change management for utilities: the why and how...40 centralized •program change management &...

March 3, 2016

Change Management for Utilities:The Why and HowAn E Source Web Conference

© 2016 E Source | www.esource.com 2

Agenda

IntroductionWhy Do Utilities Need Change Management?What Can We Learn from the Latest Research on Change Management?Building a Utility Change Management DisciplineQ&A


Agenda


Tim

Cre

asey

Chi

ef In

nova

tion

Offi

cer

Pros

ci

© Prosci Inc. All rights reserved.

Prosci & E SourceChange Management Webinar

Change Management for Utilities:The Why and How

5


Prosci and E SourceA POWERFUL PARTNERSHIP TO HELP UTILITIES SUCCEED

E Source and Prosci have joined forces, combining Prosci'sglobally recognized change management methodologies with E Source’s deep utility-specific expertise.

Our goal is to drive adoption of change management in the utility industry to improve change outcomes and success rates.

We will support utility change management practitioners with industry-specific best practices, research, tools, training, and community.

We believe change management is critical for creating change- resilient utilities capable of adapting to the technical and human challenges we face.


Objectives

• How change management can deliver positive business outcomes

• How one Canadian utility benefited after setting up a change management team

• How to begin applying change management best practices to your own projects

7


Agenda

What is change management? A quick review

Why does change management matter? It’s all about results!

Prove it Show me the data

Where do I start? Your first steps

What does CM actually look like in the utility context?

8


Agenda






9


Catalyzingindividual transitions

to deliverorganizational results

Change ManagementCHānj ‘manijmǝnt

10


The achievements of an organization

are the results of the combined effort of each

individual.

Vince Lombardi

11


Current Transition Future

TC F

C C C C C

C C C C C

C C C C

C C C C C

C C C C C

T T T T

T T T T T

T T T

T T T T

T T T T T

F F F

F F F F

F F

F F F

F F F F

T

T

T

F

F

F

F

F

F

F

F

Made up of individual changes

Organizational change

12


= lower ROI= less benefit realization

= unachieved improvement= not what we expected/hoped for

F F

F F F

F

F

F

F

F

F

F

F

F F F

F F F F

F F

F F F

F F F F

F

F

F

F

F

F

F

Finstead of

13


Successful change requires both the technical and people sides

Current Transition Future

Technical side

People side

DesignDevelopDeliver

EmbraceAdoptUse

ResultsOutcomes

Success=+

Installation*

Realization*

* Daryl Conner

14


Change Management Integration:Individual and Organizational

15

Individual:

How a single person makes a

successful change

Organizational:

What we can do on this initiative to drive adoption and usage


M T W R F

An email on Mondayfor training on Tuesday

for launch on Wednesday

is NOT the way to prepare and equip individuals to

successfully change16


Prosci® ADKAR® Model

17

ReinforcementTo sustain the change

AbilityTo implement required skills and behaviors

KnowledgeOn how to change

DesireTo participate and support the change

AwarenessOf the need for change


Prosci® ADKAR® Model

18

Reinforcement“I will continue to…”

Ability“I am able to…”

Knowledge“I know how to…”

Desire“I have decided to…”

Awareness“I understand why…”


Aspects of a person’s job

you can impact

Processes

Systems

Tools

Jobroles

Criticalbehaviors

Mindset/attitudes/

beliefs

Reportingstructure

Performancereviews

Compensation

Location

Aspects of a person’s job your

change can impact

19


Aligning Project Deliverables to Individual Milestones

Individual:

Awareness Desire Knowledge Ability Reinforcement

Communication plan

Sponsor roadmap

Coaching plan

Training plan

Resistance mgmt plan

Organizational:

20


Those who trust to chance must abide by the results of chance.

Calvin Coolidge

21


Agenda






22


Employee adoption and usageof change has a

direct and concrete impact on achieving expected

results and outcomes

23


Crossing the Chasm

Requirements ResultsOutputs Outcomes

Specifications Sustainment

Installation RealizationSolutions Benefits

24


Gartner BPM SummitDec 12, 2014

Change management is how you capture people-dependent ROI

For your project, estimate the percent of overall results and outcomes that depend on people changing how

they do their jobs

(adoption and usage)

26


Change management helps mitigate mission-critical risks

27


Agenda






28


48%

62%70%

81%

0%

100%

Poor Fair Good Excellent

14%

32%

52%

71%

0%

100%


15%42%

76%

94%

0%

100%


Change management correlates directly with project success

6xIncrease in likelihood of meeting objectives with excellent change

management

0%

100%


Met or exceeded objectivesOn scheduleOn budget

Change Management Effectiveness

29


McKinsey study shows that “effective change management pays”

Top performers: 143%

Worst performers: 35%

Percent of expected value of initiative eventually captured by company

From McKinsey “Helping Employees Embrace Change”http://www.mckinsey.com/insights/organization/helping_employees_embrace_change

30


Agenda






31


Getting Started:Change Management Blueprint

Whyare we changing?

Whohas to do their

jobs differently?

How much

depends on adoption

and usage?

Whatcan we do to drive adoption and usage?

32


Agenda






33


Utilities Data from Prosci Research

34

Top industries represented:1. Health Care2. Government – State3. Banking4. Finance5. Consulting6. Oil and Gas7. Government – Federal8. Insurance9. Education Services10. Manufacturing11. Utilities (46 respondents)

Estimate the percent of projectsapplying change management:

Utilities: All:

31% 35%

Does your organization have change management job roles?

Utilities: All:

70% 53%

Organizational Maturity in CM

13%

34%

42%

11%

0%

0% 50%

Level 1

Level 2

Level 3

Level 4

Level 5

Utilities: All:

9%

40%

37%

12%

2%

0% 50%

Level 1

Level 2

Level 3

Level 4

Level 5


Agenda


Kel

ly O

man

Del

iver

y Ex

celle

nce

Spec

ialis

tSa

skPo

wer

37

• Saskatchewan electrical utility

• 3100 employees• 511,000 customer

accounts

37

• Est. 1929• $9 B in assets• 156,000 kms power

lines

38

SERVICE DELIVERY RENEWAL PROGRAM

38

• Planning began 2007, delivery May 2009–December 2014

• 1200 employees

• 22 projects

• People, process and

technology change

• Goal: Transform the service business into a performance-driven

organization through people, process and technology

3939

CHANGE MANAGEMENT• Change management is an investment in benefits

realization

• Adopted on all SDR projects since 2009

• Executives and leaders received training

• Change team:

• Combination of consultants and internal resources

• Experimented with change team structure

• Require both change management expertise and

knowledge of organizational culture

4040

CENTRALIZED• Program change management & communication office

• Change resources assigned to multiple smaller projects

• Change resources assigned by channel of change

• Representative from each project acts as liaison to change team

PROJECTIZED –SINGLE TEAM• Change resources part of project team

• Partner with vendor change resources

• Maintained connection to other change resources for program view, portfolio management and knowledge transfer

• Shared reporting for change management, communications and learning

PROJECTIZED –MULTIPLE TEAM• Multiple change teams on large program within SDR

• Shared reporting for change management, communications and learning

• SDR Program change management lead

Small numberof large projects

Many smaller projects

Large program within SDR program

4141

LESSONS LEARNED• Apply change management on all

projects or initiatives where

behaviour change is required

• Don’t underestimate the change

effort

• Adopt portfolio planning to

minimize change saturation

• Adopt a continuous improvement

mindset


Concluding Thoughts

Did we meet objectives?• How change management can deliver

positive business outcomes• How one Canadian utility benefited after

setting up a change management team• How to begin applying change

management best practices to your own projects

42


Prosci Solution

Delivering organizational results by catalyzing individual transitions

http://www.prosci.com | http://[email protected]

Build individual change competenciesApply change management on initiativesEmbed organizational change capability

http://[email protected]

43


Agenda



What’s Next?

Register for the next Utility Change Management Leaders Group Call, March 17 at 2:00 p.m. ET

Join us at one of three upcoming utility-centric Prosci change management certification programs

Download the E Source and Prosci white paper Does the Energy Industry Really Need Change Management?


Eryc EylSenior Analyst, Customer Experience Practice, E Source303-345-9120 [email protected]

For More Information

Kelly OmanDelivery Excellence Specialist, SaskPower306-566-6714 [email protected]

Tim CreaseyChief Innovation Officer, Prosci970-203-9332 [email protected]

change management for utilities: the why and how...40 centralized •program change management &...

Documents