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Copyright 2016 Prosci. All rights reserved. 1
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Prosci Best Practices in Change Management, 2016 Edition
New areas of research
®
1
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Prosci Research Foundation
9 studies
17 years
4500 participants
What works? What doesn’t?
What to do differently?
0
500
1000
102
1120
1998 2015
Participants
2
®
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Culture Global awareness
Complementary roles Change Agent Networks
Ver@cal industry customiza@on Jus@fying CM
Job roles and loca@ons Advice for new prac@@oners
Complex change Aligning CM with other disciplines Measurement and metrics
Integra@ng CM and PM Readiness
Trends in CM Reinforcement and sustainment
Satura@on and porKolio management Organiza@onal change capability
Team member aMributes Resources and budgets
Resistance management Manager Role
Greatest contributors Biggest obstacles
Methodology Sponsorship
Communica@ons Training
1998 2000 2003 2005 2007 2009 2011 2013 2015
Building the body of knowledge on change management Evolution of Prosci Research
New topic area Major focus Minor focus
Key
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THE LARGEST BODY OF RESEARCH IN THE FIELD OF CHANGE MANAGEMENT
TRY A TWO-WEEK FREE TRIAL OF eBEST PRACTICES
Prosci’s comprehensive research allows you to align your change management efforts with industry best practices, optimizing your approach to achieve results. Leverage lessons learned from thousands of change and project leaders.
Access best practices and benchmark data from anywhere through the Prosci eBest Practices. Continually updated, this app contains all of Prosci’s most current and relevant research. Browse all topics to sharpen your change management skills or use the Prosci eBest Practices to find answers to your current questions.
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What to expect in Prosci’s new 2016
benchmarking report:
New Structure – Organization – Intro pages
New Topics – Culture – Industry – Change Agent
Networks …much more…
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Organization:
Part Two: Change Management Application
Chapter 4: Motivation and Justification
Motivation Drivers that caused change management to be applied on the project
Par
t
Cha
pter
Sec
tion
Find
ing
6
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Report Parts: PART ONE: Current State of Change Management
PART TWO: Change Management Application
PART THREE: Roles in Change Management
PART FOUR: Adapting and Aligning Change Management
7
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New research areas in Prosci’s
2016 report
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1. Impact of culture on change management 2. Importance of cultural awareness
and global literacy in change 3. Development and leveraging of
change agent networks 4. Engagement of complementary roles
in change management work 5. Customization of change management
for vertical industry segments 6. Certification in change management
9
New research areas in 2016 report
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Culture Instead of the overly cavalier, “How do I change my culture
in the next 3 months?”
How can I create more successful, positive change by
understanding and adapting within the cultures I work?
10
New
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Culture What aspects of organization’s culture have the biggest impact on how changes happen? Pulling from other thought leaders’ works on cultural dimensions: • GLOBE • Hofstede • Trompenaar
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Individualism vs Collectivism
The degree to which people act in ways that benefit themselves or the group
Power Distance
The degree to which power is distributed equally or unequally throughout a culture
Uncertainty Avoidance
How much a culture seeks to avoid and mitigate uncertainty
Assertiveness The degree to which a person is expected and allowed to advocate for themselves
Performance Orientation
The degree to which high performance, standards and striving for excellence are rewarded
Emotional Expressiveness
How much or how little people are expected to display their emotional state in a professional environment
Six cultural dimensions studied:
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Culture
12
For the culture section of the study, participants provided three data points for each of the six cultural dimensions:
Example For Power Distance, where are you on the spectrum?
Low Moderate High
Because of your place on the spectrum, what were the: Specific challenges you face: Unique adaptations you make:
Your specific challenges
Your unique adaptations
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Culture
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Cross-study cultural dimension data
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Individualism vs. Collectivism
Individualism Balanced Collectivism
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Power Distance
Low Moderate High
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Uncertainty Avoidance
Low Moderate High
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Assertiveness
Low Moderate High
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Performance Orientation
Low Moderate High
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Emotional Expressiveness
Low Moderate High
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Culture
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Cultural dimension 1: Individualism vs. Collectivism
Individualistic: Specific challenges Unique adaptations
Balanced: Specific challenges Unique adaptations
Collectivistic: Specific challenges Unique adaptations
Cultural dimension 2: Power Distance
Low: Specific challenges Unique adaptations
Moderate: Specific challenges Unique adaptations
High: Specific challenges Unique adaptations
Cultural dimension 3: Uncertainty Avoidance
Low: Specific challenges Unique adaptations
Moderate: Specific challenges Unique adaptations
High: Specific challenges Unique adaptations
Cultural dimension 4: Assertiveness
Low: Specific challenges Unique adaptations
Moderate: Specific challenges Unique adaptations
High: Specific challenges Unique adaptations
Cultural dimension 5: Performance Orientation
Low: Specific challenges Unique adaptations
Moderate: Specific challenges Unique adaptations
High: Specific challenges Unique adaptations
Cultural dimension 6: Emotional Expressiveness
Low: Specific challenges Unique adaptations
Moderate: Specific challenges Unique adaptations
High: Specific challenges Unique adaptations
Outputs:
Specific challenges and unique adaptations
For all six of the
cultural dimensions
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Culture
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Power Distance Low Moderate High
Specific challenges Unique adaptations
Specific challenges Unique adaptations
Specific challenges Unique adaptations
Specific challenges 1. Impaired communication: Due to extensive access, information often skipped levels of the organization which resulted in repeating information
several times. Informal communications led to rumors and decreased the credibility of information surrounding change.
2. Increased resistance: Low power distance structures resulted in a large amount of resistance because individuals from all levels of the organization constantly challenged ideas. Employees often did not adhere to changes, and messages were not uniform across the organization. Conflicts arose between levels of management, and productivity suffered consequently.
3. Decreased productivity: Productivity decreased due to more time being spent on gaining buy-in, lack of governance and slower decision processes.
Unique adaptations 1. Increase engagement: Employee engagement was achieved with an increase in functions and meetings that were used to ensure alignment of
the organization across all levels. The quantity of meetings ensured that employees had multiple opportunities to encounter and engage with the change project.
2. Structure communication channels: Communication channels needed to be identified up front to provide a consistent approach for tailoring messages and to open structured feedback from individuals. Communication plans required consistency and frequency, so content could be adjusted to incorporate the topics identified from feedback.
3. Enhance change management plans: Participants in low power distance organizations added structure to change management by placing stakeholders in key positions, including establishing guidelines to ensure all levels were being communicated with and clearly defining roles and responsibilities.
Example
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Specific challenges Unique adaptations
Specific challenges Unique adaptations
Specific challenges 1. Decreased ability to drive change: Leadership had a decreased capability to direct change, had to put more effort into gaining buy-in for change
and had to engage managers more thoroughly.
2. Increased resistance: Resistance occurred because senior leaders did not account for employees’ input and concerns when dealing with issues centered on change. Employees were then more likely to resist any aspect of change. Senior leaders appeared to think they had more sway over employees than they did.
3. Poor structure: Participants with moderate power distance organizations reported a need to tailor change plans more specifically to groups as opposed to using a uniform approach. Creating individual plans required more time on the change manager’s part and lowered the effectiveness of mass communication regarding change.
Unique adaptations 1. Balance communication: Participants expressed the need to establish balanced communication during change management. Open and honest
feedback was balanced with a clear boundary and understanding of “who has the final say.”
2. Gain buy-in: Participants reported putting more effort toward gaining employee buy-in. Awareness of the need for and importance of change management was created by using more meetings and team activities. Other activities to gain buy-in included visible sponsorship engagement, involvement of key stakeholders, creation of plans for various groups and demonstration of the value of change management.
3. Empower sponsors: Sponsors in moderate power distance organizations were encouraged to take charge of change as an adaption to the position on the power distance spectrum. Empowered sponsors bridged the gap between leaders’ direction and employees’ concerns and feedback.
Culture
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Power Distance Low Moderate High
Specific challenges Unique adaptations
Power Distance Low Moderate High
Specific challenges Unique adaptations
Example
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Power Distance
Specific challenges Unique adaptations
Specific challenges Unique adaptations
Specific challenges Unique adaptations
Culture
17
Power Distance Low Moderate High
Specific challenges Unique adaptations
Low Moderate High Low Moderate High Specific challenges Unique adaptations
Specific challenges 1. Restricted communication: Participants identified too few and poor levels of communication occurring in high power distance organizations. A
large gap was described between senior leaders and frontline employees which resulted in a loss of productivity and increased time for implementation. Fear among employees and executives appearing unapproachable were primary limitations to communication from lower levels to executives.
2. Isolated decision making: Isolated decision making was challenging. Executives made decisions without considering the impact to employees. Consequently, the alignment of the organization suffered because different levels and groups had different directions.
3. Lack of employee engagement: Lack of commitment and trust were other challenges for organizations with high power structures. Passive resistance resulted from these issues because employees felt powerless, unheard and not cared about. Resources had to be reallocated to account for these avoidable problems.
Unique adaptations 1. Communicate openly and directly: Participants reported using executive and senior leaders more often during communications. Higher-level
leadership lent authority to communication, and resistant employees were more likely to adopt change when instructed.
2. Engage leadership: Leadership visibility and engagement ensured that impacted groups understood that company leadership was supportive of and behind change from the beginning. Early leadership involvement encouraged and promoted early adopters.
Example
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Culture
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Adapt your approach to accommodate your culture: Increase effectiveness and avoid common pitfalls Change practitioners who better understand the cultures in which they operate can customize and adapt their approach to drive more successful change. The six cultural dimensions in Prosci’s 2016 report give practitioners direction in how to adjust their approach.
Cultural dimension 1: Individualism vs. Collectivism
Individualistic:Specific challengesUnique adaptations
Balanced:Specific challengesUnique adaptations
Collectivistic:Specific challengesUnique adaptations
Cultural dimension 2: Power Distance
Low:Specific challengesUnique adaptations
Moderate:Specific challengesUnique adaptations
High:Specific challengesUnique adaptations
Cultural dimension 3: Uncertainty Avoidance
Low:Specific challengesUnique adaptations
Moderate:Specific challengesUnique adaptations
High:Specific challengesUnique adaptations
Cultural dimension 4: Assertiveness
Low:Specific challengesUnique adaptations
Moderate:Specific challengesUnique adaptations
High:Specific challengesUnique adaptations
Cultural dimension 5: Performance Orientation
Low:Specific challengesUnique adaptations
Moderate:Specific challengesUnique adaptations
High:Specific challengesUnique adaptations
Cultural dimension 6: Emotional Expressiveness
Low:Specific challengesUnique adaptations
Moderate:Specific challengesUnique adaptations
High:Specific challengesUnique adaptations
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Global Literacy • Opportunities for
customization
• Cultural-specific adaptations
• Avoid cultural-specific obstacles
• Communication needs to be thought through
1% 5% 4%
34%
56%
Not
Slightly Neutral
Important Very
Impact of cultural awareness on employing change management
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New
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Global Literacy Regional Considerations
20
US: 35%
Canada: 15% Europe:
15%
Africa: 4%
Latin America:
2% Australia and NZ:
24%
Asia and Pacific Islands: 4% Middle
East: 1%
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Global Literacy Regional Considerations
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Specific analysis by region:
Perception of change management across regional cultures
Parts of change management that did not fit with various cultures
Regional-specific causes for resistance
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New Change Agent Network
39% ?
leveraged formal change agent networks to
support change implementation
Definition of the change agent network
Reasons to use a change agent network
Building a change agent network
Criteria for selecting members
Change agent network roles
Expectations of the change agent network
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Change Agent Network Reasons to use a change agent network 1. Extend project support
The primary response was to provide additional support to the project, often from peers, which expedited change with fewer obstacles and greater focus.
2. Use resources efficiently By using change agent networks, participants readily allocated resources to necessary points of need. A large portion of participants indicated that they…
3. Enhance communication
4. Align consistent objectives
5. Increase knowledge
6. Build credibility
7. Boost ownership
Change agent network roles 1. Communication role
The role most commonly identified by respondents was communication liaison. Members of the change agent network were used to disseminate communications to their respective departments, sites or regions to share information about the change project with a greater audience and provide various forms of feedback to the change project team, such as employee concerns.
2. Leadership role Respondents frequently identified various leadership roles for the change agent network. Examples included acting as the change leader for their department or region…
3. Training and support roles
4. Managing change internally
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Example findings
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New Complementary Roles
HR Business Partners
Organization Development
Internal Communications
Business Analysts
Internal Consultants
63%
40%
40%
38%
33%
How each role engages with change
management?
24
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Vertical Industry
Market changes
Technological changes
Operational changes
Organizational changes
Four types of expected change: 24 verticals
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New
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Banking
Market Operational Technological
Regulations and government oversight
New market emergence
Changes in demand related to customer
expectations
Traditional markets closing
Increased competition
Changes to customer/user relationships
Shifting priorities and business strategies
Consolidation of operations and focus on
profitability
Digital banking
Automation
Increased need for cyber security
Vertical Industry
26
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Education Services
Market Operational Budgetary
Increase in competition
Consolidation
Increase in government regulations
Change to demand
Increase demand for eLearning and virtual
products
Changes to curricula
Changes to student relations
Increased diversity
Shifting student demographics
Increased collaboration with commercial
sponsors
Budget changes
Changes to federal/state funding
Vertical Industry
27
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Government – State
Technological Organizational Operational
Digitalization
Updates to computer systems
Virtual tools
Cloud eLearning modules
Reducing employee headcount
Increase in privatization
Increase in outsourcing
New or restructured business model
Changes to priorities
Changes to user/citizen relationships
Leadership development
Increased need for employee engagement
Vertical Industry
28
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Health Care
Paradigm Technological Budgetary
Individual or self-managed health care
model
Increased regulations and legislation
Consolidation through M&A
Standardization of patient care
Electronic records
New drugs
Patient care technology
Automation
Budget cuts
Loss of funding
Move toward profit-focused business models
Vertical Industry
29
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Vertical Industry
30
Group 1 Health Care Educational Services
Group 2 Government – Federal
Government – State
Government – Local/Municipal
Group 3 Banking
Finance
Consulting
Insurance
Group 4 Information Services
Telecommunications Professional, Scientific, Technical Services
Group 5
Oil and Gas
Manufacturing
Utilities
Retail Trade
Consumer Goods and Manufacturing
Challenges and adaptations for CM by industry grouping
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Group 1 Health Care Educational Services
Industry-specific CM challenges 1. Autonomous nature of employees 2. Lack of designated resources In both health care and education services industries, the unique responsibilities of employees demanded a high degree of autonomy and independent thinking. Physicians, nurses, academics and educators were identified as employees for whom it is difficult to accept change at face value without convincing and clear evidence.
Lack of resources was noted as the second most common challenge when trying to implement change management, including monetary and non-monetary resources. Participants noted a lack of funding designated specifically for change management. Inadequate non-monetary resources included specialized change management training, dedicated change management practitioners and time away from daily priorities to focus on change management.
Industry-specific CM adaptations 1. Alignment with employee characteristics 2. Communication Participants identified various ways in which change management methodology was adapted to work with employees in health care and education services industries. Examples were to include physicians/ professors on change management teams, to meet expectations of a high degree of collaboration and to increase stakeholder engagement.
Participants described ways in which communication was adapted to be most effective in health care and education services industries. Examples included adapting communication to resemble academic discourse in education services industries and linking change to improvements in patient care in health care industries.
Vertical Industry Challenges and adaptations for CM by industry grouping
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Certification
74% Had attended certification 86%
Would recommend certification
(only 2% wouldn’t)
Value of certification
Structured approach gained
Build skills and credentials
Acquire common and universal tools
More likely to achieve desired outcomes
?
32
New
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1. Impact of culture on change management 2. Importance of cultural awareness
and global literacy in change 3. Development and leveraging of
change agent networks 4. Engagement of complementary roles
in change management work 5. Customization of change management
for vertical industry segments 6. Certification in change management
33
New research areas in 2016 report
© Prosci Inc. All rights reserved.
Prosci Best Practices in Change Management, 2016 Edition
Available now!
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