Going Agile entreprise wide? We help you navigate the waters of organisational change. And to get you there, we take a deep dive into Change Management best practices. Key contributors, obstacles, lessons from past experiences … here is all you need to keep in mind before embarking on the journey.
“How Did They Get There?”: 4 Success Factors Worldwide surveys conducted by Prosci over the years pinpoint 4 success factors closely tied to how well organisations can manage the change in a structured and consistent way:
Not addressing resistance upfront. Managing resistance is a big part of dealing with the change. And it should be done at three different points in time: reventively by explai...
Sponsorship – Why go it Alone? Building Yourself a Sponsorship Coalition
Leadership is always topical; no matter where we turn, it seems we are surrounded by examples of leadership, sometimes good, sometimes bad, or at least according to our own assessment! And if we extend this consideration to 'inspirational leadership', it’s likely that you will call to mind the names of many people whom you find inspirational, or maybe not so inspirational. The examples set by leaders is certainly a prominent (and topical) part of our social discourse, particularly as we navigate current social and economic challenges. Leadership vs. Sponsorship As a change management consultant and trainer, working across the public and private sector, I often reflect on the value that leaders bring to the project and programme domain as sponsors of change. Having been associated with Prosci, the leading international research organisation focussed on change management, since being certified as a practitioner by Prosci’s founder Jeff Hiatt in 2004, the topic of sponsorship, and more specifically, the impact of sponsorship on the successful outcomes of change projects has remained an ongoing topic of interest for me for almost 17 years. Tellingly, in all 11 of Prosci’s Best Practice Research studies over the last 20 years, active and visible sponsorship has remained the #1 contributor to the success of change projects. The weight of 20 years of research on this topic is difficult to ignore, and so it’s not hard to make the case for the importance of active and visible sponsorship. Deeper exploration of this topic in Prosci’s Best Practice research provides an even more compelling consideration, namely the strong correlation between the effectiveness of sponsorship and the extent to which projects meet or exceed their objectives, as illustrated by the following excerpt from the latest edition of the bi-annual research study: What Constitutes Effective Sponsorship? Effective sponsorship is as much about ‘being’ as it is about ‘doing’ – sponsors need to BE engaging and accessible, remain focussed on supporting those responsible for driving the changes they sponsor, and communicate their own support for the change as they interact with impacted stakeholders across the business. These requirements place strong demands on the time of senior leaders who typically have a limited amount of that precious resource! Therefore, sponsors need support, primarily from change practitioners responsible for planning the interventions and events which they are required to headline, and also from the project managers who drive these respective initiatives. In addition to the support of change and project managers, one of the critical activities which sponsors need to undertake is to build a coalition of sponsorship with other influential leaders across the organisation. The absence of this collective leadership support for change makes it extremely difficult to ensure that all the impacted people across the organisation receive the backing they need from those entrusted with steering their organisation towards mutually beneficial objectives. Ok, so? So…when it comes to sponsorship, it certainly does not pay to go it alone! The support of your project and change manager together with a coalition of your peers will ensure that you are significantly more likely to be a successful sponsor. And this, in turn, will contribute to successful project outcomes. If you would like to know more about Sponsorship, and how to build a sponsorship coalition, watch one of our sponsorship-themed on-demand webinars and see what live webinars we've got coming up!
Calculating the ROI of Enterprise Change Management
Demonstrating the ROI of an organisational activity is often an essential consideration when determining future budget spend. Projects and initiatives are scrutinised heavily for their successes and their continuation dependant on financial returns. Enterprise Change Management as an organisational initiative comprises of an interwoven framework of processes and systems applied to each movement of change within an organisation. Return of Investment of Change Management Reflective of it's complex nature, it can be difficult to calculate the ROI of enterprise change management; facing the challenges of justifying the return on budget, time, work and effort required to manage the people side of change. Implementing change management effectively throughout the entirety of an organisation is not an instantaneous fix; but rather one that is dependent on high levels of employee engagement; senior staff buy-in; time and resource. Achieving high enough levels in each of these to ensure the successful adoption of change management requires considerable commitment of attention and budget share. However, as an initiative it is not one that ROI can be directly calculated. Instead, the return of investment of change management becomes wholly inseparable form project ROI. As a popular topic of contention it was one that Prosci, global leaders in enterprise change management, gave due consideration resulting in the identification of the following concepts for calculating ROI for enterprise change management. Analysing ROI for Enterprise Change Projects At a base level the result of applying change management is the effective achievement of the intended results and outcomes of a project. Therefore, the ROI of change management is the additional value created by a project due to employee adoption and usage. Calculating the return on investment is an analysis process that all project and senior leaders are familiar with; weighing out the ‘expected project benefits’ against the ‘project costs’. When considering the ROI of change management, it is the figures associated with the ‘expected project benefits’ that fall under the greatest consideration. As part of this consideration it becomes important to determine how these benefits can be subcategorised as either: ‘Independent of adoption and usage’ or ‘Dependent on adoption and usage’. The deployment of a replacement software program has a number of benefits that can be subcategorised accordingly. The requirement of lower licence and maintenance fees are benefits that are achieved independently of adoption and usage by employees. But on the other hand, when used proficiently, the software enables the production of more accurate and timely data, increasing performance and reducing errors. Achieving these benefits is dependent upon the impacted employees effectively adopting and using the replacement software. It is the benefits dependant on adoption and usage that are realised through increased change management capabilities. How to calculate the ROI for Change Projects? Enterprise change management largely focuses on the considerations made to management of the employees operating within a changing environment and the influence this has on behaviours, attitudes and roles. Therefore, it is important to consider the extent of the impact each project will have on the people of your organisation; the larger this impact the greater the necessity of effective change leadership. This enables the consideration of the question: ‘what would the expected benefits be if adoption and usage were 0’? By establishing figures linked directly to the expected benefits if adoption and usage was 0 the value and the expected benefits contributed to what can be considered the people side the value and ROI of change management can be illustrated. The final stage would be to divide the people side benefit contribution into the expected project benefits. Creating a model around these figures and calculations results in a percentage figure that represents the weighting of expected project benefits that can be attributed to change management. However, this also operates on the assumption that all other factors have been effectively designed, developed and delivered. Effective change management is an organisational initiative that can require intensive resource attention during the implementation processes that ultimately lacks readily available results of the tangible nature. This makes calculating the ROI associated with change management difficult; however, by breaking down the expected benefits of a project it becomes possible to subcategorise these benefits into those that are dependent on employee performance and those that are not. It is these benefits which are highly dependent upon effective employee performance which are subjective to change management capabilities and therefore contribute to the ROI of enterprise change management.