copyright prosci 2014. all rights reserved. library of figures 1 prosci change management ® please...

Copyright Prosci 2014. All rights reserved.

Library of Figures

1

Prosci Change Management

®

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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.


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2


Prosci by the Numbers

3 3

816

80%3,400

20,000+

70,000+

Longitudinal studiesYears of researchFortune 100 companiesResearch participantsCertified practitionersCommunity members


Prosci History

• Research company founded in 1994• Sponsor of the Change Management

Learning Center• World leader in change management

research and product development• Focused on building internal change

management competency

4 4


Prosci Research History

5 5

1998 First Change Management Study – 102 participants

2000 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

2013 Eighth Change Management Study – 822 participants

Copyright Prosci 2014. All rights reserved. 6

US:34%

Canada:15% Europe:

14%

Africa:5%

LatinAmerica:

2% Australiaand NZ:

25%

Asia and PacificIslands: 3%Middle

East: 2%

Participant Profile


0% 10% 20% 30% 40%

Other

I am a project leader or team memberfamiliar with change management

Tasked with change management, buthave other primary responsibilities

Primarily a change managementpractitioner, with other responsibilities

Exclusively a change managementpractitioner

Percent of respondents

Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.

Role of participants in Prosci's 2013 study


A Majority of Change Projects Are Enterprise-Wide


Most Changes Impact a Large Number of Employees


25%

34%

67%

85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sponsor was veryineffective (score < 2)

Sponsor was ineffective(score between 2 and 3)

Sponsor was effective(score between 3 and 4)

Sponsor was veryeffective (score between

4 and 5)

Per

cent

of r

espo

nden

ts t

hat

met

or

exce

eded

pro

ject

obj

ectiv

es

Average sponsor effectiveness rating

Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.

Correlation of sponsor effectiveness to meeting project objectives


Research Finding

The number one obstacle to success for major change projects is employee resistance and the ineffective management of the people side of change.

Data from 327 companies undergoing major change projects;Prosci Best Practices in Business Process Reengineering benchmarking study.


Project Name Purpose Particulars People

Connecting Change Management to Business

Results

17 17

Why we arechanging

What we arechanging

Who will be changing

What does this look like for your project?

What is theproject


Project Name Purpose Particulars People

Connecting Change Management to Business

Results

18 18

If people don’t change how they do their job, then it doesn’t matter what specific changes are

implemented.

If people don’t change how they do their job, then we ultimately won’t achieve what we set out to do

from the beginning.


1st communication or1st rumorIn

crea

sing

res

ista

nce

Dec

reas

ing

prod

uctiv

ity

Time

Worry / uncertainty

Comfort / security

Risk / flight

Prosci® Flight Risk Model


19


1st communication or1st rumor

Incr

easi

ng r

esis

tanc

eD

ecre

asin

g pr

oduc

tivity

Time

Dept. A

Dept. B

Dept. C

Dept. D


Turnover of valued employeesTangible customer impactActive resistanceOpt-out of the change

Turnover of valued employeesTangible customer impactActive resistanceOpt-out of the change

Productivity lossEmployee dissatisfactionPassive resistance

Productivity lossEmployee dissatisfactionPassive resistance

20



Speed of Adoption

21 21

The slope and shape are determined by speed of

adoption

Expected performance

Time (periods)

Net cash flow of project period

+

-

0

Prosci® ROI of Change Management Model


Ultimate Utilization and Proficiency

22 22

Proficiency contributes to the “height” of each benefit, including the ongoing benefit after

implementation



Time (periods)The height of the benefit after

implementation is finished is based

on ultimate utilization

+

-

0




Time (periods)

+

-

0

Poorly managed change cash flow

Expected cash flow


Prosci® ADKAR® Model


Speed of Change Process

25 25

Pha

ses

of a

pro

ject

Awareness Desire AbilityKnowledge Reinforcement

Post-implementation

Implementation

Concept and Design

Business need

Success

Required elements of change for employees


Preparing for Change Managing ChangeReinforcing Change

TM

Prosci® 3-Phase Change Management Process

26 26

Define your changemanagement strategy

Prepare your changemanagement team

Develop yoursponsorship model

Phase 1 - Preparing for changePhase 1 - Preparing for change

Prosci® 3-Phase ChangeManagement Process

Develop changemanagement plans

Take action andimplement plans

Phase 2 - Managing changePhase 2 - Managing change

Collect and analyzefeedback

Diagnose gaps and manageresistance

Implement corrective actions



Input: A change to how the organization

operates and does work

Output:

Individuals making changes to how they do work – from their own current state to their own future

state

Benefits to the organization

realized

ERP

IT system

New product

Online HR benefits system

Strategic plan

Productivity improvement initiative

Merger or acquisition



Develop yoursponsorship model

Phase 1 - Preparing for changePhase 1 - Preparing for change

Prosci® 3-Phase ChangeManagement Process


Take action andimplement plans

Phase 2 - Managing changePhase 2 - Managing change



Implement corrective actions

27


Phase 1 – Preparing for Change

• Understanding the nature of the change

• Understanding the groups being changed

• Creating the right sponsor model

• Identifying risks

• Developing special tactics

28 28



Develop yoursponsorsh



Phase 2 – Managing Change

• Communication plan

• Sponsor roadmap

• Training plan

• Coaching plan

• Resistance management plan

29 29



Take action andimplement pla




Implement corrective actionsand celebrate su

Phase 3 – Reinforcing Change

• Compliance audits and employee feedback

• Corrective action and managing resistance

• After action review and transition management

30 30



Comparing Change Management and Project Management

31

Focus:Technical side of moving from current state to future state

Focus:People side of moving from current state to future state

Process:

• Initiation• Planning• Executing• Monitoring/

controlling• Closing

Process:

Organizational:• Preparing for

change• Managing change• Reinforcing

change™

Individual:• ADKAR®

Tools:

• Statement of work• Project charter• Business case • Work breakdown

structure• Budget estimations• Resource allocation• Schedule • Tracking

Tools:

• Individual change model

• Readiness assessment

• Communication plans • Sponsor roadmaps• Coaching plans• Training plans• Resistance

management • Reinforcement

Project management

Change management

Currentstate

Transitionstate

Futurestate


Integration of Project Management and Change Management

32

Solution is designed, developed and delivered

effectively(Technical side)

Solution is embraced, adopted and utilized

effectively(People side)

+

Project management and change management have a joint value proposition oriented toward business

results.

= Success

Project management

Change management

Currentstate

Transitionstate

Futurestate


Prosci Change Management Maturity Model ™

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 TM

33


Who “Does” Change Management?

Each ‘gear’ plays a specific role based

on how they are related to

organizational change

Middle managersand supervisors

Changemanagement resource/team

Executives andsenior managers

Project team

Projectsupport

functions


Key Roles in Change Management

35

Executives andsenior managers

Executives and senior managers – fulfilling the role of sponsors of change

Employee-facing

Middle managers and supervisors – fulfilling the role of coach for their direct reports

Middle managersand supervisors

Enabling

Changemanagement resource/team

Change management resource or team – applying a structured approach and enabling others

Project team

Project team – integrating the “people side” of change

Projectsupport

functions

Support functions – providing expertise


Sponsor

Project team

Individuals from the team assigned to change management

36


Sponsor

Project team

External change management team dedicated to the project

37


Sponsor

Project team

Outside resources supporting change management leaders

Change management leader(s) on project team

38


Sponsor

Part or all of project team works on change management program

Project team

39


Sponsor

Project teamConsultant(s) provide change management support

40


Sponsor

Project team

Communications sub-team

Dedicated change management resources on project team

Trainingsub-team

Othersub-teams

41


Project teamChange management

team

Sponsor on the team

42



team

Mid-level manager sponsor

43



team

Mid-level manager sponsor

Executive sponsor

44



team

Executive sponsor

Steering committee

45


Projectteam

Project sponsor

Executive-level steering committee

Change manageme

nt team

46

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