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Australia | Dubai | Hong Kong | Ireland | Japan | Netherlands | Singapore | UK morganmckinley.com
MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
The market has
e Establishment Ballroom
in Sydney. The event, ‘Growing and Sustaining a Change Management Capability – Achievable or
rking opportunities.
wyk discussed how to bring senior
stakeholders on the change journey and the development of a change operating model.
Chris MacDonald - Independent change management consultant
INTRODUCTION
This year has been a very interesting time for project and change management.
picked up and projects are back in full swing. Morgan McKinley Sydney held its fourth successful
project management breakfast seminar on Thursday 11th November at th
Catch 22 Impossible?’ and organised by Morgan McKinley’s Project Management team to provide
expert advice from guest speakers, an update on the market and netwo
At the event, Chris MacDonald and Jacques van Schalk
GUEST SPEAKERS
rtaken any formal
re to promote
ting model’ as the
eed to happen for the successful creation, maintenance, growth and
sustainability of an organisational change management capability. The relevance of this topic is not
restricted to change function leaders. It is equally important for change practitioners, project
managers and hiring managers to have opinions on operating models.
Chris talked through his role as a change leader at AMP and presented the operating model that he
developed for the organisation.
Chris’ discussion was inspired by his personal experience. He has not unde
research or web search, believing you can do that at any time. His intentions we
thinking around setting up and maintaining a change capability.
Chris discussed the context of the morning’s presentation and defined the ‘opera
framework of things that n
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
The Operating Model
d
the model to facilitate thinking and discussion, and urged attendees to change, add or delete labels
and boxes to suit their needs. Chris’ detailed slides (p5 onward) address both the ‘obvious’ and
‘not-so–obvious’ points of each element of the model.
On first inspection, the below operating model may appear simplistic. Chris stated that he simplifie
Organisation
Capability
Governance
Sponsorship Business Unit Alignment
EngagementSupply
& Funding Reporting
Attract & Retain Develop Grow
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How the Operating Model Should Work
Most companies assess the maturity of their change management functions ag
from ‘pioneering’ through to ‘mature’, such as the one below. In doing this they
overly harsh regarding
ainst a continuum
are likely to be
some elements of the operation and similarly overly complimentary against
some other elements. It is much more useful to assess the maturity of each element as this allows
the leaders to see where the most effort is required. It also allows for the informed planning of the
next steps for each element.
MaturePioneering
Be crystal clear about where your organisation lies on this timeline for each element
of the operating model. Plan and execute your approach to fit the current state and set up for the next level
of maturity. Bear in mind, elements of the operating model will mature at different rates.
Sell Manage
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
The Operating Model in Practice Chris talked through an example of what to consider when preparing a change management graph.
The below example shows that less needs to be done to secure a supportive sponsor and more
work is required on reporting and alignment etc.
Pioneering Mature
Sell Manage
Sponsorship
Business Unit
Alignment
Engagement & Supply
Funding
Reporting
Attract & Retain
Develop
Grow
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
Chris then talked through his final set of slides which discussed the model in more detail:
GAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
Chris then talked through his final set of slides which discussed the model in more detail:
Organisation Sponsorship Business Unit Alignment
Obvious Subtle Really?
You need a sponsor. The more senior the better. Well regarded is good. Able to influence peers across
the business and CEO. Make sure they have bought
into your approach and plans – you don’t want them changing things too much along the way (interfering).
Ideally someone with interest in projects and change across the organisation, without bias towards one division.
Someone who has experienced change done well – has religion.
Your sponsor needs to advocate the benefits of growing internal capability rather than buying it.
“You get the sponsor you deserve” – work really hard at the relationship.
A link with strategy will provide surprising benefits.
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
Organisation Sponsorship Business Unit Alignment
Obvious Subtle Really?
Your sponsor’s role will have the biggest influence on where the change management function resides.
Ideally it is a part of the business that provides other support services.
It should be well regarded for quality and value.
The function or associated with organisational chan / re-structures / MAD etc.).
team should be supporting
ge (projects
If positioned in the same unit as project
management support or PM ‘pool’, you need to establish a clear understanding of the difference :
Same stakeholder, different conversation
Accountability (outputs vs. outcomes)
Delivery risk vs. benefits risk.
business
s
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
Organisation Sponsorship Business Unit Alignment
Obvious Subtle Really?
Re ss of where ‘he function, de
n good reproject support teams
ct Managers PMO Business Analysts /
SME’s HR L&D / OD Comms Strategy Recruitment / Contracts Finance.
gardle ome’ is velop
lationships for the chang
aiand maintwith other (and their managers):
Proje
EVERY componoperating moderelationships.
ent of the l relies on
maintaining Establishing and recognitionsource of chacapability is central to delivering quality and value.
You can’t build a portfolio view of change if you are not in the loop of all change initiatives.
that there is one nge management
It pays to be paranoid – test s well before they play
have a ‘plan B’. Read the tea leaves – listen to
rporate mandate delivered ar us businesses (esp.
financials) and make adjustments to your model to accommodate constraints.
Understand short and medium term strategies – they provide insight to the nature of change about to hit.
Take a lead from the ‘mood’ projected by CEO / Marketing
scenarioout and
the coto the v io
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Obvious Subtle Really?
Get in the loop – theto start is the buapproval proc
best placsiness case
ess – become
havdifferent engagement processes – find it out what they are.
Develop a multi-channel sourcing model for change people including internal transfer, secondment, redeployment etc.
Utilise formal and approved facilities (PSAs / HR / Contracts Management).
e
a
e signatory.
Different BU leaders may
Your relationship PMO(s) is crit
with
Negotiate sourci
party specialists, informal network, Uni’s etc.
Keep a keen eye on your supply and demand equation – having roll-over options is a great retention strategy for high performers.
Bench time is expensive and an opportunity to do some maintenance, R&D, training, tool
the ical.
ng approach for cupboard is when the formal
bare including 3rd
Different BU managers or t sponsors will have
ent biases and hot buttons
Consultants – beat them on price
Shared services – utilise their staff as a development opportunity
If all else fails – discount If it is still just not working
with someone – provide alternative resource options.
projecdiffertowards:
Governance Engagement &
ly SuppFunding Reporting
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Obvious Subtle Really?
Usually perception of vainfluenced by cost – usecosts in busines
lue is realistic
s caestimates regardless of acttransfer of funds.
If not charging, track and report as if you were.
Theory points to ROI and % benefits attributable to change – use this in ‘sell mode’ but don’t rely on the stats being available post implementation.
se ual
If charging use torganisation’s
he standard loading
or like’
e market rates
– allows for ‘like fcomparison.
Provide accuratas notes in the financial model – get accurate benchmark data.
Be prepared to discount (or have tiered rates) – especially where there are clear capability differences within your team.
Based on your knowledge of the pipeline, work with key stakeholders at budget time to secure some funding ahead of
As you move up the maturity udget for and load day
with as much OPEX or ructure costs as allowable
ould end up fully recov red.
Try to fund or part fund development for all the team (including contractors and consultants).
Don’t expect all your sponsors to be on top of the organisation’s financial processes (charging, loading etc.).
curve, bratesinfrast– ultimately you sh
e
Governance Engagement &
ly SuppFunding Reporting
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Obvious Subtle Really?
i
data – the format
are of corporate or group reporting that is used for Board etc. They may ask for a contribution.
The ‘Portfolio View of Change’ will come up eventually. Think about how this might work as you set up the reporting structure – even before it is required.
Be clear on the must do PMOs will have tigh
schedules – giv
reports: t
e them on on time. u for it.
useful informatThey will love yo
Each PM will requirefrom their CMmay differ.
Be aw
PMs or Sponsors who are new to change mayask for. Have a CMs to use
If the PM ha
not know what to template for
f they are asked. is a template –
review it to make sure it contains data that is required for consolidated reports – standard data is more important than report format.
Beware of PMs who don’t ask for a report – they are probably only reporting the cost of change – not the benefits.
It is very easy to over-engineer ng data design and ting tools.
You will get more accurate and timely data from people if it is simple and easy to consolidate.
Consider adding to or changing the focus of what you report depending on the phase of the project.
Make sure your people track actual time – even if the PMs use standard days.
reportisuppor
Governance Engagement &
ly SuppFunding Reporting
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
Obvious Subtle Really?
You want to attract thee best for e
best ach role
e will be interested in and value: Role clarity Challenging work A solid CM operating model The opportunity for
development Belonging to a community Recognition The potential for roll-over
projects.
people – th(project).
Good peopl
Be deliberate in identifying the competency and experience you need for a particular role – interview to target these.
Don’t oversell a role or the organisation – the promise must equal the experience.
Induction is important for all new people (contractors / perms / temps) – take it seriously and follow-up: Buddy / mentor Performance agreement Feedback One-on-one support.
Capability Attract & Retain Develop Grow
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Obvious Subtle Really?
Personal developmee v
performers. Design a development program
that enhances individual, team and organisational capability – advertise (and sell) the program – this also improves the reputation of your team).
Consider a capability assessment (CMI).
Training in your Change Framework should be available.
nt opportunities ar alued by
the top
everyone – one ofretention factors for high
Invest time in developing the (CoP) – this will
rofessional association for all people involved in change.
Link people up with CMI. Peer coaching or more formal
presentations at team meetings will encourage people to attend.
Delegate development of the tools – they might then use them.
Don’t forget broader capability development – especially leaders.
CM community provide an internal p
Investment in development will attract the best people, improve the quality of delivery and enhance the team’s reputation. You can then recover the cost by increasing your margin.
Capability Attract & Retain Develop Grow
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Obvious Subtle Really?
‘Grow’ in this context is really about organisational capability.
essful
nt
Leadership training Transfers and
secondments Deploying best practice
methods and tools. Like everything else your
approach needs to take the organisation from a starting position to a stated and agreed future position – this will require support from your sponsor.
Growth will come by: Delivering succ
projects Training permane
employees
It is not necessary to grow the number of change managers in the team – but it does help.
Try to get the change competencies (CMI) included in the organisation’s competency model (LMS / PDs / career paths / development guides etc.)
Getting a change intranet site up can be daunting but will help grow capability.
If you provide ‘top shelf’ leader training, they will be more open to sharing resources.
Tap into the performance cycle to encourage team leaders to budget for selected people to attend your training. Secondees will benefit the most from your change fr ework. am
Capability Attract & Retain Develop Grow
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Hot Spots
Chris finished with a final slide that summari
ponsor.
e process – recruit accordingly.
er focussed EVERY time.
mportant but not every situation fits neatly.
p ahead.
Development initiatives will assist you to attract and retain talent – ho er the project should always come first.
Cost models need to be sensitive to the financial culture and charging precedent – know
where your organisation is on the maturity curve. The portfolio or ‘single view’ of change is highly desirable and usually highly complex –
prepare early by setting up standard reporting from the start.
sed areas to look out for and be mindful of.
Work really hard at the relationship with your s Change management is a creativ
No two assignments are the same – be flexible and custom Frameworks are i
Relationships – relationships – relationships.
Understand short and medium term business strategy – be one ste
wev
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Speaker 2 – Jacques van Schalkwyk
some situations), but done correctly, it can help individuals to deal more effectively with change.
Change management also aims to minimise the impacts of change on the organisation and its
Change management is a leadership responsibility and involves all facets of the business.
Mobilising the organisation’s leaders to take active roles is vital. This will help employees to deal
with change constructively and will enable the organisation to operate smoothly post-
discussing a project
a massive restructure and de-layering exercise that
affected 40,000 employees globally; a significant change for the organisation. Jacques was asked
s limited. ANZ’s most
handled poorly. Key
erstanding of the role
In preparing for the project, Jacques considered the example of a restaurant that went through a
transformation exercise. Everything was changed appropriately down to payment systems and
even the décor. The experience was fantastic but when customers were served, the waitress was
rude which upset them. The result was that customers did not return. The waitress’ employers
thought she was wrong to behave in this way and the only solution was to fire her for misconduct.
The role of change management is not about getting people to like change (which is impossible in
bottom line.
implementation.
Case study – ANZ
Jacques gave a practical example of his experience in change management by
he led for ANZ in 2008/09. ANZ went through
to lead the change management project at a time when change management was poorly
understood in the company and ANZ’s history with change management wa
recent employee engagement survey indicated that change management was
to the success of the project was ensuring all stakeholders had a proper und
change management could play within the organisation.
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
was brought on the
f change – was she given training in new skills, did she continue to get paid on time, were
there issues with other colleagues that might make her behave in a way that was detrimental to the
change project is
on individuals to reduce the
likelihood of any business risk as early on in the process as possible. The potential business impact
ntries, as well as
nagement network –
ot enough to reach 40,000 employees. Therefore the strategy from the outset
was to spearhead change by getting leaders to manage the change process. As well as leading,
p their sleeves and get involved to minimise the impact of the transformation
anagement team was to
plement this top-
evel of commitment at senior level. There is a
difference between formal and informal behaviour i.e. what is agreed publicly in meetings and what
people will actually do in practice.
Jacques believes that the seven most critical corner stones that need to be in place for a successful
business transformation can be determined by conducting one-to-one structured interviews with
senior executives.
However, Jacques felt that what they really needed do was look at whether she
journey o
business?
The role of change management is to ensure that the business impact of the
managed effectively. This means minimising the impact of change
to ANZ was enormous due to the fact that it affected 40,000 staff in several cou
other stakeholders. Significant market and reputational risk was therefore involved.
ANZ had a small core team of five change managers and a larger change ma
however this was n
they needed to roll u
on the organisation and its people. The role of Jacques and his change m
equip and support leaders in doing this. They used a step-by-step process to im
down approach at ANZ:
Step 1 – Start at the top
It is crucial to ascertain and understand the l
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
low change managers to ask the following questions:
case?
4. Are you confident that the projected business benefits will be realised?
5. Is the program set up for success?
It is important to note that there are often people who are considered to be completely supportive of
Step 2 – Mobilise and equip leadership of the organisation
ess. Jacques used a
simple change management framework which helped to manage two major factors affecting the
implementation of the project: rational response versus emotional response to the concept of
change.
He discovered that the challenge for leaders in the business was to get the balance correct – there
was a need to understand why, what and when as changes took place across the company.
These interviews should al
1. Do you support the business
2. Do you buy into the vision?
3. Do you support the change strategy?
6. What is the perceived alignment of your peers?
7. What is your own personal alignment?
the change, however if they were in charge of the project they would do things differently.
Therefore, the change manager needs to have an action plan with true buy-in and must not take
top-down support for granted.
ANZ’s top 1,300 leaders were critical to the company’s transformation proc
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
Understanding the emotional response to these facts required analysis on three levels:
before being able to help others understand
2. Individual – working to help others in the company gain clarity on the scope of the project
ct which included
er in the organisation
eps to deliver change in their part of the business with additional resources
available to coach on an ongoing basis. The difference was that they were not being asked to ‘talk
nswering key
rs a real role in the
Talent management was also a key focus; it was important to ensure employees remained calm
throughout the process. Within the toolkit of resources
th concerned
he role of change
ganisation’s human capital.
Step 3 – Assess and manage the individual
To ensure effective understanding of change at the individual level, Jacques’ team used a tool to
practically assess the impact on direct reports and to help the business leaders in managing staff
through it.
1. Self – it starts with each leader,
3. Themes
Jacques and his team used a ‘change leader manual’ throughout the ANZ proje
the six steps outlined here as well as practical guidelines and tools. Every lead
worked through all six st
up’ or ‘sell’ the project – instead they were asked to take practical action e.g. a
questions such as ‘what do your people need right now?’. This gave leade
change management process.
and were continuously well-managed
available to leaders, a script was provided of how to conduct conversations wi
employees. The change management team at ANZ asked leaders to take on t
mentors in developing the or
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
olkit provided guidance on how to manage individuals by engaging in one-to-one
conversations with them to explain job role changes that would evolve from the transformation
Step 5 – Re-mobilise teams
ional guidelines and facilitate a team exercise immediately
Step 6 – Transition and handover management
how to manage
s over. The manual
process of handover.
• The process should start by focusing on the Board of Directors first. They need to continue
the change work done by leadership through various activities which provide support to
through the change
practical guidelines, hints and tips on how
employees could help themselves during the change project.
• Ensure that senior stakeholders are engaged. In the ANZ project this involved:
o Briefing the Board on a weekly basis and HR general managers on a regular basis.
They also held monthly one-to-one meetings with the HR team so it could understand
what was being undertaken, why and when to support the managing directors and
their teams.
Step 4 – Guidelines for change conversations
The to
project.
It is necessary to provide clear organisat
after the change project has taken place.
The change leader manual used by Jacques and his team provided advice on
change across the business when an external change management team take
included advice such as:
• Documents covering strategy and change should not get lost in the
employees.
• Leaders should enrol themselves in workshops to manage themselves
process. ANZ used an intranet site offering
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
were being taken care of.
ho acted as a project
tor.
anual on a regular
cated which steps
e plan was and how
each of them could have role in it. This had to be done proactively without leaders
emonstrate they
r the HR Director to
ecutives were all
e of the project. The conversation covered issues such as ‘how can we
lead people to be more change resilient?’ and ‘what should we as leaders do to ignite
workforce?’
designing a ‘new
beginnings’ workshop which was effectively a mini-strategic planning session to support the
Summary: critical success factors
• Leaders need to understand the purpose of change management and the role they play in
the process
• The change process needs to be understandable with a clear roadmap
• Change leadership should be practical – use tools and coaching
o A change management update was also sent to the Chairman to reassure him that
the staff and organisational aspects of the business
o Weekly meetings were held with the group Managing Director (w
sponsor) to discuss the project strategy alongside the HR Direc
o The progress of leaders was tracked and reported against the m
basis to ensure sustained activity and support. This clearly indi
were not being followed.
o Leadership in the organisation needed to know what the chang
having to guess how they should get involved.
o It was important to create situations where top leadership could d
were actively on the journey e.g. a leadership conference.
o The change management team provided a scripted interview fo
talk through with top members of the Board to demonstrate that ex
on supportiv
the spirit of our
• Supporting leaders and people beyond the change effort. This involved
communications process.
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
anagers should measure and report to key stakeholders on a regular basis;
or departments to ensure transparency and
• Change leadership should always be driven from the top
importantly – do not over-plan and/or under-deliver
• Leaders must be engaged throughout the process
• Change m
comparing the progress of different divisions
identify issues
• Most
ell – Change Management Institute
mbers were
but it hasn’t. Why is
this?
to adjust my team depending
For change management practitioners, it’s no surprise that there is a split between contract and
permanent workers. On one hand, there is a genuine need for specialist contractors and
consultants who come from a background where you can pick and choose people that are backed
by an infrastructure of change capability. However, equally sustainable internal capabilities are also
important. This kind of split is indicative of where the the market for change management
practitioners is and probably shouldn’t change right now.
Q&A SESSION
Q. Helen Campb
When the Change Management Institute was set up five years ago half of all me
contract workers and half permanent. Helen expected this to change over time,
A. Chris MacDonald
A 50/50 split within the change management community is good. I like
on the business set-up and the environment. Generally it’s better to have more contractors to allow
the business some flexibility.
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
Q. Paul Webster – CommInsure
as a sensitive
are the entire project as well as
time allowed for the initial internal announcement. There was an opportunity to engage the press
mmunicated to staff
ctive.
CEO communicated
anagement team provided support materials to the
Board and Managing Directors to ensure communications were leader-led and not too clinical.
ging. It was
important that the business had a head start on what staff might read in the press by ensuring that
everybody had the most accurate internal information first.
ation continued for several months after the project was formally completed,
Q. Helen Campbell – Change Management Institute
Has he left ANZ in a better state than he found it?
A. Jacques van Schalkwyk
Feedback from ANZ was that it was an example of good, solid, constructive change management.
This came from all leaders who actively participated as well as the internal change management
team. ANZ created a Global Head of Change Management role after the project was completed.
How long did ANZ carry on before they felt the project was truly embedded?
A. Jacques van Schalkwyk
Corporate communications were also involved in the project, which helped as it w
project with a very specific start date. It required ample time to prep
office to provide input into how the messages of the change project would be co
across the business and to review them from an organisational change perspe
The communications cycle was frequent in the beginning. For example, ANZ’s
to all staff on a fortnightly basis. The change m
There was a strong focus on face-to-face communication and consistent messa
This level of communic
to raise morale and restore confidence across the business.
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
on – is there a minimum or maximum time that can be recommended if
minimum?
embedded to ensure it is sustainable once it has gone live. When
I put in bids for funding past ‘go live’, three months is a typical timescale. One solution for lack of
ustainability needs to be pushed back into the project before it goes live, so
Change managers need to push to keep the project alive. Some project managers will look at the
finishing line and may overlook budgeting for the period after the main project is finished. There
project beyond the core transformation to ‘tidy
if doing it again?
uccessful without tapping into
all the different mechanisms within the organisation e.g. communications, leadership etc. They
need to be allies throughout the process. Equipping those allies to contribute in a constructive
manner is crucial to success, being evangelical is not enough – give key people a role will help
them contribute. Define the role and support them in executing it. Make sure they are told
everything will be done to ensure they get a suitable role in the project and in return invite them to
help by becoming a role model within the organisation. A well-defined role will help get people on
board – something that the change management community needs to work harder at.
Q – to both speakers
Post implementati
organisations don’t want to support a project for long? Should three months be a
A – Chris MacDonald
Change has to be measured and
follow-through is that s
a lot has been done before the end date.
A. Jacques van Schalkwyk
should be a strong business case for extending the
up’ and make sure the business is set up. It won’t just happen, it needs to be engineered and made
to happen.
Q. Nadene Serman – Serman Consulting
What are the lessons learnt from ANZ – what would be done differently
A. Jacques van Schalkwyk
One of the key lessons learned was that managing change can’t be s
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MORGAN MCKINLEY PROJECT MANAGEMENT BREAKFAST SEMINAR DECEMBER 2010
***
ac and AMP.
Jacques has over 10 years’ experience in change management and designed the change
management approaches, frameworks and methodologies of Westpac, ANZ and APA. He also
authored the book “On Track to the Top”.
SPEAKER BIOGRAPHIES
Chris MacDonald Chris is an independent consultant whose recent assignments include Westp Jacques van Schalkwyk