Change Management in an IT Methodology Context

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1 Change Management in an IT Methodology Context The Experience of TEDO (Technology Enterprise Delivery Office) December 2012 Speakers: Lydia Galanti Iphigénie Ndiaye Claude St-Hilaire

2 Agenda Change Management Fundamentals Change Management in IT Methodology: a TD Case Study Lessons Learned Conclusion Questions 2

3 Change Management Fundamentals

4 The number one obstacle to success for major change projects is employee resistance and the ineffective management of the people side of change. Data from 327 companies undergoing major change projects; Prosci Best Practices in Business Process Reengineering benchmarking study (2002). 4

5 What is Change Management? Change management is the application of a set of tools, processes, skills, and principles for managing the people side of change to achieve the required outcomes of a project or initiative A system for encouraging employees to embrace, adopt, and utilize a change to how they do their jobs A framework for enabling successful individual transitions resulting from a project or initiative Organizations introduce change through projects and initiatives These changes impact how individuals do their work (behaviors, processes, tools) The success of the organizational change is the result of individuals doing their work differently 5

6 What is Change Management? PCT: Project Change Triangle Prosci PCT TM Model 6

7 Change Management and Benefits Realization 100% Correlation of change management effectiveness to meeting project objectives Percent of respondents that met or exceeded project objectives 90% 80% 70% 60% 50% 40% 30% 20% 10% 17% 6X! 49% 80% 95% 0% Poor (n=177) Fair (n=441) Good (n=561) Overall effectiveness of change management program *Data from 2007, 2009 and 2011 Excellent (n=107) Prosci. From Prosci s 2012 Best Practices in Change Management benchmarking report n = Number of research participants within 650 companies Participants with the highest level of change management effectiveness were nearly 6 times more likely to meet or exceed project objectives. 7

8 Change Management Objectives Achieve: Desired business outcomes & results Maximize: Speed of adoption Pervasive utilization of change Proficiency Minimize: Resistance Productivity loss Negative customer impact Undesired turnover Strengthen: Organizational agility Personal resilience 8

9 Why Change Management? When change management is not applied, or brought into a project too late, benefits realization is delayed and there are many RE costs: REdesign REevaluate REwork REvisit REdo REtrain REscope REschedule The RE costs are a complete waste as they are unnecessary and do not add any value. 9

10 States of Change INDIVIDUALS Current Transition Future Current Transition Future ORGANIZATION Current Transition Future Current Transition Future Future Current Transition Future Current Transition Future Current Transition Future 10

11 Change Journey Done Right! 1 st communication or 1 st rumor Comfort / security Increasing resistance Decreasing productivity Worry / uncertainty Risk / flight Time Prosci s Flight Risk Model Copyright Prosci

12 Change Journey Gone Wrong 1 st communication or 1 st rumor Dept. A Increasing resistance Decreasing productivity Dept. C Dept. B Dept. D Productivity loss Employee dissatisfaction Passive resistance Turnover of valued employees Tangible customer impact Active resistance Opt-out of the change Time Prosci s Flight Risk Model Copyright Prosci

13 Change Management Roles - Sponsors - Executives & Senior Managers Middle Managers & Supervisors Change Management Resource or Team Project Team Project Support Functions 13

14 Change Management Roles - Sponsors- Executives & Senior Managers Middle Managers & Supervisors Project Team 1. Participate actively and visibly throughout the project 2. Build a coalition of sponsorship and manage resistance 3. Communicate directly with employees 1. Communicate change rationale and impacts 2. Advocate change 3. Coach employees through change 4. Liaise with project team 5. Manage resistance 1. Design the actual change 2. Manage the technical side 3. Engage with CM team/resource 4. Integrate CM plans into project plan Project Support Functions 1. Share knowledge 2. Provide experience and expertise 3. Share tools Change Mgmt Resources or Team 1. Apply a structured change management methodology 2. Formulate strategy 3. Develop and lead the deployment of plans 4. Support other change roles 14

15 Change Management Process & Outputs Outputs: Change characteristics profile Organizational attributes profile Change management strategy Change management team structure Sponsor assessment, structure and roles 15

16 Change Management Process & Outputs Outputs: Plans: Communication plan Sponsor roadmap Training plan Coaching plan Resistance management plan Executed plans 16

17 Change Management Process & Outputs Outputs: Reinforcement mechanisms Compliance audit reports Corrective action plans Individual and group recognition approaches Success celebrations After action review 17

18 Change Management in IT Methodology: a TD Case Study

19 a Federated Model Enterprise CIO TEDO CIO TD Bank US SVP Office of the CIO Lines of Business (LoBs) CIO TD Canada Trust & Insurance CIO Corporate Services Enterprise Services CIO TD Wealth Management CIO Direct Channels CIO TD Wholesale Banking SVP Enterprise Architecture CIO TD Auto Finance SVP Risk & Information Security TEDO: Technology Enterprise Delivery Office 19

20 Change Initiative Problem: TD needs to improve IT project delivery performance Solution: Delivery Excellence (DE) program including 6 workstreams (projects) to create a sustainable framework for improving TD s performance and capabilities Program Objectives: Establish and adopt enterprise-wide processes and standards for technology project delivery. Measure Enterprise Technology performance using a standard set of project delivery KPIs. Deploy adherence processes across the enterprise with initial focus on large projects. Begin to act as One Technology Organization focused on creating a common IT experience for our business partners and technology employees. 20

21 Phase 1 Preparing for Change Define Change Management Strategy 1. Situational Awareness Identify change characteristics for each workstream: What is the scope of the changes? How many people will be impacted in each IT group? Which roles will impacted? What is being changed - processes, systems, job roles, etc? What are the timeframes for the changes? Identify organizational attributes of each IT group: Where do we start from? What is the perceived need for change among employees and managers? How have past changes been managed? How much change is going on right now? Identify specific impacts for in each IT group: How will each role be specifically impacted?. 21

22 Phase 1 Preparing for Change Define Change Management Strategy 2. Change Strategy Definition Assess risks What are the risks to consider for each IT group? What are the risks to consider for each impacted role? Anticipate resistance Are some groups impacted differently than others? Were certain groups advocating a different solution to the same problem? Are some groups heavily invested with how things are done today? Define special tactics What do we need to do to overcome risks and resistance across IT groups?. 22

23 Phase 1 Preparing for Change Define Change Management Strategy Challenges High impact in a short period Stakeholder buy-in Dynamic Program scope Stakeholders hard to identify and geographically distributed (no standard role definitions across IT groups) Strategies Ensure engagement of Senior Advisory Committee as sponsors and change agents inside each IT group Ensure the participation of the right stakeholders and engage them in the deployment strategy Refine the approval and governance model for the DE Program outcomes Ensure the participation of stakeholders from each IT group in the Program work streams, workshops & change management activities Ensure the explicit commitment of IT Executive Team and the Senior Advisory Committee with the program objectives and outcomes Create a close relationship between the DE Program team and the Advisory Committee members Identify criteria to measure the success of the program from a delivery and a change adoption standpoints Engage Advisory Committee members in the identification of impacted roles inside each IT group Analyze different options to ensure delivery of training & support to geographically distributed teams 23

24 Phase 1 Preparing for Change Define Change Management Strategy Challenges Lack of support resources within TEDO to ensure change adoption Alignment with Enterprise SDLC methodology varies across IT groups Strategies Define a support model for each change involving champions inside each IT group Align deployment strategies with the reality of each IT group High # of parallel change initiatives that affect the DE Program scope, timeframe and stakeholders Ensure coordination with other initiatives to validate deployment dates, communications and training periods Frequently communicate DE Change Roadmap to Advisory Committee members and jointly identify high-risk periods for deployment activities Low awareness about TEDO s mission in IT groups Develop distinct communication plans for the DE Program and TEDO as an organization 24

25 Phase 1 Preparing for Change Prepare Change Management Team & Develop Sponsorship Model - Sponsors - Executives & Senior Managers DE Senior Advisory Committee Executives from all IT groups Middle Managers DE Advisory Committee PMO Directors from all IT groups Cross-IT Group Project Teams & Support Functions Workstream 1 Workstream 2 Workstream 3 Workstream 4 Workstream 5 Workstream 6 Change Management Team DE Change Management Team Lead & Specialists 25

26 Phase 2 Managing Change Develop Change Management Plans 1. Situational Awareness DE Communication Plan DE Sponsorship Roadmap 2. DE Change Strategy drive DE Coaching Plan 3. DE Sponsorship Model DE Training Plan DE Support Model Execution 26

27 Phase 2 Managing Change Communication Plan & Execution 1 Target Dates 2 Audiences 3 Owner 4 Communication Channel 5 Key Messages 27

28 Phase 2 Managing Change Sponsorship Roadmap & Execution 1 Awareness Tools Sponsorship Tools SharePoint site Change Story 2 Draft Communications 3 Communications Calendar Prosci PCT TM Model PCT: Project Change Triangle 28

29 Phase 2 Managing Change Coaching Plan & Execution -Sponsors- Executives & Senior Managers Change Management Summary Presentations Different Levels Senior Advisory Committee Middle Managers Advisory Committee Cross-LoB Project Teams & Support Functions Program Stream Leads Change Management Workshop Change Management Training Biweekly One-to-One Meetings with each AC member Weekly Change Management follow up with Stream Lead Provide Communication and Training Toolkits Coaching Activities 29

30 Phase 2 Managing Change Training Plan & Execution Training Process Training Requirements Training Curriculum Training Schedule Training Agenda Training Reporting

31 Phase 2 Managing Change DE Support Model & Execution Support Cycle Support Structure Support Process Support Matrix Champions Meeting Workspace 31

32 Phase 3 Reinforcing Change 1 Listen to employees & gather feedback -Training Surveys, - Champions feedback - ADKAR * Assessment 2 Diagnose gaps & manage resistance - Adoption KPIs - Gap Analysis 3 Implement corrective actions & celebrate success - Training - Communication - Coaching - Sponsorship * Prosci ADKAR Model: Awareness, Desire, Knowledge, Ability, Reinforcement 32

33 Phase 3 Reinforcing Change ADKAR Assessment Dimension Aware of the need to change Desire to participate and support the change Knowledge of how to change Definition The impacted person or group understands the business reasons for the change, the impact on day-to-day activities and the risks of not changing. The impacted person or group is motivated to be part of the change, supports it and looks forward to it. The impacted person or group has the skills and knowledge required to be successful with the change. Ability to implement the change on a day-to-day basis Able to Reinforce to keep the change in place The impacted person or group is able to perform the new duties required by the change and can get support for problems and questions. The impacted person or group is committed to keep the change in place and is rewarded for performing the new way. 33

34 Phase 3 Reinforcing Change Gap Analysis Workstream 1 - Deliverable A Deployment: October 2012 ADKAR Assessment Results: Observations LoB1 LoB2 LoB3 LoB4 LoB5 LoB6 LoB7 LoB8 LoB9 LoB10 Scores went from high to low for Awareness (no sense of urgency) and Desire (satisfaction with current estimating approach & mixed experience with pilot version of the tool) Low scores on Knowledge (lack of information about the new tool) Required Actions Controlled availability to further improve tool and increase desire Organize demo during AC meetings Develop change story to help AC members socialize the tool within their IT group 34

35 Lessons Learned

36 Lessons Learned What would we do differently? 1. Obtain measurable Program benefits To better promote the Program in the impacted IT groups To be able to better measure change success at the end of the Program 2. Allocate more efforts on phase 1 Preparing for change To improve knowledge of stakeholders and change impacts To better evaluate sponsorship in each IT group To better assess and fulfill changement management team requirements To enhance risk and resistance assessments and improve the effectiveness of the CM Strategy 36

37 Lessons Learned What would we do differently? 3. Deliver change management training to Sponsors and Program team earlier To create awareness about importance of change management on program success To officialize expectations and obtain buy-in about their change management roles & responsibilities 4. Embed CM activities in Program Management activites To better plan and assign change management efforts throughout the Program To be able to make more realistic Program delivery commitments 37

38 Conclusion

39 Conclusion Why Change Management in IT Methodology? IT is strategic and critical to the success of financial organizations The IT reality is complex and fast-changing The application of IT methodology increases IT s ability to achieve organizational benefits IT methodology changes have significant impacts on the way IT people work For changes and related benefits to quickly realize, specialized IT change management resources are required 39

40 While it is called the soft side of change, managing the people side of a change is the most challenging and critical component of an organizational transformation. The people side of change is not the soft side of change; in reality, it is the harder side. Prosci 40

41 Questions Do you have any questions? 41

42 References Change Management references Prosci: Contacts Lydia Galanti: Iphigénie Ndiaye: Claude St-Hilaire: 42

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