A 60 minute presentation on a review of global trends in Enterprise Change management and what it means to be a change ready organization.

1. Ready, Set and Change:
Building A Future Proof
Organisation
Vicky Emery
August 2016

2. Introducing Being Human
• Founded in 1993
• Our mission: develop
change-capable
people and
organisations so they
achieve the benefits of
change.
• Prosci Primary Affiliate
Australia and New
Zealand.
2

3. Topics
• Why we need to change
the way we change
• Global outlook – latest
research
• Triggers to get started
• Highest impact activities
• Mistakes to avoid
• Finding a home for
Change Management
• What role can Project
Managers play?
• Q&A
3
“Change is the law of life. And those who look
only to the past or present are certain to miss
the future.” John F. Kennedy

4. Prosci 2016 Best Practices in Change
Management Benchmarking Report
• 1,120 participants
• 56 countries
• Top 3 roles:
• Change Management team
leader
• External consultant
• Project team leader
• 6 new topics
• Culture
• Cultural awareness and global
literacy
• Change Agent Networks
• Complementary roles
• Vertical industry customisation
• Certification in Change
Management
The largest body of Change Management knowledge in the world.
4

5. Objectives of the Best Practices Report
1. Uncover lessons learned
from practitioners and
consultants so current
change Management
Teams can benefit.
2. Focus on what is working
and what is not working
3. Emerging trends & future
direction of the discipline.
5

6. 6
Snapshot of Australia & New Zealand participants
6

7. Why do we need to change the way
we change?
7

8. Change is the new “business as usual”
8
• Volume
• Speed
• Complexity
• Risk
• Transparency
• Others?
“Life comes at us in waves. We can't predict or
control those waves, but we can learn to surf.”
Dan Millman

10. Success rates of change remain low
IBM Making Change Work Report While the Work Keeps Changing Report
August 2014
1,400 organisations globally, over 20 industries,

11. And many organisations lack change
capabilities
11
IBM Making Change Work Report While the Work Keeps Changing Report
August 2014
1,400 organisations globally, over 20 industries,

12. 76%
CEOs see the need for investing in enterprise
change capability
“Our ability to adapt is
a key source of
competitive
advantage.”
Pricewaterhousecoopers 2008
“Organisational agility
is critical to business
success.”
McKinsey 2009
90%

13. Moving from “hit and miss” change….
13
to consistent, successful implementation and
benefit realisation with
high employee engagement

14. Change Management increases the probability
of success
14
14
Of the 245 research
participants who
reported having
excellent change
management
effectiveness, 94%
met or exceeded
project objectives

15. 15
Change Management drives staying on budget

16. A new definition of Change Management
16

17. A new definition of Change Management
The processes, tools and techniques to manage the
people side of change to achieve the required
business outcome.
Common set of process
and tools
Leadership capability
Strategic capability that enables the
organisation to be flexible &
responsive
©Prosci. Used with permission under terms of license agreement.
www.change-management.com

19. Just under 50% of organisations globally are
actively building enterprise Change Management
19
53%
38%
8%
47%
43%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No Don’t know
Percentofrespondents
Actively working to deploy Change Management
2013
2015
2016 Best Practices in Change Management Report.
4500 participants in 56 countries. Prosci copyright 2016.

20. Australia & New Zealand are early adopters
20
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Middle East
Latin America
Europe
Asia and Pacific Islands
Canada
United States
Entire study population
Africa
Australia and New Zealand
Actively working to deploy Change Management by region
2016 Best Practices in Change Management Report.
4500 participants in 56 countries. Prosci copyright 2016.

21. Early adopting industries
21
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Entire Study Population
Oil and Gas
Information Services
Utilities
Retail Trade
Mining
Services - Other (except Public Administration)
Banking
Finance
Insurance
Pharmaceutical
Participants actively working to deploy by industry
2016 Best Practices in Change Management Report.
4500 participants in 56 countries. Prosci copyright 2016.

22. Major gap between Change Management at
project and enterprise levels
22
of organisations apply a
Change Management
methodology
of organisations applying
Change Management
methodology to all
projects
2016 Best Practices in Change Management Report.
4520 participants in 56 countries. Prosci copyright 2015.

23. What does it mean to be a “change-capable
organisation”?
• Three capabilities required
for successful change
• Not roles or jobs
• Need strength in all three
capabilities
• Missing capabilities
increase project risk
23
The Prosci Project Change Triangle

24. Triggers to get started
• Volume and complexity of
change underway
• Past program or project
failure
• Demonstrated success of
projects applying Change
Management
• Risk Management
• Employee Engagement and/
or Culture Survey results
• Others?

25. Project level vs enterprise level
Change Management
Change Management is like
building a house
How do we effectively manage the
people side of change on one
project or initiative?
ECM is like designing a subdivision
How do we bring Change
Management to our entire
organisation?
©Prosci. Used with permission www.change-management.com

26. Institutionalizing change
management practices,
processes, capabilities and
competencies
Building organizational change
management capabilities and
competencies
Deploying change management
broadly throughout the
enterprise
All employees have internalised
their role in leading change
“Great change management” is
second nature & part of our DNA
Change management is the
organisation’s Standard
Operation Procedure
Change management is
the norm on projects
and initiatives
What is Enterprise Change Management ?
©Prosci. Used with permission www.change-management.com

27. PMOs are leading change capability building
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Other
Grassroots
Within business units, Operations
Independent change management group
Corporate and Shared Services
Strategy, Transformation, Planning
Executive Leadership
Information Technology (IT)
Organisational Development (OD)
Human Resources (HR)
Project Management Office (PMO)
Percentage of respondents
Originator of the effort
2016 Best Practices in Change Management Report.
4500 participants in 56 countries. Prosci copyright 2016.

28. Most Change Management groups are located
in the PMO
28
38%
Had a Change Management Office or
functional group globally
45%
Australia & New Zealand
Top Locations
• PMO: 28%
• HR: 24%
• OD: 17%
• IT: 14%
• Strategy/Transformation:13%
Key Roles
1. Own & maintain methodology
2. Own & maintain tools
3. Consulting support to Change
Management resources on
projects
4. Maintain CoP
5. Provide resources for projects
2016 Best Practices in Change Management Report.
4500 participants in 56 countries. Prosci copyright 2016.

29. Only 23% report high levels of success
29
0%
10%
20%
30%
40%
50%
60%
70%
Very unsuccessful Unsuccessful Moderately
successful
Successful Extremely
successful
Success of deployment effort

30. Features of organisational capabilities
30
• Take years or decades to
build
• Pay off is long term
• Become an asset – intangible
• Difficult for competitors to
identify, imitate or match
• Can erode or disappear
• Can be difficult to change
• Consistent investment
• Robust if embedded across
multiple processes and
systems
Source: Change Power – Turner and Crawford,1998

31. Highest impact activities
• Treat ECM as a project
• Secure sponsorship before moving
forward
• Build a strong case for Change
Management
• Multi pronged approach
• Adopt a single, effective, consistent
methodology and upskill people to
use it
• Position Change Management as
everyone’s job
31
2016 Best Practices in Change Management Report.
4500 participants in 56 countries. Prosci copyright 2016.

32. Common Traps
1. The training trap
2. Moving forward without Executive
Sponsorship
3. Failing to build the business case
for Change Management.

33. Prosci Change Management Maturity Model™
People-dependent
without any formal
practices or plans
Many different
tactics used
inconsistently
Examples of best
practices evident
Selection of
common approach
Continuous
process
improvement in
place
Highest rate of
project failure,
turnover and
productivity loss
Little or no change management applied
Adhoc or
Absent
Level 1
Some elements of change management are
being applied in isolated projects
Isolated
Projects
Level 2
Comprehensive approach for managing
change is being applied in multiple projects
Multiple
Projects
Level 3
Organization-wide standards and methods
are broadly deployed for managing and
leading change
Organizational
Standards
Level 4
Highest
profitability and
responsiveness
Change management competency is evident
in all levels of the organization and is part of
the organization’s intellectual property and
competitive edge
Organizational
CompetencyLevel 5
People-dependent
without any formal
practices or plans
Many different
tactics used
inconsistently
Examples of best
practices evident
Selection of
common approach
Continuous
process
improvement in
place
Highest rate of
project failure,
turnover and
productivity loss
Little or no change management applied
Adhoc or
Absent
Level 1
Some elements of change management are
being applied in isolated projects
Isolated
Projects
Level 2
Comprehensive approach for managing
change is being applied in multiple projects
Multiple
Projects
Level 3
Organization-wide standards and methods
are broadly deployed for managing and
leading change
Organizational
Standards
Level 4
Highest
profitability and
responsiveness
Change management competency is evident
in all levels of the organization and is part of
the organization’s intellectual property and
competitive edge
Organizational
CompetencyLevel 5
Copyright Prosci 2010
©Prosci. Used with permission www.change-management.com

34. Five Capability areas
• Leadership – who is leading or sponsoring the
deployment of Change Management?
• Application – What % of projects apply Change
Management processes? What is the ‘reach’ or ‘breadth’
of application across the organisation?
• Competencies – what level of training is available for all
levels? How do all levels demonstrate competency?
• Standardisation – what is the standard approach? Who
‘housekeeps’ Change Management?
• Socialisation – How do we share success stories and
maintain commitment to better managing change?
34
©Prosci. Used with permission www.change-management.com

35. Prosci Change Management Maturity Audit
35
2.06
0
1
2
3
4
5
Prosci
®
Change Management Maturity ModelTM
Audit
Level
Level
Level
Level
Level
Overall Change Management Maturity Model Audit Score
2.88
2.38
1.58
2.08
1.40
0
1
2
3
4
5
Capability
Area 1:
Leadership
Capability
Area 2:
Application
Capability
Area 3:
Competencies
Capability
Area 4:
Standardization
Capability
Area 5:
Socialization
Prosci
®
Change Management Maturity ModelTM
Audit
Level
Level
Level
Level
Level

36. Change Management maturity by region
Region
(plus % of study participants from region)
Average Maturity Level
All regions (100%) 2.59
United States (34%) 2.70
Australia and New Zealand (25%) 2.56
Canada (15%) 2.57
Europe (14%) 2.37
Africa (5%) 2.89
Asia and Pacific Islands (3%) 2.65
Latin America (2%) 2.67
Middle East (2%) 2.64
2016 Best Practices in Change Management Report.
4500 participants in 56 countries. Prosci copyright 2016.

37. Level of maturity Australia & NZ
0% 10% 20% 30% 40% 50% 60%
Level 1
Level 2
Level 3
Level 4
Level 5
Maturity Model data for Australia and New Zealand
2016 Best Practices in Change Management Report.
4500 participants in 56 countries. Prosci copyright 2016.

38. What role can you play - project level
• Aligning training with the overall
Change Management strategy
• Equipping managers to be
effective change leaders
• Measuring success of change –
individual “knowledge” and
“ability”.
• Advocating for Change
Management as a key success
factor on Projects & BAU
38

39. What role can you play - enterprise level
39
• Being part of the ECM effort
• Build individual capabilities
via role based Change
Management training
• Executives
• People Leaders
• Professionals and Technical
specialists
• Project Managers and teams
• Employees
• Embedding change
leadership in competency
frameworks and curricula
• Measuring Change
Management maturity

40. Q&A

41. Where to find today’s slides and recording
• Being Human Company Linked in Profile – Follow us
• Catherine Smithson’s Linked In profile
• Being Human’s Facebook page
• www.slideshare.net Search for Being Human Pty Ltd
(now includes option to listen to recording)
• YouTube - Search for Being Human Pty Ltd
41

42. More info
42
Being Human
beinghuman.com.au
Prosci
• change-management.com
• prosci.com
• portal.prosci.com