Perfect Match: Partnering Successfully with Change Management 181115

The Perfect Match:
Partnering
Successfully with
Change Management
Presented by
November 18 2015

Introducing Being Human
• Founded in 1993
• Our mission: develop
change-capable
people and
organisations so they
achieve the benefits of
change.
• Exclusive Prosci
Affiliate Australia and
New Zealand.
2

Prosci by the numbers
•  1994 – Founded in Loveland
(Denver) Colorado, USA
•  8 global Benchmarking
Reports
•  16 years of longitudinal
research
•  3,400+ research participants
•  63 countries
•  80% Fortune 500 companies
•  25,000+ Certified practitioners
worldwide
•  3,500+ Certified practitioners
Australia/New Zealand
3

Agenda
•  Update on Best Practices
in Change Management
•  Mythbusting
•  The new business case for
Change Management
•  Tips for partnering for
success
“People have two fears about the future.
First, things will never get back to normal.
Second, they already have”.

Overview of Prosci 2014 Best Practices in
Change Management Benchmarking Report
• 822 participants
• 63 countries
• Top 3 roles:
•  Change Management team
leader
•  External consultant
•  Project team leader
• 244 pages
• 38 new topics
The largest body of Change Management knowledge in the world.
5
2% 2% 3%
5%
14%
15%
25%
34%
Middle East
Latin America
Asia and Pacific
Islands
Africa
Europe
Canada
Australia and New
Zealand
United States

Snapshot of Australia & New Zealand
participants
6

Greatest contributors to success
1.  Active and visible executive
sponsorship
2.  Structured Change
Management approach
3.  Dedicated Change
Management resources and
funding
4.  Frequent and open
communications about the
change and the need for
change
5.  Employee engagement and
participation
6.  Engagement and interaction
with Project Management
7.  Engagement with and
support from middle
management
7
✔
ê
é
é
✔
☐
ê
2011 rank
2014 Best Practices in Change Management Report.
822 participants in 63 countries. Prosci copyright 2013.

Change Management increases
success rates by a factor of 6
Change Management increases the
probability of success
•  "Of the 165 research
participants who reported
having excellent change
management effectiveness,
96% met or exceeded
project objectives"
•  "Participants with the highest
level of change management
effectiveness were 6X more
likely to meet or exceed
project objectives"
8
16%
46%
77%
96%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=244)
Fair
(n=653)
Good
(n=834)
Excellent
(n=165)
P
e
rc
e
n
t
o
f
re
s
p
o
n
d
e
n
ts
th
a
t
m
e
t
o
r
e
xc
e
e
d
e
d
p
ro
je
c
t
o
b
je
c
tiv
e
s
Overall effectiveness of change management program
* Data from 2007, 2009, 2011 and 2013
Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of change management effectiveness
to meeting project objectives
8

Major gap between Change Management at
project and enterprise levels
9
of organisations apply a
Change Management
methodology
of organisations applying
Change Management
methodology to all
projects

Global trend: integration of Project
Management & Change Management
10
71%
22%
7%
Did you integrate Project
Management and
Change Management?
Yes No Don't know
0%
10%
20%
30%
40%
50%
60%
70%
Did not integrate Integrated
Percentageofrespondentswho
metorexceededprojectobjectives
Impact of integration on project success

Time to bust some myths about Change
Management
11

From warm fluffy stuff to key success factor:
the business case for Change Management

Organisations change for a reason
PerformancePerformance
>
© Prosci Inc. All rights reserved www.change-management.com
Current
state
Transition
state
Future
state

Organisational change requires
individual change
The individual is the unit of change

Success with individual change drives
success with organisational change
Organisational
change
Current Transition Future
Future
Individual
change

If 100% of end users don’t change,
we lose benefits
Organisational
change
Current
Future
Current Transition
Individual
change

“Soft side” drives success on “hard side”
•  How much value does a
new process deliver if no-
one follows it?
•  How much value does a
new technology or system
deliver if no-one uses it?
•  How much benefit is
realised if users drift back
to the “old ways”? With a very large,
negative ROI

Three people factors drive benefits and ROI
1.  Speed of adoption:
How fast?
1.  Ultimate utilisation:
How many?
3. Proficiency
How effectively?
©Prosci. Used with permission under terms of license agreement.
www.change-management.com

0
+
-
Net cash
flow of
project
period
The three people factors and ROI
Benefits are based on
assumptions about:
•  Speed of adoption
•  Ultimate utilisation
•  Proficiency
This slope
and shape is
determined by
speed of
adoption
The height of the
benefit is based on
ultimate utilization
and proficiency
Project ROI is reduced if speed of adoption is
slower, ultimate utilisation is lower or proficiency
is less than expected.

Activity: What do the three people factors look
like for your project?
21
Impacted group What is the target
speed od
adoption?
What is the target
utilisation rate?
What type of
proficiency will be
needed?
Group 1:

Reframing the purpose of Change
Management
achieve targets for adoption,
utilisation and proficiency
and deliver expected benefits
Engage
Get buy in
Equip leaders to lead change

How Project Managers can quantify the
investment required in Change Management
Benefits depend on:
•  Technical Solution
+
•  People side
A doption
Usage

Assessing contribution of Change Management
to benefits
24
•  Estimate the
expected benefits
•  Estimate the
percentage of
“people
dependency”
•  Use as guide for
investment in
Change
Management
Scenario 1: People Side Benefit
Contribution : 45%
Scenario 2: People Side
Benefit Contribution : 95%
© Prosci Inc. All rights reserved
www.change-management.com
Expected
benefits:
$1 million
Expected
benefits:
$1 million
Contribution of
Change
Management:
$450k
Contribution of
Change
Management:
$950k

Tips for partnering successfully with
Change Management
1.  People
2.  Process
3.  Tools
25

Team Structure Examples
27
Sponsor
Project team
CM
Sponsor
Project team CM
team

Process
• Integrate Change
Management and
Project Management
plans
• Align timelines

Integrating Project Management and
Change Management plans

Tools
• Align
• Integrate
•  Stakeholder mapping
•  Risk Logs
•  Impact assessments
•  Current state mapping
•  Communications Plans
•  Training Plans

“So, does anyone else feel that their needs aren’t being met?”

What PMs say they value about
Change Management
• Identify all the people
who need to adopt the
change
•  Assess the degree of
impact
•  Assess readiness to
change
•  Develop tailored Change
Management plans
• Foster leader-led
change
32
Middle managers
and supervisors
Change
management
resource/team
Executives and
senior managers
Project
team
Project
support
functions

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 FutureCurrent Transition Future

Resources
34
§  Prosci Delivering project
Resutlts: Change
Management Workshop
for Project Managers –
Melbourne, Dec 1
§  Being Human
www.beinghuman.com.au
§  Prosci
§  www.portal.prosci.com
§  Webinar recordings now
available!
§  www.change-
management.com
§  Visit the Tutorials page

Perfect Match: Partnering Successfully with Change Management 181115

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Perfect Match: Partnering Successfully with Change Management 181115