Transcript Slide 1

2010 Great Lakes PMI Dinner Meeting
Driving Successful Change in Organizations
Enhancing Program/Project Success with
Organization Change Management Disciplines
Kathy Hogan
The Abreon Group
Amy Palazzolo
Ford Motor Company
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Objectives
• Invite you to consider programs/projects as vehicles for
change in your organizations
• Understand how Organizational Change Management
(OCM) disciplines contribute to successful change
– Definition of OCM
– OCM process/knowledge areas
– PM and OCM knowledge area integration
• Provide some practical tools/examples to take-away
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Who is the Speaker?
Amy Palazzolo
 Bachelors & masters degrees in computer science
 Started career on product development applications
 Software engineer on an early telematics program
 Launched some of Ford’s early social media technology
 Several years of experience in enterprise architecture
 Managed lots of infrastructure projects & programs
 Completed PMP certification December 2006
 Most recently PMO Manager for the Data Center Consolidation
program at Ford which is a $60M global multi-year program
 Recent collaboration with Kathy on OCM techniques for Ford’s
IT Service Management deployment
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Who is the Speaker?
Kathy Hogan
 Bachelors degrees - Business, Communication, Education
 Began Career in Training/ Organization Development
 Reengineering Engagement – Product Development
 Joined Top 5 consulting firm – Director Change
Management/Communication - very challenging – but fun
 Designed Change Management Product Offering aligned with
Project Management process groups and SDLC
 Lead OCM Consultant Data Center Consolidation
 Two Change Management Certificates 1997 &1998
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Driving Successful Change
Program
Management
+
People
Management
=
Successful
Change
When the disciplines of program management and people
management (OCM) are united a powerful implementation
model emerges to drive successful change in organizations.
Industry statistics* indicate less than 75% of organization
changes meet expected targets; i.e., time, budget, scope,
quality and adoption. The reasons cited are failure to focus on
the importance people play in making change successful.
Greatness lies in our willingness to change!
*(Standish Group, McKinsey, Gartner and ProSci)
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Considering programs (and
projects) as vehicles for change
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What is a Program?
• Related projects managed in a coordinated
way for benefits and control not available
from managing them individually (PMI)
• Achieve organizational strategies through
the management of a related series of
projects and ongoing work activities (ESI)
• A collection of vehicles of change designed
to achieve a strategic objective (Bartlett)
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Refresher on Stages of a Program
Main stages of a program:
1.
2.
3.
4.
Transition from strategy to program
Assessing program feasibility
Preparing for program execution
Execute, monitor and control, close
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Transition from Strategy to Program
• Generally a function of senior management
• Examine the current state and the desired
future state of the organization
• Identify the changes required to move the
organization from current to future state
• Programs are proposed as the vehicle to
implement the desired organization changes
Techniques:
– Kaplan & Norton’s Strategy Map
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Assessing Program Feasibility
• Show how the program results will impact
the future state of the organization
• Identify the change impact on people and
assess their capacity to absorb the change
• Prepare a business case with projected
costs and benefits to validate affordability
Techniques:
–
–
–
–
Zachman Framework - Business Architecture
Technology Proof of Concept
Organizational Change Models
Cost Estimating Models
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Preparing for Program Execution
• Identify the stakeholders and understand
their priorities, influence, and concerns
• Establish a governance model to monitor
progress, make decisions, escalate issues
• Develop SMART objectives with clear
linkage to organizational strategies
• Establish a process to measure benefits
• Design a workable organization structure
with clear roles and responsibilities
• Define scope; assess time, cost, risk, etc.
Underlined are key themes in Program Management according to the PMI Standard for Program Management
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Programs/Projects As Change
• A program/project is about change
• As project managers, you have been
entrusted to lead the changes that your
organization needs
• All people go through an emotional
transition during times of change
• For the best results, you must help people
through the transition your programs and
projects require of them
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Disciplines which contribute to
successful change
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IT Implementation Findings
The Standish Report –
“There is Progress”
Project
Criteria
Percent
Change
2004
2009
Success*
34%
32%
2%
Challenged*
51%
44%
(7%)
Failed*
15%
24%
9%
Key
* Success – On time, budget and within scope
* Challenged – Time, budged and scope over runs
* Failed – Project Cancelled
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IT Implementation Findings
1. User involvement
2. Executive management
support
3. Experienced project
management
4. Clear business objectives
5. Small milestones
6. Firm basic requirements
7. Competent Staff
8. Proper Planning
Failed
“The
People”
OCM

Project Cancelled
29%
Challenged

Cost Overruns

Time Overruns

Scope Creep
26 %
46%
Standish 2010
Succeeded

On Budget

On Time

Within Scope
When organizational transformations succeed…., pay attention to
“people issues,” especially fostering collaboration among leaders
and employees and building capabilities.
McKinsey 3/2010
“People whose lives are affected by a decision must be part of the
process of arriving at that decision” – John Naisbitt
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Commitment Phases
Internalize
Adoption
Support for changes
Commitment
Knowledge
Acceptance
Train
Educate
Understanding
Preparation
Communicate
Aware
Time
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Organization Change Management
WHAT IT IS
A strategic and systematic PROCESS that uses tools and methods
of OCM that can be measured and deliberately influences those
employees who jobs are impacted to achieve the intended outcomes.
THE PURPOSE
OCM enables faster
realization of benefits by
ensuring changes are
successfully adopted
and sustained by people.
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Organizational Change Management Disciplines
Align Project Management and OCM
activities, determine people and
organization risk developing mitigation
plans.
Organizational
Profiling/Prooject
Alignment
Stakeholder
Management
Develop alignment and
commitment around
change, enabling
executives to effectively
sponsor and lead the
change
Communication
Build awareness,
understanding and by-in of
the change through proactive,
consistent and targeted
communications
Metrics
Measure progress and adoption
Business
Readiness
Build organizational ownership of
the change through active
sponsorship and participation in the
design and implementation
Organization Design
Education
Learning
Build the required
knowledge and skills
enabling the workforce to
perform their new roles.
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Align and optimize the
organization with ‘to-be’
vision, including
organization structure,
jobs, performance
measures and HR
processes
Project Management Processes
Initiating
Project
Integration
Management
Develop Project
Charter
Develop Preliminary
Project Scope
Statement
Planning
Develop Project
Management Plan
Executing
Direct and Manage
Project Execution
Controlling
Monitor and Control Work
Integrated Change Control
Project Scope
Management
Scope Planning
Scope Definition
Create WBS
Scope Verification
Scope Control
Project Time
Management
Activity Definition
Activity Sequencing
Activity Resource Estimating
Schedule Development
Schedule Control
Project Cost
Management
Cost Estimating
Cost Budgeting
Cost Control
Project Quality
Management
Quality Planning
Perform Quality
Assistance
Perform Quality Control
Project HR
Management
HR Planning
Acquire Project Team
Develop Project Team
Manage Project Team
Project
Communications
Management
Communications Planning
Information Distribution
Performance Reporting
Manage Stakeholders
Project Risk
Management
Risk Management Planning
Risk Identification
Qualitative Risk Analysis
Quantitative Risk Analysis
Risk Response Planning
Project
Procurement
Management
Plan Purchases & Acquisitions
Plan Contracting
Close
Close Project
Risk Monitoring and Control
Request Seller
Responses
Select Seller
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Contract Administration
Contract Closure
Project Management Processes
Initiating
Project
Integration
Management
Develop Project
Charter
Develop Preliminary
Project Scope
Statement
OCM Strategy
OCM Assessments
Planning
Executing
Develop Project
Management Plan
Aligned OCM and PM Plan
Stakeholder Map
Determine KPI
Direct and Manage Project Execution
Kickoff Meeting/ Project Core Team
Controlling
Monitor and Control
Work
Integrated Change
Control
Project Scope
Management
Scope Planning
Scope Definition
Create WBS
Create OCM WBS
Scope Verification
Scope Control
Project Time
Management
Activity Definition, Sequencing
Activity Resource Estimating
Schedule Development
Schedule Control
Project Cost
Management
Cost Estimating
Cost Budgeting
Cost Control
Project Quality
Management
Quality Planning
Perform Quality Assistance
OCM Gateway Reviews
Perform Quality
Control
Project HR
Management
HR Planning
Key Stakeholder Interviews
Key Stakeholder Alignment Plan
Vendor/Third Party Strategy
Transition Strategy
Training Strategy Plan
Super User Strategy
Acquire Project Team
Develop Project Team
Transition Plan/Team Structure
Org Structure Job/Role Alignment
Key Stakeholder Alignment
Workshops
Training Delivery/Evaluation
Coaching/Mentoring
Manage Project
Team
Project
Communications
Management
Communications Planning
Align OCM Communication with PM
Communication Assessment
Information Distribution
Communication Delivery
Performance
Reporting
Manage Stakeholders
Project Risk
Management
Risk Management Planning
Risk Identification
Qualitative Risk Analysis
Quantitative Risk Analysis
Risk Response Planning
OCM Risk Assessment and Plan
Change Readiness Assessments
Tracking, Dashboards, Issues Lists
Risk Monitoring and
Control
Adoption /Sustain
Plan
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Close
Close
Project
Commitment Phases
Internalize
Sustain
Adoption
Support for changes
Commitment
Knowledge
Acceptance
Coach/Mentor
Train
Educate
Understanding
Preparation
Communicate
Aware
Time
Measurement
Communication and engagement
activities
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Change Management - Solving the Performance Puzzle
A comprehensive Change Management Program addresses critical people
focused activities across four key change management dimensions
Change Management Key
Dimensions
Group
Guide
Outfit
Lead
Own
Organization
Driven
Lead – Key Executives
championing the program
and bringing people along
stated outcomes
 “Story” articulated and shared –
clear definition of “To-Be” State
 Create understanding
of need for program
 Speed and depth of change is
managed effectively within culture  Set direction and goals –
assign clear accountability
 Measurement processes in place
 Gain commitment of key
and functioning
stakeholders
 Use of resources prioritized
 Lead, motivate, reinforce
change journey
Outfit – Equip teams and
Individual
Program
Supported
Guide – Align program with
individuals with skills, tools
and support to succeed
 Effective Communication
 Appropriate performance
management and rewards
 Consistent approach and tools
 Skilled resources from both
partners
 Dynamic and effective training
program
Own – People on the ground





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take ownership of the
success of the program
Build enthusiasm and
commitment
Involve the right people with the
right influence and knowledge
Create local ownership of
performance goals
Reinforce local implementation
planning
Identify and address resistance
Practical Tools/Examples
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OCM Risk Card Tool
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Culture Assessment Tool
This assessment is designed is measure the consistency between the current
culture and the culture required to drive the change. It also assesses the
overall strength of the existing culture (business practices).
Scale of 1 – 7 1 strongly disagree – 7 strongly agree
1. Management Processes - How consistent are the culture’s (business practices)
existing management processes (i.e. planning budgeting, HR, IS with those
required for successful change.
2. Decision Making – How consistent is the culture’s (business practices) current
approach to encouraging decision making (e.g. democratic participative,
authoritarian) with those required for successful change?
3. Communication – How consistent are the culture’s (business practices) influences
on communications (what is conveyed, how openly, to whom, when it occurs) with
those required for successful change?
4. Leadership – How consistent are the cultures (business practices) current methods
for encouraging people to cooperate and coordinate their activities with those
required for successful change?
5. Teamwork – How consistent are the culture’s (business practices) current methods
for encouraging people to cooperate and coordinate their activities with those
required for successful change?
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Communication Approach
In each phase, the plan for implementation/change needs to include a way to address and communicate
each of the items listed. The items are not multiple choice. All must be included in the tactical plan
Current State
Transition
Post-Deployment
Why the change is necessary
What will happen if there is no
change
Define the new process,
culture from perspective of the
audience
Identify and emphasize
external drivers
Acknowledge success and
failure of previous changes
Identify what is not changing
Explain what is negotiable and
non negotiable
Explain the change process
Use measurement to
determine results
Identify a common message
Repeat the message again and
again
Use many types of channels
Change the words and the
tune
Design a positive catch phrase
Create a variety of ways to
express resistance
Provide information and
answers in a variety of ways
Show the progress people
have come
Remind people why they are
changing
Acknowledge the price people
have paid
Present problems and issues
today
Identify future changes
Thanks everyone for their
efforts and the result
Use appropriate measures to
determine results
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?? Questions ??
Thank you!
[email protected]
[email protected]
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