Survey Results: Major Reasons for Underperforming or Unsuccessful Large-Scale Organizational Change Initiatives

1) What are the major reasons for Underperforming or Unsuccessful Large-Scale Organizational Change Initiatives? Please rank the following factors from 10 - 1, 10 having the most impact and 1 having the least impact.
♦ Lack of executive team support, engagement and mindshare - 7.21 / 10
♦ Not articulating a "burning need" and vision for the change - 6.91 / 10
♦ Poor, untimely, unclear and/or inconsistent communications - 6.60 / 10
♦ Poor management of the transition between the present state and the future state - 5.55 / 10
♦ Inadequate resources allocated to the change initiative - 5.53 / 10
♦ Lack of trust in those leading the change - 5.28 / 10
♦ Change agents were not adequately trained/qualified to be successful - 4.62 / 10
♦ No formal plan for sustaining the change - 4.57 / 10
♦ Lack of a detailed change master plan that was managed as a project - 4.45 / 10
♦ Poor/inadequate employee education and training - 4.15 / 10

2) What else should be considered?
- Adequate Budget, in case it was not covered under resource- Focusing on change instead of change impact. Most change initiatives are doomed from the outset by this fundamental identification problem
- Failure to understand and address the core problem.
- In my brief encounter with managing change at large scale in small organisation like ours, I believe if we can answer basic questions of those, who will be severely impacted by change, like 1) the reason for change 2) the +ive and -ive of change 3) how to go about it . If these questions are well answered or it would be better if the stakeholders themselves spell the need of change and chalk out plans to go about it, there will be more chances of success.
- All too often these changes are the happen as a knee jerk REACTION to some impetus as opposed to the change being a PROACTIVE well thought out plan.
- 1) Underestimating resistance to change, even when the change is considered to be a positive one 2) 'Installing' a new structure (org chart) and expecting things to change without proper focus on new behaviours 3) Change overload
- too many initiatives
- Lack of engagement and involvement of employees in creating the change vision and implementing it.
- All down to good mgmt and leadership for me.
- Abdicating responsibility for change to the change agents.
- Getting trapped in a reactive cycle
- Not having the will to face into cultural issues
- Emotions. Instead of what is holding back the change, perhaps we need to think of what people are holding on to and why? These could lead back to issues of trust, but more often I think it is linked with timing...
- Informal leader/advocates for the new way and a compelling vision for it- Short term results and compromise!
- Too many other initiative receiving higher priority
- Too many powerful vested interests oppose the change
- Not perceived as treating people fairly
- Wrong change proposed
- Tangible short term wins on all levels in the organization
- Pace. Large programmes can be too slow and take on a life of their own where what is important is the functioning of the programme, not the intended outcomes.
- Organizational culture that embraces change.
- Strength of current processes and procedures to tolerate change.
-Currrent health of the organization. Unhealthy organizations cannot tolerate change even though they need it.
- No clear vision, different agendas and a clear leader who guides the transition. - Understand the organizational culture and the drivers that influence culture change such as: organizational structure, job design, policies, etc. also change the process
- Poor root-cause-analysis on what to change. Most often organizations try to solve symptoms of a problem and not its cause. The cause is often connected to management and please doesn’t change us...
- The need to allow people to go on the journey.
- Poor coordination at different levels and departments, shifting or putting responsibility to other teams.lack of involvement.Inability to understand the need for change.
- What is the business imperative driving the change?
- Lack of process design and based on comparison between as-is and to-be change impact analysis
- The change had an unreasonable timeline for implementation. Also too much for those impacted to absorb and apply.
- Conflicting corporate initiatives that were not considered.

About the Survey:
- Survey Participants: There were 47 global participants in the survey
- Survey Elements: A group of 12 Global change agents developed the survey elments.
- The survey was posted on the following eight Discussion Boards: Organizational Change Network, Network of Organizational Change Managers, Innovative Leadership & Change Management Expert Innovators Network, Change Agents, SAP/ERP Training & Change Practitioners, Organizational Change Practitioners, Organization Development Network, Change Consulting
- Survey close date: November 22, 2008
- Conducted by: Jim Markowsky, President, X-Factor Solutions
Visit our web site at: http://www.x-factor-solutions.com/

Survey Results: What are the Major Elements of a Successful Global ERP Business Process Transformation?

It is 1 year after the implementation of a successful global ERP business process transformation. Why was it so successful? Please rank the following elements that led to the success from 10-1, 10 being most important and 1 being least important.

1. Strong executive support 6.94 / 10
2. Successfully managed the transition and change 6.32 / 10
3. Effective communications and training 6.12 / 10
4. Allocated adequate resources to successfully manage the change 5.68 / 10
5. Significantly streamlined policies and procedures 5.38 / 10
6. Global representation in the entire process 5.29 / 10
7. Conducted a detailed global change impact assessment 5.00 / 10
8. Let go of old ways and processes 4.88 / 10
9. Became more strategic through creative use of the ERP system 4.79 / 10
10. Identified industry best practices and set top-tier goals 4.59 / 10

2. What else did we do that played an important role in our success?

• High level of involvement of partners (software, consulting, stakeholders)
• If the successful global business process transformation follows the outline below, all other ranking of priorities will fall into place. The organizational change management, data, aligned best practice processes, and measurement criteria eliminated the constraints of an unsuccessfully delivered solution.
  1) Organizational Change Management
  2) Data
  3) Best practices
  4) Key performance indicators to measure success
• We made sure that our measurement & reward systems were in alignment with the newly desired results.
• Mentoring and use of SME within the organization
• Attainable goals, established process for identifying and resolving risks/issues, and strong project management
• Local change impact assesment
• Super Users as ambassadors
• Live or die strategic approach to the global process implementation
• Ensuring transformation solutions are implementable and sustainable
• Strong cascading managerial support, having change agents strategically placed and prepared, having two way communication vehicles, a reinforcement strategy to ensure desired behaviors are multiplied, and getting employees at all levels help to design the change details.
• Produced value for impacted employees: "easier to do my job," "can do things that I could not do before."
• Won support at ALL key levels:- Executive- Middle management/functional leaders- Front-line workers/supervisors
• The overall Strategic alignment and clarity of objectives why a ERP based transformation is required in the first place.
• We also assigned sponsors to ensure that each of the industry best practices and top-tier goals was given an appropriate level of focus before, during and after the implementation.
  Prepared very good plan of whole transition. All major risks were identified, analyzed and mitigated.
• Leadership, communications, training, and transition are the key elements. The other items you have listed are from a business perspective. The question is...are you looking at it from a people transition to the system or the business (ROI) perspective. I look at it from the people transitioning. Ideally...you should achieve both, but two very differert focuses.
• Involve mid-managers
• Addressed employee organizational readiness thru development of action plans
• Got the business heavily involved early on.
• Strong dislike of the current system.
• Phase the implementation, don't try to do too much at once, don't under estimate people's need to understand the new way.
• Get benefit from all of the data and analytics.
• Simple clear messages, mantained constancy of purpose, rewarded the right behaviours
• Celebrated the successes.
• Created early wins and communicated success.

Survey Participants: There were 34 global participants in the survey
Survey Elements: A group of 12 Global Change Agents developed the survey elments.
The survey was posted on the following eight Discussion Boards: Organizational Change Network, Network of Organizational Change Managers, Innovative Leadership & Change Management Expert Innovators Network, Change Agents, SAP/ERP Training & Change Practitioners, Organizational Change Practitioners, Organization Development Network, Change Consulting
Survey close date: November 9, 2008
Conducted by: Jim Markowsky, President, X-Factor Solutions

Survey Results: What are the Top 10 Characteristics of an Organizational Change Agent?

Survey Results: Based on a 1 - 10 rating scale, 10 being highest. Average score:

1. Skilled Communicator 7.13 / 10
2. Emotionally Intelligent 6.45 / 10
3. Strong Leader 5.92 / 10
4. Excellent Problem Solver 5.81 / 10
5. Persuasive 5.41 / 10
6. Courageous 5.22 / 10
7. Strong Analytical Skills 5.04 / 10
8. Effective Educator 5.03 / 10
9. Flexible 4.79 / 10
10. Accomplished Project Manager 4.23 / 10

♦ Survey Participants: There were 159 global participants in the survey
♦ The survey was posted on the following Discussion Boards: Organizational Change Network, Network of Organizational Change Managers, Innovative Leadership & Change Management Expert Innovators Network, Change Agents, SAP/ERP Training & Change Practitioners, Organizational Change Practitioners, Organization Development Network, Change Consulting
♦ Survey close date: October 30, 2008
♦ Survey conducted by: Jim Markowsky, X-Factor Solutions
♦ Visit our web site at: http://www.x-factor-solutions.com

Organizational Change Network - Favorite OCM Books

Here are the favorite OCM books submitted by several members of the Organizational Change Network (OCN) Discussion Board (listed in no particular order):

1. The Heart of Change – John Kotter & Dan Cohen
2. Organizational Transitions: Managing Complex Change - Beckhard & Harris
3. The Dance of Change: The Challenges of Sustaining Momentum in Learning Organizations – Peter Senge et al
4. Leadership on the Line - Ron Heifetz & Marvin Minsky
5. Discontinuous Change - David Nadler, Robert Shaw, & Elise Walton
6. Action Inquiry: The Secret of Timely and Transforming Leadership - Bill Torbert & Associates
7. Five Frogs on a Log - Feldman & Spratt
8. Making Sense of Change Management - Cameron & Green
9. Change Management - Hiatt & Creasey
10. Changing Gears - The Strategic Implementation of Technology - James Carlopio
11. The Fifth Discipline – Peter Senge
12. The Empty Raincoat: Making Sense of the Future – Charles Handy
13. Sex, Leadership and Rock'n'Roll - Peter Cook
14. Managing at the Speed of Change - Daryl Conner
15. Beyond the Wall of Resistance - Rick Maurer
16. Re-engineering – Hammer & Champy
17. Who Moved My Cheese – Spencer Johnson
18. Our Iceberg is Melting - John Kotter
19. Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron – Bethany McLean & Peter Elkind
20. Changing the Way We Change - Jeanenne LaMarsh
21. Leading Change - John Kotter
22. The Path of Least Resistance for Managers - Robert Fritz
23. Organization Development & Change (8th edition) - Cummings & Worly
24. Learning to Change. A Guide for Organization Change Agents - Caluwé L. de & H. Vermaak
25. Images of Organization - Gareth Morgan

Posted by: Jim Markowsky, X-Factor Solutions
Visit our web site at: http://www.x-factor-solutions.com

Selling Organizational Change as a "Project"

Here are a few value propositions, arguments and approaches to assist with "the sale" that I've assembled from a variety of sources:

1.) Explain the “J Curve” effect (whenever you introduce change into an established system, things will get worse before they get better). Show how the drop in productivity can be diminished and how the timeframe of the drop can be shortened by an effective change management process (strong leadership vision and engagement, stakeholder management, effective communications, proper training, reinforcement strategies and appropriate business readiness action... all managed as a project, with a strategy and project plan). Executives like this approach as it makes good business sense for an investment in key resources to "get it right".

2.) In a 2003 survey of 327 companies in 53 countries, ProSci discovered that resistance to change within the organization was cited six times more often than any other as the number one obstacle to successful implementation of a project. Furthermore, when surveyed, and given the benefit of hindsight, the project teams picked more effective change management as the top activity that they would do differently on the next project.

3.) In 2001, the Hay Group, Inc. noted that: 70% of all change initiatives fall short of expectation, and "people issues" are cited as the primary hurdle. Executives rank people-related issues as the most important driver of successfully implementing and sustaining change.

4.) The National Bureau of Labor estimates that people are productive an average of 4.2 hours per day at work. However, during times of unmanaged change, productive hours decrease to 1.2 per day, or a 75% productivity loss.

5.) The following summarizes a survey taken by Organizational Dynamics on ODNet: Why Do ERP Implementations Fail?

• 42% Leadership
• 27% Organizational & Cultural Issues
• 23% People Issues
• 4% Technology Issues
• 4% Other

6.) Erik Spurgin, Learning Consultant proposes the following tactic: "Use an 'upward selling' approach. How did the executive get to where they are today? Why do they handle change so well? Ask them with as much sincere candor as you can muster. Allow them to talk about 'hard work', 'perserverence', et. al. for as long you can get them to talk. Listen, they will provide you with the information that you need in order to close the sale... in this case, the strategy and the funding for the strategy" .

Posted by: Jim Markowsky, X-Factor Solutions, http://www.x-factor-solutions.com