Case Study: BC Hydro s Enterprise Change Management Framework From the Ground Up

Transcription

1 Case Study: BC Hydro s Enterprise Change Management Framework From the Ground Up by Birgit Reinders Manager, Business Transformation BC Hydro BirgitReinders,BCHydro senterprisechangemanagementframework FromtheGroundUp ProsciGlobalConference,April25,2010,LasVegas,Nevada. Page1of9

2 BirgitReinders,BCHydro senterprisechangemanagementframework FromtheGroundUp ProsciGlobalConference,April25,2010,LasVegas,Nevada. Page2of9 Abstract BCHydroisfacingatimeofgreatchangeand uncertainty,stressingnotonlyitsbusiness operations,butexposingitsemployeestoa hostoftransformationalprojects.the companyneededaconsistentandoptimized approachtoensurethatimpactedemployees aresupportedbefore,duringandafterthe change. Thiscasestudydescribeshowagroupof changemanagementpractitionersfrom acrossthecompanycametogetherina coordinatedefforttosharebestpractices, knowledgeandtools,andendedup developinganenterprisechange ManagementFrameworkforthethirdlargest electricutilityincanada. Thisscalableandflexibleframeworkoutlines principlesandprocessstepsthatcanbe appliedforchangeinitiativesfromthesimple andquick,tothelargeandcomplex.itis intendedtoprovidetoolsforfront line managers,aswellasacommonand consistentmethodologyforendusers, stakeholders,contractorsandemployees. The Challenge Company Context BCHydroisthethirdlargestelectricutilityin Canada,andoperatesintheProvinceof BritishColumbia.Over5,000employeesare organizedalongvariousfunctionalbusiness Groups,suchasFieldOperations,Generation, andfinance.incommonwithmany companies,bchydroisembarkingona varietyoftransformationalprojects,which meansexposingitsstafftobroad scaleand numerouschanges.thispresenteda challengetoitsapproachindesigning, planning,implementingandsustaining changewithintheorganization. Thecompanyhadanumberofindividuals involvedinchangemanagementfunctions acrosstheorganization.mostofthesewere workingwithinspecificbusinessunitsoron independentprojects,andthushadonly limitedaccesstothescaleandscopeofthe changesacrosstheorganization,andthe resultingdependencies,linkagesand opportunitiesforintegrationbetween initiatives. Notatypicalformostorganizations,an employeepulsecheckonthetopicofchange managementfoundthatfewhadasolid understandingoftheconcept specifically whatitisandhowitcanbeused.many individualssawchangemanagementas primarilyacommunicationorconsultation function.somerecognizedthevaluethe practicecouldbringtosuccessfulproject implementation,basedonpositive experiences.however,veryfewunderstood therolethatchangemanagementcanplayin supportingbusinessstrategyandin deliveringenhancedbusinessresults. Evolving Change Thecomplexityofchange boththenumber ofchangesbeingintroducedatagiventime andthespeedatwhichtheyareintroduced iseverincreasingatbchydro.giventhe evolvingmandatethecompanyhasin supportingthedevelopmentoftheprovince ofbritishcolumbia,thenatureofthechanges isalsoshifting.insteadofthesebeing incrementalandfocusedonspecificbusiness areasorprocesses,moreandmoreare transformationalandenterprise wide. AsBCHydrocontinuestodeliveronits strategy,theneedtoensureaconsistentand optimizedapproachtomanagingthese transformationalchangesbecameevermore apparent.theworkofthevariouschange managementresourceswithinthecompany neededtobemoreeffectivelycoordinated, andthemisconceptionsabouttheroleof changemanagementneededtobeaddressed.

3 Building an Enterprise Solution Enterprise Change Management Network (ECM) Againstthisbackdrop,in2006thechange managementpractitionersdispersed throughouttheorganizationdecidedtoform acommunityofpractice,tocometogetherto ensurethatchangeatbchydroisaddressed inacoordinatedandintegratedfashionand infullsupportofthecompany slong term goals.thisresultedintheformationofthe EnterpriseChangeManagementNetwork (ECM). Thenetworkinitiallyconsistedofarelatively smallnumberofemployeeswhocame togethertosharebestpractices,knowledge andtoolsaroundchangemanagement,ensure linksandcoordinationamongstthemany projectstakingplaceinbchydro,andwork towardsincreasingthe knowledgeanduseofchange managementacrossthe company. LeadbyBCHydro sbusiness Transformationdepartment, whichisfunctionallysituatedin thefinance&corporate Resourcesorganization,the groupsoonexpandedtoinclude appropriaterepresentationfromeachmajor businessgroup,aswellaskeyprojects. Mandate Themandateofthiscrossfunctionalteamis toworktogethertohelpdeepenbchydro s changemanagementcapabilitythrough informationsharing,peerlearning,and resourcedevelopment. Itisacommunityofpractice,avalue added entity.itenablestimelycollaboration, practiceleadership,andcooperative identificationofenterpriserisks.ultimately, Fundamentalobjectivesfor enterprisechange: 1. company wide governance,policy, tools&frameworkfor changemanagement 2. monitoringthe enterprisecapacityfor change. theobjectiveistoincreasebchydro s enterprise widechangemanagement capabilitysothatitisdemonstratedatevery levelwithinandacrossthecompany,and integratedwithcompetenciesneededforall successfulprojectsandinitiatives. Oneofthemaintaskswastodevelopand followacommonapproachtochange managementwithinbchydro. Framework Development Approach TheECMgroupsetaboutdevelopingBC Hydro senterprisechangemanagement Framework,atoolandsetofstandardsusing acombinationofexperienceandbestpractice tohelpguideandprovideacommon approachtochangemanagementatbc Hydro. Thisframeworkwouldthenbeembedded acrossthebusinessinexistingprogramsas wellasappliedtonewchangeprojects. Itwasimportanttothenetwork tobeabletoincorporatevarious methodologies,suchasprosci s ADKAR modelforchange. Severalmembersarecertifiedin theadkarmodel,andthegroup knewthatforanyenterprise wide solutiontobesuccessful,itwould havetobeflexibleenoughtobe abletoincorporatevarious methodologies. Overthecourseofseveralfacilitated workshops,theecmnetworkdissected by processsteps bestpractices,keyfactorsthat contributedtosuccessfulchange implementationsinthepast,andelements commonacrossvariousmethodologiesinuse acrossthecompany.thesewerethen distilledandre arrangedtoforma frameworktobeusedacrossthecompany. BirgitReinders,BCHydro senterprisechangemanagementframework FromtheGroundUp ProsciGlobalConference,April25,2010,LasVegas,Nevada. Page3of9

4 BirgitReinders,BCHydro senterprisechangemanagementframework FromtheGroundUp ProsciGlobalConference,April25,2010,LasVegas,Nevada. Page4of9 AtBCHydro,change managementistheprocess ofimplementingaplanned approachtochangeinaway thatdevelopsstakeholder capabilityandsupportto realizethesocial, environmental,andfinancial benefitsdesiredfromthe change. The Enterprise Change Management Framework Theresultingenterprise wideframework outlinesanumberofprinciplesorsuccess factorsthatcanbeappliedinanysituation, foranychangeinitiativestakingplaceinbc Hydro. Itisimportanttoreiteratethatthroughthis process,theecmteamdidnotwantthe frameworktoreplaceorduplicateexisting changemanagementmethodologies.what thegroupdiddevelopwasaframeworkthat distilsthechangeprocessinto someeasy to followstages thatarescalableandflexible, toaccommodateprojects fromthesimpleandquickto thelargeandcomplex. Onthemicrolevel,this structureprovidesemployees inthevariousbusinessgroups whodonothavededicated changemanagement resourceswithaneasytofollowprocessfor implementingachangestrategyontheirown. Onthecompany sintranetsite,the frameworkislinkedtosamples,toolsand templatesthatareeasytouseandapplyfor smallerscalechangeprojects,suchasplans forstakeholderassessments,communications andtrainingplans. Onabroaderlevel,theintentofthe frameworkistoensureconsistencyanda commonapproachnotonlyamongstbc Hydro schangepractitioners,butalsofor consultantsthatmaybeengagedtosupport thefirmonlarge scalechangeprojects. Ultimately,thehopeisthathavingacommon andconsistentmethodologyforchange managementwillresultineasierandmore successfultransitionsforendusers, stakeholders,sponsors,andemployees. Giventheincreasingvolumeofchangegroups arebeingaskedtoabsorb,theirexperience willbemorepositiveiftheyknowwhatto expectandstarttobecomefamiliarwitha consistentapproach. Theframeworkhasalreadyprovenvaluable byprovidingfrontlinestaff(withlittle changeexperience)withaprocessand methodologytofollow,andbygivingpeoplea commonlanguageandunderstandingof changemanagement. Whatfollowsisacloserlookateachofthe componentsoftheframework: Definition, Principles,and Process:7SuccessFactors. Definition Thetermchangemanagementis oftennebulous itmeansdifferent thingstodifferentpeople.whenbc HydroECMmemberstalkabout changemanagement,theyare talkingabouthowtheycanhelp employeesthroughchangethat resultsfromimplementinganew system,businesspracticeorany otheractivitythatrequires employeesupporttobesuccessful. TheBCHydrodefinitionneededtobe reflectiveofthecompany soverallgoalsand values,inordertobemeaningfulfor employees(seeinsetonpreviouspage). Centraltochangemanagementisthe requirementforpeopletoknowhowchange willaffectthempersonally,inorderforthem tobeabletoacceptandsupportthechanges. Hence,changemanagementatBCHydro includesthefollowingcomponents: Providingandimplementinghigh level anddetailedplansonthechange componentsforaproject Ensuringemployeesarekeptinformed (andensuringemployeesknowwhereto goformoreinformation) Gatheringfeedbackandlisteningto employees Providingandplanningtrainingfor employees Managingsustainment

5 Withthisinmind,theECMnetworkcrafteda setofprinciplesthatformtheunderpinnings ofthechangemanagementframework. Principles Thefollowingprinciples guidethechange managementplanning, implementationand evaluationofallbc Hydrochangeinitiatives, regardlessofsizeor complexity: 1.Changemanagement willbeginearly,as soonasthereisa visionforsomething new. 2.Thevisionandreasons forchangewillbebroadlycommunicated anddiscussed. 3.Sponsorshipwillbevisibleandactiveatall levels. 4.Leadersatalllevelswillmodelthechanges. 5.Communicationwillbetwo way,open, timelyandforthright. 6.Peoplewillbeproactivelyengagedand consulted. 7.Peoplewillbesupportedtobesuccessfulin thenewstate. Inessence,theseprinciplesareusedto measuretheappropriatenessandintegrityof anychangemanagementstrategyoraction plan,evenbeforeanyprocess,methodology, ortoolsetisconsidered. Againstthisbackdrop,theactualprocessor7 SuccessFactorsthendescribehowchange managementiscarriedout. Process: 7 Success Factors TheEnterpriseChangeManagementgraphic onthispage 1 embodiestheprinciplesof managingandsustainingchangeforbc Hydroprojectslargeandsmall. Theimageofawheelwaschosentoreinforce thecontinuousanditerative natureoftheprocess.in practice,theseprocess stepsalsoallowchange managementpractitioners tousetheirfavouritetools andframeworks,suchas Prosci sadkarmodel,as longaseachsectionofthe wheelhasbeenconsidered. Asdiscussedearlier,BC Hydro schange managementprocessis scalabletothesizeand complexityofthechange, butwillalwaysincorporate elementsofeachofthesevensuccessfactors. Eachoneisexaminedinfurtherdetailbelow, includingdescriptorsusedtoexplainthe processstepstoemployees.onbchydro s Intranetsite,thesuccessfactorsarelinkedto templatesandtoolsemployeescanuseas theyembarkonchangesinitiatives. 1. Clear Vision & Outcomes Alltoooftenaproject svisionisnotclear,nor clearlyarticulated.theintentofthisfirst processstepistoexplaintoaffectedstaffwhy thechangeisnecessary,whatthenewstate lookslike,andwhatbusinessbenefitswillbe realized.keyforchangemanagement practitionersinthisstepistobecomewholly integratedwiththeprojectmanagement structure. Specificstepsinthissuccessfactorinclude: Describeboththerationaleforchange plusacompellingpictureofthedesired future. Setspecificperformancemeasures, behavioursandbusinessoutcomes. 1 ImagecopyrightBCHydro,2009 BirgitReinders,BCHydro senterprisechangemanagementframework FromtheGroundUp ProsciGlobalConference,April25,2010,LasVegas,Nevada. Page5of9

6 Identifythepeople,process,and technologychangesrequiredtoachieve thevision. Assesstheimpactofthechangeonpeople andtheorganization. Designachangeprocessearlyinthe projectthatalignswiththevision. 2. Leadership at all Levels Asbestpracticeresearchhasshown, ineffectivesponsorshipfromseniorleadersis thesinglegreatestobstacletoeffective changemanagement. 2 Thisisparticularly relevantforbchydronotonlybecauseof pastexperienceandlessonslearned,butalso becausetheamountofchangethecompanyis experiencingmeansevenfurtherpressureon invariablythesamegroupofseniorleaders. Therefore,thiswasidentifiedbytheECM groupasakeysuccessfactor,andmeans changeeffortsneedto: Identifytheleadershiprolesand responsibilitiesrequiredtoachieve businessoutcomes. Recruitsponsor,projectandchange leadersatalllevelsoftheorganization. Developaplantoensureleadersatall levelshavethecapabilitytoleadthe change. 3. Involvement Anotherkeyelementofsuccessful transformationofchangeprojectsisinvolving peopleandmakingthemfeelthattheyare partofthechange.thisprocessstepincludes variousassessmenttools,suchasstakeholder assessmentsandreadinessassessments.the latterillustratestheiterativenatureofbc Hydro schangemanagementframework,as readinessassessmentsmaybeconducteda numberoftimesduringtheimplementation ofaproject. Specifically,theinvolvementsuccessfactor means: Identifywhoisimpactedbythechange andhow. 2 ProsciBenchmarkingReport,BestPracticesinChange Management,p12,2009. Establishopportunitiestoinvolvepeople invisioning,planningandproblem solving. Assessandcontinuouslymonitor readiness,capabilityandsupport. 4. Integrated Planning Thisprocessstepcanbethoughtofbothfrom amacroaswellasamicroperspective.all changeortransformationprojectsfrom acrossthecompanyneedtobecoordinated andintegratedtoavoid,asmuchaspossible, collisions.onthemicro level,thekeyelement tosuccessfulchangemanagementtacticsisto bewhollyintegratedintotheproject managementcycle. Inotherwords: Researchandlearnfromthechange experiencesofothers. Identifyexternalandinternalfactorsthat mayimpactthechange. Developachangeplanthatintegratesinto theprojectplanandwithoperations. Monitorresultsagainstperformance measuresandadjust plansasrequired. 5. Continuous Communication Thisisperhapswhatthe majorityofemployees thinkofwhentheyhear changemanagement throughtheframework, theecmgroupistryingto illustratethatwhilea criticalcomponentof change,itisbutonepart ofamuchmorecomplex process.thefocusisalso onthewordcontinuous, implyingrepetition,constant monitoringandaltering approaches whennecessary toensureeffectivedelivery. IntermsoftheBCHydro BirgitReinders,BCHydro senterprisechangemanagementframework FromtheGroundUp ProsciGlobalConference,April25,2010,LasVegas,Nevada. Page6of9

7 framework,continuouscommunication means: Developatargetedcommunicationplan. Keepstakeholdersmeaningfullyinformed atallphases. Gatherandactonquestions,issues, suggestionsandfeedback. Monitortheeffectivenessofthe communication. 6. Ability to Adopt ThisfactorinBCHydro sframeworkmaps directlytotheadkarmodel s Ability step. Theuseoftheterm training was deliberatelyavoided,sincechangingpeople s behaviourisaboutmuchmorethangetting themtoparticipateinacourseortraining session.actionsinthisprocessstepare: Identifywhatpeoplewillneedtodo differentlyandiftheyhavetheskillstodo it. Implementprocessestodevelop, reinforceandsupportthenewskillsand behaviours. Developtheskillsofmanagerstolead individualsandteamsthroughtransition. 7. Reinforcement and Sustainment Forthelastsuccessfactor,itwascriticalto thinkintermsofbothreinforcementand sustainment somethingalwaysidentifiedas key,buteasilyforgottenordeferreduntil projectresourceshaverunout.withoutthe appropriateprocessesandgovernance structuresinplace,changewillnotstickin theorganization: Assessbusinessperformanceandadjust thechangeinitiativeasrequired. Developaplantotransitionfromthe changeinitiativetosustainment. Equippeoplewiththetoolsandskills theyneedtosustainthechanges. Recognizeprogressandcelebrate successes. Captureandtransferlearning. Expanding the Learning Havingdevelopedtheframework,itnow neededtobeputintoaction.theecm networkmembersworkedactivelyto integrateitintocurrentandupcoming projectstheyorexternalconsultantswere leading. Moreimportantly,however,itneededtobe usefulforemployeesacrossthebusiness. Overthepasttwoyears,thegrouphashelda full daysymposiumforbchydroemployees interestedinchangemanagement,aswellas quarterlyworkshopsfocusedonbuilding awarenessofthenewenterprise wide frameworkandincreasingitsuse. Framework Workshops Tomaketheframeworkcomealiveand meaningfulforemployees,theecmrecruited projectmanagerstosharetheirexperiences oneachoneofthesevensuccessfactorsfrom theperspectiveoftheirprojects.rotating throughsmalltablediscussionsleadbythe projectmanagers,participantsheardfirst handwhyoneparticularsuccessfactorwas criticaltohisorherproject,whatchallenges theyencountered,whatworkedwelland whatcanbelearnedforthenextchange. Thesesessionshaveproventobehighly successful,andarealwaysoversubscribed. Feedbackfromthemostrecentsessionin Novemberof2009showedthatover80 percentofattendeeswerecurrentlyworking onachangeproject;mostwereawareofthe networkpriortotheworkshop;closetohalf hadaccessedtheframeworktoolsand resourcesontheintranetwebsite,andmost agreedthattheywouldbeabletoapplythe frameworktotheirindividualprojects. TheECMnetworkisnowfocusingonevolving theframework asemployeesareusingit,it needstobeexpanded,fine tuned,andfurther supplementedwithpracticaltoolsand templates. BirgitReinders,BCHydro senterprisechangemanagementframework FromtheGroundUp ProsciGlobalConference,April25,2010,LasVegas,Nevada. Page7of9

8 BirgitReinders,BCHydro senterprisechangemanagementframework FromtheGroundUp ProsciGlobalConference,April25,2010,LasVegas,Nevada. Page8of9 Further Enterprise Change Activities TheECMnetworkisaddressingseveralother strategicprioritiestofurtheritsmandate, withkeyonesfocusingonexternalvendors, projectmanagementintegration,and increasingcapacity. Thegrouphasrecentlycompletedaprequalifiedvendorofrecordlistforchange managementprojects.aspartofan improvedprocurementprocess,thegroup identifiedcorecomponentsandcompetencies relatedtochangemanagementprojects,and prequalifiedvendorstoensuretheyarefully versedonbchydro schangemanagement Framework,haveasolidunderstandingofthe business,values,andpractices.thiswill enablefasterturn aroundtimesforhiring changeresources,andensureahighand consistentqualityofdeliverables. Akeyobjectiveforthecomingyearisto integratethechangemanagementprocess intoexistingprojectmanagement methodologies.theecmteamisworking withprojectmanagersacrossthebusiness, examiningtheirprocesses,andintegrating changeprocessstepstofurtheraseamless approachtotransformationalprojects. Anoverallchangelogorregisteris maintained,whichmonitorsthe organization soverallcapacityforchangeand listsmajorprojectsunderway,which businessgroupsareaffectedandatwhat time.theonlinetoolkitlinkedtothechange ManagementFrameworkisbeingexpanded toprovidemorepracticalandhelpful resources. Theintentistocontinuetobuildinternal capacitytoleadandmanagechangeprojects, profilethoseinvolvedinchangeprojectsat BCHydro,buildawarenessanduseofthe ChangeManagementFramework,and encouragethesharingofchangemanagement knowledge,toolsandresources. Continuing the Journey Whathasbeensosuccessfultodateisthat thiseffortwastrulyfromthegroundup the ECMnetworkandallitsdeliverables, includingtheenterpriseframework,came aboutbecausededicatedchangemanagement practitionersdistributedthroughoutthe businesscametogether itbothmadesense andaddedvaluetothebusiness. Whilethefocusinthenextyearincludes developingamoreformalizedgovernance structuretofurtherincreasetheirinfluence acrossthebusiness,theecmgroupcontinues tocreategoodchangepracticesand cooperativenetworksacrossthe organization.theyarecontinuingto collaborateandinnovate,lookingforwaysto supporteachotherandtohelpimprove people scapacitytoleadandmanagechange atbchydro.

9 Company Overview AsthethirdlargestelectricutilityinCanada,BCHydroservescustomersinanareacontainingover 94%ofBritishColumbia'spopulation. BCHydroendeavourstoprovideenergysolutionstoitscustomersinanenvironmentallyand sociallyresponsiblewaybybalancingbritishcolumbians'energyneedswiththeconcernsofthe environment. Throughtheefficientandreliablesupplyofelectricity,BCHydrosupportsthedevelopmentof BritishColumbiaandhasconstructedaworld classintegratedhydroelectricsystem.duetothis efficient,reliablesystem,britishcolumbiansenjoysomeofthelowestelectricityratesinnorth America. BCHydro'sprimarybusinessactivitiesarethegenerationanddistributionofelectricity.BCHydro operates30hydroelectricfacilitiesandthreenaturalgas fueledthermalpowerplants.about80% oftheprovince'selectricityisproducedbymajorhydroelectricgeneratingstationsonthecolumbia andpeacerivers. BCHydrogeneratesbetween43,000and54,000gigawatthours(GWh)ofelectricityannually, dependingonprevailingwaterlevels. Author Biography BirgitReindershasbeenanexecutiveintheutilityindustryforsixteenyears.During hertenureatbchydroshehasworkedinmanyareasofthebusiness,including CorporateResearch,DemandSideManagement,eBusinessandEnterpriseStrategy. Hermanagementstylerecognizesthenecessityofeffectiveemployeerelationships andinteractionsinordertoachievebusinessresults. InhercurrentroleasBusinessTransformationmanager,hermandateistosupportBC Hydro sbusinessobjectivesbyprovidingrelevant,strategicexpertiseintheplanning, implementationandevaluationofeffectivechangemanagementapproachesthatalign people,processesandtechnology. Throughherleadership,theenterprise widechangemanagementnetworkhas developedaframeworkandcommonsetofprinciples,tools,guidingmethodsandprocessesforconducting change,identifyinggovernanceprinciples,creatingapre qualifiedvendorslistofexternalchange managementconsultants,aswellasofferingchangemanagementsymposiumsandworkshops. BirgitholdsanMBAinExecutiveManagementfromRoyalRoadsUniversity,anhonoursBBAspecializingin MarketingandInternationalBusinessfromSimonFraserUniversity,andcertificatesinLiberalArtsand StrategicLeadershipfromtheUniversityofBritishColumbia.ShegainedherProscicertificationin2009. BirgitReinders,BCHydro senterprisechangemanagementframework FromtheGroundUp ProsciGlobalConference,April25,2010,LasVegas,Nevada. Page9of9