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Business Process Change
That Works!
Jeffrey Barnes: Compelevent Solutions
Cheryl White: Change Delivery Group
Good To Great!
• BPI Top Priority for IT in 2009
• Requires Organization Transformation
Session Objectives
Objective 1: Describe historical failure to deliver
             ROI
Objective 2: Introduce the “Science of Change”
  • Improve Business Process
  • Manage Client Side Effectively
  • Implement Effective Business Performance
  • Maximize Synergy of Groups During Change
  • Rapid Cost Reduction and Optimized Performance
Objective 3: Five Secrets to Increase Your ROI
The Problem with Change
          Gartner on past 20 years
85% of Strategic Initiatives fail to deliver ROI
 • 62%-91%       Statistics Canada
 • 85%           Dept of Defense Business Board
 • 70%-80%       InfoWorld
 • 91%           University Geneva
 • 90%           Johns Hopkins
The Problem with Change


  85% failure rate is
 no longer tolerable!
Call Center Example

Call Volume vs. Data Acquisition?
      Two Kinds of Change
Consequences of Failure to Change
•   Reduced Functionality
•   Workarounds
•   Reduced Productivity
•   Customer Defection
•   Losses to Competition
•   Regulatory Sanctions
•   Business Contraction
•   Business Cessation
Missed Opportunities
•   Speed to Market
•   Early Mover Advantage
•   Market Share
•   Competitive Wins
•   Repeat and Referral Revenue Stream
Change Happens
In a world of explosive growth and
    unexpected contraction,
  business survival depends on
     fast, targeted response
Change Demands
•   More efficient processes
•   Better use of tools & technology
•   Redeployment of human capital
•   Realigned organization structure
•   Mergers, acquisitions, divestitures
•   Off-shoring, near-shoring, re-shoring
“I’ve got my own problems. Just fix it!”
                                       Customers
“We are doing the best we can with the
  resources we have. Why can’t they
  understand that?”
                              Customer Support
“We need to make compromises, but everyone
  has their own agenda. When it comes to
  changing things around here, all I get is
  pushback and change resistance.”
                                     Director
“I want results not excuses! Changes must be
   implemented now. Not tomorrow. Not next
   month. NOW!!!”
                               Senior Executive
“I agree. We have to fix things. . . And we would
   if we weren’t so busy managing crises.”
                                       Managers
“We’ve got processes. We’ve got policies.
  Everyone understands them. No one has time
  to follow them.”
                                     Employees
“We’ll make the changes they want, after they
  give us the resources we need!”
                                      Everyone
Recognize the Risks
90%


                                  80%


                                  70%


                                  60%


                                  50%


                                  40%


                                  30%


                                  20%


                                  10%

Historically High failure rates   0%
Face Reality

Under stress, people and organizations
             resist change
   They won’t “change for cheese”
Johns Hopkins Rule of Change:
90% of all terminally ill patients will
  not make lifestyle changes
    necessary to save their life
Recognize the Limitations

   Old change models don’t work.
It’s time to change the way we change
          our organizations
Science of Change
• Neurology
• Biology
• Chaos Theory
• Complexity Theory
Neurology says
     Real Change is Brain Change

   Our brains automatically associate
change with pain. Once the association
 is made, it is permanently etched into
           our neural network
Change Hurts
   Real Change Causes Real Pain




Emotion                     Reason
Biology says real change means
     changing the group mind

  The Group Mind Always Wins—
especially when the organization is
           under stress
Corporate Culture
           Repository of All Rules

 Few           What we do
Business
 Rules




                                     Many
                                     Social
                                     Rules
       How we do what we do
Chaos Theory says
Organizations will always seek stability

 Organizations are not created equal
One organization’s stability is another
         organization’s chaos
Orderly organizations are like pelicans

• Process-centric
• Attract people who prefer structure provided
  by processes
• Resist innovation
• Distrust innovators & change agents
Disorderly organizations are like wolf packs

  • Innovative
  • Attract people who are easily bored with process
    & prefer to be inventive
  • Experiment with new processes then abandon
    them
  • Distrust process & change agents
Hybrid organizations are like penguins

• Flip periodically between order & disorder
• Attract people who prefer order but have a
  tolerance for disorder & ambiguity
• Return to dominant state after workplace
  upheaval
• Distrust change agents
Complexity Theory says
 Organizations are rules based systems

Groups “self-organize” around a unique set of
              “rules for change”
   Change Resistance is a Safety Feature

     Change Resistance is NOT A BUG
Change
Adoption

 Culture
Applying the Magic of Science

   Here’s what you can do today to
implement sustainable changes in your
            organization
Applying the Magic of Science: Neurology

       Activate only the left brain
Applying the Magic of Science: Biology

  Use scientific principles to customize
      business, process & technology
    solutions to the rules present in your
                   culture
Applying the Magic of Science: Chaos
                Theory

Avoid instability by chunking change into
      small, implementable business
                 problems
Financial




                  Customers




                                           Processes
                                            Internal
                              Mission
                              Strategy
                              Learning &
                               Growth




   Applying the Magic of Science:
          Complexity Theory

Set measurable, achievable process and
 performance goals compatible with the
“social rules” for change present in your
               organization
Applying the Magic of Science: Use
           Common Sense

    Trust your culture keepers &
        your culture coach
Achieve Your Performance Goals   90%


                                 80%


                                 70%


                                 60%


                                 50%


                                 40%


                                 30%


                                 20%


                                 10%

          It Works!              0%
303-523-5541              360-210-7656

cwhite@changeperfect.com   jbarnes@compelevent.com

www.changeperfect.com      www. compelevent.com

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Good To Great Business Process Change That Works

  • 1. Business Process Change That Works! Jeffrey Barnes: Compelevent Solutions Cheryl White: Change Delivery Group
  • 2. Good To Great! • BPI Top Priority for IT in 2009 • Requires Organization Transformation
  • 3. Session Objectives Objective 1: Describe historical failure to deliver ROI Objective 2: Introduce the “Science of Change” • Improve Business Process • Manage Client Side Effectively • Implement Effective Business Performance • Maximize Synergy of Groups During Change • Rapid Cost Reduction and Optimized Performance Objective 3: Five Secrets to Increase Your ROI
  • 4. The Problem with Change Gartner on past 20 years 85% of Strategic Initiatives fail to deliver ROI • 62%-91% Statistics Canada • 85% Dept of Defense Business Board • 70%-80% InfoWorld • 91% University Geneva • 90% Johns Hopkins
  • 5. The Problem with Change 85% failure rate is no longer tolerable!
  • 6. Call Center Example Call Volume vs. Data Acquisition? Two Kinds of Change
  • 7. Consequences of Failure to Change • Reduced Functionality • Workarounds • Reduced Productivity • Customer Defection • Losses to Competition • Regulatory Sanctions • Business Contraction • Business Cessation
  • 8. Missed Opportunities • Speed to Market • Early Mover Advantage • Market Share • Competitive Wins • Repeat and Referral Revenue Stream
  • 10. In a world of explosive growth and unexpected contraction, business survival depends on fast, targeted response
  • 11. Change Demands • More efficient processes • Better use of tools & technology • Redeployment of human capital • Realigned organization structure • Mergers, acquisitions, divestitures • Off-shoring, near-shoring, re-shoring
  • 12. “I’ve got my own problems. Just fix it!” Customers
  • 13. “We are doing the best we can with the resources we have. Why can’t they understand that?” Customer Support
  • 14. “We need to make compromises, but everyone has their own agenda. When it comes to changing things around here, all I get is pushback and change resistance.” Director
  • 15. “I want results not excuses! Changes must be implemented now. Not tomorrow. Not next month. NOW!!!” Senior Executive
  • 16. “I agree. We have to fix things. . . And we would if we weren’t so busy managing crises.” Managers
  • 17. “We’ve got processes. We’ve got policies. Everyone understands them. No one has time to follow them.” Employees
  • 18. “We’ll make the changes they want, after they give us the resources we need!” Everyone
  • 20. 90% 80% 70% 60% 50% 40% 30% 20% 10% Historically High failure rates 0%
  • 21. Face Reality Under stress, people and organizations resist change They won’t “change for cheese”
  • 22. Johns Hopkins Rule of Change: 90% of all terminally ill patients will not make lifestyle changes necessary to save their life
  • 23. Recognize the Limitations Old change models don’t work. It’s time to change the way we change our organizations
  • 24. Science of Change • Neurology • Biology • Chaos Theory • Complexity Theory
  • 25. Neurology says Real Change is Brain Change Our brains automatically associate change with pain. Once the association is made, it is permanently etched into our neural network
  • 26. Change Hurts Real Change Causes Real Pain Emotion Reason
  • 27. Biology says real change means changing the group mind The Group Mind Always Wins— especially when the organization is under stress
  • 28. Corporate Culture Repository of All Rules Few What we do Business Rules Many Social Rules How we do what we do
  • 29. Chaos Theory says Organizations will always seek stability Organizations are not created equal One organization’s stability is another organization’s chaos
  • 30. Orderly organizations are like pelicans • Process-centric • Attract people who prefer structure provided by processes • Resist innovation • Distrust innovators & change agents
  • 31. Disorderly organizations are like wolf packs • Innovative • Attract people who are easily bored with process & prefer to be inventive • Experiment with new processes then abandon them • Distrust process & change agents
  • 32. Hybrid organizations are like penguins • Flip periodically between order & disorder • Attract people who prefer order but have a tolerance for disorder & ambiguity • Return to dominant state after workplace upheaval • Distrust change agents
  • 33. Complexity Theory says Organizations are rules based systems Groups “self-organize” around a unique set of “rules for change” Change Resistance is a Safety Feature Change Resistance is NOT A BUG
  • 35. Applying the Magic of Science Here’s what you can do today to implement sustainable changes in your organization
  • 36. Applying the Magic of Science: Neurology Activate only the left brain
  • 37. Applying the Magic of Science: Biology Use scientific principles to customize business, process & technology solutions to the rules present in your culture
  • 38. Applying the Magic of Science: Chaos Theory Avoid instability by chunking change into small, implementable business problems
  • 39. Financial Customers Processes Internal Mission Strategy Learning & Growth Applying the Magic of Science: Complexity Theory Set measurable, achievable process and performance goals compatible with the “social rules” for change present in your organization
  • 40. Applying the Magic of Science: Use Common Sense Trust your culture keepers & your culture coach
  • 41. Achieve Your Performance Goals 90% 80% 70% 60% 50% 40% 30% 20% 10% It Works! 0%
  • 42. 303-523-5541 360-210-7656 cwhite@changeperfect.com jbarnes@compelevent.com www.changeperfect.com www. compelevent.com