Reducing execution cost and risk in change management
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The document discusses how Intrascope software can help reduce costs and risks for large-scale change management projects. It provides an example of a $10 million implementation project with a $1.25 million change management budget. The software is estimated to save 30-40% of change costs through faster hypothesis testing, identifying bottlenecks earlier, and reducing workforce time spent on surveys and focus groups. It could also reduce total project risk by $7.8 million by helping to achieve higher performance in culture change management and organizational alignment, moving the project closer to the returns achieved by top performers.
Reducing execution cost and risk in change management
- 1. CONFIDENTIAL How intrascope can help you Reduce execution cost and risk Across large scale change management and transformation projects
- 2. CONFIDENTIAL 1. 油Intrascope 油so.ware 油reduces 油the 油cost 油of 油large 油scale 油change 油 ≒Using 油an 油illustra9ve 油$1.25m 油change 油management 油budget, 油we 油demonstrate 油how 油 savings 油of 油30-足40% 油are 油possible 油 2. 油Intrascope 油so.ware 油reduces 油the 油risk 油of 油change 油disasters 油 ≒On 油the 油same 油project 油we 油demonstrate 油risk 油reduc9on 油of 油c.$8m 油(or 油c.30% 油of 油business 油 case 油return) 油 3. 油Reducing 油your 油change 油costs 油will 油save 油you 油millions 油 ≒Sensi9vity 油analysis 油examining 油cost 油impact 油across 油a 油range 油of 油large 油scale 油cultural 油 transforma9on 油projects 油/ 油M&A 油 4. 油Reducing 油your 油change 油risk 油will 油save 油you 油tens 油of 油millions 油 ≒Examining 油dollar 油impact 油of 油project 油risk 油reduc9on 油at 油small, 油medium 油and 油large 油scales 油 2 Summary and table of contents
- 3. CONFIDENTIAL 3 Business 油case 油 return2 油 Implementa1on 油 budget1 油 Total 油project 油risk3 油 Change 油Management 油 $10m 油 $25m 油 $27m 油 Total 油project 油risk 油is 油c.$27 油million 油 (at 油c.108% 油of 油return 油case) 油 This 油presenta1on 油uses 油the 油 illustra1ve 油example 油of 油a 油large 油 scale 油change 油project, 油with 油an 油 implementa1on 油budget 油of 油$10 油 million 油(of 油which 油$1.25 油million 油is 油 direct 油change 油management 油 spend) 油 The 油business 油case 油return 油is 油$25 油 million 油(2.5:1 油on 油implementa1on) 油 The Illustrative, large scale change management project Notes: 油 1. PWC, 油ChangeFirst 油(Benchmark 油external 油change 油management 油cos9ng 油of 油12.5-足15%) 油 2. ChangeFirst, 油The 油ROI 油for 油Change 油Management 油 油(Average 油鍖rst 油year 油return 油case 油for 油large 油change 油management 油projects 油> 油贈1 油million) 油 3. McKinsey 油& 油Company, 油Helping 油Employees 油Embrace 油Change 油(Risk 油calculated 油as 油the 油di鍖erence 油between 油realised 油return 油of 油top 油quar9le 油performers 油at 油 average 油143% 油of 油business 油case 油bene鍖t, 油and 油bodom 油quar9le 油at 油average 油of 油only 油35% 油of 油business 油case.) 油
- 4. CONFIDENTIAL 1 Intrascope software reduces the cost of executing large scale change management 4
- 5. CONFIDENTIAL execution cost savings Given $1.25m change management spend Consultant 油spending 油 Hypothesis 油forming 油and 油tes9ng 油 Roadblocks 油and 油bodlenecks 油 Focus 油groups 油and 油interviews 油 Reduce 油spending 油 Reduce 油the 油workforce 油9me 油 commitment 油in 油inves9ga9on 油and 油 pulse 油checking 油 Quicker, 油more 油accurate 油 hypothesis 油forming 油and 油tes9ng 油 油 Agile, 油responsive 油change 油team 油 Iden9fy 油and 油mi9gate 油bodlenecks 油 and 油roadblocks 油before 油they 油slow 油 or 油stall 油change 油 Produc9vity 油bene鍖t 油through 油 elimina9on 油of 油one 油survey/yr 油and 油 50% 油of 油focus 油group 油commitment 油 Quickly 油form 油and 油test 油hypothesis 油 with 油project 油team 油(saving 油2 油 weeks 油in 油overall 油project 油9meline) 油 Iden9fy 油one 油manager 油blocking 油a 油 core 油team 油(saving 油a 油2 油month 油 project 油delay) 油 Key 油change 油factor 油 Target 油 Illustra1ve 油saving 油 BoOom 油line 油impact 油 油 ($1.25m 油change 油management 油spend)1 油 $63-足125k2 油 $52k4 油 $208k4 油 $116k3 油 $439-足501k 油 5-足10% 油of 油external 油change 油 management 油budget, 油through 油 accelerated 油project 油start-足up 油 Total 油execu1on 油cost 油saving 油 Notes: 油 1. Bodom 油line 油impact 油on 油the 油basis 油of 油a 油project 油with 油a 油$10m 油implementa9on 油budget 油/ 油$1.25m 油external 油change 油management 油spend. 油 油Es9ma9ons 油on 油the 油basis 油 of 油1,000 油people 油directly 油a鍖ected 油with 油average 油annual 油salary 油of 油$100k. 油Project 油implemented 油over 油48 油months. 油 油 2. Benchmark 油external 油change 油management 油cos9ng 油from 油PwC 油and 油ChangeFirst. 油 3. Elimina9on 油of 油one 油annual 油survey 油for 油project 油dura9on. 油Comple9on 油9me/produc9vity 油impact 油30 油minutes 油per 油survey 油per 油employee. 油Focus 油group 油reduc9on 油 from 油20% 油to 油10% 油of 油total 油workforce 油on 油an 油annual 油basis. 油Produc9vity 油impact 油of 油one 油hour 油per 油focus 油group 油per 油employee. 油 4. Assumes 油core 油change 油management 油spend 油completed 油over 油ini9al 油12 油months 油at 油run 油rate 油$104k/month. 油 油 5
- 6. CONFIDENTIAL 2 Intrascope software reduces the risk of change disasters 6
- 7. CONFIDENTIAL risk reduction given $10m implementation budget Culture 油and 油people 油change 油 management 油 油 (19% 油of 油marginal 油risk 油moving 油from 油low 油 performing 油change 油to 油top 油quin9le) 油 Organisa9onal 油alignment 油 (9% 油of 油marginal 油risk 油moving 油from 油low 油 performing 油change 油to 油top 油quin9le) 油 油 Key 油marginal 油risk 油factor1 油 Prac1cal 油risk 油reduc1on 油 The 油business 油impact2 油 Risk 油reduc1on 油in 油moving 油to 油 high 油performance3 油 ($10m 油implementa1on 油budget)4 油 $5.4m 油 $2.7m 油 $7.8m 油Total 油risk 油impact 油 Notes: 油 1. IBM, 油Breaking 油Away 油with 油Business 油Analy9cs 油and 油Op9misa9on 油(Culture 油and 油People 油Change 油Management 油measured 油at 油a 油19% 油contribu9on 油to 油top 油quin9le 油 performance. 油Organisa9onal 油Alignment 油measured 油at 油a 油9% 油contribu9on 油to 油top 油quin9le 油performance.) 油 2. IBM, 油Breaking 油Away 油with 油Business 油Analy9cs 油and 油Op9misa9on 油 3. McKinsey 油& 油Company, 油Helping 油Employees 油Embrace 油Change 油(Top 油change 油performers 油achieve 油on 油average 油143% 油of 油business 油case 油bene鍖t, 油whereas 油bodom 油 performers 油achieve 油only 油35% 油of 油business 油case.) 油 4. Example 油uses 油2.5:1 油return 油on 油the 油basis 油of 油$10m 油implementa9on 油budget 油for 油theore9cal 油business 油case 油bene鍖t 油of 油$25m. 油 油 High 油performers 油use 油analy9cs 油to 油 challenge 油the 油business 油21.9x 油 more 油than 油low 油performers 油 Track 油underlying 油behavioural 油 change 油over 油9me 油 油 油 Iden9fy 油behavioural 油regression, 油 even 油years 油a.er 油ini9al 油 implementa9on 油 Iden9fy 油and 油mi9gate 油roadblocks 油 and 油bodlenecks 油as 油the 油organisa9on 油 con9nues 油to 油evolve 油 油 The 油data 油to 油drive 油conversa9ons 油 with 油management 油at 油all 油levels 油 High 油performers 油use 油analy9cs 油to 油 analyse, 油decide 油and 油act 油5.6x 油more 油 than 油low 油performers 油 7
- 8. CONFIDENTIAL 3 Reducing your change costs will save you millions 8
- 9. CONFIDENTIAL Reducing change costs will save millions 1000 油 10,000 油 $5.9m 油 saving 油 $2.0m 油 saving 油 $0.5m 油 saving 油 $6.9m 油 saving 油 $3.1m 油 saving 油 $1.5m 油 saving 油 5,000 油 $6.4m 油 saving 油 $2.5m 油 saving 油 $1.0m 油 saving 油 $10m 油 $50m 油 $150m 油 Number 油of 油directly 油a鍖ected 油employees 油 Notes: 油 1. All 油assump9ons 油and 油references 油consistent 油with 油those 油shown 油on 油page 油5 油 Implementa9on 油budget 油 油Case 油shown 油 9
- 10. CONFIDENTIAL 4 Reducing your change risk will save you tens of millions 10
- 11. CONFIDENTIAL Reducing change risk will save tens of millions $27.0m 油 Current 油marginal 油 change 油risk 油 Modi鍖ed 油marginal 油 change 油risk 油 油 (Re鍖ec9ng 油best 油prac9ce 油 people 油and 油change 油 management 油and 油 organisa9onal 油alignment) 油 Probability 油weighted 油 saving 油in 油moving 油to 油 high 油performance 油 $19.2m 油 $7.8m 油 saving 油 $135.0m 油 $405.0m 油 $95.9m 油 $39.2m 油 saving 油 $287.6m 油 $117.5m 油 saving 油 Notes: 油 1. All 油assump9ons 油and 油references 油consistent 油with 油those 油shown 油on 油page 油7 油 2. Numbers 油do 油not 油add 油due 油to 油rounding 油 $10m 油 $50m 油 $150m 油 Implementa9on 油budget 油 油Case 油shown 油 11
- 12. CONFIDENTIAL Summary and next steps: We 油set 油out 油to 油 show 油how 油 Intrascope 油 could 油save 油you 油 millions 油in 油 execu9on, 油and 油 tens 油of 油millions 油 in 油risk 油 The 油illustra9ve 油 project 油set 油out 油 in 油this 油 presenta9on 油 clearly 油shows 油 the 油quantum 油 of 油impact 油 possible 油 We 油will 油work 油 with 油you 油to 油 calculate 油ROI 油 given 油your 油 project 油 speci鍖cs 油 12
- 14. CONFIDENTIAL A Failing to change kills companies (large organisations have to change more than ever before) 14
- 15. CONFIDENTIAL Source: 油McKinsey, 油Crea9ve 油Destruc9on 油 油 Total 油return 油to 油shareholders 油of 油new 油entrants 油 rela1ve 油to 油industry 油average 油 Es1mated 油life 油span 油of 油S&P 油500 油companies 油based 油on 油 company 油exits 油 Half 油of 油companies 油in 油the 油S&P 油500 油in 油2013 油are 油likely 油 to 油be 油gone 油by 油2020 油 There 油seems 油to 油be 油a 油survivors 油curse 油whereby 油 beyond 油a 油20 油year 油life 油cycle 油organisa1ons 油will 油 struggle 油to 油remain 油compe11ve 油and 油e鍖ec1ve 油 AOackers 油 Survivors 油 15% 油 10% 油 5% 油 0% 油 -足5% 油 -足10% 油 1 油 5 油 10 油 15 油 20 油 25 油 2008 油 14 油 1995 油 19 油 1975 油 26 油 1955 油 45 油 1935 油 90 油 Failing to change kills companies 15
- 16. CONFIDENTIAL B But change also kills companies (disasters happen with huge frequency) 16
- 17. CONFIDENTIAL Why change kills companies CONFIDENTIAL Failed 油change 油damages 油companies 油in 油four 油key 油areas: 油High 油dollar 油 cost, 油High 油people 油cost, 油Reduced 油leadership 油credibility 油and 油 reduced 油compe11veness1 油 Most 油studies 油and 油reports 油on 油 project 油performance 油have 油 focused 油on 油telling 油us 油about 油 failure 油rates 油in 油the 油60 油to 油80% 油 range. 油 油 -足 油ChangeFirst, 油 油 The 油ROI 油for 油Change 油Management 油 油 About 油75% 油of 油all 油 organiza9onal 油change 油 programs 油fail, 油largely 油because 油 employees 油feel 油le. 油out 油of 油the 油 process 油and 油end 油up 油lacking 油the 油 mo9va9on, 油skills 油and 油 knowledge 油to 油adopt 油new 油 systems 油and 油procedures. 油 油 -足 油PWC, 油Human 油Change 油Management 油 Most 油studies 油s9ll 油show 油 a 油60-足70% 油failure 油rate 油for 油 organiza9onal 油change 油projects 油 油a 油sta9s9c 油that 油has 油stayed 油 constant 油from 油the 油1970's 油to 油 the 油present. 油 油 -足 油Ron 油Ashkenas, 油Harvard 油Business 油Review 油 Source: 油 油 1. David 油Miler, 油Successful 油Change 油 油 油 17
- 18. CONFIDENTIAL C ANALYTICS HAVE A MATERIAL IMPACT ON BUSINESS PERFORMANCE 18
- 19. CONFIDENTIAL 19 THE IMPACT OF ANALYTICS in improving decision making Analy1cs 油empowers 油beOer 油decision 油making 油 1.5% 油 1.5% 油 4.4% 油 32.5% 油 22.7% 油 25.0% 油 0% 油 10% 油 20% 油 30% 油 40% 油 Challenging 油 An1cipa1ng 油 Empowered 油 Lower 油performers 油 Top 油performers 油 Excep9onal 油organisa9onal 油performance 油(%) 油 Source: 油 油 1. IBM, 油Breaking 油Away 油with 油Business 油Analy9cs 油and 油Op9misa9on 油 油 Disrupt 油the 油status 油quo 油to 油improve 油 the 油business 油and 油create 油new 油 opportuni9es 油 Predict 油and 油prepare 油for 油the 油future 油 by 油evalua9ng 油trade-足o鍖s 油 proac9vely 油 Enable 油employees 油to 油analyse, 油 decide 油and 油act 油 21.9x 油more 油 15x 油more 油 5.6x 油more 油 19
- 20. CONFIDENTIAL D The difference between high and low change performance 20
- 21. CONFIDENTIAL THE DIFFERENCE BETWEEN LOW AND HIGH change PERFORMANCE 19% 油 17% 油 16% 油 14% 油 9% 油 9% 油 7% 油 5% 油 2% 油 1% 油 0% 油 5% 油 10% 油 15% 油 20% 油 Culture 油and 油 people 油change 油 management 油 Data 油 governance 油 Business 油 process 油 change 油 Program 油 governance 油 Project 油 objec9ves 油 Organisa9onal 油 alignment 油 Mul9-足phased 油 execu9on 油 roadmap 油 Building 油 sponsorship 油 Capability 油 assessments 油 Funding 油and 油 budget 油 process 油 management 油 Ac1vi1es 油in 油support 油of 油driving 油change 油(contribu1on 油of 油analy1cs 油to 油marginal 油 performance 油in 油change) 油 Note: 油 油 1. Percent 油contribu9on 油to 油top 油quin9le 油performance 油predicted 油by 油Business 油Analy9cs 油and 油Op9misa9on 油project 油ac9vi9es 油 2. Sourced 油from 油IBM, 油Breaking 油Away 油with 油Business 油Analy9cs 油and 油Op9misa9on 油 油 21
- 22. CONFIDENTIAL Contact Details THIS 油PRESENTATION 油HAS 油BEEN 油PREPARED 油BY 油INTRASCOPE 油PTY 油LTD 油(INTRASCOPE) 油FOR 油THE 油EXCLUSIVE 油USE 油OF 油THE 油PARTY 油TO 油WHOM 油INTRASCOPE 油 DELIVERS 油THIS 油PRESENTATION 油(THE 油COMPANY). 油 油 THIS 油PRESENTATION 油HAS 油BEEN 油PREPARED 油ON 油A 油CONFIDENTIAL 油BASIS 油SOLELY 油FOR 油THE 油USE 油AND 油BENEFIT 油OF 油THE 油COMPANY. 油DISTRIBUTION 油OF 油 THIS 油PRESENTATION 油TO 油ANY 油PERSON 油OTHER 油THAN 油THE 油COMPANY 油AND 油THOSE 油PERSONS 油RETAINED 油TO 油ADVISE 油THE 油COMPANY, 油WHO 油AGREE 油TO 油 MAINTAIN 油THE 油CONFIDENTIALITY 油OF 油THIS 油MATERIAL 油AND 油BE 油BOUND 油BY 油THE 油LIMITATIONS 油OUTLINED 油HEREIN, 油IS 油UNAUTHORIZED. 油THIS 油MATERIAL 油 MUST 油NOT 油BE 油COPIED, 油REPRODUCED, 油DISTRIBUTED 油OR 油PASSED 油TO 油OTHERS 油AT 油ANY 油TIME, 油IN 油WHOLE 油OR 油IN 油PART, 油WITHOUT 油THE 油PRIOR 油WRITTEN 油 CONSENT 油OF 油INTRASCOPE. 油 息 油2013 油INTRASCOPE. 油ALL 油RIGHTS 油RESERVED. 油INTRASCOPE 油SPECIFICALLY 油PROHIBITS 油THE 油REDISTRIBUTION 油OF 油THIS 油MATERIAL. 油 Intrascope 油Analy9cs 油 Level 油4/43 油Hardware 油Lane 油 Melbourne 油3000 油 油 +61 油3 油9111 油5659 油 油 www.intrascope.com.au 油 油 CONFIDENTIAL 22