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The Intersection of Change Management and Business Value Realization
Mark Dorsett, VP Global [email protected] @dorsettmarkwww.linkedin.com/in/dorsettmark/
Benefit realizationValue managementValue realizationCustomer success
Value engineeringOutcome engineering
Expand Selling (ExS)Land and Expand
www.prosci.com [email protected]
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What is your
finish line?
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Typical Project
5
Initiate Plan Design Develop Deploy
“Go Live”Kick offGeneralProject
Lifecycle
Major events
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Most of our Projects
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What is your finish line?
Requirements ResultsOutputs Outcomes
Specifications Sustainment
Installation Realization
Solutions Benefits
*
* Daryl Conner
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CHANGE MANAGEMENTVALUEREALIZATION
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Potential vs Kinetic from Physics
• Potential Energy: physics, potential energy is the energy possessed by an object because of its position relative to other objects, stresses within itself, its electric charge, or other factors -Wikipedia
• Kinetic Energy: In physics, the kinetic energy of an object is the energy that it possesses due to its motion – Wikipedia
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Potential vs. Kinetic
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Align Ability With Go-LiveThe Prerequisite of Successful Change
12
Initiate Plan Design Develop Deploy
“Go Live”Kick offGeneralProject
Lifecycle
Major events
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Adding Value Realization and Change Management
BusinessValue
Realization
ChangeManagement
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BusinessValue
Realization
ChangeManagement
CM and VR – Partners Through Common Objective
BenefitsResultsOutcomesValue
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
1) Current developments have changed the landscape for solution vendors and their clients – especially around moves to the cloud.
2) Adoption and usage is no longer a luxury, but a necessity, given the increased importance placed on creating true value and solution renewal.
3) This presentation outlines the fundamentals of the intersection of value realization and change management.
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In this new environment, renewal is based on value realization which depends on adoption and usage.
Failing to drive adoption and usage has economic consequences for
vendors who now rely on renewal.
Solution Adopted and Used
Value Realized
Solution Renewed
Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Olden days deployment-only approach: “you get what you get”
The Risk of achieving Kinetic Value was with the Client
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Solution Configured/ Developed
Evolution 1: Vendors begin to adapt with configuration and custom development
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Intersection of Change Management and Business Value Realization
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Solution Configured/ Developed
ProblemIdentified
Evolution 2: Vendors begin to engage customers to get to the core of the problem
Presales Value Engineering Approach
Value discovery
Stay solid in solution
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Evolution 3: An emerging, vigorous focus on valuenecessitated by technology disruption
Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Value realized
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
The many labels of the value movement…amplified by the “digital transformation”
Expand Selling (ExS)
Value realization
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
New economic, business, technology models
• Move to cloud• Digital workplace• Consumption economics• Network economics• Lower institutional switching costs• Technology cycle• Total Cost of Ownership (TCO)• 5 yr, $10M on prem vs $500K per phase
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Connecting adoption and usage to value realized
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
For your project, estimate the percent of overall results, outcomes and value that
depends on employee adoption and usage:
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Gartner BPM Summit Prosci Webinar
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Individual changes determine/constrain value
TC 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
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Poor adoption and usage has real consequences
that diminish value
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Driving adoption and usage drives value
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Adoption and usage is the pivot point…but it doesn’t happen by chance
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Those who trust to chance must abide by the results of chance.
Calvin Coolidge
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Intersection of Change Management and Business Value Realization
ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
Change management is the discipline that has emerged to drive adoption and usage
Defined: mobilizing individual transitions to deliver organizational results
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Change Management in a Nutshell
What are the required
individual transitions?
How does an individual
make a successful transition?
What can we do on an
engagement to “mobilize”
the transitions?
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What are the requiredindividual transitions?
How does an individual make a successful
transition?
What can we do on an engagement to “mobilize”
the transitions?
Processes
Tools
SystemsCompensation
Performance Reviews
Reporting Structure
Critical Behaviors
Job Roles
Location
Mindset/Attitudes/Beliefs
Aspects of a Person’s Job You
Can Impact
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What are the requiredindividual transitions?
How does an individual make a successful
transition?
What can we do on an engagement to “mobilize”
the transitions?
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What are the requiredindividual transitions?
How does an individual make a successful
transition?
What can we do on an engagement to “mobilize”
the transitions?
A Awareness Of the need for change
R Reinforcement To sustain the change
A Ability To implement required skills and behaviors
K Knowledge On how to change
D Desire To participate and support the change
ADKAR element: Definition
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What are the requiredindividual transitions?
How does an individual make a successful
transition?
What can we do on an engagement to “mobilize”
the transitions?
Initiate Plan Design Develop Deploy
“Go Live”Kick off
Phase 3: Reinforcing
Change
Phase 2: Managing
Change
Phase 1: Preparing
for Change
A D K A R
Risk assessmentStrategy creation
Support structures
CommunicationsSponsor roadmap
Coaching planTraining plan
Resistance mgmt
GeneralProject
Lifecycle
Individual Change Journey
Milestones
OrganizationalChange Mgmt
Activities
Major events
MeasurementCourse correction
Sustainment
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What are the requiredindividual transitions?
How does an individual make a successful
transition?
What can we do on an engagement to “mobilize”
the transitions?
Outputs:
IndividualAdoption
Usage
ProjectResults
OutcomesBenefits
Value
Inputs:
Defined change
Technical solution
Individual Change Management Work Stream
Milestones needed for a single person to make a
change successfully
Organizational Change Management Work Stream
Deliverables (strategy and plans) that support
individual transitions
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Intersection of Change Management and Business Value Realization
Solution renewal depends on value the client realizes
Value realizationdepends on level
of adoption and usage
More value created =more solution renewal
If we actively drive adoption and usage, we increase value created
Solution Adopted and Used
Value Realized
Solution Renewed
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ProblemIdentified
Solution Configured/ Developed
Solution Deployed
Solution Adopted and Used
Value Realized
Solution Renewed
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Prosci SolutionDelivering organizational results by
catalyzing individual transitions
http://www.prosci.com | http://[email protected] individual change competencies
Apply change management on initiativesEmbed organizational change capability
http://www.prosci.com