change management presentation
TRANSCRIPT
Change Management 101Benefit Realization
Marie Franko, RN, BSNFriday - May 31, 2013
• Marie Franko, BSN, RNo Clinical Consultanto 13 years of healthcare experienceo 6 years of Healthcare Informaticso 7 years of clinical nursing experience
Goals and Learning Objectives
• Define change management
• Differentiate between change management and project management
• Understanding benefit realization and its effect on projects
Change… Is inevitable
Change: /CHānj/ • Verb – to make or become DIFFERENT• Noun - the act or instance of making or becoming
DIFFERENT
When a perception of loss or loss of control is impending, we feel threatened. It is the “threatening change” that is feared.1
1 - (Howardell, 2004, para. 3)
So, why don’t we like change?
Fear of Loss• Position• The ability to perform
assigned tasks• Your job
“The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown.” – H.P. Lovecraft
Fear Inhibits
Fear of the Unknown
• Instinctual response to potential danger• Paralysis• Avoidance or escape• Relates to future events
Change… where does it lead us?
Change is fluid…
• A business fable about change• Work and personal life• Effects and reactions to change
In the end, you will understand….
Adapt and find your way to the cheese
Predetermining the Need
Preliminary Discussions
Determining “How”
Implement & Manage
Support, Maintain, and Reassess the
Change
Reemerging Habits
Acceptance
The Change Process
The Impact of Change…
The Impact of Change…
A Symbiotic Relationship
A relationship that benefits everyone involved
Project Management
Change Management
1- (Francis, 2009)
Project Management
• Planning, scheduling and controlling activities• Application of skills, tools and techniques
Project Manageme
nt
ChangeManagement
Problem Solving
Quality ControlBuilding Confidence
Communication
Planning
Risk Analysis
Components of Project Management
Change Management
1- (Francis, 2009)
Looking at Change Management
from a “how can we achieve” perspective
How many of you evaluate the cost of change management before any project?
• Optimum return on investment (ROI)• People management
“Cost-benefit analysis”, 2013
Yes No16%
84%
Reality Check
Understanding the reality of change
• Healthcare initiatives• Individuals
• Behaviors• Processes• Tools /Resources
• Benefit realization• Collective results of individual change
“Cost-benefit analysis”, 2013
“I’m not responsible for managing the
‘soft’ side of the project”
“Having a communication
plan is enough”
“We don’t need to manage
change, that’s Administration’s
job”
“Aren’t we managing
change through the project?”
The McKinsey StudyOrganizational Change Management (OCM)
Helping employees embrace change [Article]. The McKinsey Quarterly, 4, 17-20.
• 10 years of independent studies• 40 Companies
• Banks• Hospitals• Manufacturers• Utilities
• Successful change factors• Unsuccessful change factors
The McKinsey StudyOrganizational Change Management (OCM)
Helping employees embrace change [Article]. The McKinsey Quarterly, 4, 17-20.
• Expected targeted project value• Actual targeted project value
52%Failed
42%Gained
26%1/3 or <
Project
Management
OCM
Success FactorsMiddle Management
Frontline Staff – End Users
Commitment Communication Financial Incentives
Nonfinancial Incentives Leadership Stretch Targets
Success Factors
Senior
Management
Decision Authority People Management Skills Project Management Skills
Success Factors
Middle Management
Skills Tools Motivation
Success Factors
Frontline Staff – End Users
It doesn’t have to be perfect…
Helping employees embrace change [Article]. The McKinsey Quarterly, 4, 17-20.
Middle Management
Frontline Staff – End Users
7 Companies issues on one
level11 Companies issues on two
levels0 Levels1 Level2 Levels3 Levels
35%11 Companies
129%7 Companies
143%11 Companies
68%11 Companies
Actual ROI
The “Not-So” Successful Factors
Senior Executives• Lack of
commitment
Middle Managers• Defective PM
Skills
Frontline Staff• Lack of
training• Confusion
ROI
100%
+
-
_____
143% ROI Return on Investment (ROI)
Project Costs =
Net Project Benefits
Project Costs
35% Return on Investment (ROI)
=_____
Net Project Benefits
Project Risk
1- (Francis, 2009)
Scope Timeline Cost
Project Risk: Scope
1- (Francis, 2009)
Scope
Benefit not fully realized
Project Risk: Timeline
1- (Francis, 2009)
Timeline
Implementation is Delayed
Project Risk: Cost
1- (Francis, 2009)
CostHigher
Implementation Cost
Who here believes that your current project will effect individuals doing their job a new way?
Question…Are we jeopardizing our projects?
“Cost-benefit analysis”, 2013
Are we doing what it takes to convince our staff or are we just building great systems?
Change installed:Benefits not realized
Change installed:Benefits realized
People
Benefit realization
“Cost-benefit analysis”, 2013
4 -
The objective is to “express the benefits of change management in terms of expected project benefits”
What are the benefits of
change management?
Let’s Think What if we changed the way we think……
How does the employee adoption and usage rate benefit the project?
“Cost-benefit analysis”, 2013
Change Management
Success!!
+ Projects
Are you moving someone’s cheese?
Move the cheese often
Keep the cheese moving
Remember to keep
moving with the cheese
Check your cheese for
mold regularly
Be ready for when
the cheese moves
Lead the movement of change
The faster you let your cheese go, the sooner you can enjoy new
cheese
Enjoy the journey and the taste of new cheese
References
1. Fear. (n.d.). In Fear. Retrieved August 14, 2012, from http://en.wikipedia.org/wiki/fear
2. Francis, C. (2009). Change management: the missing link for PM success. Retrieved from http://www.projecttimes.com/articles/change-management-the-missing-link-for-pm-success.html
3. Howardell, D. (2004). Overcoming People’s Fear of Change. Retrieved from www.theacagroup.com/overcome.htm
4. Jerico, P. (2009). NoFear in Work and in Life [PowerPoint slides]. Retrieved from www.slideshare.net/pilarjerico/no-fear-2184060
5. Johnson, S. (1998). Who Moved My Cheese? New York, NY: Penguin Putnam.
6. LaClair, J. A., Rao, R. P., & Curry, K. (2002). Helping employees embrace change [Article]. The
McKinsey Quarterly, 4, 17-20.
7. Mostashari, F. (2012, January 6). 12 Months of Health Information Technology: A Year of Momentous
Progress [Blog post]. Retrieved from
http://www.healthit.gov/buzz-blog/from-the-onc-desk/12-months-health-information-technology-year-momentous-progress/
8. Cost-benefit analysis for change management from http://
www.change-management.com/tutorial-case-mod5.htm
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