Managing Change in a

world-class investment company

Heriot-Watt University (Room EF26)

10:00 am – 11:15 am

Brian Reid
Head of Change
Investment Technology Solutions
20th March 2017
Contents

1. Company
2. Change Team
3. Managing Change for a world-class investment company
4. Managing resistance to change
5. Internship
6. Q&A

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 Standard Life Investments
A World-Class Investment Company
Resistance to
Company Change Team Managing Change Internship Q&A
Change

• Premier investment house founded in

1998
• Dedicated investment management arm
of the Standard Life Group, which was
founded in 1825
• Clearly differentiated, successful
investment philosophy and process
• Global investment company managing
£278bn of assets under management
• HQ in Edinburgh – operations in Boston,
Dublin, London, Stockholm, Frankfurt,
Paris, Madrid, Milan, Zurich, Toronto,
Hong Kong, Sydney, Beijing, Seoul,
Singapore, Mumbai* and Tokyo**

As at 15 March 2017
*Joint Venture with HDFC Asset Management
** Strategic partnership with Sumitomo Mitsui Trust Bank Limited 3
 Investment Technology Solutions
Playing a critical role in delivering a world-class investment company
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Strategy Change Solutions Delivery Solutions Support

All portfolios,
Direct partnership programmes and End-to-end
with the business projects managed development
Focus on day-to-
by Change lifecycle
day service and
Long-term ownership and
support
strategic planning CPMO to focus on management
portfolio planning Global Support
New level of and project Platform teams
model
architecture support established and
oversight aligned to key
Analysis Services business
capabilities

Business Management

Focus on developing and enabling ITS as a whole

One team, focused on excellence

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 Head of Change- Brian Reid
A team dedicated to shaping and managing change portfolios
Resistance to
Company Change Team Managing Change Internship Q&A
Change

1. Worked for Standard Life plc since 1983.

2. Early years spent in a client service /
operations environment
3. Change / Project Management focus since
early 90’s
4. Today, managing a team of around 90
Project and Change Professionals in my role
as ‘Head of Change’. Brian Reid
Head of Change
5. Still learning and facing many new Standard Life Investments Ltd
0131245 9832
challenges today Brian_a_reid@standardlife.com

6. My life: family, photography, music,

adventure, work…..

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 Change
A team dedicated to shaping and managing change portfolios
Resistance to
Company Change Team Managing Change Internship Q&A
Change

• Dedicated Change / Project Professionals Brian Reid

• Many have been in this line of work for
years
• Some have an IT background Support

• Some have a business background

Head Change
• Some have a consultancy background Change
Portfolio
Head of Portfolio
Analysis Management
Managers
• Many graduates Office
• Many ‘university of life’ professionals
Programme Business
• Some passing through, to expand Managers Analysts

leadership skills
• Most are career change people Project Process
Managers Analysts

6
 Change Team Business Plan
A simple business plan to increase the likelihood of project success
Resistance to
Company Change Team Managing Change Internship Q&A
Change

What How
Our Purpose Build capable teams to deliver services
• The Change team exists to help the business 1. Business Analysis capabilities to help define the problems, requirements
manage change initiatives in a way that and solutions
increases the likelihood of success.
2. Portfolio, Programme and Project Management capabilities to drive
delivery and completion
3. PMO capabilities to drive standards, reporting, and programme mechanics
Our Goal(s)
1. Build a success story of high value, outcome 4. Change Capability / Learning services, to develop ourselves and the
focussed, project deliveries in partnership with business people we work with in Change disciplines
our colleagues and suppliers
Help the organisation manage demand flow
2. Resolve the persistent priority management,
capacity management and scheduling issues 1. Develop the Change Boards process to increase business control over
priority and approvals
3. Mature our team to the point where we feel very 2. Produce MI that helps everyone understand the scale and complexity of
comfortable delivering large complex our overall change portfolio
programmes
3. Provide information to help the business make choices

Our Stretch Goal(s) Collaborate:

1. Earn the right to contribute at a higher level, 1. Develop our processes and ways of working to improve results
helping shape the future of Standard Life 2. Build master change schedules and optimise our overall utilisation of
Investments. resources
3. With 3rd parties that extend our capacity / capability
2. Accelerate efficient and effective delivery
beyond current expectations
Provide views and information that helps the company:
1. Explore options / identify opportunities
2. Recognise challenges and plan accordingly
3. Make time, cost, and quality choices
 Types of Change
Different types of change our function manages & the resistance faced
Resistance to
Company Change Team Managing Change Internship Q&A
Change

New process or Cost saving

Product
Type business Internal control / exercises
Innovation / Outsourcing
capability mandatory processes (Often affecting
Launch
innovation employees)

Can take many

Cost & Typically less months to Can take years to
£500k - £30m Usually low cost
Time than £1m cost implement, but embed the change
cost generally low

Bigger project
Small project Involves many
Scale teams, many Small team – 3-10 Small team – 3-10
team people across the
business people people
1-3 people organisation
stakeholders

Complex
Operating requirements, The implementation
The outsourcing of
model design, operating model of new internal Withdrawal of
people,
process change, design, process processes and benefits, changes
Implications processes,
legal work, change, controls to mitigate to working
capabilities,
marketing, technology risk, increase environment, cost
services to a 3rd
literature, design and transparency, cutting initiatives
party
system changes implementation, achieve consistency
data feeds,

Resistance
Resistance always
varies, usually
Pushing on open Resistance often high Resistance often high. This kind of
Resistance stems from
door, resistance – achieving buy in high. No-one likes change affects
solution debate
very low can be challenging to lose benefits. people very
or capacity
directly.
challenges
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 Catalysts of Change
Basic sources of change demand
Resistance to
Company Change Team Managing Change Internship Q&A
Change

9
 Change Portfolio Governance & Decision Making
Basic sources of change demand
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Change Governance Framework Element

Forward planning & shaping SLI’s overall change roadmap

Setting priorities & allocation of funds at macro level

Approving specific project requests

Ensuring projects have an appropriate level of oversight

Tracking & communication of results / benefits

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 Change Portfolio Demand
Organising our portfolio of change by assessing, discussing, and prioritising
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Projects in Projects in
Projects in Delivery Feasibility Pipeline

£25,423,170 £12,031,130 £3,619,050

Green Projects 23 Green Projects 2 No. of Projects 44

Amber Projects 16 Amber Projects 14
Red Projects 1 Red Projects 2

How we are investing?

Broaden & Deepen Alpha, 3.68%
Compliance & Continuity, 17.82%
Improve Scalability of Oper.
Platform, 53.65%

Attract, Retain & Develop Talent,

Risk Avoidance, 11.67%
0.85%

Diversify Revenue & EBITDA,

12.34%
 Head of Change main Challenges
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Demand Roadmap for Capacity and

#1 #2 #3
Management change Capability

Lots of demand coming into In what order will we The right people, in
the Change Process all the do things? the right quantity, at
time the right time.

Measuring our
#4 Execution #5 Complexity #6
Excellence effectiveness

Many complex solutions to

deliver, and
interdependencies to manage 12
 Conditions for Success
Driving successful change outcomes
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Goal Raw materials Conditions for success Results

Water Pest control

Feed the world + =
High Light Nutrients
quality,
resilient

Nutrition Science

Win gold + =
medals
Passion and Analysi
commitment s
Equipment / Coach
Facilities

Deliver project + =
goals

An idea, a request, an
enthusiastic initiator 13
and some money.
 Conditions for Success
Creating the cascading ‘conditions for success’
Resistance to
Company Change Team Managing Change Internship Q&A
Change

At the
corporate
level

•
Clear structure
• Clear scope
• Clear priorities
• Core team
• Programme level thinking
At the portfolio / • Infrastructure / support
Conditions for success at the level of
programme Individual Portfolios / Programmes

level

At the
individual
project level
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 Conditions for Success
Process are not enough- corporate wide belief and commitment to creating the conditions for success help drive results
Resistance to
Company Change Team Managing Change Internship Q&A
Change

The full suite of conditions for

success
Belief in
these
Micro project level

Feedback loop encourages

further confidence

Macro corporate (board) level CFS Many factors tracked for their
• Active and visible leadership presence / health
Will drive
• Priorities set, realistic targets agreed
the right • Funds provided
corporate • Resources provided, and organised appropriately
• Commitment and support sustained
behaviours • Share the pain, and the gain
• Collaborate, enable, support, celebrate

Corporate CFS’s will help

create project specific CFS’s
 Actively managing resistance
Change involves people, which trigger different sources of resistance in our business
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Change is a complex and dynamic process involving human beings (who think and feel…
we are not robots!). Processes and logic help, but the smart change managers have a
‘change management plan’, alongside a ‘project plan’.

1. I have other priorities, and don’t have capacity right now

2. I’m personally invested in the current state / status quo
3. I have another plan I haven’t told you about which I prefer
4. Your proposal will create new problems for my team and I
5. I don’t buy into the business case for change
6. It might affect me personally; my role, my future, my wealth, my health, my family….
7. It suits me to make your life difficult, and I get to avoid some extra work
8. I like things the way they are now – my role, my routines, my team, my seat, my car
parking space, the view from my window…. etc!
9. I don’t like the proposed technology, I prefer the old manual way of doing things.
10. I take your suggestion for improvement as a personal insult
11. It will cost too much
12. This will may my job harder, and there more difficult for me to hit my targets
 Resistance has a cost
The human factors that impact on the ROI (Return On Investment)
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Speed of adoption
How quickly people are up and running on the new system, process,
structure, roles etc.

Ultimate utilisation
How many employees (of the total population) are demonstrating buy in
and are using the new solution

Proficiency
How well are individuals performing compared to the levels expected in
the design of the change ?
 Project Management & Change Management
Integrated framework to deliver business results
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Solution is designed,
Project management developed and delivered
effectively
(Technical side)

+
Current Transition Future
state state state

Solution is embraced, adopted

Change management and utilized effectively
(People side)

Project management and change

management have a joint value
proposition oriented toward business
=
SUCCESS
results (BUSINESS RESULTS)

Source: Prosci
 Managing Resistance
Managing challenges with key areas through collaboration
Resistance to
Company Change Team Managing Change Internship Q&A
Change
• Provide the vision / goals
• Articulate the strategy for things like data management, outsourcing
operating models etc
• Articulate the problem / requirement, not the solution
• Lend subject matter expertise
• Help define processes, choose and validate solutions
• Test new systems and processes
• Champion the change in the business

Business

Manage the
challenges

IT Change

• Provide expertise in IT skills • Provide expertise in Change / Project Management skills

• Play a part in defining, choosing and building solutions
• Provide deep technical skills to turn ideas into realities
• Help turn business needs into well structured, realistic and
executable change projects and programmes
• Move changes through a structure process to drive up quality and
increase likelihood of success
• Spot issues and prompt changes in the plans where required
• Build relationships that help fuel the change process
• Play a part in defining, choosing and building solutions
• Help turn business needs into well structured, realistic and
executable change projects and programmes
• Move changes through a structure process to drive up quality and
increase likelihood of success
• Spot issues and prompt changes in the plans where required
• Build relationships that help fuel the change process
• Help the business prepare for change
 ADKAR* Process
Using valuable tools to manage resistance
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Analyse these Through these stages To take the people

factors, and build of the change with us through
change process………. change
strategies……………
Phase 1 – Preparing for change
Define your change
management strategy

Prepare your change

management team

Develop your sponsorship

• Awareness model

•
•
•
Desire
Knowledge
Ability
+ Phase 2 – Managing change
Develop change
management plans

Take action and implement

=
plans
• Reinforcement
Phase 3 – Reinforcing change
Collect and analyse
feedback

Diagnose gaps and manage

resistance

Implement corrective
actions and celebrate
successes

* The ADKAR model was first published by Prosci in 1998 after research with more than 300 companies undergoing major change projects. In 2006, Prosci released the
first complete text on the ADKAR model in Jeff Hiatt's book ‘ADKAR: a model for change in business, government and our community’.
 Measuring Change Effectiveness
Different levels / measurement types of change effectiveness
Resistance to
Company Change Team Managing Change Internship Q&A
Change
Satisfaction with outcomes / quality of deliverables
Level
Satisfaction with price paid
1
Satisfaction with time taken

Perception scores collected mid flight Level 1

Ultimate Results
Data collected around CFS’ factors post completion

Level Confidence scores, mid flight

2 Data about change controls raised Level 2

Measuring project
Insights regarding business impact journeys

Detailed project data / milestone markers

About the projects

Budget management About broader capabilities

Level 3

Process management
Enabling processes
Level
Demand management
3
Capacity Management Level 4

Underlying capabilities
Portfolio Management (Teams and people)

‘Service’ health / readiness

Workforce capability assessment

Level
4 Contractor dependency levels
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Our confidence in teams deployed
 2017 Internship with Change
Project Success- adding value to the change process by measuring success and communicating success stories
Resistance to
Company Change Team Managing Change Internship Q&A
Change

When • 5 weeks internship from May 22nd to June 23rd 2017

Who • SLI is offering 2 intern positions

Where • SLI headquarters in George Street, Edinburgh

• Theme- Measuring & Communicating Project Success

• Provide SLI with academic / industry research of best practices for measuring,
documenting & communicating project success
What • Investigate within SLI projects which have delivered in the recent months, and what are
there success stories and what measurements are being used.
• Produce a template for telling success stories
• Produce an indexed catalogue of success stories

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 2017 Internship with Change
Recruitment process
Resistance to
Company Change Team Managing Change Internship Q&A
Change

Login to
Submit a CV to system & Complete
eva_meikle@st answer online ability Telephone Assessment
andardlife.com online tests by Interview w/c Centre, w/c
by Sunday 26 questions by Wednesday 3 & 10 April 17 April
March
Wednesday 5 April
29 March

For further info visit:

www.standardlife.com/earlycareers
 Resistance to
Company Change Team Managing Change Internship Q&A
Change

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