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Barometer on Change The Barometer on Change is an annual research survey conducted by Moorhouse, in 2012 a business transformation consultancy head quartered in London, UK. The survey looks at how well UK businesses are delivering change projects and programmes. It is intended to be an industry tool for measuring what is driving change and how effective it is. Survey respondents are Board members and their direct reports from FTSE 250, multinational and public sector organisations

Background

Moorhouse had noticed a rapid increase in both the number and complexity of change programmes being undertaken in a number of sectors. Research was undertaken to gain insight into how effectively these programmes were being delivered. The survey helped identify the challenges being faced by organisations when conducting enterprise-wide change and the reasons for undertaking it.

Moorhouse Overview

Moorhouse specialises in helping organisations deliver complex change through the application of project and programme management (PPM) capabilities. Moorhouse has three core service offerings; strategy into action, out of the ordinary delivery and project and programme culture. Moorhouse works with large organisations in the Financial Services,Transport, Energy and Utilities, Pharmaceutical, Consumer Business, Telecommunications,Media, Technology and Public sectors .

Moorhouse was founded in 2004 and has won a major national award in every year of its existence; Moorhouse is the only company to have won the Association for Project Management ‘Company of the Year’ award twice.

Barometer on Change 2012

The inaugural Barometer on Change was launched on April 12th 2012. The research was carried out via telephone interviews during February and March 2012.

Sample Overview

The 2012 Barometer on Change surveyed 198 UK Board members and those who report directly into the Board. Those surveyed were responsible for a spend of more than £3.4bn on change programmes, with an average of £17m investment in each , 50% of which are considered business critical. 32% of respondents were at Board level, whilst 68% reported into the Board.

Respondents came from across the sectors Moorhouse works in; 17% were from Telco/Media/Technology organisations, 9% from Health & Pharmaceutical organisations, 12% from Transport and Distribution organisations, 20% from Financial Services organisations, 15% from Energy and Utilities organisations, 18% from Retail/FMCG organisations and 9% from Public Sector organisations.

The Results

The 2012 results found that the key driver for change was cost reduction, but revenue enhancement was still a key goal for many organisations. Almost three-quarters of respondents felt that the pressure for change increased between 2009 and 2012 and two-thirds felt it would continue to increase in 2013.

The 2012 survey identified a wide variance in perceived performance. Only half of respondents claimed a better than 70% success rate with their programmes , whilst only 7% judged they were fully successful. Only a third of respondents said their objectives were achieved.

The results of the survey revealed five common challenges that organisations were facing in delivering complex, transformation programmes. According to the 2012 Barometer on Change, in order to successfully deliver change programmes, organisations need to engage stakeholders better, measure benefits, tackle their problems proactively, use better skilled resources to deliver the programmes, and make sure the Board and delivery team have the same perspective on the progress of delivering the change programme.

Set programmes off on the right footing - engage stakeholders

Half of respondents were leading business critical projects, but only 36% felt they have got stakeholders and key staff ‘bought in’ very well to the project’s aims and benefits of the change . This was a surprising result because ‘lack of ownership’ was seen as the most important threat to a successful outcome. Respondents whose stakeholders have bought in to the aims of the programme were better at achieving stated objectives.

Measure benefits effectively

The 2012 results found that organisations make some effort to track benefits but only 54% are measuring benefits fully during the course of the project. Less than a quarter are properly measuring benefits after the project has ended . Those respondents who track the benefits of their programmes are significantly more successful at achieving their stated objectives.

Be proactive and agile

92% of the 2012 respondents found that objectives altered over the course of their programme , although this was only meaningful in two-thirds of cases. The main reasons cited are that the original objectives were unrealistic or further cost savings were required during the project.

Foster the capability to change - resourcing

The 2012 Barometer on Change found there was a vast difference in the amount of external resource being used by companies. Some organisations were managing programmes almost completely with in-house resource whilst others were relying more heavily on external resource.

Understand the gap between the Board and the delivery team

Board level respondents felt that stakeholders are more effectively bought into the aims and benefits of the programme, and that the organisation is better at dealing with change in resource requirements than their direct reports. Board-level respondents were also more positive about their organisations ability to cope well with changes in resource requirements. Board-level respondents tended to rate their own leadership as more consistent than when rated by non-Board respondents, but they have less confidence in the project staff.

Launch event

The launch of the Barometer on Change 2012 results was held at the BT Tower, London. The event was attended by a number of Board level managers and their direct reports at FTSE 250 and public sector organisations. The Barometer on Change 2012 survey results were presented by Stephen Vinall, Moorhouse Managing Director, and Richard Goold, Moorhouse Executive Director. The presentation of the results was followed by a Q&A session and then lunch on the revolving, top floor of the BT Tower.

Barometer on Change 2013

The next Barometer on Change will be launched by Moorhouse on May 15th 2013. The survey will look again at how well businesses are delivering change projects and programmes and the results will be compared to the 2012 survey. Moorhouse plan to hold the launch event at the BT Tower again.