the future of change management and why it matters to project managers may 2017 #pmiac17

The Future of Change Management and Why it Matters to Project Managers Presented by Catherine Smithson May 2017

Introducing Being Human • Founded in 1993 • Our mission: develop change-capable people and organisations so they achieve the benefits of change.

• Prosci Primary Affiliate Australia and New Zealand.

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Getting back to Normal… it’s a town in Illinois USA.

Prosci by the numbers

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Topics

1.  The three ages of Change Management 2.  A new business case 3.  What does the future hold and why it

matters to Project Managers

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The three ages of Change Management

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1st age – Warm and fluffy stuff

• Good intentions • Strong people focus • Often located in L&D, HR, OD • Many different approaches • Little partnership with PMs • Fire fighters

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2nd age - Optional extra

• Focus on project success • Use of standard methodology and tools

• Located in projects • Partnerships with PMs • Pro-active • But …. LIFO syndrome

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3rd age - Key success factor with PM • Strong focus on project benefits and

outcomes • More recognition of value-add •  Trusted advisor role •  Targeted and tailored •  Integration with other business

disciplines

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Enabling vs employee facing roles

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Bigger Change

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Faster Change

More Complex Change

More Cross Functional

Change is the new “business as usual”

Most executives recognise the need for embedding change capability

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76% Our ability to adapt is a key

source of competitive advantage.”

PriceWaterhouseCoopers 2008

90% “Organisational agility is

critical to business success.” McKinsey 2009

37% 45%

52% 61% 65%

Level 1 Level 2 Level 3 Level 4 Level 5

Project success rate by maturity level:

Organisations with higher Change Management maturity have higher project success rates

Prosci 2016 Best Practices in Change Management Benchmarking Report. 1120 participants in 56 countries. Prosci copyright 2016 c

Application growing at the project level

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of organisations apply a Change Management

methodology

of organisations applying Change Management

across the organisation


Strong integration with Project Management

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Percentage of participants who integrated Project Management and Change Management

77%

20%

3% 0%

20% 40% 60% 80%

100%

Yes No Don't know

Integration makes an impact on achieving project objectives

58% 42%

0%

50%

100%

Integrated Did not integrate


Awareness that successful change is leader led

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Projects with effective Sponsorship are three times more likely to achieve objectives

than those without

Prosci 2016 Best Practices in Change Management Benchmarking Report. 1120 participants in 56 countries. Prosci copyright 2016

Following the lead of Project Management

• Body of Knowledge/Best Practices • Professional Associations • Accreditations and Education • Methodology and Tools • Dedicated practitioners • Evidence to demonstrate ROI

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A new business case for Change Management

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Organisations change for a reason

Performance Performance > © Prosci Inc. All rights reserved www.change-management.com

Current state

Transition state

Future state

Future

Implementing an ERP Installing Electronic

Medical Records

Documenting and optimising business processes

Move to a new physical location

We tend to focus on change at the organisational level

© Prosci Inc. All rights reserved www.change-management.com

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 state

An organisational move to a future state


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


The Swiss Cheese Future State

Transition Current Future = Benefits

Current Future Transition

23 © Prosci Inc. All rights reserved www.change-management.com

= ?

M T W R F

An email on Monday for training on Tuesday for launch on Wednesday is NOT the way to prepare and equip individuals to successfully change


Results and outcomes depend on employee adoption and usage Solution must be: •  Designed •  Developed •  Delivered

and •  Embraced •  Adopted •  Used

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Future

Effectiveness = Quality x Acceptance General Electric – 1980s


The unified value proposition

Solution is designed, developed and delivered

effectively (Technical side)

Solution is embraced, adopted and utilised effectively

(People side)

+

Complementary disciplines with a common objective

Project management

Change management

Current Transition Future Current Transition Future


“People side of change” is about closing the gap

Requirements Results Outputs Outcomes

Specifications Sustainment Installation Realisation Solutions Benefits

*

* Daryl Conner


The data tells the story: Change Management drives results

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Change Management increases success rates by a factor of 6

Change Management drives staying on schedule

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Per

cent

age

of re

spon

dent

s th

at m

et o

r ex

ceed

ed

proj

ect o

bjec

tives

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Change Management drives staying on budget

Per

cent

age

of re

spon

dent

s th

at m

et o

r ex

ceed

ed

proj

ect o

bjec

tives

How well are individuals performing compared to the level expected in the design

of the change?

How many employees (of the total population) are demonstrating “buy-in” and are using the new solution?

How quickly are people up and running on the new

systems, processes and job roles?

Speed of Adoption Ultimate Utilization Proficiency

3 People Side Factors Determine results from change


Adoption contribution

Installation contribution

Adoption contribution Installation contribution

Adoption contribution

Installation contribution

How much of our expected results and outcomes depends on adoption and usage?

Future Adoption

contribution Installation contribution

20% 50% 80%

Adoption Contribution = People Dependency of ROI

None All High Low Medium

Portion of benefit that depends on

individual transitions (CMROI)


Two questions to put Change Management on the agenda

1. What is the approx percentage of project benefits that are dependent on people adopting & using the change? 2. What is the approx % of focus & resources on the project are dedicated to ensuring people adopt the change and use it proficiently?

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A new definition

Preparing, equipping and supporting individuals to adopt and

use the change so organisational benefits are achieved

What does the future hold?

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1.  Embedding Change capabilities into organisational DNA

2.  Change as everyone’s

job

Single view of change – air traffic control for all Project and BAU change

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The partnership with Project Management • Alignment and integration • Resourcing and roles • PMs as advocates for

investing in Change Management

• Closing the gap

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Requirements Results Outputs Outcomes

Specifications Sustainment Installation Realisation Solutions Benefits

More info

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beinghuman.com.au •  Prosci Webinars •  Change Community of

Practice Webinars •  Free Change

Conversations Seminars

“Life comes at us in waves. We can't predict or control those waves, but we can learn to surf.”

Dan Millman

the future of change management and why it matters to project managers may 2017 #pmiac17

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