metrics on the money: the art & science of change measurement

METRICS ON THE MONEYTHE ART AND SCIENCE OF CHANGE MEASUREMENT

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COLLEEN CAMPBELL, NATIONAL ORGANIZATIONAL CHANGE MANAGEMENT PRACTICE LEADER, CENTRIC CONSULTING

QUICK POLL:

DO YOU MEASURE CHANGE IN YOUR ORGANIZATION?

1. No change success measurements

2. Some basic change metrics – training surveys or basis

project stats

3. Standardized change and project success metrics

including ongoing measurement in place

4. Enterprise approach to measuring project, program and

enterprise change success

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WHY STRATEGIC TRANSFORMATION INITIATIVES

FALL SHORT OF RESULTS

1. Change Fatigue

2. Change Leadership and Execution Skills

3. Lack of Employee Engagement

cc: Johannes Ortner - https://www.flickr.com/photos/34936566@N02

Source: PWC – Culture’s Role in Enabling

Organizational Change

Change Metrics can help identify and address these challenges early.

METRIC SUCCESS: A SIMPLE PROCESS

1. Engage leaders in understanding, appreciating and

committing to measuring change progress

2. Create and prioritize metrics and the timing of collection and

reporting

3. Finally, communicate results powerfully through a scorecard

and ongoing communications

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WHY MEASURING THE CHANGE IS COOL

• Creates clearly defined and aligned picture of success that everyone can understand

• Identifies challenges early-on

• Provides the opportunity to adjust your strategy along the way with incoming feedback

• Gathers proof that your strategy is working which builds engagement, provides helpful project updates and makes your sponsor and project team look great!

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- No clear project or executive metrics- Lack of accountability from senior leadership

- Trying to measure everything- Not measure the ‘right’ metrics

THE BAD

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OKMOVING PAST THE TYPICAL CHANGE BASICS

- One-Time Project or Change Metrics

- Smiley Training Sheets

- Training Stats

- Number of Communicationscc: circulating - https://www.flickr.com/photos/26835318@N00

MOST EXCELLENT

- Metrics Established Early with Ongoing Measurement

- Clear Value, Adoption, Utilization and Proficiency metrics

- Metrics Shared Appropriately in Communications/Scorecards

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QUICK POLL:

What are the Biggest Obstacles to Measuring Change Success

1. Leadership or project team’s knowledge of how to

measure change success

2. Unable to clearly articulate project measurements due to

unclear project vision

3. Leadership and/or project team’s fear of accountability

4. No or limited change resources to create measurement

vehicles

5. If you have others…put them in the chat space

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SPONSOR AND PROJECT TEAM ENGAGEMENT

• Get all the key sponsors engaged early

• Consider how to approach all key stakeholders

and especially likely resistors

• Engage team in use of metrics

through scorecards and communications

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THE METRICS DISCUSSION

1. Invite key decision makers to the meeting. Educate them on the purpose, process and payoff.

2. Create metrics that are outcome driven. Bring possible examples for their effort. Assuming this will take a while.

3. Prioritize the metrics to collect, the frequency to measure and how to report out through scorecards and communications.

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WHAT CHANGE OUTCOMES TO MEASURE

• Value

• Speed of Adoption

• Ultimate Utilization

• Proficiency

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VALUE OUTCOMEIs the project achieving the expected

value?

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EXAMPLES OF VALUE OUTCOME METRICS


What It Measures

• Whether the initiative/project achieves intended business outcomes

• Benefit Realization

• Specific Amount

• Timing

Examples (Date and Amount)

• 1.8 million website visits within first month

• Reduce order to cash process time 15 days by Nov 2016

• Reduce department operational costs $1.5 million by Dec. 2015

• Increase pricing profitability margins 5% by Aug 2015

SPEED OF ADOPTION OUTCOME

How fast are we moving? Is everyone

on board?

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EXAMPLES OF SPEED OF ADOPTION METRICS


What It Measures

•How quickly is the change being embraced

• Is communications and training working to get impact groups on board quickly


•80% of branches are compliant with new standards within 5 weeks

•75% of partners are certified in the new partner program within 3 month of launch

ULTIMATE UTILIZATION OUTCOME

Are they using the new approach?

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EXAMPLES OF UTILIZATION OUTCOME METRICS


What It Measures

•Are they using the tool, process, structure, etc.


•Distributors now order 75% online in our new tool

•HR is now using the new recruiting process with all new recruits and the old system is no longer in use

PROFICIENCY OUTCOME

Does everyone fully

understand what they need to do to be effective?

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EXAMPLES OF PROFICIENCY OUTCOME METRICS


What It Measures

• Are impacted groups using the tool, process, etc. as well as expected…i.e., all features utilized as expected

• How well are they performing overall because of the change


• The call center assesses and routes 90% of “high priority” calls to the HP specialists

• The finance team now pulls reports from the CRM tool on 1st of each month and adds projections to the scorecard.

WHEN TO MEASUREStart Early

Agree on When to Measure

Movement on the Adoption Curve

Measure with surveys, focus groups, reports, etc.

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HOW TO MEASURESurveys (Past and Present)

Focus Groups

Leader Alignment Changes

System Usage

System Audit (Review Quality)

Change Network Feedback

Financial Number (Increase in sales, etc.)

KNOW WHEN TO COMMUNICATE

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What Story do you need to be telling?

Who Needs the Communication – Leadership,

Employees, Customers, Vendors

Simple Clear Comprehensive Comm Approach,

Not Fancy

Using metrics in your communications to educate and build support for your effort or to

adjust your strategy prior to go-live. These can be leader, all impacted groups, customer or

project team communications.

Examples of Using Change Metrics in Your CommunicationsCOMMITMENT

TIME

AWARENESS UNDERSTANDING ADOPTION OWNERSHIPAWARENESS UNDERSTANDING ADOPTION OWNERSHIP

24

How many leaders are on

board now?

How well impacted

groups (employees, clients, etc.)

understand and want the change

How successful were we in

reaching our goals

How many users are using

the tool/process and how well

are they doing?

How prepared is leadership

and our support teams?

Training stats and gauge on

readiness before go-live

25

Pricing Program Goals – Communicating to Leaders Example

50% reduction in Turn Around Time on sales orders by Dec.

20xx

75% decrease Special Pricing Agreements volume by

March 20xx

Pricing operational cost at $7

million by Dec. 20xx

20% increase in margin by

increasing pricing floor or

right pricing

Goal Progress: Two week progressNext Steps: Needs and what to expect

Green = on track, Yellow = goals may not be met, areas of concern, Red = not likely to achieve goals, need to create plan of action to address

SMART Goals:Specific (key impact TAT)Measurable (amount reduction)Actionable (What we are doing)Realistic (yes, doable)Time based (Dec. 20xx)

YES YOU CANSo push yourself outside to your

boundaries and grow! You are more

valuable to your team as a change leader.cc: Philo Nordlund - https://www.flickr.com/photos/22839942@N00

Colleen CampbellNational Organizational Change Management Practice [email protected]

THANK YOU!

QUICK POLL:

Was This Useful?

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Please send any additional feedback or questions to Colleen.

metrics on the money: the art & science of change measurement

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