© prosci 2012 1 best practices in change management briefing please read right to use this content...

© Prosci 2012 www.change-management.com 1

Best Practices in Change Management briefing

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Please readRight to use this content is governed by the licensing terms and conditions for this online tool. Reproduction and distribution are not permitted under a single-user license without express permission from Prosci. For permission to reproduce or distribute content, contact Prosci at +1 970-203-9332. All trademarks and copyright notices must be retained.


Best Practices in Change Managementbenchmarking report

• Findings:– Key success factors – What works – What doesn't work– Mistakes to avoid

• Topics include:– Communication – Sponsorship – Resistance – Reinforcement – Team activities – Managers and

supervisors – Change saturation


Research Foundation

1998 First Change Management Study – 102 participants

2001 Second Change Management Study – 152 participants

2003 Third Change Management Study – 288 participants

2005 Fourth Change Management Study – 411 participants

2007 Fifth Change Management Study – 426 participants

2009 Sixth Change Management Study – 575 participants

2011 Seventh Change Management Study – 650 participants


United States, 37.9%

Australia and New Zealand, 21.1%

Canada, 13.2%

Europe, 12.1%

Africa, 6.5%

Asia and Pacific Islands, 5.0%

Latin America, 3.1%

Middle East, 1.1%

© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

Geographic distribution of participants in Prosci’s 2011 study


Type of changeTypes of changes reported on

in Prosci’s 2011 study


0% 10% 20% 30% 40% 50% 60%

Other

Job role change

Org change

System change

Process change

Process/System/Org and Job role

Percent of respondents


Scope of changeScope of projects reported on in

Prosci’s 2011 study


0%

10%

20%

30%

40%

50%

60%

Within aworkgroup

Singledepartment

Multipledepartments

Singledivision

Multipledivisions

Entireenterprise

Per

cent

of r

espo

nden

ts

200020032005200720092011


Impacted employees

0%

5%

10%

15%

20%

25%

30%

Lessthan 50

50 to100

100 to500

500 to1000

1000 to5000

More than5000

Per

cent

of r

espo

nden

ts

200020032005200720092011

Number of employees impacted by the projects reported on in Prosci’s 2011 study



Project investment

0%

5%

10%

15%

20%

25%

30%

$100K orless

$100K to$500K

$500K to$1M

$1M to$5M

$5M to$10M

More than$10M

Per

cent

of r

espo

nden

ts

2000

2003

2005

2007

2009

2011



Who contributed data?

0% 20% 40% 60%

Project sponsor

Human Resources

Internal change management support staff

Project team member

Other

Change management team member

Project team leader

External consultant

Change management team leader


2011

2009

2007

2005



Findings covered in this briefing• Correlation• Greatest contributors to success• Greatest obstacles to success• Sponsor role• Methodology• Resistance• Communication• Organizational competency• Change saturation


Prosci correlation analysis

17%

49%

80%

95%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Poor(n=177)

Fair(n=441)

Good(n=561)

Excellent(n=107)

Per

cent

of r

espo

nden

ts th

at m

et

or e

xcee

ded

proj

ect o

bjec

tives

Overall effectiveness of change management program

Correlation of change management effectiveness to meeting project objectives


*Data from 2007, 2009 and 2011



16%

34%

57%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Poor(n=215)

Fair(n=532)

Good(n=679)

Excellent(n=116)

Per

cent

of r

espo

nden

ts th

at w

ere

on o

r ah

ead

of s

ched

ule


Correlation of change management effectiveness to staying on schedule


*Data from 2007, 2009 and 2011



48%

63%

71%

82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Poor(n=188)

Fair(n=498)

Good(n=661)

Excellent(n=116)

Per

cent

of r

espo

nden

ts th

at

wer

e on

or

unde

r bu

dget


Correlation of change management effectiveness to staying on budget


*Data from 2007, 2009 and 2011


Greatest contributors to success1. Active and visible executive

sponsorship 2. Frequent and open

communications 3. Structured change

management approach 4. Dedicated resources for

change management 5. Employee participation 6. Engagement with and support

from middle management

In all seven studies,

sponsorship was #1

How effective are

your sponsors?


Biggest obstacles to success

1. Ineffective change sponsorship from senior leaders

2. Insufficient change management resources and funding

3. Resistance to the change from employees

4. Middle management resistance5. Ineffective communications

Resistance moved

down from #2 to #3

in 2009 and 2011

Cause (sponsorship)

and effect

(resistance)


What is the role of the sponsor?

Participate actively and visibly throughout the project

Build a coalition of sponsorship and manage resistance

Communicate directly with employees

It is not just signing

checks and charters!

It is not just signing

checks and charters!


Do sponsors understand their role?

56%


0% 5% 10% 15% 20% 25% 30% 35% 40%

1 - No understanding of whatsponsorship means

2 - Slight understanding

3 - Some understanding

4 - Adequate understanding

5 - Complete understanding ofroles and responsibilities


2009

2007


Applying a structured approach to change management

#3 contributor

to success

0%

10%

20%

30%

40%

50%

60%

70%

80%

2003 2005 2007 2009 2011

Per

cent

of r

espo

nden

ts



Factors for selecting a methodology

• Previous experience with a methodology

• Credible, well-known and recognized approach

• Compatible with project, company, culture or industry

• Flexibility and customization

• Ease of use and scalability– Easy to follow

– Easy to understand

– Easy to explain to others in the organization

– Flexible and scalable

– Quickly adaptable to the change

– Clear templates, tools, frameworks and structure

– Accessible and available resources

– Practical

– Uses business or organizational language as opposed to jargon

*Combined from the 2009 and 2012 Best Practices in Change Management report


When to start change management activities?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Project closure

Project implementation

Project design

Project planning

Project initiation


When did you start CMactivities this time?

When would you start CMactivities next time?

When to start change management activities



Resistance: most common reasons employees resist change

1. Lack of awareness

2. Impact on current job role

3. Organization’s past performance with change

4. Lack of visible support and commitment from managers

5. Job loss

Resistance is the #3

obstacle to success

It is not about the

solution you are

implementing


Resistance: most common reasons managers resist change

1. Lack of awareness about and involvement in the change

2. Loss of control or negative impact on job role

3. Increased workload and lack of time

4. Culture of change resistance and past failures

Again, it really isn’t

about the particular

solution

How do you

overcome these

reasons?


Communication

• Most effective– Face-to-face

• Most important messages– Impact to the individual– Why the change is happening

• Do differently next time– More communication– Have a communication strategy– Communicate earlier

Effective

communication was

the #2 contributor to

success


Communication: Preferred senders of change messages

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Change management team leader

Change management team member

Project team leader

Project team member

Human Resources representative

The employee's supervisor

Department head

Senior manager

Executive manager

CEO/President


Business messages

Personal messages



Organizational competency

People-dependent without any formal practices or plans

Many different tactics used

inconsistently

Examples of best practices evident

Selection of common approach

Continuous process

improvement in place

Highest rate of project failure, turnover and

productivity loss

Little or no change management appliedAdhoc or

AbsentLevel 1

Some elements of change management are being applied in isolated projects

Isolated

ProjectsLevel 2

Comprehensive approach for managing change is being applied in multiple projects

Multiple

ProjectsLevel 3

Organization-wide standards and methods are broadly deployed for managing and

leading change

Organizational

StandardsLevel 4

Highest profitability and responsiveness

Change management competency is evident in all levels of the organization and is part of the organization’s intellectual property and

competitive edge

Organizational CompetencyLevel 5

People-dependent without any formal practices or plans

Many different tactics used

inconsistently

Examples of best practices evident

Selection of common approach

Continuous process

improvement in place

Highest rate of project failure, turnover and

productivity loss

Little or no change management appliedAdhoc or

AbsentLevel 1

Some elements of change management are being applied in isolated projects

Isolated

ProjectsLevel 2

Comprehensive approach for managing change is being applied in multiple projects

Multiple

ProjectsLevel 3

Organization-wide standards and methods are broadly deployed for managing and

leading change

Organizational

StandardsLevel 4

Highest profitability and responsiveness

Change management competency is evident in all levels of the organization and is part of the organization’s intellectual property and

competitive edge

Organizational CompetencyLevel 5

Prosci Change Management Maturity Model © Prosci


Change Management Maturity Model

0% 10% 20% 30% 40% 50% 60%

Level 1

Level 2

Level 3

Level 4

Level 5


2011

2009

2007



Levels of change saturation

0% 5% 10% 15% 20% 25% 30%

Do not know

Plenty of spare capacity

Quite a bit of capacity

Some spare capacity

Nearing saturation point

At saturation point

Past saturation point


2011

2009

2007



Consequences of change saturation

Individual behaviors exhibited in a change-saturated environment

• Disengagement and apathy

• Frustration and increased stress

• Fatigue and burnout

• More resistance to change

• Confusion

• Cynicism and skepticism

Symptoms of change saturation with projects and project teams

• Changes did not realize benefits

• Lack of resources

• Changes were not sustained

• Projects failed to gain momentum

Organizational symptoms of a change- saturated environment

• Higher turnover

• A decline in productivity

• Increased absenteeism

• Loss of focus on business basics

• Negative morale


All findings are from Prosci’s 2012 Best Practices in Change

Management benchmarking report

Find out more at:www.change-management.com/best-practices-report.htm

© prosci 2012 1 best practices in change management briefing please read right to use this content...

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