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Using Organisation Change Management to Maximise Project’s Business Value
The document discusses the importance of organization change management (OCM) in maximizing the business value of projects. It notes that 60% of change projects fail due to not realizing business benefits. An example is given of a company that spent millions on a new automated warehouse system but saw dismal results due to lack of change management. The document advocates for integrating OCM strategies and processes with project portfolio management (PPM) to help ensure successful adoption of changes and realization of benefits. It provides models and recommendations for how project managers can assess change impact and partner with OCM specialists to develop strategies tailored to the level of impact and complexity of changes in a given project or program.
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Using Organisation Change Management to Maximise Project’s Business Value
- 1. TM © 2010 BeyondStrategy Consulting Using Organisation Change Management to Maximise Project’s Business Value AIMP Queensland Conference 2010 9th September 2010 Joan Dobbie Principal Consultant, Beyond Strategy Consulting
- 2. TM © 2010 BeyondStrategy Consulting Change is Constant, but .... 60%Change Projects Fail Making Change Work, IBM Corporation. May 2008. www.ibm.com/enterpriseofthefuture
- 3. TM © 2010 BeyondStrategy Consulting The business benefits weren’t realised! The company spent millions on a new automated warehouse and stock management system. Inventory would reduce, more orders would be processed, faster, profits would increase. ✓The project was a great success, delivering a high quality system, on time and budget. 6 months later results are dismal, inventory has soared, orders take longer to process, costs are up and profits have plunged. The scene at the warehouse as staff try to use the new system.
- 4. TM © 2010 BeyondStrategy Consulting Success Rates Increase Dramatically as OCM Maturity Increases Making Change Work, IBM Corporation. May 2008. www.ibm.com/enterpriseofthefuture Bottom 20% Change “Novices” Average Top 20% Change “Masters”
- 5. TM © 2010 BeyondStrategy Consulting Change is Hard Organisations don’t change people do People change when they see a need to change People change when they are involved actively People will change when they know how People need support to change Denial Resistance Exploration Commitment
- 6. TM © 2010 BeyondStrategy Consulting Organisation Change Management Organisation Change Management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. The current definition of Change Management includes both organizational change management processes and individual change management models, which together are used to manage the people side of change. Wikipedia
- 7. TM © 2010 BeyondStrategy Consulting OCM Models Establish Need for Change Establish Change Leadership Team Create the Vision Plan for Change Communicate & empower - execute Celebrate wins Monitor and adjust Institutionalize New Behaviors ▪Communication ▪Surveys ▪Relationship mgmt ▪Communication ▪Strategy ▪Readiness assessment ▪Organisation Design ▪Gap analysis ▪PPM ▪PPM ▪Surveys ▪Training ▪Coaching ▪Communication ▪Reward structures ▪Communication ▪Rewards ▪Metrics ▪Surveys ▪PPM ▪Reward structures ▪Communications ▪Coaching
- 8. TM © 2010 BeyondStrategy Consulting Integrating OCM & PPM Establish Need for Change ✓ Strategic Planning ✓ Communication ✓ Relationship Mgmt Establish Leadership Create the Vision Plan for Change ✓Surveys & Gap Analysis ✓Change Plan ✓Org. Design ✓Communication Communicate & Empower ✓Surveys ✓Communication ✓Training ✓Coaching ✓Reward structures Celebrate Wins Monitor & Adjust ✓Benefit Tracking ✓Communications ✓Coaching ✓Reward structures Institutionalise New Behaviours ✓Communications ✓Coaching ✓Reward structures
- 9. TM © 2010 BeyondStrategy Consulting PMs Role in OCM Understand linkage to corporate strategy and objectives Understand business value expected from this project Extend your view of success beyond cost/time/quality/functionality Assess level of impact on people, process, technology Check need and awareness for change exist Check readiness for change – if necessary seek assessment Determine level of OCM support required Engage OCM specialists when required Integrate OCM requirements within project Ensure integration of project, program OCM strategies
- 10. TM © 2010 BeyondStrategy Consulting Simple Project Integrating OCM The Project ▪ Business system enhancement ▪ Adds new functionality to existing application ▪ Modifies some existing functionality Change Impact & Complexity ▪ Impact single team ▪ No client impact ▪ Minor process impact ▪ No look & feel impact OCM & PPM Strategy ▪ Simple OCM needs ▪ Team involvement ▪ Communications ▪ Training ▪ End user support
- 11. TM © 2010 BeyondStrategy Consulting Major Change Program The Initiative ▪ Replacement of primary business system ▪ New applications ▪ Major process changes ▪ New end user equipment Change Impact & Complexity ▪ All employees impacted ▪ New end-user technology ▪ Not a “tech savvy” workforce ▪ 1000’s external client interactions daily ▪ High public visibility ▪ Technically complex ▪ Complex, risky, visible! OCM & PPM Strategy ▪ Program with Technical & OCM workstreams ▪ OCM specialists ▪ Strong leadership ▪ Stakeholder engagement ▪ Role redesign ▪ Rewards ▪ Communications ▪ Training ▪ End-user support
- 12. TM © 2010 BeyondStrategy Consulting Applying to Case Study OCM & PPM Strategy ▪ Business value objectives defined ▪ Program with Technical & OCM workstreams ▪ OCM specialists ▪ Strong leadership ▪ Process redesign ▪ Rewards linked to new behaviours ▪ Communications ▪ Training ▪ Coaching & support to reinforce desired behavioursThe scene at the warehouse as staff try to use the new system.
- 13. TM © 2010 BeyondStrategy Consulting PMs Action Plan Become OCM evangelists Learn about OCM – attend a seminar, read books Network with OCM practitioners Join or start a community of practice Educate OCM practitioners on the value of PPM Review the OCM maturity assessment with your PMO Contribute to OCM maturity in your organisation Always think about OCM when you start a project
- 14. TM © 2010 BeyondStrategy Consulting Change is Constant, but ....
- 15. TM © 2010 BeyondStrategy Consulting
- 16. TM © 2010 BeyondStrategy Consulting Beyond Strategy Consulting www.beyondstrategyconsulting.com.au Contact: Joan Dobbie Principal Consultant dobbie@beyondstrategyconsulting.com.au © 2010 Beyond Strategy Consulting, all rights reserved. TM