change management

Why is Business Benefits Planning Essential – free ebook to download

Why is Business Benefits Planning Essential – free ebook to download

Benefits planning aims to deliver the benefits promised in the business case and ensures they are actually realised. Many projects although they complete successfully in project management terms fail to deliver any of the initial benefits that launched the initiative. I have seen countless examples of project teams and managers congratulating themselves with the success of the project, ‘how well it went’, ‘all the deliverables done’ and so forth – but with not one penny piece of value delivered for the organisation.

I have sat on project boards to go through the business case and been confronted many times with promises of 25% cost reductions or increased production that if taken in the round with all the other things on the go would mean we get a product that costs nothing to make and sell for millions by the millions – forgive me if I am cynical. The failure of many projects to actually deliver any benefit in real terms in part explains the reluctance to give the go-ahead for new projects. Senior management are getting (more cynical) about the benefits and are getting fed up with being confronted with yet another initiative that promises hundreds of thousands of dollars in savings, increased revenue or more customers for example but actually delivers nothing. We have low expectations from any activity and even of the ability of projects to pay for the outlay and our expectations are being met.

Cynicism borne of the experience of hundreds of pleadings from staffers that have come to naught and project’s launched that have promised benefits that in the end have failed to come up with the goods. Evidence show’s that the majority of projects (well over 60%) in such diverse areas as IT, Outsourcing and BPR fail to deliver any discernable improvement. I have found no Outsourcing project that has delivered anything of value – the only exception being when they closed half the department and we got half the service.

In projects I supervise I always fall back on the six faithful servants:

  • What benefits are being suggested and what is the scale and scope being promised and does it look reasonable?
  • Why do we need these benefits – what is the driver at this point in time?
  • Where will the benefits be realised in what department specifically?
  • When will the benefits be achieved? Remember back to the discounted cash flow exercises we did at business school – a benefit ten years away of four pence halfpenny is worth nothing.
  • Who is responsible for achieving the benefits? What department and the manager by name? I also ask if she knows that she will be responsible for achieving these benefits.
  • How will these benefits be released – what has to happen? For example if we have to cut staff this can take a lot of time and be difficult to achieve.

It should not be forgotten that the whole purpose of a project or initiative is to deliver something of value and if this does not occur then the project has failed completely. So now’s the time for a realistic appraisal of where we are. In any assessment of a business activity the expected outcome in terms of cash benefit forms the core of the go no-go decision. Managers must be more critical and evaluate for sure but just as important is to make sure a process is in place that will deliver the outcomes expected. It is simply not good enough to sit back and hope that a new IT system can bring in the money – it has to be planned for and people have to take on their responsibilities starting at the top – they are the ones who are in the end responsible for the money being delivered. I have put together an e-book explaining how to put together a benefits planning process that’s available to download for free on my forum – take a look at least we get some way along the road to delivering value for our organisations.

Royston

get free ebook here: http://www.bizface.co.uk/bizfaceforu…talogue-8.html

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Put managers and employees to work on the change to reduce resistance

Involve Managers and Staff in the work of change management

Many Change Managers assume that if the rationale for change is made clear to the organisation then they will go along with it. In the process of demonstrating the need to change and an understanding of the impact (on themselves and their group) employees will buy- in and thereafter work actively to realise it. There is an assumption behind all this that ‘Change’ is negotiated and develops over time and that the change agent’s task is merely to make clear the imperatives and the people will fall into place.

Whilst this approach has been criticised for ignoring political and social aspects within organisations it is also inaccurate when talking about major system changes, outsourcing or mergers/acquisitions where we are faced with transitioning organisations against a strict deadlines. Here the degrees of freedom are limited and failure to successfully implement can result in stiff penalties for time and cost overruns. In such circumstances our room for ‘negotiation’ is constrained, the change outcome is a given and the people affected are faced with a forced change.

Also we see that the complexity of change is increasing as many major programmes consist of several, in their own right, substantial tasks. For example, in one major change programme I worked on the client was disentangling from a parent company and implementing an IT system with new standardised processes. All of these forcing substantial changes in role and responsibilities right across the organisation – and this programme also included the outsourcing of substantial parts of the finance function!

As well as the staff managers are affected – with perceived loss in autonomy and the need to acquire new skills key concerns. In another change programme in which the author was involved the financial controller had a significant change in job scope as a result of a system implementation and outsourcing which involved the loss of fifty percent of her staff. This resulted in prevarication and concentration on detail, non-acceptance of the rationale for change and question/problem raising that came over to the central project team as structural resistance.

The focus of our intervention in this case was on a country unit that had specific change issues that made their changeover have high perceived business risk. This unit for example had already gone through several changes of ownership in the last few years and was heavily impacted again. Our first step was to understand how the change impacted on the group, department and individuals within the business. Change needed to be thought through and the changes in role and task for these three areas were worked through in detail.

The intervention strategy we considered was based around thinking through to what the changed organisation would look like when we were finished. The patterns of communication, the new roles and responsibilities, and the impact on individual jobs were considered then the transition needed to bridge from the current situation to the future mapped out. This defined the necessary training and coaching for the individuals over and above that already covered in the formal training programmes. The transition management was trickier and this was handled by facilitating the cutover planning at group level. This acted to involve the organisation in the changeover (it’s on ‘its’ way) and engaged them in participating in the design of the move process itself. Defining in detail the roles, tasks and timings during the cutover were key aspects of this intervention. Further, interviews and group meetings around the changeover allowed ‘voice’ to be given and concerns and issues to be fully surfaced – they raised the resistance and helped solve them.

Key learning points

Do not interpret all resistance as opposition to change. Opposition can often be a sign of interest in the outcome and an expression of legitimate concern Capture the concerns and rationale. It may be that someone has identified a flaw in our reasoning and may have identified a route to possible failure, perhaps from the last time this occurred. To find out why it did not work last time may reveal some interesting lessons. However, be cautious about agreeing with an issue as this may be interpreted as a sign that the change can be negotiated – capture without judgement.

The assumption that all employees will go through the same cycle of resistance is false and too simplistic. Often there are winners in a change process. Identify these and build coalitions to build a success culture. Also some departments or groups of people are more successful with handling change than others – building on these winning groups can help bring the whole organisation along.

We all know the value of clear communication but do not forget to include the need for relevancy. Exhortations of the value of the change at a high level are useless unless made clearly relevant to the people affected. The communication must be tuned to the hearers specific needs – general broadcasts are discounted and people will provide their own rationale for change processes.

Avoid the ‘Englishman on Holiday’ change strategy – ‘if they don’t understand speak slowly and more loudly!’ At a feedback meeting for research into the situation at a French plant the consultants gave a withering overview of the impact of the various initiatives, changes and improvement programmes a major high technology company was imposing on the factory. The response from the senior team – ‘the management have not explained this clearly enough therefore “they” do not understand it – they must do it again’. People in change need focused information – how does this new system affect me. Will I still have a job? Will I be able to cope – will they train me? This means communications must be relevant, focused and bespoke aimed at a segmented audience – don’t treat people as the same with the same vanilla information requirements.

Some interventions

Local briefings at department or group level to strengthen team feelings of unity and develop focus on the task in hand.
Cutover process – form well managed meetings to act as a resolution point for raising and solving problems.

Tighter linkage to the changeover (particularly for the management) to expose the organisation to the task and encounter change.

  • Activate processes to resolve/close personnel issues — close these issues managers often have difficulty in handling these.
  • Mentor the management to actively participate and lead change via the consultant is an essential task.
  • Visible presence of change manager to emphasise the company’s commitment to making the change.
  • Reflect listen but not judge issues — allow self-reflection.
  • Ensure communications is done (Watch for gate-keeping in one project when I checked the communications had got no further than the secretary)
  • Provide recognition of improvements ideas and try to push upwards any ideas the team have that have value however small.
  • Recognise that resistance is a legitimate concern for the well-being of the business.
  • Ensure communication channels are open and deployed (again this is sometimes not done).
  • Hire consultant to act as change focus (reflecting with support but not judging or leading)
  • Tighter engagement of the organisation into the change process — they will switch to solve mode.

Finally don’t assume managers know how to manage change or know how to help their people change – because often they do not. Special training and development is necessary. Also be sure that the management has bought in, in one case the stiffest resistance came from a senior leader whose scepticism fed the resistance of the whole team.

Royston

The Consulting Process – How to Run an Assignment

This slide show is a presentation I do at London University on the consulting process. I covers the main steps in the process and includes some useful techniques – you can get it at my account on slide share.