5 ACTIONABLE AND INNOVATIVE INSIGHTS FROM PROSCI’S LATEST RESEARCH STUDY
TIM CREASEY PROSCI CHIEF DEVELOPMENT OFFICER
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LEAVE TODAY WITH:
• Insights and data on ?ive emerging topics in change management
• Action plans for bringing the data to life in your practice and work
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AGENDA
• Prosci’s Research Foundation
• 2013 Study by the Numbers
• 5 Actionable and Innovative Insights
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PROSCI® RESEARCH FOUNDATION
• 8 studies • 16 years • 3400 participants
What works? What doesn’t?
What to do differently?
Study Par*cipants 1998 102 2000 152 2003 288 2005 411 2007 426 2009 575 2011 650
2013 822
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2013 STUDY BY THE NUMBERS
Par/cipant profiles:
Geography Industries Size of Organiza/on Project Respondents
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WHO CONTRIBUTED: GEOGRAPHY
US: 34%
Canada: 15% Europe:
14%
Africa: 5%
La/n America:
2% Australia and NZ: 25%
Asia and Pacific Islands: 3%
Middle East: 2%
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WHO CONTRIBUTED: SIZE OF ORGANIZATION
<$50M
$50M-‐$500M
$500M-‐$1B $1B-‐$2.5B $2.5B-‐$5B
>$5B
<1K
1K-‐5K
5K-‐10K 10K-‐20K 20K-‐35K
>35K
Employ
ees
24%
27%
13%
9% 7%
20%
19%
21%
10%
11%
10%
29% An
nual Rev
enue
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WHO CONTRIBUTED: INDUSTRIES
Banking 7.7% Health Care 7.1% Government – State 6.7% Finance 6.5% Government – Federal 5.5% Oil and Gas 5.5% Insurance 5.3% Manufacturing 4.9% U/li/es 4.7%
Top 9 industries
represented:
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WHO CONTRIBUTED: PROJECTS
<$100K
$100K-‐$500K
$500K-‐$1M
$1M-‐$5M
$5M-‐$10M
>$10M
Mul/ple Depts
Single Div
Mul/ple Divisions
En/re Enterprise
<100 employees
100-‐500
500-‐1000
1000-‐5000
5000-‐10K
>10K Project Inv
estm
ent
Project S
cope
Employ
ees Impa
cted
16%
17%
11%
11%
20%
24%
15%
25%
46%
11%
16%
22%
13%
9%
16%
24%
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WHO CONTRIBUTED: RESPONDENTS
<1 1 to 4 years
4 to 8 years
8 to 12 years
>12 years
Change management experience
Project role:
43% Change management team leader 19% External consultant 12% Project team leader 11% Change management team member
6% 23% 28% 18% 25%
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5 INSIGHTS
Role of the Change Management Office
Job Roles in Change Management
Measurement and Metrics
Integra/ng CM and PM
Resourcing for Change Management
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Insight #1:
Measurement and Metrics
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NEW MEASUREMENT QUESTIONS
Did you measure the effec*veness of your change management effort in
support of the project? What metrics did you use?
Did you measure whether the change was occurring at the individual level?
What metrics did you use?
Did you have to report on change management effec/veness of the project? To whom? What metrics did you use?
How did you demonstrate the value-‐add of applying change management on the project?
How did you measure the overall outcome of applying
change management on the project?
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MEASUREMENT THEMES
Project Performance
Individual Transi/ons
Change Mgmt Ac/vi/es
Early Mid Late
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PROJECT PERFORMANCE
Project Performance
Benefit realiza/on Return on Investment (ROI)
Project success Objec/ves met
Performance improvement
Results and outcomes
Objec/ves set
Readiness (Change and Business)
Key Performance Indicators
Progress to plan Performance against deliverables
Adherence to schedule
Early Mid Late
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INDIVIDUAL TRANSITIONS
Individual Transi/ons
Usage Compliance
Adop/on
Engagement Par/cipa/on
Results and outcomes
Buy-‐in and commitment
Readiness (Individual)
Awareness Understanding
Proficiency
Early Mid Late
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CHANGE MANAGEMENT ACTIVITIES
Change Mgmt Ac/vi/es
Applying approach Dedica/ng resources Scaling and customizing Ac/vity comple/on
Communica/on deliveries
Results and outcomes
Ac/vity effec/veness
Compliance and usage audits
Sustainment ac/vi/es Collec/on of feedback
Training delivery/alendance Communica/on effec/veness
Training effec/veness
Early Mid Late
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MEASUREMENT THEMES
Project Performance
Individual Transi/ons
Change Mgmt Ac/vi/es
Early Mid Late
Objec/ves set Readiness
Progress to plan Deliverables met Schedule adherence KPIs
Benefit realiza/on Project success Objec/ves met Performance improvement
Buy-‐in and commitment Awareness Understanding Readiness
Adop/on Engagement Par/cipa/on
Usage Compliance Proficiency
Approach Resources Scaling and customizing
Ac/vity comple/on Communica/on comple/on Training comple/on
Ac/vity effec/veness Communica/on effec/veness Training effec/veness
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PREVALENCE OF MEASURING AND REPORTING
Measured effec/veness of change mgmt effort
Measured change at individual level
Reported on change mgmt effec/veness
39%
42%
45%
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ACTUALIZING THE DATA
1. Start your scorecard • Three dimensions • Three timeframes
2. Use across the change management lifecycle:
Upstream: Making your case
Midstream: Tracking
your progress
Downstream: Showing
your impact
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Insight #2:
Integra/ng Change Management and Project Management
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INTEGRATION MATTERS
Integration of project management and change management appeared on:
ü Top contributors to success NEW
ü Biggest obstacles NEW
ü What to do differently next /me
ü Top trends in your organiza/on ü Top trends in the discipline
PMI®
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INTEGRATION: PREVALENCE, DOES IT MATTER, WHEN
61%
34%
“Good” or “Excellent” Change
Management
71% Integrated CM & PM
Closure Implementa/on Design Planning Ini/a/on
Significant Some
29% 44% 55% 76%
56% 33%
40% 38%
23% 38%
?
Did Didn’t Did
Didn’t
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INTEGRATING THE TECHNICAL SIDE AND PEOPLE SIDE OF PROJECTS
Project Management
Design, Develop, Deliver Solu/on Effec/vely
Solu/on is Embraced, Adopted and Used Proficiently
Change Management
People Processes Tools
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“PEOPLE” INTEGRATION
PM CM
PM CM
PM CM
CM
PM & CM
19%
20% 24%
31%
Collabora/on
Cross-‐training
Define roles and responsibili/es
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PM
CM
PM
CM
“PROCESS” INTEGRATION
Integrate plans
Align /melines
Sequence tasks
Add deliverables 2014 2015
J F M A M J J A S O N D J F M A M J J A S O N D
InitiatePlan
DesignDevelop
Deploy
P1 – Preparing for Change
P2 – Managing Change
P3 – Reinforcing Change
PM
CM
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Communica/on Plan
Project Plan
Training Plan
Schedule
Stakeholder Analysis/Assessment
Impact Analysis/Assessment
Scope
Lessons Learned
Risk Analysis/Assmt/Log
Business Case
Readiness Assessment
“TOOLS” INTEGRATION
79%
68%
65%
60%
56%
54%
52%
51%
78%
91%
81%
Communica/on Plan
Project Plan
Training Plan
Schedule
Stakeholder Analysis/Assessment
Impact Analysis/Assessment
Scope
Lessons Learned
Risk Analysis/Assmt/Log
Business Case
Readiness Assessment
Communica/on Plan
Project Plan
Training Plan
Schedule
Stakeholder Analysis/Assessment
Impact Analysis/Assessment
Scope
Lessons Learned
Risk Analysis/Assmt/Log
Business Case
Readiness Assessment
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ACTUALIZING THE DATA
1. Identify opportunities to integrate at each level:
2. Integration is easier if we are “on the same team”
Project Management
Change Management
People Processes Tools
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Insight #3:
Resourcing for Change Management
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PREVALENCE OF RESOURCE AND BUDGET
Had dedicated resources
Had dedicated budget
Was it sufficient?
73% 27%
43% 61%
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IMPACT OF RESOURCE AND BUDGET
“Good” or “Excellent” Change
Management
Met or Exceeded Objec/ves
Dedicated resources Dedicated budget With 63%
Without 28%
With 59%
Without 50%
With 70%
Without 48%
With 66%
Without 55%
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COST COMPONENTS OF CHANGE MANAGEMENT
Change management resource costs
Training costs
Communica/on costs
Change management materials
External consultant costs
Event costs
General expenses
Reinforcement and recogni/on costs
79%
64%
63%
61%
56%
42%
82%
80%
Change management resource costs
Training costs
Communica/on costs
Change management materials
External consultant costs
Event costs
General expenses
Reinforcement and recogni/on costs
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AVERAGE AMOUNT OF BUDGET ASSIGNED TO EACH COMPONENT
Change management resource costs
Training costs
Communica/on costs
Change management materials
External consultant costs
Event costs
General expenses
Reinforcement and recogni/on costs
21%
13%
7%
39%
9%
8%
6%
46%
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SCALING FACTORS
Scope, scale and complexity
Objec/ves and importance
Timeline and urgency
Resource availability
Resource capability
Budget availability
Past experiences
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ACTUALIZING THE DATA
1. Identify your budget “buckets”
2. Scale based on your project
3. Secure resources and funding it matters
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Insight #4:
Job Roles in Change Management
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PREVALENCE OF JOB ROLES
2011 2013 Organiza/on has
permanent posi/on / job role defined for change management
< 1 year 1 to 3 years 3 to 6 years > 6 years
20% 37% 25% 17%
43% 52%
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WHERE ARE THE CHANGE MANAGEMENT JOBS?
+
68%
18%
8%
6%
PMO 22%
HR 21%
Ops/BUs 14%
IT 14%
Corp/Shared 12%
OD 10%
Independent 7%
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WHAT IS THE JOB DESCRIPTION?
1. Apply a structured methodology and lead change management activities
2. Support change management at the organizational level
3. Support communication efforts
4. Assess the change impact
5. Support training efforts !
Secondary: • Support others • Strategy development • Execu/on and integra/on • Adop/on and measurement
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HOW MANY PROJECTS ARE SUPPORTED AT ONE TIME?
One project 19%
Two to Four 54%
Five to Eight 16%
More Than Eight 11%
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WHAT ARE THE SALARIES? Average: $105,700
3% 4% 6%
8%
13%
7%
16%
5%
17%
2% 3%
10%
6%
<50
50-‐59
60-‐69
70-‐79
80-‐89
90-‐99
100-‐109
110-‐119
120-‐129
130-‐139
140-‐149
150-‐159
>160
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Level 5 – Org competency
Level 4 – Org standard
Level 3 – Mul/ple
Level 2 – Isolated
Level 1 – Ad hoc or absent
ARE THERE CAREER PATHS?
No No, but in development Yes
Overall
69%
73%
33%
50% 21% 29%
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ACTUALIZING THE DATA
1. To describe what you do
2. To benchmark your experience
3. To guide your searches
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Insight #5:
Role of the Change Management
Office (CMO)
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PREVALENCE OF CMO
!!!!2011
36% 2013
38%
!!!!!!!!!!
Level 5 Organiza/onal competency
77%
Level 4 Organiza/onal standards
56%
Level 3 Mul/ple projects
45%
Level 2 Isolated projects
29%
Level 1 Ad hoc or absent
15%
Organiza/on has CMO (dedicated func/onal group)
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WHAT IT DOES? PRIMARY RESPONSIBILITIES
Own and maintain the CM methodology
Own and maintain the CM tools
Provide consulta*ve support to project teams
Own and maintain the CM methodology
Own and maintain the CM tools
Provide consulta*ve support to project teams Maintain a change management community
Provide CM resources on specific projects
Own and maintain the CM methodology
Own and maintain the CM tools
Provide consulta*ve support to project teams Maintain a change management community
Provide CM resources on specific projects
Track change management progress on projects
Provide coaching to sponsors
Provide coaching to managers/supervisors
Own the change management curriculum
Track and manage the change porMolio
77%
76%
76%
68%
67%
58%
55%
53%
50%
44%
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!!!
!!! !!! !!! !!!
!!! !!!!!!
WHERE DOES IT LIVE?
21%
PMO
18%
HR
14%
IT
10%
Corp, Shared Services
10%
OD
9%
Strategy, Transforma/on,
Planning
6%
Opera/ons, Within Bus
3%
Exec, C-‐Level report
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WHERE SHOULD IT LIVE?
!! !!!!
!! !! !!!!
!!27%
PMO
7%
HR
1%
IT
6%
Corp, Shared Services
9%
OD
23%
Strategy, Transforma/on,
Planning
10%
Opera/ons, Within Bus
12%
Exec, C-‐Level report
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PMO HR IT Corp, Shared Services
OD Strategy, Transforma/on,
Planning
Opera/ons, Within Bus
Exec, C-‐Level report
COMPARISON DOES TO SHOULD
!! !!!!
!! !! !!!!
!! !!!
!!! !!! !!! !!!
!!! !!!!!!
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WHERE IT LIVES?
+ O -‐-‐ Cross-‐organiza/onal reach Access to projects/change (early) Alignment with purpose Reputa/on, credibility, respect Aligned with direc/on and culture Proximity to execu/ves
PMO HR St, Tr, Pl
Ops OD
Decision Variables:
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ACTUALIZING THE DATA
1. Is now the time?
2. Three questions to answer: – Where should it live? – What should it do? – How should it look?
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5 INSIGHTS
Role of the Change Management Office
Job Roles in Change Management
Measurement and Metrics
Integra/ng CM and PM
Resourcing for Change Management
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HMMM… QUESTIONS?
OR FIND ME OVER
THE NEXT TWO DAYS!
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THANK YOU! TIM CREASEY
PROSCI CHIEF DEVELOPMENT OFFICER [email protected]
WWW.PROSCI.COM
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