Neil WhiteManaging Director – ChangeVista Ltd07890397046

Benefits Managementto enable change

APM – North East Branch27th January 2014

Neil White Change Management Specialist

>20 yrs RAF (System Engineering+)Change Management for >20yrsBusiness Improvement (SEI CMMI) - Assessment and Services LeadTransformation Change ManagerBenefits & Business ChangeMSc Change Management

‘an ardent believer that the ability to change is more important than the required changes themselves’

Association for Project Management (APM)Enabling Change SIG – Change Futures Pillar leadBenefits Management SIG - Secretary

Benefits Management SIG

‘To develop and promote benefits management as a core driver of successful project, programme

portfolio and change management’

The SIG’s mission is ‘to improve the change capability of

organisations, teams and individuals’

Enabling Change SIG

‘my standpoint is that although outcomes are greatly improved through

the application of each one of these disciplines – they become particularly effective when implemented together’

‘the only constant in life is change itself’

The simple truth about change

Herakleitos of Ephesus (c.535 BC -475 BC) Greek philosopher

Goal

ChangeManagement

KnowledgeEffort

Change Management & Knowledge

Project Managers?

Change Managers?

Benefit Realisation Managers?

What is your main profession?

Business Change

Managers?

Other?

What change problems have you experienced?

Mistake #1 – Starting too lateMistake #2 – No winning strategyMistake #3 – FanfareMistake #4 – Employees hear it from the media firstMistake #5 – Failure to make a compelling and urgent case for changeMistake #6 – Only focusing on the rational elementsMistake #7 – Not dealing proactively with resistanceMistake #8 – Lack of communicationMistake #9 – Not enough leadershipMistake #10 – Ignoring current corporate cultureMistake #11 – Failure to understand and shape the informal organizationMistake #12 – Not involving the employeesMistake #13 – Over-reliance on structure and systems to change behaviorMistake #14 – Failure to distinguish between decision-driven & behavior dependent changeMistake #15 – Lack of skills and resourcesMistake #16 – Focusing only on the long termMistake #17 – Failing to plan small successive successesMistake #18 – Using the wrong indicators to measure progressMistake #19– Assuming that change is complete once initial goals are achievedMistake #20 – Excessively open-ended process

Mistake #1 – Starting too lateMistake #2 – No winning strategyMistake #3 – FanfareMistake #4 – Employees hear it from the media firstMistake #5 – Failure to make a compelling and urgent case for changeMistake #6 – Only focusing on the rational elementsMistake #7 – Not dealing proactively with resistanceMistake #8 – Lack of communicationMistake #9 – Not enough leadershipMistake #10 – Ignoring current corporate cultureMistake #11 – Failure to understand and shape the informal organizationMistake #12 – Not involving the employeesMistake #13 – Over-reliance on structure and systems to change behaviorMistake #14 – Failure to distinguish between decision-driven & behavior dependent changeMistake #15 – Lack of skills and resourcesMistake #16 – Focusing only on the long termMistake #17 – Failing to plan small successive successesMistake #18 – Using the wrong indicators to measure progressMistake #19– Assuming that change is complete once initial goals are achievedMistake #20 – Excessively open-ended process

http://www.torbenrick.eu/blog/http://www.torbenrick.eu/blog/

My change management observations

Management agenda – underestimation of what is required to achieve a successful outcome

A cultural inability for staff and management to talk

An inability or willingness to learn from experience

Inappropriate change management approaches

Poor to non-existent appreciation of stakeholder needs

Failure to recognize the importance of roles

The knowing-doing gap John Thorpe - MOVING BEYOND WORDS TO ACTION (August 2008)

The Dilbert Phenomena

Change Models and what they tell us

Need for Change

Change Behavior

Change Direction

Change Sustainability

1. Establish a Sense of Urgency

2. Form a Powerful Guiding

Coalition

3. Create a Vision

4. Communicate

the Vision

5. Empower Others to Act on the Vision

6. Plan for and Create Short Term

Wins

7. Consolidate Improvements & Produce

More Change

8. Institutionalize

New Approaches

CommittedLeadership

Kotter's Eight Phases of Change

Change Sustainability

Change Behavior

ChangeDirection

Need for Change

Kotter's Eight Phases of Change

1. Establish a Sense of Urgency2. Create a Guiding Coalition

3. Develop a Vision & Strategy4. Communicate the Change Vision

5. Empower Action6. Generate Short-Term Wins

7. Consolidate Gains & Produce More Change8. Anchor New Approaches

The ADKAR Model helps organisations understand change from the position of both individuals and groups

Source: Prosci ADKAR Model

Awareness

Desire

Knowledge

Ability

Reinforcement

ADKAR Change Model

• Understand the need for change• Understand nature of the change

• Sustain the change• Build a culture and competence around change

• How to change• Implement new skills and behaviors

• Support the change• Participate and engage

• Implement the change• Demonstrate performance

Lewin’s Three Stage change process is a simple framework in which to understand and manage organisational change

Ensures that employees are ready for change

Unfreeze

Execute the intended change

Change

Ensures that the change becomes permanent

Refreeze

Lewin, K (1952) Field Theory in Social Science

Kurt Lewin’s change

model

Apparent‘equilibrium’

Refreeze

Change

Kurt Lewin’s change

model

Unfreeze

Lewin, K (1952) Field Theory in Social Science

Kubler Ross Transition Curve

NumbnessShock

Denial

Fear

Anger

DepressionUnderstanding

Acceptance

Moving On

Mo

ra

le &

Co

mp

ete

nc

e

Time

Change Challenge - Individuals

Adams, Hayes & Hopson (1976)

Understanding the organisation

French, W and Bell, C (1984) Organizational Development: Behavioral Science Interventions for Organization Improvement,

Question: What do each of these change models have in common?

Answer:An appreciation that people matter, context matters, engaging with the change process matters, knowledge of the change matters

What can we understand from these models?

Communication: what to say, when to say it, who to say it to

Engagement: opportunity to establish meaningful stakeholder relationships

Method: people knowing what to do and when it should be done

Key Change Enablers

Accountability: people knowing who is responsible and for what

Benefits Realisation

Management

Having identified the key reasons for poor change performance (outcomes)

and how change models have been developed to help mitigate them, my aim now is to show how Benefits Realization Management (BRM) can overcome them

A Benefits Management Model

5Practices

7 Principles

BenefitsManagement

Practices

Benefits Management – 5 Practices

Identify & Quantify

Value & Appraise

Plan

Realize

ReviewBenefitsManagement

Practices

Align benefits with strategy

Start with the end in mind

Utilize successful delivery methods

Integrate benefits with performance management

Manage benefits from a portfolio perspective

Apply effective governance

Develop a value culture

Benefits Management - 7 Principles

The centrality of BRM

BenefitRealisation

Management

BenefitsIdentifies &

analysis

Plans

Highlightsdependencies

Stakeholders

EngagesReviews &

Governance

Vision orEnd Goal

Establishes

Enablers &Business Change

Defines requirements

Blueprint

Shapes

Roles

Clarifies

BusinessCase

Informs

DeliveryStructures

Qualifies

Risks Identifies

MeasuresDetermines,

tracks & reports

Drives

Benefits Realisation Management, Gerald Bradley, Gower

An overview of the BRM Process

The BRM process provides assurance that an organisation’s investment in change stays aligned to its strategic goals

Vision

Strategic Objectives

Functional Objectives

ManageBenefits

Changes

But BRM brings much more to the change process…….

Vision & Objectives

Identify Benefits & Changes

Define Initiatives

Optimise the initiatives

Manage Initiatives

Manage Performance

EngageStakeholders

Steve Robinson – June 2014 Project Magazine

Stakeholders and BRM

Projects [APM, BoK6]

Project, Programme, Portfolio Relationship

Programmes [MSP, 2011]

Sponsor/Business Change Managers

responsible for benefits realisation

Organisational Strategy

Portfolio

Positioning of related disciplines

The order of precedence shown here ensures that the resulting organizational changes meet the required business needs

Benefits Realisation

Management

ADKAR

Lewin

Kotter

Kubler-Ross

What it boils down to is that BRM is best implemented with a Change Management mindset and Change Management should seek to capitalise on the opportunities provides by BRM

Neil WhiteManaging Director – ChangeVista Ltd07890397046

Benefits Managementto enable change

QUESTIONS?