Au project-management-seminar-december-2010

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Morgan McKinley | Project Management

Breakfast Seminar Report - December 2010

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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010

The market has

e Establishment Ballroom

in Sydney. The event, ‘Growing and Sustaining a Change Management Capability – Achievable or

rking opportunities.

wyk discussed how to bring senior

stakeholders on the change journey and the development of a change operating model.

Chris MacDonald - Independent change management consultant

INTRODUCTION

This year has been a very interesting time for project and change management.

picked up and projects are back in full swing. Morgan McKinley Sydney held its fourth successful

project management breakfast seminar on Thursday 11th November at th

Catch 22 Impossible?’ and organised by Morgan McKinley’s Project Management team to provide

expert advice from guest speakers, an update on the market and netwo

At the event, Chris MacDonald and Jacques van Schalk

GUEST SPEAKERS

rtaken any formal

re to promote

ting model’ as the

eed to happen for the successful creation, maintenance, growth and

sustainability of an organisational change management capability. The relevance of this topic is not

restricted to change function leaders. It is equally important for change practitioners, project

managers and hiring managers to have opinions on operating models.

Chris talked through his role as a change leader at AMP and presented the operating model that he

developed for the organisation.

Chris’ discussion was inspired by his personal experience. He has not unde

research or web search, believing you can do that at any time. His intentions we

thinking around setting up and maintaining a change capability.

Chris discussed the context of the morning’s presentation and defined the ‘opera

framework of things that n

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The Operating Model

d

the model to facilitate thinking and discussion, and urged attendees to change, add or delete labels

and boxes to suit their needs. Chris’ detailed slides (p5 onward) address both the ‘obvious’ and

‘not-so–obvious’ points of each element of the model.

On first inspection, the below operating model may appear simplistic. Chris stated that he simplifie

Organisation

Capability

Governance

Sponsorship Business Unit Alignment

EngagementSupply

& Funding Reporting

Attract & Retain Develop Grow

3



How the Operating Model Should Work

Most companies assess the maturity of their change management functions ag

from ‘pioneering’ through to ‘mature’, such as the one below. In doing this they

overly harsh regarding

ainst a continuum

are likely to be

some elements of the operation and similarly overly complimentary against

some other elements. It is much more useful to assess the maturity of each element as this allows

the leaders to see where the most effort is required. It also allows for the informed planning of the

next steps for each element.

MaturePioneering

Be crystal clear about where your organisation lies on this timeline for each element

of the operating model. Plan and execute your approach to fit the current state and set up for the next level

of maturity. Bear in mind, elements of the operating model will mature at different rates.

Sell Manage

4



The Operating Model in Practice Chris talked through an example of what to consider when preparing a change management graph.

The below example shows that less needs to be done to secure a supportive sponsor and more

work is required on reporting and alignment etc.

Pioneering Mature

Sell Manage

Sponsorship

Business Unit

Alignment

Engagement & Supply

Funding

Reporting

Attract & Retain

Develop

Grow

5



Chris then talked through his final set of slides which discussed the model in more detail:

GAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010

Chris then talked through his final set of slides which discussed the model in more detail:

Organisation Sponsorship Business Unit Alignment

Obvious Subtle Really?

You need a sponsor. The more senior the better. Well regarded is good. Able to influence peers across

the business and CEO. Make sure they have bought

into your approach and plans – you don’t want them changing things too much along the way (interfering).

Ideally someone with interest in projects and change across the organisation, without bias towards one division.

Someone who has experienced change done well – has religion.

Your sponsor needs to advocate the benefits of growing internal capability rather than buying it.

“You get the sponsor you deserve” – work really hard at the relationship.

A link with strategy will provide surprising benefits.

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Your sponsor’s role will have the biggest influence on where the change management function resides.

Ideally it is a part of the business that provides other support services.

It should be well regarded for quality and value.

The function or associated with organisational chan / re-structures / MAD etc.).

team should be supporting

ge (projects

If positioned in the same unit as project

management support or PM ‘pool’, you need to establish a clear understanding of the difference :

Same stakeholder, different conversation

Accountability (outputs vs. outcomes)

Delivery risk vs. benefits risk.

business

s

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Re ss of where ‘he function, de

n good reproject support teams

ct Managers PMO Business Analysts /

SME’s HR L&D / OD Comms Strategy Recruitment / Contracts Finance.

gardle ome’ is velop

lationships for the chang

aiand maintwith other (and their managers):

Proje

EVERY componoperating moderelationships.

ent of the l relies on

maintaining Establishing and recognitionsource of chacapability is central to delivering quality and value.

You can’t build a portfolio view of change if you are not in the loop of all change initiatives.

that there is one nge management

It pays to be paranoid – test s well before they play

have a ‘plan B’. Read the tea leaves – listen to

rporate mandate delivered ar us businesses (esp.

financials) and make adjustments to your model to accommodate constraints.

Understand short and medium term strategies – they provide insight to the nature of change about to hit.

Take a lead from the ‘mood’ projected by CEO / Marketing

scenarioout and

the coto the v io

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Get in the loop – theto start is the buapproval proc

best placsiness case

ess – become

havdifferent engagement processes – find it out what they are.

Develop a multi-channel sourcing model for change people including internal transfer, secondment, redeployment etc.

Utilise formal and approved facilities (PSAs / HR / Contracts Management).

e

a

e signatory.

Different BU leaders may

Your relationship PMO(s) is crit

with

Negotiate sourci

party specialists, informal network, Uni’s etc.

Keep a keen eye on your supply and demand equation – having roll-over options is a great retention strategy for high performers.

Bench time is expensive and an opportunity to do some maintenance, R&D, training, tool

the ical.

ng approach for cupboard is when the formal

bare including 3rd

Different BU managers or t sponsors will have

ent biases and hot buttons

Consultants – beat them on price

Shared services – utilise their staff as a development opportunity

If all else fails – discount If it is still just not working

with someone – provide alternative resource options.

projecdiffertowards:

Governance Engagement &

ly SuppFunding Reporting

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Usually perception of vainfluenced by cost – usecosts in busines

lue is realistic

s caestimates regardless of acttransfer of funds.

If not charging, track and report as if you were.

Theory points to ROI and % benefits attributable to change – use this in ‘sell mode’ but don’t rely on the stats being available post implementation.

se ual

If charging use torganisation’s

he standard loading

or like’

e market rates

– allows for ‘like fcomparison.

Provide accuratas notes in the financial model – get accurate benchmark data.

Be prepared to discount (or have tiered rates) – especially where there are clear capability differences within your team.

Based on your knowledge of the pipeline, work with key stakeholders at budget time to secure some funding ahead of

As you move up the maturity udget for and load day

with as much OPEX or ructure costs as allowable

ould end up fully recov red.

Try to fund or part fund development for all the team (including contractors and consultants).

Don’t expect all your sponsors to be on top of the organisation’s financial processes (charging, loading etc.).

curve, bratesinfrast– ultimately you sh

e



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i

data – the format

are of corporate or group reporting that is used for Board etc. They may ask for a contribution.

The ‘Portfolio View of Change’ will come up eventually. Think about how this might work as you set up the reporting structure – even before it is required.

Be clear on the must do PMOs will have tigh

schedules – giv

reports: t

e them on on time. u for it.

useful informatThey will love yo

Each PM will requirefrom their CMmay differ.

Be aw

PMs or Sponsors who are new to change mayask for. Have a CMs to use

If the PM ha

not know what to template for

f they are asked. is a template –

review it to make sure it contains data that is required for consolidated reports – standard data is more important than report format.

Beware of PMs who don’t ask for a report – they are probably only reporting the cost of change – not the benefits.

It is very easy to over-engineer ng data design and ting tools.

You will get more accurate and timely data from people if it is simple and easy to consolidate.

Consider adding to or changing the focus of what you report depending on the phase of the project.

Make sure your people track actual time – even if the PMs use standard days.

reportisuppor



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You want to attract thee best for e

best ach role

e will be interested in and value: Role clarity Challenging work A solid CM operating model The opportunity for

development Belonging to a community Recognition The potential for roll-over

projects.

people – th(project).

Good peopl

Be deliberate in identifying the competency and experience you need for a particular role – interview to target these.

Don’t oversell a role or the organisation – the promise must equal the experience.

Induction is important for all new people (contractors / perms / temps) – take it seriously and follow-up: Buddy / mentor Performance agreement Feedback One-on-one support.

Capability Attract & Retain Develop Grow

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Personal developmee v

performers. Design a development program

that enhances individual, team and organisational capability – advertise (and sell) the program – this also improves the reputation of your team).

Consider a capability assessment (CMI).

Training in your Change Framework should be available.

nt opportunities ar alued by

the top

everyone – one ofretention factors for high

Invest time in developing the (CoP) – this will

rofessional association for all people involved in change.

Link people up with CMI. Peer coaching or more formal

presentations at team meetings will encourage people to attend.

Delegate development of the tools – they might then use them.

Don’t forget broader capability development – especially leaders.

CM community provide an internal p

Investment in development will attract the best people, improve the quality of delivery and enhance the team’s reputation. You can then recover the cost by increasing your margin.


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‘Grow’ in this context is really about organisational capability.

essful

nt

Leadership training Transfers and

secondments Deploying best practice

methods and tools. Like everything else your

approach needs to take the organisation from a starting position to a stated and agreed future position – this will require support from your sponsor.

Growth will come by: Delivering succ

projects Training permane

employees

It is not necessary to grow the number of change managers in the team – but it does help.

Try to get the change competencies (CMI) included in the organisation’s competency model (LMS / PDs / career paths / development guides etc.)

Getting a change intranet site up can be daunting but will help grow capability.

If you provide ‘top shelf’ leader training, they will be more open to sharing resources.

Tap into the performance cycle to encourage team leaders to budget for selected people to attend your training. Secondees will benefit the most from your change fr ework. am


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Hot Spots

Chris finished with a final slide that summari

ponsor.

e process – recruit accordingly.

er focussed EVERY time.

mportant but not every situation fits neatly.

p ahead.

Development initiatives will assist you to attract and retain talent – ho er the project should always come first.

Cost models need to be sensitive to the financial culture and charging precedent – know

where your organisation is on the maturity curve. The portfolio or ‘single view’ of change is highly desirable and usually highly complex –

prepare early by setting up standard reporting from the start.

sed areas to look out for and be mindful of.

Work really hard at the relationship with your s Change management is a creativ

No two assignments are the same – be flexible and custom Frameworks are i

Relationships – relationships – relationships.

Understand short and medium term business strategy – be one ste

wev

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Speaker 2 – Jacques van Schalkwyk

some situations), but done correctly, it can help individuals to deal more effectively with change.

Change management also aims to minimise the impacts of change on the organisation and its

Change management is a leadership responsibility and involves all facets of the business.

Mobilising the organisation’s leaders to take active roles is vital. This will help employees to deal

with change constructively and will enable the organisation to operate smoothly post-

discussing a project

a massive restructure and de-layering exercise that

affected 40,000 employees globally; a significant change for the organisation. Jacques was asked

s limited. ANZ’s most

handled poorly. Key

erstanding of the role

In preparing for the project, Jacques considered the example of a restaurant that went through a

transformation exercise. Everything was changed appropriately down to payment systems and

even the décor. The experience was fantastic but when customers were served, the waitress was

rude which upset them. The result was that customers did not return. The waitress’ employers

thought she was wrong to behave in this way and the only solution was to fire her for misconduct.

The role of change management is not about getting people to like change (which is impossible in

bottom line.

implementation.

Case study – ANZ

Jacques gave a practical example of his experience in change management by

he led for ANZ in 2008/09. ANZ went through

to lead the change management project at a time when change management was poorly

understood in the company and ANZ’s history with change management wa

recent employee engagement survey indicated that change management was

to the success of the project was ensuring all stakeholders had a proper und

change management could play within the organisation.

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was brought on the

f change – was she given training in new skills, did she continue to get paid on time, were

there issues with other colleagues that might make her behave in a way that was detrimental to the

change project is

on individuals to reduce the

likelihood of any business risk as early on in the process as possible. The potential business impact

ntries, as well as

nagement network –

ot enough to reach 40,000 employees. Therefore the strategy from the outset

was to spearhead change by getting leaders to manage the change process. As well as leading,

p their sleeves and get involved to minimise the impact of the transformation

anagement team was to

plement this top-

evel of commitment at senior level. There is a

difference between formal and informal behaviour i.e. what is agreed publicly in meetings and what

people will actually do in practice.

Jacques believes that the seven most critical corner stones that need to be in place for a successful

business transformation can be determined by conducting one-to-one structured interviews with

senior executives.

However, Jacques felt that what they really needed do was look at whether she

journey o

business?

The role of change management is to ensure that the business impact of the

managed effectively. This means minimising the impact of change

to ANZ was enormous due to the fact that it affected 40,000 staff in several cou

other stakeholders. Significant market and reputational risk was therefore involved.

ANZ had a small core team of five change managers and a larger change ma

however this was n

they needed to roll u

on the organisation and its people. The role of Jacques and his change m

equip and support leaders in doing this. They used a step-by-step process to im

down approach at ANZ:

Step 1 – Start at the top

It is crucial to ascertain and understand the l

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low change managers to ask the following questions:

case?

4. Are you confident that the projected business benefits will be realised?

5. Is the program set up for success?

It is important to note that there are often people who are considered to be completely supportive of

Step 2 – Mobilise and equip leadership of the organisation

ess. Jacques used a

simple change management framework which helped to manage two major factors affecting the

implementation of the project: rational response versus emotional response to the concept of

change.

He discovered that the challenge for leaders in the business was to get the balance correct – there

was a need to understand why, what and when as changes took place across the company.

These interviews should al

1. Do you support the business

2. Do you buy into the vision?

3. Do you support the change strategy?

6. What is the perceived alignment of your peers?

7. What is your own personal alignment?

the change, however if they were in charge of the project they would do things differently.

Therefore, the change manager needs to have an action plan with true buy-in and must not take

top-down support for granted.

ANZ’s top 1,300 leaders were critical to the company’s transformation proc

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Understanding the emotional response to these facts required analysis on three levels:

before being able to help others understand

2. Individual – working to help others in the company gain clarity on the scope of the project

ct which included

er in the organisation

eps to deliver change in their part of the business with additional resources

available to coach on an ongoing basis. The difference was that they were not being asked to ‘talk

nswering key

rs a real role in the

Talent management was also a key focus; it was important to ensure employees remained calm

throughout the process. Within the toolkit of resources

th concerned

he role of change

ganisation’s human capital.

Step 3 – Assess and manage the individual

To ensure effective understanding of change at the individual level, Jacques’ team used a tool to

practically assess the impact on direct reports and to help the business leaders in managing staff

through it.

1. Self – it starts with each leader,

3. Themes

Jacques and his team used a ‘change leader manual’ throughout the ANZ proje

the six steps outlined here as well as practical guidelines and tools. Every lead

worked through all six st

up’ or ‘sell’ the project – instead they were asked to take practical action e.g. a

questions such as ‘what do your people need right now?’. This gave leade

change management process.

and were continuously well-managed

available to leaders, a script was provided of how to conduct conversations wi

employees. The change management team at ANZ asked leaders to take on t

mentors in developing the or

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olkit provided guidance on how to manage individuals by engaging in one-to-one

conversations with them to explain job role changes that would evolve from the transformation

Step 5 – Re-mobilise teams

ional guidelines and facilitate a team exercise immediately

Step 6 – Transition and handover management

how to manage

s over. The manual

process of handover.

• The process should start by focusing on the Board of Directors first. They need to continue

the change work done by leadership through various activities which provide support to

through the change

practical guidelines, hints and tips on how

employees could help themselves during the change project.

• Ensure that senior stakeholders are engaged. In the ANZ project this involved:

o Briefing the Board on a weekly basis and HR general managers on a regular basis.

They also held monthly one-to-one meetings with the HR team so it could understand

what was being undertaken, why and when to support the managing directors and

their teams.

Step 4 – Guidelines for change conversations

The to

project.

It is necessary to provide clear organisat

after the change project has taken place.

The change leader manual used by Jacques and his team provided advice on

change across the business when an external change management team take

included advice such as:

• Documents covering strategy and change should not get lost in the

employees.

• Leaders should enrol themselves in workshops to manage themselves

process. ANZ used an intranet site offering

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were being taken care of.

ho acted as a project

tor.

anual on a regular

cated which steps

e plan was and how

each of them could have role in it. This had to be done proactively without leaders

emonstrate they

r the HR Director to

ecutives were all

e of the project. The conversation covered issues such as ‘how can we

lead people to be more change resilient?’ and ‘what should we as leaders do to ignite

workforce?’

designing a ‘new

beginnings’ workshop which was effectively a mini-strategic planning session to support the

Summary: critical success factors

• Leaders need to understand the purpose of change management and the role they play in

the process

• The change process needs to be understandable with a clear roadmap

• Change leadership should be practical – use tools and coaching

o A change management update was also sent to the Chairman to reassure him that

the staff and organisational aspects of the business

o Weekly meetings were held with the group Managing Director (w

sponsor) to discuss the project strategy alongside the HR Direc

o The progress of leaders was tracked and reported against the m

basis to ensure sustained activity and support. This clearly indi

were not being followed.

o Leadership in the organisation needed to know what the chang

having to guess how they should get involved.

o It was important to create situations where top leadership could d

were actively on the journey e.g. a leadership conference.

o The change management team provided a scripted interview fo

talk through with top members of the Board to demonstrate that ex

on supportiv

the spirit of our

• Supporting leaders and people beyond the change effort. This involved

communications process.

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anagers should measure and report to key stakeholders on a regular basis;

or departments to ensure transparency and

• Change leadership should always be driven from the top

importantly – do not over-plan and/or under-deliver

• Leaders must be engaged throughout the process

• Change m

comparing the progress of different divisions

identify issues

• Most

ell – Change Management Institute

mbers were

but it hasn’t. Why is

this?

to adjust my team depending

For change management practitioners, it’s no surprise that there is a split between contract and

permanent workers. On one hand, there is a genuine need for specialist contractors and

consultants who come from a background where you can pick and choose people that are backed

by an infrastructure of change capability. However, equally sustainable internal capabilities are also

important. This kind of split is indicative of where the the market for change management

practitioners is and probably shouldn’t change right now.

Q&A SESSION

Q. Helen Campb

When the Change Management Institute was set up five years ago half of all me

contract workers and half permanent. Helen expected this to change over time,

A. Chris MacDonald

A 50/50 split within the change management community is good. I like

on the business set-up and the environment. Generally it’s better to have more contractors to allow

the business some flexibility.

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Q. Paul Webster – CommInsure

as a sensitive

are the entire project as well as

time allowed for the initial internal announcement. There was an opportunity to engage the press

mmunicated to staff

ctive.

CEO communicated

anagement team provided support materials to the

Board and Managing Directors to ensure communications were leader-led and not too clinical.

ging. It was

important that the business had a head start on what staff might read in the press by ensuring that

everybody had the most accurate internal information first.

ation continued for several months after the project was formally completed,

Q. Helen Campbell – Change Management Institute

Has he left ANZ in a better state than he found it?

A. Jacques van Schalkwyk

Feedback from ANZ was that it was an example of good, solid, constructive change management.

This came from all leaders who actively participated as well as the internal change management

team. ANZ created a Global Head of Change Management role after the project was completed.

How long did ANZ carry on before they felt the project was truly embedded?


Corporate communications were also involved in the project, which helped as it w

project with a very specific start date. It required ample time to prep

office to provide input into how the messages of the change project would be co

across the business and to review them from an organisational change perspe

The communications cycle was frequent in the beginning. For example, ANZ’s

to all staff on a fortnightly basis. The change m

There was a strong focus on face-to-face communication and consistent messa

This level of communic

to raise morale and restore confidence across the business.

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on – is there a minimum or maximum time that can be recommended if

minimum?

embedded to ensure it is sustainable once it has gone live. When

I put in bids for funding past ‘go live’, three months is a typical timescale. One solution for lack of

ustainability needs to be pushed back into the project before it goes live, so

Change managers need to push to keep the project alive. Some project managers will look at the

finishing line and may overlook budgeting for the period after the main project is finished. There

project beyond the core transformation to ‘tidy

if doing it again?

uccessful without tapping into

all the different mechanisms within the organisation e.g. communications, leadership etc. They

need to be allies throughout the process. Equipping those allies to contribute in a constructive

manner is crucial to success, being evangelical is not enough – give key people a role will help

them contribute. Define the role and support them in executing it. Make sure they are told

everything will be done to ensure they get a suitable role in the project and in return invite them to

help by becoming a role model within the organisation. A well-defined role will help get people on

board – something that the change management community needs to work harder at.

Q – to both speakers

Post implementati

organisations don’t want to support a project for long? Should three months be a

A – Chris MacDonald

Change has to be measured and

follow-through is that s

a lot has been done before the end date.


should be a strong business case for extending the

up’ and make sure the business is set up. It won’t just happen, it needs to be engineered and made

to happen.

Q. Nadene Serman – Serman Consulting

What are the lessons learnt from ANZ – what would be done differently


One of the key lessons learned was that managing change can’t be s

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***

ac and AMP.

Jacques has over 10 years’ experience in change management and designed the change

management approaches, frameworks and methodologies of Westpac, ANZ and APA. He also

authored the book “On Track to the Top”.

SPEAKER BIOGRAPHIES

Chris MacDonald Chris is an independent consultant whose recent assignments include Westp Jacques van Schalkwyk

morganmckinley.com

Level 10, 17 Castlereagh Street

Sydney, NSW 2000

Tel: +61 (0)2 8986 3100

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