actual impediments and have the                 this budget. This role requires excellent financial
confidence to define actions to address them        planning and control skills.
before they harm the progress of the planned
change activities.

Communications expert – change requires
everyone to be aware of what is changing,
when and how so this role is central to
ensuring all stakeholders are fully informed
and engaged with the changes that matter
to them. This role requires creativity and
innovation to get the messages across to a
high number of individuals, often when they
are very busy and have little time for taking in
new information.




10     Share this eBook:
Biography:
Melanie Franklin
Melanie has an impressive track record in the successful realisation of business change
programmes across private and public sector organisations. She is the founder and Chief
Executive of Maven Training and is highly experienced in the delivery of board level guidance
and mentoring.

She takes a very practical approach to change, programme and project management with
priority on the realisation of planned benefits, working closely with her client base to ensure that
the desire to implement best practice does not result in bureaucracy for its own sake. Each
solution that Melanie proposes to clients is based on sound practical advice and experience with
guidance on how it is likely to be received by staff, how resistance to change can be overcome
and how stakeholders can be engaged from the outset.


Melanie is a talented communicator and has a reputation for delivering complex information with
humour and passion. She draws on her wealth of practical experience to illustrate concepts and
to engage her audience in lively debates on advantages and disadvantages of each approach
that she outlines.


Melanie is the author of a number of books and whitepapers about project and change
management including the recently launched Managing Business Transformation: A Practical
Guide.




11    Share this eBook:
For further information about Maven Training
                              please contact:

                            Melanie Franklin
                   Telephone: 020 7403 7100
e-mail: melanie.franklin@maventraining.co.uk




                                Follow us on:


                               Twitter


                           Facebook


                             LinkedIn


                           Slideshare


                            YouTube


                               Scribd




                                                Share this eBook:
                                                   www.maventraining.co.uk   12

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The purpose of a change management office

  • 1. The purpose of a Change Management Office Share this eBook:
  • 2. Overview We all know that managing change is a vital skill set. Changes result from new systems and new information we use to develop products and deliver services. This innovation is an unstoppable force, where inability to engage leads to business failure. However, innovation without a strong business case can also lead to failure so it is essential that we filter opportunities to ensure that only the most viable i.e.those offering the greatest benefits for the costs involved, are actually implemented. This decision making needs to happen within every department and management function and there needs to be a single, complete picture of change taking place across the whole organisation. This need has led many organisations to create a central information hub for change related information. In some organisations this hub is aligned to project management, and in others project management is seen as part of the skill-set but not the entire picture. In this paper I explore the functions and benefits of establishing an office that supports the implementation of change including the delivery of the components of change through effective project management, and the development of a network of skilled change managers who guide their colleagues through the process of changing their ways of working. 2 Share this eBook:
  • 3. The purpose of a Change Management Office The purpose of a change management office The change management office answers (CMO) is to provide the organisation with questions including: a focal point for governing, structuring and • Are the changes planned and underway implementing change initiatives. This office capable of achieving the strategic provides oversight of all change initiatives objectives? planned and underway and ensures each is delivered effectively through the application • What other initiatives should be added to fill of a consistent methodology and performance any gaps between strategic ambition and metrics. current changes? • What initiatives are failing to deliver The CMO supports the decision making expected improvements? associated with evaluating proposals for • Should they be prematurely terminated? change and supports the delivery of those that are authorised. The users of this function • Should a task force be assigned to their are a wide cross section of roles across the repair? organisation including those responsible for • How can we filter initiatives at the ideas strategic planning, project managers and stage to prevent authorisation of the departmental managers and business leads 'wrong' initiatives whose work is impacted by the changes. • What steps in the decision making process can we remove or amend to increase the To be effective the remit of the CMO must be speed of decision making? organisation-wide as change is rarely confined to one area, and even small changes to a relatively self-contained process can have knock on effects further in the customer journey that must be understood and addressed. Organisations are complex systems where there is a high degree of interconnectivity between components and the boundary of ownership, especially of information, is hard to establish. For this reason change cannot be implemented using a silo-based approach and co-ordination and communication are critical to success. Share this eBook: 3
  • 4. Benefits Many of the benefits of an effective Change Management Office occur as a result of improved decision making on what changes to commit to, as a result of senior managers having access to a complete picture of what change is taking place and how those changes align to the strategic direction of the organisation. Benefits at an organisation-wide level: • One source of reporting leads to more • Improved understanding of resource effective communication of issues, risks and requirements and allocation across change progress: initiatives, with the opportunity to build skills - Information gathering, analysing and and competencies through the application report creation takes less time as the of an organisation wide change processes for these activities are defined management method and understood by all those involved • Total cost of delivery of each change - The same information is gathered from initiative is reduced as the CMO is able each change initiative, speeding up the to achieve economies of scale across process of comparison and identification common change activities including of any work that falls outside of communication, implementation, planning, acceptable parameters risk analysis and project management • Development of a complete picture of all • By enabling true cost of delivery to be change taking place, at a functional and visible to the business, managers can organization wide level, enables much contribute more effectively to decisions on quicker identification of likely ‘change which changes to endorse and which to overload’ or destabilisation of the business put on hold as usual environment • An increase in the focus of how changes Benefits specific to change management are contributing to strategic direction initiatives: increases the speed at which senior • Reduction in number of external consultants managers can intervene to suspend or required to support change activities as the terminate initiatives that are not on course organisation develops capability internally to deliver their expected strategic benefits through the application of its change management method, guided by the CMO • The CMO acts as an internal consultancy service, supporting individual change managers, assuring the quality of their work and continuously improving the change management method • Reduction in the level of stress felt by those managing change as the CMO provides support, guidance and advice, facilitating solutions to issues that impede the progress of change 4 Share this eBook:
  • 5. Success criteria for a change management office  Sponsor is a board member/director responsible for strategy, change or projects  Sponsor demonstrates commitment and enthusiasm  Change information is reported by the CMO to the board on a regular and frequent basis  The manager of the CMO has experience and knowledge of organisational change, portfolio, programme and project management and strategic planning  There is a clear set of strategic objectives which is known and understood across the organisation  CMO staff have high degree of practical experience in running change initiatives and have a strong skill set in project and change management methods and techniques  The CMO defines and owns the organisational change framework and method and provides training in this to all relevant staff  There are opportunities for those managing and impacting change to influence the way that the CMO operates through forums and regular discussions  CMO staff build strong relationships with their stakeholders  There is clarity over the remit of the CMO versus it's key stakeholders including any Portfolio, Project or Programme offices (PMO), the corporate communications function, corporate risk management and audit functions, and the learning and development function Share this eBook: 5
  • 6. Consideration when building a change management office There is no ‘one size fits all’ solution. The model that is right for your organisation will be a product of a number of factors including:  The scale of change that is taking place - if your organisation plans to undertake transformational change it is unlikely to be able to achieve its goals without multiple change projects in the majority of business functions which will require a higher degree of control than small scale incremental change that takes place within individual departments and teams  The existing level of structure for portfolio, programme and project management - if there is already an established PMO function then consider widening the CMO remit to include organisational change rather than building a separate change management office that may have to compete for similar resources  The level of maturity that exists within your organisation in its approach to change management – if organisation-wide change management framework, methodology, documentation and performance metrics are already defined, understood and successfully in use then the driving force of the CMO will be to exploit economies of scale and drive improvements in quality through a process of continuous improvement. If organisation wide change management does not yet exist, then the main function of the CMO will be to build this approach, educate users in its use and guide its application  The level of centralised control that your organisation wishes to apply to how changes are made in a distributed organisation, whilst change cannot be effected in a silo based approach, a great deal of decision making will be delegated across the business units so the role of the CMO will be information provision and co-ordination. In organisations where decision making is concentrated at board level or equivalent then the CMO will take the lead on information gathering from individual change managers and providing summary reports across all of the change initiatives 6 Share this eBook:
  • 7. Responsibilities of a change management office Organisation-wide change management method comprising core elements of best management practice: • Portfolio, programme and project management • Change management • Risk management • Benefits management Services • Quality assurance • Resource management and capacity planning • Financial planning and budgeting • Performance monitoring • Stakeholder engagement and communications • Definition of processes, tools and techniques • Support for individual change managers • Reporting to decision makers • Ownership, maintenance and dissemination of the organisation wide change plan • Risk and issue management across all change initiatives Central repository of information from all change managers Share this eBook: 7
  • 8. Organisation As stated earlier in this paper there is no ‘one size fits all’ structure for CMOs, and this is reflected in the roles set out below which highlight the key responsibilities that a typical office would include, and is based on the example governance structure set out below: Change Management Office structure Board of Directors CMO Sponsor / Owner Change Management Office • IT Sharing specialist • Corporate • Process expert Communications knowledge • Risk and issues expert • Facilities Management CMO on the scope • Communications and impact of • Legal and Regulatory Manager expert change Service • Planning expert • Audit • Finance expert • Human Resources Change management Change information methodology, reported against documentation, pre-agreed guidance performance metrics Change managers and change teams located in departments and functions across the organisation 8 Share this eBook:
  • 9. Sponsor/Owner of the Change Management Office This role may be known as Director of Change CMO manager or Strategy, or Head of Organisational Change. The role is performed by a senior manager This role reports to the sponsor, and has line who is responsible for the change agenda management authority for all those assigned to for the organisation, which is driven by the the Change Management Office but will also strategic objectives set by the board or senior need the confidence and support of all those management team. The sponsor owns the change managers supported by the CMO. blueprint for how the organisation is expected to evolve over time, which is devised from The level of authority needed by the CMO functional strategies and plans including the manager is dependent upon the remit of IT architecture plan, the facilities plan, sales the function. For example, if the change forecasts and market analysis and operational management office is responsible for ensuring plans. The sponsor is responsible for reporting that the change management methodology progress against the change agenda to the is applied to all initiatives irrespective of which board or senior management team using function is funding them, then the Manager the information provided by the Change will need the authority to insist on use of the Management Office. method, and have the support of the Sponsor to address those that are not applying this This reporting means the sponsor has oversight organisation wide approach. If the CMO is of all the change initiatives that are planned a central information hub then the Manager and underway and provides a summary of how must have the authority to request progress, risk the totality of change is impacting the day-to- and issue information from all those within the day operational capability of the organisation. organisation who are running change projects, The sponsor draws attention to the risks and programmes or other initiatives. issues associated with the totality of change and will require decisions to be taken about the results to date and any re-prioritising of initiatives that senior colleagues feel is necessary to achieve strategic objectives. Share this eBook: 9
  • 10. CMO staff: Process expert – this role may be performed Planning expert – whilst individual change by those with business analysis skills. The role managers will identify the change activities acts as a source of information about end- relevant to their work, there is a need to collate to-end processes across the organisation, all of this activity across the organisation and pinpointing where change in one area can be able to understand how much is changing, impact systems, processes, inputs, outputs and where and for how long so that the risk of behaviours in other areas destabilising the ability of the organisation to deliver ‘business as usual’ is understood. This Risk and issues expert – this role is responsible role requires excellent technical estimating, for the identification, analysis and definition scheduling and resource management skills. of responses to risks and issues that have the capability to prevent change being Finance expert – although many changes implemented successfully. A key aspect of this are made at a micro level to the way in role is information sharing as risks and issues which individuals work, there is still a need to occurring in one change initiative might also identify the required funding for system and apply to other initiatives of which the relevant infrastructure acquisition, loss of productivity change managers need to be made aware. and back-filling of roles during periods of This role has a coaching element as it is in the change. Decision makers need a clear picture interests of the organisation to develop an of the expected budgetary impact of change ability to analyse and situations for potential and the progress of change initiatives against and actual impediments and have the this budget. This role requires excellent financial confidence to define actions to address them planning and control skills. before they harm the progress of the planned change activities. Communications expert – change requires everyone to be aware of what is changing, when and how so this role is central to ensuring all stakeholders are fully informed and engaged with the changes that matter to them. This role requires creativity and innovation to get the messages across to a high number of individuals, often when they are very busy and have little time for taking in new information. 10 Share this eBook:
  • 11. Biography: Melanie Franklin Melanie has an impressive track record in the successful realisation of business change programmes across private and public sector organisations. She is the founder and Chief Executive of Maven Training and is highly experienced in the delivery of board level guidance and mentoring. She takes a very practical approach to change, programme and project management with priority on the realisation of planned benefits, working closely with her client base to ensure that the desire to implement best practice does not result in bureaucracy for its own sake. Each solution that Melanie proposes to clients is based on sound practical advice and experience with guidance on how it is likely to be received by staff, how resistance to change can be overcome and how stakeholders can be engaged from the outset. Melanie is a talented communicator and has a reputation for delivering complex information with humour and passion. She draws on her wealth of practical experience to illustrate concepts and to engage her audience in lively debates on advantages and disadvantages of each approach that she outlines. Melanie is the author of a number of books and whitepapers about project and change management including the recently launched Managing Business Transformation: A Practical Guide. 11 Share this eBook:
  • 12. For further information about Maven Training please contact: Melanie Franklin Telephone: 020 7403 7100 e-mail: melanie.franklin@maventraining.co.uk Follow us on: Twitter Facebook LinkedIn Slideshare YouTube Scribd Share this eBook: www.maventraining.co.uk 12