In 2017, we are seeing a new wave of awareness of the need for Change Management. More projects are resourced with Change Managers, more organisations are investing in change leadership training for managers and the number of certified change practitioners is rapidly increasing. All good, then? Or is there a new set of challenges facing change practitioners today? - The current state of Change Management - Factors driving the new wave of awareness - The upside and downside of where we are today - What does the future hold for Change Management in the age of disruption?

1. The future of Change Management and
why it matters to Project Managers
Presented by Vicky Emery
August 2017

2. • Founded in 1993
• Our mission is to develop
change capable people
and organisations so
they achieve the benefits
of change
• Prosci primary affiliate in
Australia and New
Zealand
2
Introducing Being Human

3. Prosci by the numbers
3

4. 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
4

5. The three ages of Change Management
5

6. 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
6

7. 2nd age – optional extra
• Focus on project success
• Use of standard methodology and tools
• Located in projects
• Partnerships with PMs
• Proactive
• But……LIFO syndrome
7

8. 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
8

9. 9

10. More executives recognise the need for embedding
change capability
10
76%
Our ability to adapt is a key
source of competitive
advantage.”
PwC 2008
90%
“Organisational agility is
critical to business
success.”
McKinsey 2009

11. Organisations with higher Change Management
maturity have higher project success rates
11
Project success rate by maturity level:
37%
45%
52%
61%
65%
0% 49%
Level 1
Level 2
Level 3
Level 4
Level 5
Prosci 2016 Best Practices in Change Management Benchmarking Report.
1120 participants in 56 countries. Prosci copyright 2016 c

12. Application growing at the project level
12
79%
of organisations apply a
Change Management
methodology
29%
of organisations applying
Change Management
across the organisation
Prosci 2016 Best Practices in Change Management Benchmarking Report.
1120 participants in 56 countries. Prosci copyright 2016 c

13. Strong integration with Project Management
13
Prosci 2016 Best Practices in Change Management Benchmarking Report.
1120 participants in 56 countries. Prosci copyright 2016 c
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

14. Awareness that successful change is leader led
14
Prosci 2016 Best Practices in Change Management Benchmarking Report.
1120 participants in 56 countries. Prosci copyright 2016 c
Projects with effective Sponsorship are
three times more likely to achieve
objectives than those without

15. 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
15

16. A new business case for Change Management
16

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

18. An organisational move to a future state
18
Current Transition Future
Ultimately requires individuals to move
from their own current to their own future state
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
© Prosci Inc. All rights reserved www.change-management.com

19. The true unit of change is the individual
19
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
© Prosci Inc. All rights reserved www.change-management.com

20. The Swiss cheese future state
20© Prosci Inc. All rights reserved www.change-management.com
TransitionCurrent Future = Benefits
Current FutureTransition = ?

21. Results and outcomes depend on employee
adoption and usage
Solution must be:
• Designed
• Developed
• Delivered
and
• Embraced
• Adopted
• Used
21© Prosci Inc. All rights reserved www.change-management.com
Future
Effectiveness = Quality x Acceptance
General Electric – 1980s

22. The unified value proposition
22© Prosci Inc. All rights reserved www.change-management.com
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
Current Transition FutureCurrent Transition Future
Change management

23. “People side of change” is about closing the gap
23
Requirements Results
Outputs Outcomes
Specifications Sustainment
Installation Realisation
Solutions Benefits
* Daryl Conner

24. The data tells the story: Change Management drives
results
24
Change Management increases
success rates by a factor of 6

25. Change Management drives staying on schedule
25
Percentageofrespondentsthatmetor
exceededprojectobjectives

26. Change Management drives staying on budget
26
Percentageofrespondentsthatmetor
exceededprojectobjectives

27. 3 people side factors determine results from change
27© Prosci Inc. All rights reserved www.change-management.com
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

28. How many of our expected results and outcomes
depend on adoption and usage?
28
Adoption
contribution
Installation
contribution
Adoption
contribution
Installation
contribution
Adoption
contribution
Installation
contribution
Future
Adoption
contribution
Installation
contribution
20%
50%
80%
Adoption Contribution = People Dependency of ROI
None AllHighLow Medium
Portion of benefit
that depends on
individual transitions
(CMROI)

29. A new definition
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Preparing, equipping
and supporting individuals to adopt and
use the change so organisational
benefits are achieved

30. What does the future hold?
1. Embedding Change capability into organisational DNA
• Change as everyone’s job
• Sustain capability
2. Single view of changes for better decision-making
3. Reinvigorating PM and continuing to build muscle in PM and
CM
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31. The partnership with Project Management
• Finding ways to align
and integrate
• Resourcing and roles
• PMs as advocates for
investing in Change
Management to achieve
results
• Closing the gap
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32. More info
beinghuman.com.au
• Prosci webinars
• Change community of practice webinars
• Complimentary change conversations seminars
32
“Life comes at us in waves. We can't predict or
control those waves, but we can learn to surf.” Dan
Millman