Oisin e-Newsletter: Sept 05 - The Business of Change
 
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Table of Contents
   
Upcoming Workshop: Coaching for Cultural Transformation
News from Oisin: Now Available - Kirkpatrick Level III and IV Measurement Surveys
Article of the Month: Establishing The Business Case for Change
Link of the Month: www.caseplace.org
Recommended Reading: Walking the Talk
   
 
   

Upcoming Workshop: Coaching for Cultural Transformation

On Thursday the 10th and Friday the 11th of November 2005, Paula Flynn and Cathy Ulbrick will facilitate our popular Coaching for Cultural Transformation workshop.

Come experience a powerful developmental intervention that has been utilised by leaders in the following organisations to successfully leverage people capability and attain the most critical of organisational objectives: Virgin Blue Airlines, Foster's Group, Kraft Foods, Minter Ellison Lawyers, and many others.

Topics to be Covered in this Two-day Program:

  • Organisational Coaching Trends

  • Coaching in the Business Context

  • Distinguishing between 'Being a Coach' and 'Doing Coaching'

  • Advanced Coaching Skills

  • Building Strategic Organisational Coaching Capability

  • Demonstrating Coaching Agility

  • Constructing Powerful Coaching Conversations

  • Managing the Psychological Framework

  • Developing Ourselves as Coaches

  • Implementing a Transformational Coaching Culture

Where and When: Melbourne 10 and 11 November 2005

Cost: $1175.00 (plus G.S.T.) - *groups of 3 people or more attract a discount

Click Here for More Information or call and speak with us on (03) 9882 9544

   
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News from Oisin: Kirkpatrick Level III and IV Measurement Surveys

Oisin is proud to announce the launch of our latest product – online Kirkpatrick Levels III and IV Measurement Surveys. By soliciting perceptions from managers, peers, stakeholders and direct reports, changes in behaviour can be identified and can in turn be directly linked to bottom-line performance. Particularly effective for calculating the return on investment (ROI) of Sales, Leadership and Cultural Change Initiatives our Kirkpatrick Level III and IV Measurement Surveys enable organisations to calculate the ROI and organisational impact of their developmental initiatives. If you would like to learn more about our Kirkpatrick Level III and IV Measurement Surveys please contact one of our consultants on +61 3 9882 9544.

   
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Article of the Month: Establishing the Business Case for Change

Cultural change programs and organisational development initiatives must be supported by a powerful business case in order to gain the required internal support. Businesses expect there to be a tangible return on any investment made and a well developed business case should articulate, in strategic terms, the expected business outcomes from any investment. In particular, the business case must clearly state the strategic imperatives that the proposed change initiative will address and identify the expected tangible outcomes. This enables the effectiveness of the initiative to be measured and evaluated against core business drivers. Without a compelling business case, the custodian of any organisational change initiative has little chance of attracting resources, gaining support and affecting change within the organisation.

Organisational development practitioners frequently have difficulty translating and articulating the need for change in business terms that engage the senior executives. Utilising a business language that is crisp, to the point and focused on business and strategic issues is vital to cultural change practitioners in order to gain both the financial and emotional support for any change initiative.

When submitting a business case to the Executive, it is important to address the following three points:

  • What is the ROI to be derived from making an investment in this proposal?

  • What are the issues you are trying to address with this change initiative?

  • Why is this change initiative important to the strategic goals of the business?

Other key components of a solid business case include:

  • Detailed data and information

  • Clear linkages to established business goals and plans

  • Predictions of likely impacts within the marketplace

  • A clear statement as to why the proposed change initiative is a critical investment for the business

Data and Information

Business cases need to be seen as compelling arguments that address specific business issues rather than “HR fluff” or “nice to haves”. The inclusion of predictive financial data in a business case is a powerful way of articulating a compelling argument for change initiatives and organisational development activities. Some examples of such financial arguments include:

  • The industry best practice in relation to turnover statistics in this industry are X and our current level is X. This translates to cost of $X, being the cost of X, X, X & X.

  • The current rate of absenteeism is X which translates to X% or $X. The industry norm is: X or the rate in employer of choice organisations is: X.

  • The current number of staff with clearly defined performance objectives is X. This means that only X% of our staff has a clear understanding of their objectives on a day to day basis.

The identification of the specific skills and behaviours required to attain a particular business goal is also important to include in a business case; once critical business skills and behaviours have been identified, improvements in these areas can then be measured and clearly linked to the change initiative or organisational development activity. For the business case to capture the interest of the executive, clear linkages between improvements in bottom-line performance and investment in workforce skills and behaviours must be articulated. From a ROI measurement perspective, the Executive will want to know:

  • What skills and behaviours will be targeted by the change initiative

  • How changes in skills and behaviours will be measured

  • When these changes will be measured

  • What the predicted or expected changes will be

  • The expected bottom-line effect of the predicted skill and behaviour improvements

In our experience, organisations seek a range of outcomes from their change initiatives. The following metrics have been used to measure the effectiveness in cultural change and development initiatives:

  • Decrease in lost time due to absenteeism

  • Reduction in stress related work cover claims

  • Decrease in employee turnover

  • Increase in formalised and actively utilised performance and development plans

  • Increased confidence of managers to conduct performance discussions

  • Increase in the “intention to stay” ratings in employee climate surveys

  • Decrease in the number and nature of issues being taken to higher management levels

  • Increase in business projects being completed on time and on budget

  • Increased customer satisfaction metrics

  • Increased sales productivity (volume, margin and revenue)

  • Reduction in stress being experienced by leaders in the organisation

Information that supports the arguments put forth in a business case must be provided to those who will be determining its merit. This may include sales results, profitability figures, statistical analysis, internal or external surveys and reports. The information needs to clearly highlight areas where improvements are required; it needs to clearly demonstrate a gap that needs to be addressed. Such information helps differentiate a personal opinion from a critical business imperative.

Evaluation

In addition to establishing a compelling business reasons for a change initiative, a succinct statement detailing how the effectiveness of a change initiative will be determined must be included. This will not only assist in gaining financial support but will also provide a reporting framework that can be utilised for ongoing evaluation, measurement and reporting as the change program progresses.

The evaluation and measurement methodology should be presented as a core component of any proposed change initiative. We suggest utilising the Kirkpatrick’s four level evaluation model as it is recognised as global best practice. Whilst it is typically utilised in the arena of learning programs the value of the model at Level III and Level IV evaluation provides useful measures for any change initiative that seeks to influence workplace behaviours.

Level I Measurements focus on the learner’s reaction to an event, such as participation in a developmental initiative, and their feelings about the developmental initiative’s structure, content, and methods. Typical methodology includes evaluation forms or structured discussions that calibrate participant’s responses to a learning event or activity.

Level II Measurements focus on the learning achieved as part of a developmental or change initiative. It answers the question, “Did the participants learn what they were meant to learn?”. This level of measurement can be addressed through the use of pre and post training testing mechanisms.

Level III Measurements focus on the longer-term behavioural change that occurs in individuals as a result of a developmental or change initiative. This can be determined by interviews/focus groups with initiative participants as well as through interviews with their Managers in order to confirm reported changes in behaviour. Comparative pre-initiative and post-initiative surveys that solicit perceptions regarding behavioural change are a very effective way of assessing the degree of behavioural change. In particular, online (or paper-based) 360 degree feedback surveys that solicit perceptions from peers, direct reports, and managers are extremely useful.

Level IV Measurements focus on the tangible impact on the organisation in terms of organisation improvement and business results; for example, an improvement in the ratings of an Employee Climate Survey. Once you have determined the desired outcomes of the change initiative, you will find that the business impacts will become easier to identify.

While return on investment is an important component of the business case and should clearly demonstrate tangible cost benefit in dollar terms and or percentage, it is also important to include the intangible benefits that are expected from an initiative. This may include increased staff morale, improved workforce flexibility, attractiveness of the organisation as an employer of choice or customer satisfaction.

Conclusion

Ensuring sufficient time and effort is directed toward the articulation of a strategic business case is as critical for change practitioners and their profile within the organisation as it is for the change initiative itself. The ability to connect and clearly communicate strategic business imperatives will ensure that support and buy in at all level of the organisation is obtained.

Some Coaching Questions that may assist in the preparation of the business case:

  • What do the decision makers want from a business case?

  • Who needs to be consulted in the preparation of the business case?

  • Who will be impacted by the proposed change?

  • What is the impact on people, systems, processes, customers, workload, etc…?

  • What are the likely barriers to the proposed initiative?

  • What are the key milestones for the initiative?

  • What are the critical success factors?

  • What will happen if the change does not occur?

If you would like more information about how to develop a business case for a change initiative or organisational development activity, please contact one of our consultants on +61 3 9882 9544.

   
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Link of the Month: www.caseplace.org/

http://www.caseplace.org/

CasePlace.org is a free, online service provided by The Aspen Institute’s business and society program. On this site one can find informative case studies, references, and commentary published by and for business educators and business executives. There is a particular focus on business ethics and social responsibility.

   
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Recommended Reading: Walking the Talk – Building a Culture for Success

In Walking the Talk – Building a Culture for Success, the author, Carolyn Taylor, draws from years of experience as CEO of a successful cultural change consulting firm. Her book is essentially a practical and useful guide for people who want to understand the necessary building blocks, processes and “how to’s” to positively transform organisational culture. A good read.

   
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