the intersection of change management and business value … · 2018-04-15 · intersection of...

The Intersection of Change Management and Business Value Realization

Mark Dorsett, VP Global Businessmdorsett@prosci.com @dorsettmarkwww.linkedin.com/in/dorsettmark/

Benefit realizationValue managementValue realizationCustomer success

Value engineeringOutcome engineering

Expand Selling (ExS)Land and Expand

www.prosci.com solutions@prosci.com

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What is your

finish line?

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Typical Project

5

Initiate Plan Design Develop Deploy

“Go Live”Kick offGeneralProject

Lifecycle

Major events

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Most of our Projects

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What is your finish line?

Requirements ResultsOutputs Outcomes

Specifications Sustainment

Installation Realization

Solutions Benefits

*

* Daryl Conner

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CHANGE MANAGEMENTVALUEREALIZATION

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Potential vs Kinetic from Physics

• Potential Energy: physics, potential energy is the energy possessed by an object because of its position relative to other objects, stresses within itself, its electric charge, or other factors -Wikipedia

• Kinetic Energy: In physics, the kinetic energy of an object is the energy that it possesses due to its motion – Wikipedia

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Potential vs. Kinetic

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Align Ability With Go-LiveThe Prerequisite of Successful Change

12

Initiate Plan Design Develop Deploy

“Go Live”Kick offGeneralProject

Lifecycle

Major events

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Adding Value Realization and Change Management

BusinessValue

Realization

ChangeManagement

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BusinessValue

Realization

ChangeManagement

CM and VR – Partners Through Common Objective

BenefitsResultsOutcomesValue

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

1) Current developments have changed the landscape for solution vendors and their clients – especially around moves to the cloud.

2) Adoption and usage is no longer a luxury, but a necessity, given the increased importance placed on creating true value and solution renewal.

3) This presentation outlines the fundamentals of the intersection of value realization and change management.

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In this new environment, renewal is based on value realization which depends on adoption and usage.

Failing to drive adoption and usage has economic consequences for

vendors who now rely on renewal.

Solution Adopted and Used

Value Realized

Solution Renewed

Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Olden days deployment-only approach: “you get what you get”

The Risk of achieving Kinetic Value was with the Client

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Solution Configured/ Developed

Evolution 1: Vendors begin to adapt with configuration and custom development

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Intersection of Change Management and Business Value Realization

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Solution Configured/ Developed

ProblemIdentified

Evolution 2: Vendors begin to engage customers to get to the core of the problem

Presales Value Engineering Approach

Value discovery

Stay solid in solution

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Evolution 3: An emerging, vigorous focus on valuenecessitated by technology disruption

Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Value realized

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

The many labels of the value movement…amplified by the “digital transformation”

Expand Selling (ExS)

Value realization

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

New economic, business, technology models

• Move to cloud• Digital workplace• Consumption economics• Network economics• Lower institutional switching costs• Technology cycle• Total Cost of Ownership (TCO)• 5 yr, $10M on prem vs $500K per phase

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Connecting adoption and usage to value realized

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

For your project, estimate the percent of overall results, outcomes and value that

depends on employee adoption and usage:

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Gartner BPM Summit Prosci Webinar

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Individual changes determine/constrain value

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

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Poor adoption and usage has real consequences

that diminish value

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Driving adoption and usage drives value

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Adoption and usage is the pivot point…but it doesn’t happen by chance

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Those who trust to chance must abide by the results of chance.

Calvin Coolidge

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Intersection of Change Management and Business Value Realization

ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Change management is the discipline that has emerged to drive adoption and usage

Defined: mobilizing individual transitions to deliver organizational results

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Change Management in a Nutshell

What are the required

individual transitions?

How does an individual

make a successful transition?

What can we do on an

engagement to “mobilize”

the transitions?

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What are the requiredindividual transitions?

How does an individual make a successful

transition?

What can we do on an engagement to “mobilize”

the transitions?

Processes

Tools

SystemsCompensation

Performance Reviews

Reporting Structure

Critical Behaviors

Job Roles

Location

Mindset/Attitudes/Beliefs

Aspects of a Person’s Job You

Can Impact

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What are the requiredindividual transitions?

How does an individual make a successful

transition?

What can we do on an engagement to “mobilize”

the transitions?

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What are the requiredindividual transitions?

How does an individual make a successful

transition?

What can we do on an engagement to “mobilize”

the transitions?

A Awareness Of the need for change

R Reinforcement To sustain the change

A Ability To implement required skills and behaviors

K Knowledge On how to change

D Desire To participate and support the change

ADKAR element: Definition

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What are the requiredindividual transitions?

How does an individual make a successful

transition?

What can we do on an engagement to “mobilize”

the transitions?

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

Risk assessmentStrategy creation

Support structures

CommunicationsSponsor roadmap

Coaching planTraining plan

Resistance mgmt

GeneralProject

Lifecycle

Individual Change Journey

Milestones

OrganizationalChange Mgmt

Activities

Major events

MeasurementCourse correction

Sustainment

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What are the requiredindividual transitions?

How does an individual make a successful

transition?

What can we do on an engagement to “mobilize”

the transitions?

Outputs:

IndividualAdoption

Usage

ProjectResults

OutcomesBenefits

Value

Inputs:

Defined change

Technical solution

Individual Change Management Work Stream

Milestones needed for a single person to make a

change successfully

Organizational Change Management Work Stream

Deliverables (strategy and plans) that support

individual transitions

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Intersection of Change Management and Business Value Realization

Solution renewal depends on value the client realizes

Value realizationdepends on level

of adoption and usage

More value created =more solution renewal

If we actively drive adoption and usage, we increase value created

Solution Adopted and Used

Value Realized

Solution Renewed

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ProblemIdentified

Solution Configured/ Developed

Solution Deployed

Solution Adopted and Used

Value Realized

Solution Renewed

Prosci SolutionDelivering organizational results by

catalyzing individual transitions

http://www.prosci.com | http://blog.prosci.comchangemanagement@prosci.comBuild individual change competencies

Apply change management on initiativesEmbed organizational change capability

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