ChangefirstImplement

Issue 07 January 2006

Welcome Overcoming the root cause of failure in IT-related change

Welcome to the seventh edition of our quarterly newsletter -
People-Centred Implementation

In this newsletter, we reveal some of the key findings from our in-depth survey of senior IT executives in 56 leading organisations.  As a firm which provides a step-by-step methodology for implementing change, we wanted to examine the 'state of play' regarding IT change in today's organisations.  The results will surprise you.

Our lead article discusses the findings and provides seven key tips to ensure a successful organisational approach to IT change.

If you have any queries about this research - or if you would like to find out how we can help you to manage any kind of large-scale change in your organisation - please contact me.

David Miller
Managing Director of Changefirst
Tel: +44 (0)1444 450777
david.miller@changefirst.com

"Changefirst®, building a sustainable change capability inside your organisation"


A chance to talk business

If you are attending either of the two events below, please come and see us onboard the Oriana:

Human Resources Forum
(10-13 May)

IT Directors Forum
(17-20 May)


Coming soon...

Change Community of Practice -
We are developing a unique resource on the web for our growing community of Change Agent Certification and PCI graduates that would provide the best after-training care, continued support and development.


iPod Nano Winner:

Congratulations to Derek Hood of Lloyds TSB - winner of our Change Community of Practice survey prize draw.

We would like to take this opportunity to thank all those graduates who took part in this survey.


People-Centred Implementation Methodology Transfer


What is PCI?

People-Centred Implementation (PCI) is a change implementation application that combines a disciplined process with a robust set of tools to transform how people operate and behave in an organisation.

Think about the last time new hardware or software was installed in your organisation - would you say the implementation was successful?

According to a new Changefirst survey, 97% of senior IT executives admit they are not always effective at managing IT change.  15% claim they seldom or never manage it well.

Are you effective at managing IT change?

So why is it that multi-million pound IT projects do not deliver the benefits that are always predicted at the outset?  The answer is simple.  All too often there is an 'organisational mindset' which is preoccupied with getting the hardware/software installed.  The bigger need - to actually change the way people work - gets ignored.

Organisations have to address this.  Here are seven points to help you improve the way you implement change:

1.   Never overlook the people implications

Incredible as it sounds, all across Europe and beyond, well-intentioned IT projects are failing because the needs of users are given such a low priority and not enough thought is given to whether they can assimilate the change.

Technical issues - and a focus on implementing on time and to budget - are traditionally the dominant drivers of an IT project .  However, treating employees as an afterthought not only jeopardises the benefits of the technology, it also adversely affects the credibility of IT projects to 'deliver the goods'.  Remember, your IT investment is not just about hardware or software but also about people.

2.   Allocate a specific 'people budget'

Our research shows that 43% of organisations do not budget specifically for managing the people aspects of hardware or software installations.  If all funds are in a general pot, problems can arise if there is a technical-build overspend because the people allocation gets depleted.  To rectify this, every IT project  should have a standalone budget to cover the investment in people during the change.

3.   Assign a specific employee to be responsible for the people side of change

The research shows that a fifth of organisations do not do this.  In 59% of IT change projects, the person responsible for change is the project manager.  Making a project manager responsible for change management potentially creates a conflict of interest because a project manager's goal - and incentivised objective - is to get the IT solution installed without disrupting the business.  Do not fall into this trap.  Make sure you have a champion for the people-related issues.

4.   Provide training in change management

The research suggests that organisations are failing to provide specific training, in how to implement change successfully, to project teams and line managers.  It should be an organisational imperative to provide training and support, so that skilled change practitioners can successfully lead these projects.

5.   Involve the stakeholders

Change implementers should work with senior IT executives to consider the true impact on users of major IT projects and take those factors into account when making 'Go/No Go' project decisions.  They must also support the business line managers in planning and executing people-related change - and they should  develop change tracking and accountability mechanisms, which can sit alongside financial, technical and logistical actions.

6.   Don't outsource your change management

The research shows that 24% of organisations rely on change management advice from large consulting firms.  A further 18% use these consultants in some way on IT projects.

To succeed with change, you have to look inside, not outside, your organisation.  Change management should be a core, internal leadership activity.  Developing and keeping this expertise in-house is part of becoming a world-class organisation.  It creates the capability for future change and it reduces your spend on external consultants.  Where organisations invest in their own people, and build their own capability, we see a higher level of employee commitment to change.

7.   Learn from your experience

Only a third (34%) of organsiations formally evaluate the effectiveness of change management at the end of an IT project.  Only 39% address people issues after the IT change has taken place.  Measuring benefits realisation is often seen as a low priority so this may be a reason why the same mistakes are repeated time and again.  However, many of the bear-traps of change could easily be avoided if organisations would only learn from their own experience.

Purchase a copy of the reasearch report

To develop this research, Changefirst surveyed senior IT executives in major UK, pan-European and global corporates - such as Barclaycard, British Airways, BOC, BT, Centrica, Deloitte Consulting, Ernst & Young, Lloyds TSB, Lucent Technologies, Nokia, Scottish and Southern Energy and Vodafone - as well as UK public sector organisations.

A new report containing the full findings of the research is now available.  Called, The Unplayed Piano: Maximising the Value of IT Post-Installation, it is priced at £35 + p&p.

If you would like to order a copy, please call +44 (0)1444 450777 or e-mail: tina.neadley@changefirst.com

              
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