3.1 A number of factors pointed to the need to build change management competency across the Council. These included:

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1 + D IN BVRGH + THE CITY BF EDINBURGH COUNCIL Achieving Exce I lence: The Council s Change Management Approach Policy and Strategy Committee 3 August Purpose of report 1.I The purpose of this report is to inform the Policy and Strategy Committee of the Council s new approach to change management and describe progress made in relation to training officers in the methodology. 2 Summary 2.1 This report outlines the reasons for applying a change management model to major Council projects, describes the model being used and the sustainable training delivery model being deployed. 3 Main Report Background 3.1 A number of factors pointed to the need to build change management competency across the Council. These included: 0 the level of transformational change planned; results from the Employee Attitude Survey which indicate that only 15% of staff believe that change is managed well within the Council 0 the need to save around E90M over the next three years; and the need to improve benefits realisation. 3.2 Although the Council has significantly strengthened officers competency in project management there has been no consistent approach to addressing the people side of change which is often vital to project success. Research indicates that there is a strong correlation between project success and the application of a change management methodology to projects. Recent benchmarking data indicates that projects with excellent change management effectiveness were six times more likely to achieve project objectives than project teams with poor change management effectiveness. The use of a recognised change management model along with strong project management

2 skills will also have a positive impact on completing projects on or ahead of schedule and within or under budget Following consideration of all of the above the Council Management Team (CMT), in June 2009, agreed that a single, consistent change management methodology was required to manage the scale of organisational and people change the Council has planned through projects within the Achieving Excellence framework. An evaluation of formal methodologies in the marketplace was called for and criteria for selection were agreed. The criteria for selecting a change management model were: 0 e e 0 the Council should have full ownership of its change management approach; the roll out of the model has to be sustainable and avoid costly complex training and licensing requirements; the model should address supporting employees at all levels of the organisation; and the model should be practical and easy to apply to major change programmes as well as local initiatives / projects A comprehensive evaluation of six models was carried out. This process was aided through gaining access to BT's data from a recent evaluation of four models used with their partner organisations. The model which best met the Council's requirements was Prosci. In August 2009 the CMT agreed to Prosci becoming the Council's recognised approach to change management and to Mark Turley, Director of Services for Communities being the executive sponsor for the roll out of the model across the Council. The Model Prosci is a process and toolkit for understanding, controlling and managing the overall portfolio of change. It aims to help organisations build internal change management competencies through the development and delivery of tools and methodologies. Two of the main models central to Prosci are described below. The Prosci Project Change Triangle (PCT), illustrated below, provides a framework that describes the elements needed for projects to be successful. All three elements of the triangle are required in equal measure for projects to be successfully implemented and benefits realised. Projects are at risk if any of the three elements is missing.

3 Leadership/ Sponsorship A Return on investment [ROl) realized Supports the people side of change Prosci PCT Model Change! Management 3.9 Prosci also provides a framework for managing the people side of change. The ADKAR model describes the required phases that individuals and groups go through when faced with change. It provides sequential building blocks for managing people through a change and can be used as a diagnostic tool to identify barriers to change. The table below outlines the five building blocks of ADKAR. Awareness Desire Knowledge Ability Reinforcement What is the nature of the change? Why is the change needed? What is the risk of not changing? What s in it for me? A personal choice. A decision to engage and participate. Understanding how to change. Training on new processes and tools. Learning new skills. The demonstrated ability to implement the change. Achievement of the desired change in performance or behaviours. Actions that increase the likelihood that a change will be continued.

4 I Recognition and rewards that sustain the change. 1 Training 3.10 A sustainable approach to training employees in the use of the model has been adopted. In March six managers were trained to deliver the following courses: 0 a Change Management Certification three day course for project managers / members (on completion of this course individuals are licensed to use the model and toolkit); 0 a four hour course for Executive Sponsors; 0 a one day course on Change Management for Managers and Supervisors; and 0 a Change in the Workplace three hour course for employees To date, 46 officers have completed the three day course and are applying the model and toolkit to projects across the Council. Lessons learnt from the application of Prince 2 to major projects highlights the need to have a monitoring and evaluation process in place. Bi-monthly updates will be collated from all projects using the Prosci model and an evaluation will be carried at project close down A drop in centre for advice on using the Prosci Change Management model will open in July This will be located at room C45 in Waverley Court. The centre and a telephone advice line will be staffed by Prosci trainers at times which will be communicated. The room will also contain a hot desk and small meeting area for Prosci practitioners The following training will also be delivered to further build the Council s competency in Change Management: 0 further three day certification courses will be run in September 201 0, November and January ; sponsorship training for Chief Officers will be delivered from August - October 2010;. a one day course for managers and a three hour module for employees will be piloted in September 201 0; 4 Financial Implications 4.1 The cost of delivering this training is being contained within existing budgets. 5 Environmental Impact 5.1 There are no adverse environmental impacts arising from this report.

5 6. Conclusions 6.1 The Council recognises the need to apply a structured and consistent change management approach to ali projects. The Prosci model provides this structured approach and focuses on the people side of change. Training in the use of this model is well under way with 46 officers currently applying the model to Council projects. Looking forward it is envisaged that approximately 100 officers will be trained in using the model and all Chief Officers trained in executive sponsorship by January 201 I. 7 Recommendations 7.1 It is recommended that the Committee notes the progress made in building the Council's competency in Change Management using the Prosci model. Mark Turley Director of Services for Communities r5 17\10 Appendices Contact/ tei Wards affected Background Papers None Christine McFadzen All None