Prosci © 2008
Best Practices in managing change
Prosciwww.change-management.com
Prosci © 20082007 Copyright Prosci and Bill Cigliano
Prosci © 2008
What we will talk about
• Frameworks for change management
• Best practice findings– 426 organizations, 59 countries– How well are you applying best
practices on your project?
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Why Change Management?
• To increase probability of your project’s success
• To proactively manage your employee’s resistance to change
• To build change management competency into your organization
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Ultimately, it is about meeting project objectives
Participants who met or exceeded OBJECTIVES
17%
45%
75%
88%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor Fair Good ExcellentOverall effectiveness of change management program
Data from Prosci's 2007 Best Practices in Change Management benchmarking studywww.change-management.com
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Connecting CM to business resultsStart with 4 columns
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The first column heading is “Project name”
Project Name
What is the project we are thinking about?
Examples: Supply Chain Optimization, Global ERP,
ACME 2015, eBenefits 2.5
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Next, add the heading “Purpose”
Project Name Purpose
What are the goals or outcomes the project is trying to achieve?
Examples: Reduce cost, increase revenue, improve margin, introduce new product, reallocate inventory, streamline business processes, merge parts of the organization, implement unified data source for entire organization, implement
common business practices
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Third, add the heading “Particulars”
Project Name Purpose Particulars
What is actually being changed?
Specific changes that will be made to business processes, systems, tools, job roles, organization structures – what is actually
being changed?
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Finally, add the heading “People”
Project Name Purpose Particulars People
Who has to do their jobs differently?
With the new processes, systems, tools, job roles, organization structures – whose day-to-
day work will be impacted?
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We now have a context for the project why, what and who is changing
Project Name
Why we are changing
What we are changing
Who will be changing
Purpose Particulars People
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Positioning change management
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Project Name Purpose Particulars People
Change management is:
• Change management is the process, tools and techniques to manage the people-side of change to achieve the required business outcome.
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Research results from
Best Practices in Change Management benchmarking report
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Prosci by the numbers
510
58%1,600
2,500+32,000+
Longitudinal studiesYears of researchFortune 500 companiesResearch participantsCertified practitionersRegistered members
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Research Foundation
First Change Management Study – 102 orgs
Second Change Management Study – 152 orgs2000
1998
Third Change Management Study – 288 orgs2003
2005 Fourth Change Management Study – 411 orgs
2007 Fifth Change Management Study – 426 orgs
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2007 data geographic distribution
Africa9%
Asia and Pacific Islands
13%
Australia7%
Canada8%
Central and South America
5%
Europe16%
U.S.42%
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Africa9%
Asia and Pacific Islands
13%
Australia7%
Canada8%
Central and South America
5%
Europe16%
U.S.42%
United Nations
Participating organizations
HPIntel
Kraft
Motorola US Department of Defense
Aflac
NASA
University of California
Standard Bank of South Africa
Symantec
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Type of change
0% 10% 20% 30% 40% 50%
Other
Staffing reduction
Job role change
Org change
System change
Process change
Process/system/Org and Job role
Percent of respondents
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Scope of change
0%
10%
20%
30%
40%
50%
60%
Within a workgroup
Single department
Multiple departments
Single division
Multiple divisions
Entire enterprise
Perc
ent o
f res
pond
ents
2000200320052007
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Impacted employees
0%
5%
10%
15%
20%
25%
30%
Less than10
10 to 50 50 to 100 100 to 500 500 to1000
1000 to5000
More than5000
Per
cent
of r
espo
nden
ts
2000200320052007
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Project investment
0%
5%
10%
15%
20%
25%
30%
$100K orless
$100K to$500K
$500K to$1M
$1M to $5M $5M to$10M
More than$10M
Per
cent
of r
espo
nden
ts
2000200320052007
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Report overview
• Findings:– Key success factors – What works – What doesn't – Mistakes to avoid
• Topics– Communication – Sponsorship – Resistance – Reinforcement – Team activities – Managers and supervisors – Change saturation – . . .
Learn more about the complete report at:http://www.change-management.com/best-practices-report.htm
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Greatest contributors to success From the 2007 benchmarking report:
1. Active and visible executive sponsorship2. Structured change management approach3. Frequent and open communications4. Dedicated resources for CM5. Employee participation
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1) Sponsorship
1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation
• In the 2007 study, sponsorship was #1 on the list of contributors by a 4:1 margin
– In 2005, sponsorship was #1– In 2003, sponsorship was #1– In 2000, sponsorship was #1– In 1998, sponsorship was #1
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What is the role of the sponsor?
Participate actively and visibly throughout the project Build a coalition of sponsorship and manage resistance Communicate directly with employees
It is not just signing
checks and charters!
It is not just signing
checks and charters!
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Do sponsors understand their role?
0% 5% 10% 15% 20% 25% 30% 35% 40%
1 - No understanding of what sponsorship means
2 - Slight understanding
3 - Some understanding
4 - Adequate understanding
5 - Complete understanding of roles and responsibilities
Percent of respondents
56%
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Sponsorship audit
Active and visible executive sponsorship ScoreThe project has an executive sponsor identified who is at the right level.
The executive sponsor has a solid understanding of his or her role.
The executive sponsor is ready, willing and able to participate actively and visibly throughout the entire project. The executive sponsor is ready, willing and able to build a coalition with key business leaders and managers. The executive sponsor is ready, willing and able to communicate directly with employees.
Total:
1 = Strongly disagree2 = Disagree3 = Neutral4 = Agree5 = Strongly agree
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2) Approach• Did you use a structured approach to change management?
1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation
0%
10%
20%
30%
40%
50%
60%
70%
Yes No Don't know
Per
cent
of r
espo
nden
ts
2003
2005
2007
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Selection criteria for methodology
1. Easy to use– Easy to implement– Easy to understand– Easy to communicate to
others– Simple– Practical– Structured and systematic– Logical– Comprehensive and holistic
2. Previous experience with a methodology
3. Proven to be effective
4. Matched the need
5. Flexibility and customization
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Project closure
Projectimplementation
Project design
Project planning
Project initiation
Percent of respondents
When did you start CMactivities this time?
When would you start CMactivities next time?
When to start change management activities?
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Approach audit
Structured change management approach ScoreA holistic, structured change management approach has been selected and applied.A detailed change management strategy is being developed.
A complete set of change management plans are being created.
Change management activities are being integrated into the overall project plan.Change management activities are scheduled to begin at the initiation of the project.
Total:
1 = Strongly disagree2 = Disagree3 = Neutral4 = Agree5 = Strongly agree
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3) Communications
• Most effective– ???
• Most important messages– Impact to the individual– Why the change is happening – What is changing
1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation
Email Face-to-face
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Communication: Preferred senders of change messages
0% 10% 20% 30% 40% 50% 60%
Other
CM team leader
CM team member
Project team leader
Project team member
The employee's supervisor
Department head
Senior manager
Executive manager
CEO/President
Percent of respondents
Personal messages
Business messages
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What to do differently next time regarding communications?
1. Communicate more often2. Engage managers and supervisors3. Make the communication plan a
formal project deliverable 4. Start communicating earlier 5. Use more methods and channels
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Communication audit
Frequent and open communications ScoreA communications plan is being created that identifies and segments impacted groups.The communication plan utilizes preferred senders of change messages.
The need for change and the risks of not changing are central in the communications plan. Communications sharing how the change benefits the organization and end-users are being prepared.
Total:
1 = Strongly disagree2 = Disagree3 = Neutral4 = Agree5 = Strongly agree
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4) Resources
• On average, participants cited that approximately 25% of total project FTE were dedicated to change management activities
• Over 50% still reported having too few change management resources
1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation
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Average budget for change management
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$100K orless
$100K to$500K
$500K to$1M
$1M to$5M
$5M to$10M
More than$10M
Investment being made in the project
Ave
rage
bud
get f
or c
hang
e m
anag
emen
t
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Change management FTE relative to project investment
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
$100K orless
$100K to$500K
$500K to$1M
$1M to $5M $5M to$10M
More than$10M
Investment being made in the project
Ave
rage
FTE
ded
icat
ed to
cha
nge
man
agem
ent
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Resources audit
Dedicated resources for change management ScoreThe project has an identified and dedicated resource focusing on change management.Change management resources are available throughout the entire project - from planning through implementation. Change management resources are adequately trained.
Total:
1 = Strongly disagree2 = Disagree3 = Neutral4 = Agree5 = Strongly agree
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5) Participation
• Focus groups • Input to the design of the change• Proactive interactions • Feedback
1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation
Changes only succeed when employees
ultimately change how they do their jobs.
Changes only succeed when employees
ultimately change how they do their jobs.
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Participation audit
Employee participation ScoreEmployees have been given input into the design of the solution.
Systems are in place to proactively gather feedback.
Metrics and measurements are created to evaluate employee adoption of the change.
Total:
1 = Strongly disagree2 = Disagree3 = Neutral4 = Agree5 = Strongly agree
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Score calculation
1) Sponsorship score _______ (out of 25)
2) Approach score _______ (out of 25)
3) Communications score _______ (out of 20)
4) Resources score _______ (out of 15)
5) Participation score _______ (out of 15)
Total score: _______ (out of 100)
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Score interpretation
Score Interpretation
80 – 100 You are doing a good job of applying change management best practices on your project. According to data on change management effectiveness, projects with scores of 80 - 100 are more likely to meet their objectives and finish on schedule.
60 – 79 There is work to be done. While you are doing okay on some of the factors, the change management program overall is not performing at a level that would ensure project success.
Under 59
Immediate and significant work is required to get the project on track. Research shows that projects with ineffective change management face more resistance, experience more barriers and surprise obstacles and are less likely to meet their objectives.
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How well are you applying change management best
practices?Participants who met or exceeded OBJECTIVES
17%
45%
75%
88%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor Fair Good ExcellentOverall effectiveness of change management program
Data from Prosci's 2007 Best Practices in Change Management benchmarking studywww.change-management.com
Prosci © 2008
Prosci Research 1367 South Garfield Ave
Loveland, Colorado, USA 80537 970-203-9332
www.change-management.com [email protected]