Integrating Organisational Change within IT Transition and Transformation Helping make technology projects successful

Objectives of the Session

o Where are you now in terms of ITSM processes and automation?

o Are you just at the typical implementation that only focuses on Incident/Problem and Change?

o Or are you already carrying out other ITSM processes (including Service Strategy processes)?

o This talk will use one of the leading ITSM tools as a benchmark of the wide range of processes and automation possible to compare against what your organisation is currently doing.

Agenda

1. Why do we need Organisational Change?

2. What Factors Contribute to our Success?

3. Organisational Change ‘in action’

4. Integrating Organisational Change

Why do we need Organisational Change?

4

o In order to remain successful, businesses must be able to manage substantial change

o Implementing substantial change is typically delivered through Projects

o Therefore, in order to successfully implement substantial change, businesses must be great at Project Management and Change Management.

Prosci Correlation Analysis (1/3)

17%

49%

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Fair(n=441)

Good(n=561)

Excellent(n=107)

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Overall effectiveness of change management program

Correlation of change management effectiveness to meeting project objectives

© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

*Data from 2007, 2009 and 2011

Prosci Correlation Analysis (2/3)

16%

34%

57%

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Overall effectiveness of change management program

Correlation of change management effectiveness to staying on schedule

© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

*Data from 2007, 2009 and 2011

Prosci Correlation Analysis (3/3)

48%

63%71%

82%

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Overall effectiveness of change management program

Correlation of change management effectiveness to staying on budget

© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

*Data from 2007, 2009 and 20117

The Business Imperative

A global McKinsey study which examined many project variables and in particular effect of an OCM program on a project’s ROI

6x more likely to reach project

objectives

1.6x more likely to meet budget

4x more likely to meet

deadlines

From a people perspective, similar research from the 2011 Corporate Leadership Council showed: o Almost 2/3 all employees are only 33% as productive as they could be

because they don't understand what they are being asked to do o Businesses with more engaged employees have 51% higher productivity

Agenda

1. Why do we need Organisational Change?

2. What Factors Contribute to our Success?

3. Organisational Change ‘in action’

4. Integrating Organisational Change

10 Arras People Benchmark Report 2010

Percentage of reasons for Project Failure

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Contributing Factors

Benchmark Studies

Prosci’s benchmarking study highlighted active and visible sponsorship as the #1 contributor to project success. The study reports were published in the following years:

1998, 2000, 2003, 2005, 2007, 2009, 2011, 2013

They have just released requests to the business market to participate in the 2014 study.

Given the trends over the last 15 years, what would you assume the #1 contributor to success is ?

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What are the keys roles of Sponsors?

o Active support for the project – being visible.

o Engaging with peers – building support for the project.

o Managing resistance – at peer and employee level.

o Communicating directly with employees – the employees listen more to an executive sponsor or their own manager than they will to a project or Organisational Change Manager.

12

Agenda

1. Why do we need Organisational Change?

2. What Factors Contribute to our Success?

3. Organisational Change ‘in action’

4. Integrating Organisational Change

What is it Worth to do it Well?

Organisational change management can pay for itself many times over in actual benefits achieved.

Assume a 12 month project has $4 million per annum in projected benefits. The impact of poor change management could result in delayed, and permanently reduced, take up of capability:

1

3

Benefits $ million p.a.

3 6 9 12 15 18

3 months delay

months

$1 million + in benefits lost

4

2

$1 million p.a. in benefits foregone

Projected benefits ramp up

Actual benefits ramp up

Certainty of expected ROI or

benefit from change

Amount of change to how people do their jobs – ‘people change’

Changes that have no ‘people change’ have high certainty in the

expected ROI; ie a change in electricity supplier or a new PABX

box

Changes that are highly dependent on ‘people change’ have low certainty; ie changing from Outlook to Lotus Notes or

upgrading desktop software

High

Low High

Low

The Bottom Line

© Prosci 2012

Agenda

1. Why do we need Organisational Change?

2. What Factors Contribute to our Success?

3. Organisational Change ‘in action’

4. Integrating Organisational Change

Integrating Change Management (1/2)

Organisations must undergo continual change to compete: some strategic and others more operational in nature. These programs can generally be categorised:

o Structural change-seek to achieve greater overall performance by reconfiguring the

organisation e.g. acquisitions, mergers, new executive management o Process change –focus on altering ‘how things get done’ e.g. reengineering

process(es) or introducing new technology o Cultural change-concentrate on a company’s operating values, norms of behaviour

and the relationship between its management and employees; e.g. Moving to a culture of continual improvement, from a customer focus to a commercial focus

o Revenue uplift change-aim is to increase revenues e.g. charging for services to inline with their costs instead of making a loss

o Cost-cutting change – focus on elimination of nonessential activities or on other methods for squeezing costs out of operations e.g. headcount, expense, partnering

o Strategic purpose change-objective is to reinvent an organisation by changing its strategic intent, core purpose, or mission; e.g. shift from selling individual products to selling complete solutions that add value for the customer

Source: Adapted from Harvard Manage Mentor 2012- Change 17

Integrating Change Management (2/2)

o Change Management, whichever approach you take, is a progressive set of steps to be taken to help take your employees through the phases of being aware of the change, of wanting to know more, understanding how the Change impacts them, training on how to make the best of the new technology/process, and management and subject matter experts to help guide them through the Change.

o If you already have a methodology or approach to Project Management, I.e. PRINCE2 or Agile, then blend the Organisational Change Management tools into these approaches. It minimises change impacts to your project and delivery teams and ensures that they have the tools that they require to manage the people side of their project.

Thank You!

For further info on related course/s, please see:

http://www.iss.nus.edu.sg/ProfessionalCourses/CourseCatalogue.aspx

Jamie Donoghue Principal Consultant jamie.donoghue@uxcconsulting.com