five tenets of change management
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C H A N G E M A N A G E M E N T
FiveTenetsofChangeManagementProsci Webinar
©Prosci.AllRightsReserved. 2
Agenda
• UnderstandtheWhat,WhyandHowofchangemanagement
• Explorethe5TenetsofCM
• Applythe5TenetsofCMtooneofyouriniFaFves
Blanksheetofpaper
©Prosci.AllRightsReserved. 3
Introduc4on of the 5 Tenets of CM
ChangeManagement:ThePeopleSideofChangebyHiaKandCreasey
1stediFon:Sept20032ndediFon:Dec2012
RewriteofChapter1:“Whychangemanagement?”
AdvancementandsimplificaFonofthecaseforchangemanagement
©Prosci.AllRightsReserved. 4
Priority is a function
of context.
Stephen R. Covey
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1
2
3
4
5
Wechangeforareason.
OrganizaFonalchangerequiresindividualchange.
OrganizaFonaloutcomesarethecollecFveresultofindividualchange.
Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.
Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.
Prosci Five Tenets of CM
©Prosci.AllRightsReserved. 6
1
2
3
4
5
Wechangeforareason.
OrganizaFonalchangerequiresindividualchange.
OrganizaFonaloutcomesarethecollecFveresultofindividualchange.
Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.
Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.
Prosci Five Tenets of CM
©Prosci.AllRightsReserved. 7
Current Transition Future
Amovementoutof Through ToulFmately
reach
*ArnoldVanGennep“TheRitesofPassage” + Manyothercontributors
tothediscipline
What is change?
©Prosci.AllRightsReserved. 8
“Current”
“TransiFon”
“Future”
Ending NeutralZone NewBeginningBridges
Present TransiFon FutureBeckhard/Harris
Red:LossandDoubt Yellow:Discomfort&Discovery
Green:UnderstandingandIntegraFon
Salerno/Brock
Current Delta DesiredLaMarsh
Upstream Midstream DownstreamAckerman/Anderson
Unfreeze Moving Re-FreezeLewin
Present TransiFon DesiredConner
3 States of Change Comparisons
VanGennep SeparaFon Liminality IncorporaFon
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Today’s States of Change: Many simultaneous – but s4ll Current-Transi4on-Future
C T F
C T F T F T F T F
C T F
T F
C T F C T F
C T F C T
C T F T F T FCC T F
C T F C T F
T F C T
C T F
T F T FC
C T FC T F T F T F T F T F
C T F C
C T
C T
F
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Results, Outcomes and Benefits come from future state > current state
Current Future > Costsarelowerthantheywere
RevenuesarehigherthantheywereErrorsarefewerthantheywere
Efficienciesarelargerthantheywere
©Prosci.AllRightsReserved. 11
Internal External
Triggers
Goals
Strategicplans
Internalperformance
CompeFFvethreats
Customerdemands
Marketandeconomicshijs
Newtechnologies
RegulaFon/legislaFonDemandstodomorewithless
Costslowered
Revenuesincreased
Marketsharegained
Errorsreduced
Efficienciesgained
CustomersmoresaFsfied
Riskexposuredecreased
ConFnuousimprovement
The reasons for change Internal/External + Triggers/Goals
RelaFonshipsextended
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Listthe“reasons”foryourchange:WhataretheobjecFves,benefitsandexpectedresultsandoutcomesfortheprojectoriniFaFve?
1
Reasons
C H A N G E M A N A G E M E N T
©Prosci.AllRightsReserved. 14
1
2
3
4
5
Wechangeforareason.
OrganizaFonalchangerequiresindividualchange.
OrganizaFonaloutcomesarethecollecFveresultofindividualchange.
Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.
Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.
Prosci Five Tenets of CM
©Prosci.AllRightsReserved. 15
Future
ImplemenFnganERP
InstallingElectronicMedicalRecords
DocumenFngandopFmizingbusinessprocesses
MovetoanewphysicallocaFon
We tend to focus on change at the organiza4onal level.
©Prosci.AllRightsReserved. 16
OrganizaFonsDon’tChange;IndividualsDo
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Ihadusedtheoldlegacysystem… NowI’musingthenewintegratedsystem
IhaddonewhatIneededto… NowI’mfollowingthenewprocesses
Ihadreportedto… NowI’mreporFngto
F F F C C C
But each organiza4onal change impacts how specific employees do their jobs
F F
F F F F F
C C
C C C C C
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Transition
T
Current Future
C C C C C
C C C C C
C C C C C
C C C C C
C C C C C
T T T T
T T T T T
T T T
T T T T
T T T T T
F F F
F F F F
F F F
F F F
F F F F
T
T
T
F
F
F
F
F
F
F
F
The true unit of change is the individual
©Prosci.AllRightsReserved. 19
And your ini4a4ve will impact certain aspects of how people do their jobs
Processes
Tools
SystemsCompensaFon
PerformanceReviews
ReporFngStructure
CriFcalBehaviors
JobRoles
LocaFon
Mindset/Aqtudes/Beliefs
AspectsofaPerson’sJobYou
CanImpact
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Yesterday JobAspect Tomorrow Sizeofimpact
Processes
Systems
Tool
Job Roles
Critical Behaviors
Mindset/Attitudes/Beliefs
Reporting Structure
Performance Reviews
Compensation
Location
Defining impact across the 10 aspects
©Prosci.AllRightsReserved. 21
IdenPfythegroupsimpactedbythechange:Whichindividuals(groups)havetodotheirjobsdifferentlywhenthischangeisimplemented?
2
Impacted groups
Reasons
1
C H A N G E M A N A G E M E N T
©Prosci.AllRightsReserved. 23
1
2
3
4
5
Wechangeforareason.
OrganizaFonalchangerequiresindividualchange.
OrganizaFonaloutcomesarethecollecFveresultofindividualchange.
Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.
Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.
Prosci Five Tenets of CM
©Prosci.AllRightsReserved. 24
The achievements of an organization
are the results of the combined effort of
each individual.
Vince Lombardi
©Prosci.AllRightsReserved. 25
Current Transition Future
T C F
C C C C C
C C C C C
C C C C
C C C C C
C C C C C
T T T T
T T T T T
T T T
T T T T
T T T T T
F F F
F F F F
F F
F F F
F F F F
T
T
T
F
F
F
F
F
F
F
F
Ultimately requires individuals to move from their own current to their own future
An organizational move to a future state
©Prosci.AllRightsReserved. 26
“People side of change” is about closing the gap
Requirements ResultsOutputs Outcomes
Specifications Sustainment
Installation RealizaPon
Solutions Benefits
*
*DarylConner
©Prosci.AllRightsReserved. 27
Howwellareindividualsperformingcomparedtothelevelexpectedinthedesignof
thechange?
Howmanyemployees(ofthetotalpopulaFon)are
demonstraFng“buy-in”andareusingthenewsoluFon?
Howquicklyarepeopleupandrunningonthenewsystems,processesandjobroles?
SpeedofAdopPon UlPmateUPlizaPon Proficiency
3 People Side Factors Determine/Constrain Results
©Prosci.AllRightsReserved. 28
AdopFoncontribuFon
InstallaFoncontribuFon
AdopFoncontribuFon
InstallaFoncontribuFon
AdopFoncontribuFon
InstallaFoncontribuFon
How much of our expected results and outcomes depends on adop4on and usage?
Future AdopFon
contribuFon
InstallaFoncontribuFon
20%
50%
80%
AdopFonContribuFon=PeopleDependencyofROI
None AllHighLow Medium
PorFonofbenefitthatdependson
individualtransiFons(CMROI)
©Prosci.AllRightsReserved. 29
“TheresultsandoutcomesofworkplacechangesareintrinsicallyandinextricablyFedtoindividualemployeesdoingtheirjobsdifferently.”
ChangeManagement:ThePeopleSideofChange(page1)
©Prosci.AllRightsReserved. 30
Future
F F F
F F F F
F F F
F F F
F F F F
F
F
F
F
F
F
F
F Future
Connec4ng reasons to impacted groups
Reason#1
Reason#2
Reason#3
Reason#4
ImpactedgroupA
ImpactedgroupB
ImpactedgroupC
ImpactedgroupD
ImpactedgroupE
©Prosci.AllRightsReserved. 31
DrawtheconnecPons:Whichgroupsmustadoptandusethechangeinorderforeach“reason”orobjecFvetobeachieved? 3
Impacted groups
Reasons
Connections
Bonus:EsFmatethepercentageofexpectedresultsandoutcomesthatdependonpeoplechanginghowtheydotheirjobs?
2 1
C H A N G E M A N A G E M E N T
©Prosci.AllRightsReserved. 33
1
2
3
4
5
Wechangeforareason.
OrganizaFonalchangerequiresindividualchange.
OrganizaFonaloutcomesarethecollecFveresultofindividualchange.
Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.
Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.
Prosci Five Tenets of CM
©Prosci.AllRightsReserved. 34
M T W R F
AnemailonMondayfortrainingonTuesdayforlaunchonWednesday
isNOTthewaytoprepareandequipindividualstosuccessfullychange
©Prosci.AllRightsReserved. 35
Changemanagement:
Preparing,equippingandsupporting individualsthroughthechangejourneys
theyexperienceaspartofyourorganizaFon
©Prosci.AllRightsReserved. 36
Prosci® ADKAR® Model Individual Change Outcomes
A Awareness “Iunderstandwhy…”
R Reinforcement “IwillconFnueto…”
A Ability “Iamableto…”
K Knowledge “Iknowhowto…”
D Desire “Ihavedecidedto…”
Whenyoucreate: Youhear:
©Prosci.AllRightsReserved. 37
Prosci® 3 - Phase Change Management Process
Developacustomizedandscaledapproach
CreatedeliverablesandplanstosupportADKAR
EnsurethatthechangesPcks
• Readinessassessments• RiskevaluaFon• ImpactIndex
• SpecialtacFcs• Sponsorassessmentdiagram• TeampreparaFon
• CommunicaFonplan• Sponsorroadmap• Coachingplan
• Trainingplan• Resistancemanagementplan
• FeedbackcollecFon• Complianceaudits• GapidenFficaFon
• CorrecFveacFons• SuccesscelebraFons• Measurement
AholisFc,research-based,tool-richstructuredapproach
©Prosci.AllRightsReserved. 38
Execs & Senior Leaders
Front-Line
Middle Managers & Supervisors
Change resource/
team
Project Team
Project SMEs and
support
C C C C C
C C C C C
C C C C C
C C C C C
C C C C C
T
T
T T T T
T T T T T
T T T
T T T T
T T T T T
T
T
F F F F
F F F F
F F F
F F F
F F F F
F
F
F
F
F
F
F
ABC
CLARC
Adopt
&Use
Structure
Enable Integra
te
Focus
ExperFse
Experience
OrganizaFonStructure ChangeStructure
Roles in Change Management
©Prosci.AllRightsReserved. 39
Top Contributors to Success
GOAL:
DriveadopFonandusageto
deliverexpectedresultsandoutcomes
Sponsorship
CommunicaFon
ManagerEngagement
EmployeeEngagement
Approach
Resources
IntegraFonwithPM
©Prosci.AllRightsReserved. 40
Notesonyourchangemanagementapproach:
• Areweusingastructuredapproach?
• Isitscaledandcustomized?
• Dowehaveabudget?• Whoisdoingthechangemanagement?
• ArewealigningwithbestpracFces? 4
Impacted groups
Reasons
Change management
approach
Connections 3
2 1
C H A N G E M A N A G E M E N T
©Prosci.AllRightsReserved. 42
1
2
3
4
5
Wechangeforareason.
OrganizaFonalchangerequiresindividualchange.
OrganizaFonaloutcomesarethecollecFveresultofindividualchange.
Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.
Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.
Prosci Five Tenets of CM
©Prosci.AllRightsReserved. 43
48%
62% 70%
81%
0%
100%
Poor Fair Good Excellent
14%
32%
52%
71%
0%
100%
Poor Fair Good Excellent
15% 42%
76%
94%
0%
100%
Poor Fair Good Excellent 0%
100%
Poor Fair Good Excellent
We apply change management to… Improve likelihood of change outcomes
• Improveprojectresultsandoutcomes
• DrivebenefitrealizaFonandfinancialreturn
• Minimizerisks
• Reduce“re”costs
MetorexceededobjecPvesOnscheduleOnbudget
ChangeManagementEffecFveness
©Prosci.AllRightsReserved. 44
=LowerROI
=NotWhatWeExpected/HopedFor
=LessBenefitRealizaFon
=UnachievedImprovement
We apply change management to… Avoid a “Swiss cheese” future state
F F
F F F
F
F
F
F
F
F
F
©Prosci.AllRightsReserved. 45
We apply change management to… Minimize nega4ve consequences
©Prosci.AllRightsReserved. 46
We apply change management to… Mi4gate and reduce costs and risks
Costs Risks
Individuals
Project
OrganizaFon
TheREcosts:REwork REdesignREdo REcopeREtrain REtreat
©Prosci.AllRightsReserved. 47
We apply change management to… Drive people-side outcome variables
Howwellareindividualsperformingcomparedtothelevelexpectedinthedesignof
thechange?
Howmanyemployees(ofthetotalpopulaFon)are
demonstraFng“buy-in”andareusingthenewsoluFon?
Howquicklyarepeopleupandrunningonthenewsystems,processesandjobroles?
SpeedofAdopPon UlPmateUPlizaPon Proficiency
©Prosci.AllRightsReserved. 48
We apply change management to… Capture people-dependent ROI
GartnerBPMSummitDec12,2014
ProsciWebinarFeb11,2015
©Prosci.AllRightsReserved. 49
We apply change management to… Deliver results and outcomes
©Prosci.AllRightsReserved. 50
Changemanagement:CHānj ‘manijmǝnt
Mobilizingpeopletorealizeresults
©Prosci.AllRightsReserved. 51
Tenet 5 Summary
Improvelikelihoodofchangeoutcomes
MeetorexceedobjecFves,onFmeandonbudget
Avoida“Swisscheese”futurestate
MinimizenegaFveconsequences
MiFgateandreducecostsandrisks
Drivepeople-sideoutcomevariables
Capturepeople-dependentROI
Deliverresultsandoutcomes
Weapplychangemanagementto…
©Prosci.AllRightsReserved. 52
WhatdowehopetorealizewithCM:IdenFfythevalueyoucancreatewhenyoudoagreatjobofpreparing,equippingandsupporFngpeoplethroughthechangestheyexperience(likelihoodofsuccess,costsandrisksmiFgaFon,etc.)
5
Impacted groups
Reasons
Connections
Realization and impact
Change management
approach
4
3
2 1
C H A N G E M A N A G E M E N T
©Prosci.AllRightsReserved. 54
1
2
3
4
5
Wechangeforareason.
OrganizaFonalchangerequiresindividualchange.
OrganizaFonaloutcomesarethecollecFveresultofindividualchange.
Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.
Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.
You Can Apply the Five Tenets
©Prosci.AllRightsReserved. 55
1. Wechangeforareason.Q:Whatarethereasonsforyourchange?WhataretheorganizaFonalbenefitsandprojectobjecFves?
2. OrganizaPonalchangerequiresindividualchange.Q:Whohastodotheirjobsdifferently(andhow)asaresultofyourprojectoriniFaFve?
3. OrganizaPonaloutcomesarethecollecPveresultofindividualchange.Q:HowdotheindividualtransiFonsconnectdirectlytotheoutcomesyouexpectfromyourchange?
4. Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.Q:Whatstructuredapproachareyoutakingtoprepare,equipandsupportemployeesthroughthechange?
5. Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.Q:Howimportantarethebenefitsanddesiredoutcomesofthechange?Howmuchareyouwillingtodo(andinvest)tomakesuretheyarerealizedbymobilizingemployeeadopFonandusage?
Interview ques4ons for your project managers and team members:
5
Impacted groups
Reasons
Connections
Realization and impact
Change management
approach
4
3
2 1
5
Impactedgroups
R easons
Connections
R ealiz ationandimpact
Changemanagementapproach
4
3
21
©Prosci.AllRightsReserved. 56
1
2
3
4
5
Wechangeforareason.
OrganizaFonalchangerequiresindividualchange.
OrganizaFonaloutcomesarethecollecFveresultofindividualchange.
Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.
Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.
Prosci Five Tenets of CM
©Prosci.AllRightsReserved. 57
Prosci Solution
DeliveringorganizaFonalresultsbycatalyzingindividualtransiFons
hKp://www.prosci.com|hKp://blog.prosci.comchangemanagement@prosci.comBuildindividualchangecompetencies
ApplychangemanagementoniniFaFvesEmbedorganizaFonalchangecapability
hKp://www.prosci.comsoluFons@prosci.com
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