Product and Service Development Council - Prosci Presentation

Copyright Prosci 2015. All rights reserved.
Research | Methodology | Training | Advisory Services
www.prosci.com | 970-203-9332
Prosci
®
1
Change
Catalyzing
Questions
Why– Who – How Much – What
The Conference Board
Product & Services Development Council
April 30, 2015

PREMISE:
The results and outcomes
of your change efforts
are directly impacted
by how well you manage
individual transitions
2

Bigger
Change
3
More
Complex
Change
More
Cross
Functional
Faster
Change

Ownership
Accountability
Empowerment
Consistency
Predictability
Control
4

V.U.C.A. World
5

Copyright Prosci 2015. All rights reserved.6
What are the biggest changes
you expect to face in the
next 3 to 24 months?

The achievements
of an organization
are the results of
the combined
effort of each
individual.
Vince Lombardi
8

Current Transition Future
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
Ultimately requires individuals to move
from their own current to their own future
An organizational move from the current to the future
9

The Gap
A great idea
An innovative
outreach
effort
An effectively
managed
project
Results and
outcomes
Benefit
realization
Sustained
improvement
EMPLOYEE
ADOPTION
AND USAGE
OF THE
SOLUTION
10

TransitionCurrent Future
Employee Individual Transitions
Impact Results and Outcomes
WithchangemanagementWithout
=
X project
benefits
created
Current FutureTransition
Individual
transisions
gets bumpy
Individual
transitions
takes longer
Individual
transitions
incomplete
Individual
transitions
not as expected
<X
11

What tangible consequences of
“bumpy transitions” and
“swiss cheese futures”
have you seen in your work?

Change management helps
mitigate mission critical project risks
13

Successful change requires both
the technical and people sides
Current Transition Future
Technical side
People side
Design
Develop
Deliver
Embrace
Adopt
Use
Results
Outcomes
Success
=+
Installation*
Realization*
* Daryl Conner
14

Change
Catalyzing
Questions
Why– Who – How Much – What

Change Management Blueprint
Achieving Results By Catalyzing Individual Change
Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
individual
transitions?
What
can we do to drive and support adoption and usage?
16

It is not the
answer that
enlightens, but
the question.
Eugène Ionesco

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
individual
transitions?
What
18

Why Are We Changing?
0
200
400
600
800
Future
Organizational Benefits Project Objectives
Revenue
Costs
Profits
Efficiencies
Compliance
Safety
Process Excellence
Customer Satisfaction
Specific metrics and
measurements for
improvement
How work will be different
after the change
19

Why Are We Changing?
Project
Objectives
1. ?
2. ?
3. ?
4. ?
5. ?
Your Project
Organizational
Benefits
1. ?
2. ?
3. ?
4. ?
5. ?
20

On a scale of 1 (muddy) to 10 (crystal): how
clearly are organizational benefits and
project objectives defined on your efforts?

Definition of Goals and
Objectives Drives Results
22
Poorly
Defined
Goals and
Objectives
Adequately
Defined
Well
Defined
Very
Well
Defined
= met objectives= exceeded objectives

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
individual
transitions?
What
23

Who Has to Do Their
Jobs Differently?
Future
F F F F
F F F F
F F F
F F F
F F F F
F
F
F
F
F
F
F
Future
Organizational
Benefits
and Project
Objectives
Individual
Transitions
(adoption and usage)
depend on
and require
Project
Objectives
1.
2.
3.
4.
5.
Organizational
Benefits
1.
2.
3.
4.
5.
24

Who Has to Do Their
Jobs Differently?
Individual Transitions
Group What does “to adopt and use” mean for this group?
25

Aspects of a
person’s job
you can impact
Processes
Systems
Tools
Job
roles
Critical
behaviors
Mindset/
Attitudes/
Beliefs
Reporting
structure
Performance
reviews
Compensation
Location

Who Has to Do Their
Jobs Differently?
Group
What “to adopt
and use” mean?
How big of
an impact?
Aspects of
job impacted
Processes
Systems
Tools
Job roles
Critical behaviors
Mindset/Attitude/Belief
Reporting structure
Performance reviews
Compensation
Location
27

On a scale of 1 (never) to 10 (always):
do you define change at the
granular, individual level?

Just because it is
common sense
does not mean it is
common practice!
Will Rogers

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
individual
transitions?
What
30

Future
Future
Adoption
contribution
How Much Depends on
Individual Transitions?
Net Project Benefit
Dependent on
adoption and
usage
Not dependent
on adoption
and usage
Installation
contribution
ROI =
Expected Project Benefit – Project Cost
Project Cost
Net Project Benefit
Project Cost
=
31

How Much Depends on
Individual Transitions?
Value/benefit
you expect from
the change effort
(Project ROI)
Portion of benefit
that depends on
(CMROI)
“People Dependency”
None AllHighLow Medium
32

Example: EHR in ACME Health
Results
Project
Objectives
1. Meaningful use incentives 4 High 35%
2. One patient, one chart 6 High 25%
3. Billing and claim error reduction 6 High 35%
4. Physician communication 5 High 10%
5. Modernization of platform 3 Low 90%
Organizational
Benefits
1. Patient throughput and experience 9 All 0%
2. Lower cost, higher revenue 6 Low 75%
3. Risk and fine reduction 7 High 35%
4. Clinical best practices 3 All 0%
5. Patient empowerment 8 Low 65%
64%
Of what you expect
from this effort
depends on employee
adoption and usage
Adoption
contribution
Installation
contribution
100%
50%
36%
33

How Much Depends on
Adoption and Usage?
Project
Objectives
1.
2.
3.
4.
5.
Organizational
Benefits
1.
2.
3.
4.
5.
Indicate how dependent
this benefit or objective
is on PEOPLE
ADOPTING AND USING
THE CHANGE
34
Project
Objectives
1.
2.
3.
4.
5.
Organizational
Benefits
1.
2.
3.
4.
5.

For a project you are working on right now,
estimate the overall percent of expected
results and outcomes that depend on
employee adoption and usage:

Gartner BPM Summit
Dec 12, 2014
Prosci Webinar
Feb 11, 2015
36

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
individual
transitions?
What
37

What Can We Do To Drive and
Support Adoption and Usage?
CHANGE
MANAGEMENT
38

M T W R F
An email on Monday
for training on Tuesday
for “go live” on Wednesday
is NOT the way to prepare
and equip individuals to
successfully change
39

For your project, estimate the percent of
overall results and outcomes that depend on
employee adoption and usage:
How much are you investing (budget, people, energy) in
driving and supporting employee adoption and usage:
depends on
adoption
and usage
invested in
adoption
and usage
40

Change management:
CHānj ‘manijmǝnt
41
Catalyzing
to deliver
organizational results

How does
this person
make a
successful
personal
change?
42

PUNCHLINE
With an understanding and framework
for how individuals make a change
successfully, you can catalyze and
support employees’ individual
transitions to capture project
results and outcome
43

Prosci
®
ADKAR
®
Model
R
A
K
D
A
Reinforcement
To sustain the change
Ability
To implement required skills and behaviors
Knowledge
On how to change
Desire
To participate and support the change
Awareness
Of the need for change
44

Prosci
®
ADKAR
®
Model
R
A
K
D
A
Reinforcement
“I will continue to…”
Ability
“I am able to…”
Knowledge
“I know how to…”
Desire
“I have decided to…”
Awareness
“I understand why…”
45

ADKAR Defines Success: For One
Person or Organization-Wide Changes
46
R
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Change with
one person
Or five
people…
Or twenty
people…
Or 1000
people…

Testimonial
47
Jim Fitzhenry

PUNCHLINE
There are concrete, research-based,
repeatable action steps you apply on
your projects and initiatives to
equip, enable and encourage
individual transitions - that is what
applying a structured approach to
change management really means
48

Aligning CM to Project Lifecycle
49
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
Strategy Plans Measures
General
Project
Lifecycle
Individual
Change Journey
Milestones
Organizational
Change Mgmt
Activities
Major events
Prosci®
ADKAR ®
Model
Prosci®
3-Phase
Process

50
Phase 2:
Plans
General
Project
Lifecycle
Individual
Change Journey
Milestones
Organizational
Change Mgmt
Activities
Major events
Prosci®
ADKAR ®
Model
Prosci®
3-Phase
Process
AD RKA

A D K A RAK AKAccounting
51

A D K A R
A
A
N. America
Europe
Asia
A D K
A D K
R
R
52

1
A D RProgram
Project 1 K R
Project 2
Project 3
Project 4
A
R
R
R
2
A
4
A
3
A
K
K
K
53

54
Phase 3:
Reinforcing
Change
Phase 2:
Managing
Change
Phase 1:
Preparing
for Change
A D K A R
Strategy Plans Measures
General
Project
Lifecycle
Individual
Change Journey
Milestones
Organizational
Change Mgmt
Activities
Major events
Prosci®
ADKAR ®
Model
Prosci®
3-Phase
Process

Implementation Activities
Drive Individual Milestones
Individual:
Awareness Desire Knowledge Ability Reinforcement
Communication plan
Sponsor roadmap
Coaching plan
Training plan
Resistance Mgmt
Organizational:
55

Change Management Performance
Top Contributors to Success
56
Sponsorship
Communications
Middle Management
Engagement
Employee
Engagement
Change Management
Approach
Change Management
Resources
Integrating with PM
The Goal:
Employee
adoption
and
usage
Top Contributors to Success – Relationship to Adoption and Usage
Copyright © 2014 Prosci Inc. Best Practices in Change Management – 2014 Edition

Initiate Plan Design Develop Deploy Sustain
57
Project
Health
Change
Scorecard
Best Practice
Alignment
CMROI
Calculation
ADKAR
Progress
Adoption
contribution
Installation
contribution
100%
50%
36%
3-Phase
Process
Phase 1:
Preparing for Change
Phase 2:
Managing Change
Phase 3:
Reinforcing Change
Empowering Resources applied across the project lifecycle
to catalyze adoption, results and value

What role do
you play in
helping this
person
change?
58

PUNCHLINE
As a leader in the organization, you
play an active role in catalyzing
individual change because people
look to and listen to you
You play a crucial and active role
(ABCs) in driving successful change
59

In all 8 of Prosci’s studies,
active and visible executive
sponsorship was the #1
contributor to success

Three Roles of Sponsors
ABCs of Sponsorship
#1 Active and visible participation throughout
#2 Build a coalition of sponsorship
#3 Communicate directly with employees
61
It’s not just signing checks and charters

Active and Visible
Participation Throughout
Role and
Responsibilities
Title
62

Build a Coalition
of Support
HR Finance Programs West Central
63
East

Communicate Directly
With Employees & Members
Why?
Why now?
What if we don’t?
64

Biggest Sponsor Mistakes
65
Mistake #1: Failed to remain
visible and engaged
throughout the project
Mistake #2: Failed to
demonstrate
support for the project
in words and actions
Mistake #3: Failed to
effectively
communicate messages
about the need for change
Mistake #4: Ignored the
people side of change
Mistake #5: Delegated or abdicated
the sponsorship role and responsibilities

Change management:
CHānj ‘manijmǝnt
66
Catalyzing
to deliver
organizational results

16%
46%
77%
96%
0%
20%
40%
60%
80%
100%
Poor Fair Good Excellent
(n=244) (n=653) (n=834) (n=165)
Prosci 2014 Benchmarking Data
Copyright © Prosci Inc. All rights reserved.
Data from 2007, 2009, 2011, 2013.
Percent of Study Participants
Who Met or Exceeded Project Objectives
Change Management Effectiveness
67

16%
32%
54%
72%
0%
20%
40%
60%
80%
100%
(n=293) (n=793) (n=1032) (n=181)
Who Were On or Ahead of Schedule
Data from 2007, 2009, 2011, 2013.
68

48%
63%
71%
81%
0%
20%
40%
60%
80%
100%
(n=258) (n=737) (n=1001) (n=180)
Who Were On or Ahead of Budget
Data from 2007, 2009, 2011, 2013.
69

Time
Impact

C C C T T T T F F F
C C C T T T T F F F
C C C T T T T F F F
C C C C T T T T F F F F C C T T T T F F F F F F
C C T T F F T T F F T T F F T T F F T T F F T T F
C C T T F F T T F F T T F F T T F F T T F F T T F
C C C C T T T T T F F F F F F C C T T T F F
C C C C T T T T T F F F F F F C C T T T F F
C C T T F F F C C C T T F F F C C T T
T T F F F C C T T T T T F F F F F T F T F T
T T F F F C C T T T T T F F F F F T F T F T
Time
Impact

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
individual
transitions?
What
73

PUNCHLINE
You can drive more successful change
when you begin answering:
WHY
HOW MUCH
WHO
WHAT
74
Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
individual
transitions?
What

1367 South Garfield Ave
Loveland, Colorado, USA 80537
+1 970-203-9332
www.prosci.com
www.change-management.com
The following are trademarks or registered trademarks of Prosci, Inc. All rights reserved. Prosci®; Project Change Triangle™ (PCT™); Awareness Desire Knowledge Ability Reinforcement®;
ADKAR®; Prosci® Change Management Maturity Model™; Preparing for Change, Managing Change, Reinforcing Change™
75

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