How to prove the value of a CMO
One of the constant requirements for Change Management Offices (CMOs), and particularly CMO leaders, is the need to be able to show the value of the CMO. This is particularly important in challenging times, when CMO leaders may find themselves caught between two contending pressures.
On the one hand, the challenging times means that organisations need to effectively implement change quickly. The demand for skilled change managers can increase dramatically. And yet, at the same time, the change management office risks becoming a victim of those challenging times, as some senior leaders perceive it as an unnecessary and optional cost that can be stripped out. It is rare for a function to find itself both in such high demand and as under threat at the same time.
“It is not easy to prove value, but it is perfectly possible to indicate it and build a strong support base for the CMO.”
These contradictory pressures reflect the relatively low maturity of change management as a universally accepted discipline, and even more so, for CMOs being seen as a critical function. Few other functions are questioned or challenged as much. Showing the value of any function is hard, but in many cases it is never questioned. For instance, if I ask “what is the value of the finance function”, I would probably get quizzical looks from most people. It is a given that a business needs a finance function. Unfortunately, CMOs, are not yet in such a strong position.
It is not easy to prove value, but it is perfectly possible to indicate it and build a strong support base for the CMO. This requires a structured approach and sufficient focus by the CMO leader. If this is done, over time, no one will question the CMO’s value.
The sources of value
To show the value of the CMO it is worth starting by reflecting on the roles of the CMO, and what value those roles provide to the organisation. In a previous article, I highlighted four main roles for the CMO. Let’s look at these again, and for each role outline what sources of value this drives:
Role 1: To act as the centre of excellence in change management
Source of value: ensuring that change is delivered effectively and efficiently, and that outcomes and benefits are fully achieved. This should be the primary source of value for the CMO.
Role 2: To provide a “home” for Change Managers
Source of value: ensuring that change managers feel valued and are motivated, and work within the most appropriate direction and leadership. This both increases the quality of their work, and also tends to decrease staff turnover which has a high cost.
Role 3: To optimise the cost of change management
Source of value: particularly in the sourcing of cost-effective change managers, hence reducing the total cost of change management.
Role 4: To provide a mechanism to manage enterprise level change
Source of value: enabling better scheduling of change, and to facilitate executive level decision making concerning change.
Work with change managers
All the sources of value just described are real and important. However, apart from direct financial measures such as the cost of change managers, they can be hard to track and prove. With this in mind, the best way to show value in the organisation is by giving a great experience of working with change managers on change initiatives. If an organisational unit continuously does excellent work, that is visible to decision makers, its value will be accepted and rarely is it questioned.
Excellent work is achieved when the CMO is able to provide the best quality change managers. When CMOs start, there can be a temptation to staff rapidly to fulfil immediate demand. Whilst we strongly believe the CMO has to have adequate resources, we advise all CMO leaders to be very choosy about who they recruit. One poor quality team member, working on a critical initiative, can ruin the whole CMO’s reputation. Avoiding this requires that the CMO has access to experienced change managers who can show their worth on change initiatives quickly.
It also requires a CMO that has effective mechanisms for managing the demand for change managers and balancing this with an adequate level of supply. There is little more damning criticism that can be given to CMOs than comments of the form “they never have anyone available when I need them”. Speed to respond to requests for help is an important aspect of value.
Engage stakeholders and sponsors
As change professionals we all know the need for stakeholder management, and effective sponsorship, when it comes to delivering change. The CMO has the same needs. No matter how much value the CMO is delivering, this will not be recognised without stakeholders who see that value and are willing to communicate to others about this.
I think of this at two main levels. Firstly, there are those people who come into contact with change managers on a regular basis during the delivery of change initiatives. I am thinking of people like Programme Managers, Programme Directors and Sponsors. It is important for the change management community to be visible to this group, and for this group to interact and value their work. Secondly, there are those in leadership roles who have an interest in change at the enterprise level – this typically includes people like the CIO and CHRO, as well as more obviously people like Transformation Directors.
I often find myself talking about sponsors, and when I do people naturally assume I mean the sponsors of change initiatives. These are important roles, but there is another sponsorship role which is the sponsor of the CMO itself. A successful CMO needs a sponsor at the executive level, who will share stories of the successes and value of the CMO. In a later article I will explore the role of the CMO sponsor specifically.
Ensuring these people both see the good work of change managers in the organisation, and are open in expressing their appreciation to others, requires active engagement from the CMO leader. For anyone who has grown up in the world of change management this active stakeholder engagement should come naturally. The CMO leader often focuses on the individual change initiatives – never forget that stakeholder management extends to educating the organisation on the value of the CMO itself as well!
Make use of peers in other organisations
In my experience, there are CMOs who are constantly being challenged to show value, and who go under a cloud of suspicion that they are a “nice to have function”. But there are also organisations in which the CMO is never challenged as it has already proven its value. As a sign of this I know of some organisations for whom working in the CMO is seen as a vital stepping-stone to the most senior leadership roles. This is as it should be, as after all no executive role nowadays does not have a significant change responsibility.
The in-house CMO is not competing with CMOs in other organisations, and I have found CMO leaders happy and willing to share their experiences with CMO leaders in other organisations. A really helpful aid to showing value, if you are struggling, is to introduce your sponsor to other CMOs with a proven track record. There are few things that are more likely to drive the acceptance of the value of the CMO than an executive in one organisation telling an executive in another how much they value and benefit from the CMO.
It is an ongoing challenge for the CMO to show value. This pressure will decline once the CMO is universally recognised as a critical business function. We are some way from this, and until we are the CMO leader must be willing to focus on showing value to stakeholders across the organisation. Showing value starts by understanding the role of the CMO and how the various aspects of this role drive value – and by giving a great experience of working with change managers from the CMO. This can be further enhanced by active engagement with stakeholders and sponsors, and where necessary by reaching out to your peers in other organisations with their own stories of CMO success to share.
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