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Chapter 13 ensuring sustainable change and transformation through monitoring and measurement
1.
© Julie Hodges
and Roger Gill
2.
Chapter 13 Ensuring Sustainable
Change and Transformation through Monitoring and Measurement © Julie Hodges and Roger Gill
3.
Learning outcomes • To
identify the factors that contribute to measuring and monitoring organizational change and transformation • To apply techniques for sustaining change • To describe the pitfalls that can be encountered when seeking to sustain change • To identify the benefits and risks of change • To measure the impact of change © Julie Hodges and Roger Gill
4.
Measuring the impact
of change • Establish a clear aim • Define the key measures • Collect baseline data • Collect data consistently • Chart progress • Ask questions © Julie Hodges and Roger Gill
5.
Balanced Scorecard objectives,
measures, targets and initiatives (Adapted from Kaplan and Norton (1996) ‘The Balanced Scorecard’, Harvard Business Review, January/February, p.76) © Julie Hodges and Roger Gill
6.
Benefits realization © Julie
Hodges and Roger Gill
7.
Reasons for identifying
benefits at the start of the process • Benefits are identified, measured and the process is locked in from the start. • The business case for change is identified in a quantifiable way. • The reason for change is clear; the benefits provide a focus for everyone. • Return on investment in change can be measured. • Success can be identified, recognized and celebrated, thereby having a positive impact on future change initiatives. • There is clear agreed accountability for sustaining change. • Progress can be tracked, monitored, and delivered. • Stakeholders are clear about both current and expected performance. • The credibility of the change is enhanced through realization and recognition of the benefits. • The cost of implementation is calculated, understood and monitored. © Julie Hodges and Roger Gill
8.
Realizing benefits • Engaging
stakeholders • Developing the business case • Identifying risks • Developing a tracking mechanism • Tracking benefits • Communicating achievement of benefits • Monitoring and reviewing benefits realization © Julie Hodges and Roger Gill
9.
Reasons for managing
risks • To reduce or eliminate where possible the impact of a risk that has occurred. • To increase the chance of success of change(s). • To reduce or eliminate where possible the probability of a risk occurring. • To reduce or eliminate where possible the financial impact of a risk that has occurred. • To Increase the visibility of risks to management and other staff. • To secure successful continuity and profitability. • To secure a stable working-environment for staff. © Julie Hodges and Roger Gill
10.
Managing Risks (Adapted from
www.securityresearch.at Trends in Project Risk) © Julie Hodges and Roger Gill
11.
Identifying risks • External
risks - External risks are outside the control of managers. Egs include government regulatory changes, new products and services from competitors, A&Ms, disasters such as floods, earthquakes. • Cost risks - Risks which are directly or indirectly under control of manager. Egs cost overuns by project teams; scope creep, poor estimating or errors that result in unforseen costs, overruns on budgets and schedules • Technology risks - result from a wide variety of circumstances. Typical examples are problems with immature technology, use of the wrong tools, software that is untested or fails to work properly, requirement changes with no change management, failure to understand or account for product complexity, integration problems, and software/hardware performance issues (poor response times, bugs and errors.). • Operational risks - Operational risks can result in a failure to realize the intended or expected benefits of the project. Typical causes are inadequate resolution of priorities or conflicts, failure to designate authority to key people, insufficient communication or lack of a communication plan, and rollout and implementation risks – ‘too much, too soon’. © Julie Hodges and Roger Gill
12.
Mitigating risks • Avoid. -
Counter-measures are put into place that either stop the threat or problem from occurring or prevent it from having any impact upon the change. • Transfer. - A specialist form of risk reduction, where the impact of the risk is passed on to a third party via, for instance, an insurance policy or penalty clause, albeit at a cost. • Mitigate. - Where the response actions either reduce the likelihood of the risk developing or, if the risk occurs, limit the impact on the change to acceptable levels. • Accept. - There is acceptance of the possibility that the risk might occur. © Julie Hodges and Roger Gill
13.
Approaches for monitoring
change • Feedback • Survey • Review the implementation plan • Review the communications • Monitor how people are responding emotionally • Performance management © Julie Hodges and Roger Gill
14.
Factors for sustaining
change in organizations • Be aware of the drivers for change • Diagnose the need and readiness for change • Plan and implement change • Identify and implement relevant interventions • Communicate • Identify and manage the impact of change on people • Monitor and measure • Manage and lead change … © Julie Hodges and Roger Gill
15.
Summary • Measuring and
monitoring change is a key element to successfully sustaining change. • Benefits should be identified at the start of a change process and monitored throughout in order to ensure they are realized. • Risks need to be identified, mitigated and reviewed throughout a change process. © Julie Hodges and Roger Gill
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