Change Audit
A structured Change Audit helps organizations measure the factors that drive successful change before normal business statistics reveal the outcome.
“A change audit is like a doctor ordering a battery of tests to ensure a good outcome. Analytical measurements of Theory ZYX serve the same purpose as x-ray machines, EKG machines, blood analyzers, and other diagnostic tools.”
Change Audit Is An Early Predictor Of Success
Organizations do financial audits. They do safety audits. They take physical inventory. But they rarely think of a change audit.
Theory ZYX framework offers a new innovative tool: a structured Change Audit. A Change Audit utilizes the quintessential Analytical Measurements of Theory ZYX.
The first Change Audit sets up a baseline on all pertinent aspects that need to change, including all elements of the Z Axis, the Y Axis, and the X Axis. The audit can include both internal and external constituencies.
Subsequent audits can be Mini Audits with a specific narrow focus. It is best to preplan the audits as an integral part of the change framework.
Typical internal constituencies include employees. Typical external constituencies include customers, suppliers, stockholders, Wall Street, banks, and regulators.
The baseline not only helps in better formulation of plans and better implementation, but also allows further measurements that act as early indicators long before the results show up in normal business statistics.
As an early predictor of future business results, the value of a Change Audit is immense.
How A Change Audit Works
Change Audits create a disciplined measurement process for planning, execution, people factors, and early warning indicators.
1. Baseline Audit
Establishes a starting point on the key elements that must change across the Z Axis, Y Axis, and X Axis.
2. Mini Audits
Provides focused follow-up measurements at planned intervals to evaluate whether the organization is on course.
3. Early Warning Indicators
Identifies issues before they show up in normal business statistics, helping management act sooner.
Analytical Measurements In Action
The best way to illustrate the power of Theory ZYX analytical measurements is through examples.
Must Change The Course
Consider an organization where a Change Audit at interval n revealed that the Z Composite Index, representing planning, and the Z Challenge Index were in the Outstanding category.
The overall YX Composite Index, combining execution and people elements, was in the Good category. The interpretation was that the organization had an extremely high probability of success.
A Mini Change Audit at interval n + 3 months showed that both the Z Composite Index and the Z Challenge Index had slipped to the Very Good category due to changing market conditions.
Meanwhile, management’s focus on execution and human elements was beginning to pay off as the YX Composite Index moved up to the Very Good category. The interpretation was that management needed to stay on course.
Must Replace The Managers
Senior executives charged managers of a division to execute change. The managers collectively exhibited levels of Conditioning and Inductivity that fell in the Poor category. Fear and Mistrust fell in the Fair category.
Forced by lack of progress, senior executives intervened. They recognized that Fear and Mistrust were too high. They guaranteed the managers job security, communicated effectively about the plan, and started speaking with managers about their intentions regarding the division.
A subsequent Mini Change Audit showed that Fear and Mistrust improved to the Good category. This demonstrated how analytical measurement can help diagnose specific change management barriers.
The Cardinal Sin Of Change Management
The cardinal sin of Change Management is attempting to execute change by providing functional, technical, or systems knowledge without adequately preparing the organization for change and without developing the ability and momentum needed to generate desired results.
Preserving The Original Charts
The legacy page included several image-based charts supporting the Change Audit examples.
Learn More About Change Audits
To learn more about Change Audits, read the book titled Theory ZYX Of Successful Change Management: A Definitive Guide To Reach The Next Level or attend a Change Management webinar.
Learn More About The Book