The Power of Measuring Change
Paul O’Keeffe
June 2011
Introduction
Paul O’Keeffe
• Change Measurement Lead
• Talent & Organization Performance
• Principal
• Accenture
• 414-460-4406
• paul.j.okeeffe@accenture.com
2
Today’s Agenda
– Why Measure Change
– Change Measurement Maturity Levels
– Tools to Measure Change
• ChangeTracking
• Change Measurement Diagnostic
– Your Change Measurement Journey
3
Why Measure Change?
Paul O’Keeffe
June 2011
The measurement of change has always been
our greatest challenge.
When was the last time a senior executive asked you:
– “How are we doing relative to other companies who go through this type
of change?
– “How do we make the link between change management and business
benefits more tangible?”
– “How do we know if the change program is truly impacting business
results?”
– “What tools do you have to measure change?”
Companies continue to manage change poorly and destroy value. As Change
professionals we repeatedly fail to position ourselves to influence the outcome
5
Critical factors in successful change
Insight without action does not produce sustainable change, and action that has
no insight behind it is wasted effort
INSIGHT + ACTION = SUCCESSUL CHANGE
Asking the right questions so
leaders can clearly see if they
are on track or not ….. and if
not, what corrective action
they can take
Fast feedback and
clarity about what
is required to
deliver high
performance
Get onto the path
to high
performance and
help to stay there
Taking a data centered approach, the purpose of our analysis is to enable more
accurate, high impact change interventions
6
Maintaining Performance through Change
Research shows only 1 in 9 work groups improve their performance across
times of change:
Project
preparation
Feb
Mar
Business
blueprint
April
May
Jun
Final
preparation
July
Aug
Sept
The norm is actually over
budget, over schedule, with a
lack of benefits realization!
Performance
Go live and
support
Oct
Nov
Dec
Continuous
Benefits
improvement Realisation
Jan
Feb
Mar
April
May
High Performance
Effective
change
Even with the best intentions,
change projects typically take
longer than planned and cost more
– 84% of projects do not hit their targets
– 18% average overrun on budgets
– 23% average over run on schedule
– 7% do not achieve scope/functionality
Norm
Stage of project
7
The most important aspects driving successful
change
Rank to following based on your experience…
Involvement
Training
Passion and Drive
Communication
Systems and Processes
Management Skills
Vision and Direction
Change Leadership
Accountability
8
ChangeTracking® research has identified the
main drivers of successful change
Relative Importance of Factors in
Driving Improvement in Business
Performance
9
What is Critical to Success?
Based on Accenture’s deep Change Management experience we know what
drives a change project success. With data we will be able to prove the following
are critical to project success:
– Experience of the client team
– Experience of client with types of project (e.g. Big SAP)
– Sponsorship engagement early and continued
– Navigation activities (e.g. Journey Map)
– Leadership activities
– Resource Balancing and other org design activities are important
– Continuation of the Change effort 6-9 months post go-live
• For instance, Adoption and Commitment does not come till after go-live
…and that the following is true:
– Five to ten critical behaviors drive the dollars
– Communication decreases resistance
• But what is the best timing?
– People predict that change is worse than it is when asked in advance
(with the caveat that the technology works)
10
We expect to find…
…that we can definitely answer a number of questions that arise at the start of
every change project:
– When is the right time to begin communication and when do we drive
communications into the organization?
– What is the optimal (and the minimum) number of people to attend
training?
– What is the best curriculum mix?
– How much training is actually required?
– What activities drive people up the Commitment Curve?
– What activities drive Sponsorship commitment and understanding?
– What critical behaviors need to change for the project to be successful?
11
Change Measurement Maturity
Levels
Where are you today?; and Where do
you want to get to?
Change Measurement Maturity Levels
Most organizations measure change to some extent; very few have built a
robust capability that drives how change is managed as a critical business driver
Change Agility Measures
Value
Change Value Measures
Lifecycle Project Measures
Go-live Measures
Complexity
13
Go-live Measures
Answer the question; “Are we ready to go-live from a people
perspective?”
– Data is collected monthly or weekly leading up to go-live
– Usually begin collection 6-8 weeks prior to go-live
– Very tactical in nature
Change Agility Measures
Value
Change Value Measures
Lifecycle Project Measures
Go-live Measures
Complexity
Most projects have some type of go-live measures, but very little consistency
from project to project
14
Lifecycle Project Measures
Answer the question; “Is the project proceeding to plan from a
people perspective?”
– Data is collected monthly throughout the project lifecycle
– Begin collection at the start of the project
– Still tactical in nature
Change Agility Measures
Value
Change Value Measures
Lifecycle Project Measures
Go-live Measures
Complexity
Very few companies measure the entire project lifecycle; or have a repeatable
process that is used from project to project
High
Performance
OnTrack
1
Unsustainable
1
1
1
Over budget, more
staff than required
and high percentage of
manual over-rides in a
fully automated system
were indicative that a
major IT system had been
installed and not
implemented
Off Track
11
Unit A 17
Unit B 60
Unit C 66
Planning 29
Production 139
Unit E 52
15
Change Value Measures
Answer the question; “Is the organization creating value through
the intended changes?”
– Data is collected monthly across many projects
– Ongoing data collection
– Very strategic in nature
Change Agility Measures
Value
Change Value Measures
Lifecycle Project Measures
Go-live Measures
Complexity
Projects measure ROI and Business Case achievement; but few link it back to
change activities. It is all financial driven; not change capability driven. No
project to project change lessons.
16
Change Capability Measures
Answer the question; “Is the organization building capabilities
so that future changes are easier and more effective?”
– Data is collected monthly across many projects
– Ongoing data collection
– More strategic in nature
Change Agility Measures
Value
Change Value Measures
Lifecycle Project Measures
Go-live Measures
Complexity
Change capability and agility are new topics; but no-one measures it as a
capability across time
Pushin
g the
limits
Cruising
High
Performance
Business
as usual
15%
Good moving
to great
Sleepy in
24%
success
Achieved
with loss
of heart
On the
run
Yes,
19%
but…
On Track
Building
momentum
Bumpy
ride
Battling
it out
In the
dark
Flatlining
Struggling
Burning
platform
under pressure
Unsustainable
14%
Just get
on with it…
Rocky
ground
Washe
d up
Case for
Action
Off Track
Downward
spiral
17
Our Change Measurement Vision
The Change Measurement Diagnostic (CMD) will revolutionize the way we plan
and deliver Change programs. A heightened focus on Analytics will drive more
consistent results and a tighter link to value. Our Vision:
– All projects use a comprehensive, data-driven approach to guide
people and change decisions.
– The tool and outputs are integrated with the Accenture Change
Framework and drive the day-to-day work of the project team.
– The outputs are easy to read, create a compelling story for our clients
and lead to predictive insights and clear actions on a project.
18
Tools: ChangeTracking®
ChangeTracking Model
Validated research that sits behind ChangeTracking® has proven what drives
performance improvement
How is change impacting
business performance?
Is the
change on track to
high performance?
Realizing
Business
Benefits
Improving
Business
Performance
Have change program
objectives been
achieved?
Performance
Drivers
Change Capability
Turbulence
Aligned
Direction
Resources
Change
Leadership
Work
Roles
Emotional
Energy
Training and
Capability
Vision and
Direction
Management
Commitment
Involvement
Passion
and Drive
Changes Taking
Place
Systems and
Processes
Communication
Team Leadership
Accountability
Disturbance
Clusters
Risks and
Roadblocks
© CTRE Pty. Ltd. 2009
• v1.0 ChangeTracking®
20
ChangeTracking® measures the
factors that drive improved performance
How effective
is your change
strategy?
Is the
change on track to
high performance?
Realizing
Business
Benefits
Improving
Business
Performance
Are you making the
best use of
resources, given the
conditions you are
operating under?
Performance
Drivers
Change Capability
Turbulence
Aligned
Direction
Resources
Training and
Capability
Vision and
Direction
Changes Taking
Place
Systems and
Processes
Communication
Clusters
Risks and
Roadblocks
© CTRE Pty. Ltd. 2009
Change
Leadership
Work
Roles
Emotional
Energy
• v1.0 ChangeTracking®
22
ChangeTracking® measures the
factors that drive improved performance
What can
people do to
make a
difference?
Corporate
Business
Units
Teams
Everyone!
Is the
change on track to
high performance?
Realizing
Business
Benefits
Improving
Business
Performance
Performance
Drivers
Change Capability
Turbulence
Aligned
Direction
Resources
Change
Leadership
Work
Roles
Emotional
Energy
Training and
Capability
Vision and
Direction
Management
Commitment
Involvement
Passion
and Drive
Changes Taking
Place
Systems and
Processes
Communication
Team Leadership
Accountability
Disturbance
Clusters
Risks and
Roadblocks
© CTRE Pty. Ltd. 2009
• v1.0 ChangeTracking®
23
The Change Map
– Group responses to the ChangeTracking®
questionnaire are plotted on the Change
Map. The Change Map is divided into 4
Zones:
•
•
•
•
Pushing
the limits
High
Performance
Cruising
Off Track
Unsustainable
On Track
High Performance
– The Change Map divides the zones into 20
Regions. For even greater precision, the
Change Map divides the Regions into 625
Cells - 625 change typologies.
– Knowing where a group is, and knowing the
characteristics (strengths and weaknesses)
of the regions around you to make choices
about the actions and direction you take
Business
as Usual
Good, but not
yet great
Achieved
with loss of
heart
On the
Run
Sleepy in
Success
On Track
Building
Momentum
Bumpy
ride
Yes, but…
Battling
it out
In the
Dark
Flatlining
Struggling
under pressure
Burning
platform
Unsustainable
Just get
on with it…
Rocky
ground
Washed
up
Case for
Action
Off Track
Downward
Spiral
24
Action Planning: ‘Yes, but..’ to ‘Cruising’
Supply Chain
Pushin
g the
limits
High
Performance
From current location to '2 Cruising'
Cruising
13%
Business Performance
Achieving Objectives
Business
as usual
Good moving
to great
Sleepy in
25%
success
Achieved
with loss
of heart
Risks & Obstacles
Changes Taking Place
Yes,
but…
On Track
Building
momentum
On the
run
6%Bumpy
ride
In the
dark
13%
Battling
it out
Flatlining
Struggling
under pressure
Burning
platform
Unsustainable
10%
Just get
on with it…
Rocky
ground
Washe
d up
Case for
Action
Off Track
Downward
spiral
Current location
Disturbance
32%
Vision & Direction
19%
Management Commitment
44%
Involvement
47%
Communication
62%
Team Leadership
70%
Training & Capability
66%
Passion & Drive
76%
Accountability
81%
Systems & Processes
80%
Low P erf.
Norm
High P erf.
Current result
Target result
P erformance improves on this path.
P eople need to see more benefits and
enough change is taking place. P eople
see similar issues.
25
Lets Complete the Demo and Build the Change Map
Looking for a volunteer to answer the questions based on their current project.
High
Performance
OnTrack
1
Unsustainable
1
1
1
Over budget, more
staff than required
and high percentage of
manual over-rides in a
fully automated system
were indicative that a
major IT system had been
installed and not
implemented
Off Track
11
Unit A 17
Unit B 60
Unit C 66
Planning 29
Production 139
Unit E 52
You can complete your own Demo at www.ChangeTracking.com
26
Tools:
Change Measurement Diagnostic:
Pilot Version
Change Measurement Across
the Project Lifecycle
The overall tool will include different elements that cover all aspects of the
project. The pilot is excel based to streamline data collection.
–
–
–
–
–
–
–
A tab for each major area; but none are mandatory
Dashboard updated monthly
Project setup completed once at project inception; update as needed
Data entry tabs updated monthly
Report printing capabilities for each tab
Straight forward change survey for pulse/full surveys
Data will be combined at end of the pilot for initial Analytics; trend
analysis, research, and root cause analysis across projects
28
Accenture’s Change Model
At a strategic level we think of change across four dimensions…
Change Leadership
“How can we help the organization’s
leaders effectively champion the change?”
Change Navigation
“What management mechanisms will help
the organization optimize its investment?”
 Program management framework
(direction and pace of change)
 Models/methodologies
 Measurement strategies
 Technical/business architecture
 Set change objectives and priorities Navigation
Enablement
Change Enablement
“How do we give users the tools and
support to be successful with the
change?”





Design the organization/jobs
Revise workflows/procedures
Redesign physical environment
Design new/modified jobs
Training and performance support
Macro
Leadership
Ownership
Micro
Supply
 Establish shared executive
vision and communicate it to
organization
 Develop a sponsorship program
 Provide leadership with
coaching/facilitation
 Set expectations during change
Demand
Change Ownership
“How do we help users feel like part
of a change vs. victims of change?”
 Plan communications and
involvement activities
 Educate impacted personnel on
the change process
 Develop local action teams and
facilitate implementation
 Deliver focused benefits
29
Dashboard
A one-stop dashboard will be presented for each month of the project. This
allows for quick and easy reporting.
30
Project Set-up
This tab will include all the specific details on the project. Depending on the size
and nature of the project different tracking elements in the tool will be turned on
or off. The underlying business case value will also be captured.
31
Sponsorship
The Sponsorship tab utilizes a detailed sponsorship monitoring process that
should be started in the Blueprint phase. Action items are developed each
month and marked when completed.
32
Stakeholder Management
The Stakeholder tab will capture the segmentation of the key stakeholders and
track each group as they move up the Commitment curve.
33
Monitoring Behavior Change
The holy grail of Change Management is tying the detailed, desired behavior
change to business value and then monitoring the actual observed behavior
change through the lifecycle of the project.
34
Business Metrics
A predictive approach to business metrics allows us to communicate
expectations with leadership, and ultimately, customers. The “y” axis on the
model becomes these business metrics. This ensures the Program
Management and Change Management efforts are aligned and ensures a link
back to the original business case.
35
Quadrant Model Survey
Based on Accenture’s 15+ years experience with the Quadrant Model we will
reinvigorate the Change Readiness survey. Questions are focused on the
quadrants of the model. They are very specific to the change process and the
current challenges facing projects.
36
Change Readiness (or Go-Live Readiness)
A consistent and comprehensive approach to change readiness is critical. It
needs to cover all elements of the Quadrant Model. The Change Readiness
results can then be included in the project wide “Go/No Go” decision making
process.
37
Your Change Measurement Journey
Where are you going?
Monday Morning Quarterback
What will you do different on Monday?
39
Thank You