The document discusses how to achieve measurable benefits through organizational change projects. It provides an agenda that will validate the importance of achieving project objectives and benefits, discuss how to make benefits more tangible, consider people-side benefits, and discuss the role of change management in achieving benefits. The document then provides two examples of how a consulting firm helped clients achieve benefits through implementing change management strategies during large IT project implementations.

1. CONSULTING | SOLUTIONS | OUTSOURCING
How to Achieve Measurable Benefits Through
Project & Organizational Change
Kathleen Kraft, Change Management Solutions

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
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2

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
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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
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Source: PMI Pulse of the Profession, 2012
4

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
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Source: PMI Pulse of the Profession, 2012
5

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
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 Eliminate bugs and fixes
Process/Operational
 Simplify or streamline
processes
 Create ownership (asset
management, process
ownership)
6

7. Measuring Benefits
IMPACT
DESCRIPTION
 Impacts the speed of change adoption
Speed of
Adoption
Utilization
Proficiency
Financial
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 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. 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?
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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
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Expected
Project
Benefits
(Business Case
Baseline)
Expected
Project
Benefits (If
Adoption &
Usage = 0)
Expected Project Benefit – Project Cost
Project Cost
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?
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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
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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
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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
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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
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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
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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. Thank you
Kathleen Kraft
Lead, Change Management Solutions
kathleen.kraft@pactera.com
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