How to Achieve Measurable Benefits Through Project and Organizational Change

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Is your organization realizing expected benefits from projects? Is there a process in place to measure results?

Watch this webinar and learn:
- The financial, technical and process benefits of executing projects correctly
- How to measure benefits from changes
- Critical factors to consider before beginning a project

This webinar is a must view for business leaders and project managers responsible for ensuring the success of projects.

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  • 70% of respondents in PMI Pulse of the Profession state they often/always use change management and risk management and that these practices lead to a higher success rate.As organizations strive to continue for agility in order to leverage ever shifting market conditions, change management and risk management are becoming ever more important core competencies
  • The most important skill for managing today’s complex program and project management is the ability of the team to align the vision of the project organization structure with the people and project objectives.The managers responding to the survey rated value capture/benefits realization as the topic they were most interested in learning about, after strategic management.
  • American Water
  • Duke Energy
  • How to Achieve Measurable Benefits Through Project and Organizational Change

    1. 1. CONSULTING | SOLUTIONS | OUTSOURCING How to Achieve Measurable Benefits Through Project & Organizational Change Kathleen Kraft, Change Management Solutions
    2. 2. Today’s Objectives • Validate the importance of achieving objectives/benefits from projects • Discuss what makes benefits more tangible and concrete • Consider the impact of people side benefits • Discuss the role of change management in achieving benefits • Provide ideas to begin your own review and plan for gaining benefits Source: PMI Pulse of the Profession, 2012 © Pactera. Confidential. All Rights Reserved. 2
    3. 3. Agenda Project Management and Value Realization 2 Classifying Benefits/Value Creation 3 Measuring Benefits Today 4 Linking Change Management and Benefits/Value Capture 5 Getting Started © Pactera. Confidential. All Rights Reserved. 3
    4. 4. The Complex Business Environment Business Environment Projections   Complex, risky business environment, with slow economic growth and shifting global market priorities Most organizations will have to work harder to achieve their current level of success Project and Portfolio Management  Focus on: Big Picture Visibility  Financial and Budget Management   As organizations strive to continue for agility, change management and risk management are becoming ever more important core competencies © Pactera. Confidential. All Rights Reserved. Source: PMI Pulse of the Profession, 2012 4
    5. 5. Benefit Realization Leadership focus on Benefits   Organizations have been and continue to increase their focus on benefits realization (in addition to cost and time) as a project and portfolio success metric Critical skill is the ability to align the vision of the organization with the people and project objectives Gaining Interest • Managers are most interested in learning about value capture/benefits realization after strategic management © Pactera. Confidential. All Rights Reserved. Source: PMI Pulse of the Profession, 2012 5
    6. 6. What Benefits Are Available? 1 2 Financial   3 Technical Reduce costs and overhead (facilities/staff)  Upgrade to newer versions (software/hardware) Reduce maintenance and upkeep (contracts, consultants)  Gain greater functionality © Pactera. Confidential. All Rights Reserved.  Eliminate bugs and fixes Process/Operational  Simplify or streamline processes  Create ownership (asset management, process ownership) 6
    7. 7. Measuring Benefits IMPACT DESCRIPTION  Impacts the speed of change adoption Speed of Adoption Utilization Proficiency Financial © Pactera. Confidential. All Rights Reserved.  How quickly employees buy in to the need for change and participate in the new solution  Affects the ultimate utilization of the change  How many employees “opt out” of the solution  Impacts the proficiency of employees doing the new work  What is the cumulative improvement of each employee who will do their job differently as a result of the change  Improves time to targeted effectiveness  Elimination or reduction of overhead (aging or multiple systems, licenses, facilities, maintenance)  Improvement in bond/financial rating or stock prices Information derived from Prosci™ 8
    8. 8. How many of us are actually successful? If benefits are so important, how many of us achieve them? 64% of projects successfully met their original goals and business intent in 2011. Which means…over one third did not. PMI Pulse of the Profession, 2012 Projects with excellent change management effectiveness were 6x more likely to achieve project objectives (96% versus 16%). Prosci Best Practices in Change Management, 2014 How do we as project management professionals mitigate the risk of benefit realization? © Pactera. Confidential. All Rights Reserved. 9
    9. 9. Linking Benefits and the People The “hidden” success factor is often the people Or, what amount of ROI/Benefits can Change Management Drive? The greater a project’s expected benefits depend on Adoption and Usage, the greater the People Side Benefit Contribution and the more potential value change management delivers People Side Benefit Contribution ROI © Pactera. Confidential. All Rights Reserved. Expected Project Benefits (Business Case Baseline) Expected Project Benefits (If Adoption & Usage = 0) Expected Project Benefit – Project Cost Project Cost 10
    10. 10. Quantifying Change Management Benefits What are the expected project benefits? What amount of benefits/value are linked to adoption/usage? What is the impact to processes and employee activities? How much disruption is there to the business and employees? What are the expected project benefits if adoption and usage are 0. What is the expected cost of change management? © Pactera. Confidential. All Rights Reserved. 11
    11. 11. Getting Started  Use your business case and the checklist to begin the Change Management/Project Management discussion This are not “soft” benefits – adoption and usage are key to benefit realization  What happens to the benefits if employees do not adopt and use?   Ensure you have an integrated approach  Project Management and Change Management need to work together  Take advantage of best practices  PMI, Prosci, ACMP  Do the math  Calculate the cost of integrated project management and change management versus the cost of no change management and zero adoption © Pactera. Confidential. All Rights Reserved. 12
    12. 12. Best Practices – Getting Started Change Management Execute integrated project management and change management approach  Examples:     Use Certified Prosci™ Practitioners   Prosci 3 Phase Process ADKAR Model of Individual Change Use external or internal certified practitioners, train your own teams Look for the Prosci™ CMROI Tool later this year PMI Project Management Methodology  Develop and use a structured, integrated project management approach   Ensure all projects include detailed benefits and measurement tools   PMBOK Use the business cases to measure adoption/usage and gain accountability Use PMP certified professionals © Pactera. Confidential. All Rights Reserved. 13
    13. 13. Change Management in Action Client Background: Client provides water and waste water services to 14 million people in the US and Canada. They have operations in 30 states, employiing 6,700 people on a regulated and non regulated business. Business Challenge          Limited consistency and enterprise systems with limited metrics In 2010 left about 2 million incomplete service tickets Elected to design and deploy SAP (including ERP, EAM and CIS/CRM) Significant people risks – this is a complex system First Phase was ERP – still dealing with residual system issues one year later Project originally slated to roll out in 2014 – ELT requested faster pace Siloed structure – communication is not cascaded Union environment creates us/them culture 5 months between state deployments © Pactera. Confidential. All Rights Reserved. Pactera Solution  Leverage Significant business knowledge on staff  Provide change management education and support to end user leadership  Pactera joined team to bring real world change management experience  Deliverables focused on hitting the end users and key stakeholders  Manager and Supervisor targeted calls, workshops, newsletters, talki ng points  Added Scenarios to training  Supported Post-Go Live Task Force  Focused on key messages and talking points for leaders Results  Go-Live in May 2013 considered high success  90 days later, some groups rate excellent; several groups hitting high frustration  Good project change management though challenged with getting status to field and getting changes in production  Re-launched weekly support calls and talking points to ensure information getting to field  Set up weekly pulse surveys and random phone check ins to gain pulse of the field  Expect long term pains 14
    14. 14. Change Management in Action Client Background: Client is a Fortune 250 utility organization serving 7 million customers. Their Smart Grid program was awarded a $2million Smart Grid Stimulus grant in 2009. Additionally their Smart Grid program in Ohio and soon Indiana is allowing them to gain some rate relief around their improvements. Business Challenge       The client Smart Grid program initiated /developed by the Technology/Special Projects function The Power Delivery organization (owner) was not a partner in the project ; provided information as a “key stakeholder” A focus on completing project work on time and on budget led to a fast paced effort which sometimes left the organization owner out – inconsistent approach to business process identification/documentation At one point, new Smart Grid meters were being taken out by people who did not recognize them Very limited and inconsistent focus on training Pending merger took leaders/knowledge out of organization © Pactera. Confidential. All Rights Reserved. Pactera Solution  Identify gaps and set up governance to prioritize gaps and resolution management  Develop /stand up a governance process  Develop and stand up a Community of Excellence focused on bringing real results within five months  Bring change management training to internal change management staff  Set up Change Management organization with ongoing requirements  Include internal change management in efforts Results  4000 Smart Grid meters were thrown away in April 2012; number had reduced to 400 by August 2012  One change management approach is in place for Smart Grid/Grid Mod with specific and required deliverables  Project managers are starting to understand and request Change Management  Change Management methodology exists however execution of the methodology is still “challenging”  Merger still causing internal change management issues though leader stability has helped 15
    15. 15. Thank you Kathleen Kraft Lead, Change Management Solutions kathleen.kraft@pactera.com © Pactera. Confidential. All Rights Reserved.

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