1

Leading People through ChangeChange Management

Change management is:

The process, tools and techniques to manage the people side of change to

achieve the required business results.

3

Transformation Without Change Management

Change #1

Change #2

Change #3

Change #4

Future State

4

Transformation WithChange Management

Change #1

Change #2

Change #3

Change #4

Future State

5

Transformation WithChange Management

Change #1

Change #2

Change #3

Change #4

Future State

“Organizations don’t change –people within organizations change.”

New ERPFocus on the

customer Updated IT systems

New marketing approach

New product

Online HR benefits system

New strategy

Productivity improvement initiative

Mergers and acquisitions

Any business change requires individuals to do their jobs differently to be

successful

Employee Safety

“Everyone thinks of changing the world, but no one thinks of changing himself.”

Leo Tolstoy

Organizational change can be represented as three states of change

States of change

How things are done today

How things will be done tomorrow

How to move from current to

future

Currentstate

Transitionstate

Futurestate

Examples of changes organizations are currently taking on

Ad hoc processes Documented and managed processes

Multiple, legacy systems One integrated database

Generalists in the call center Specialists in the call center

No web interface for suppliers Supplier website integrated into supply chain

Two different companies Merged organization

Currentstate

Transitionstate

Futurestate

In reality, there are both organizational and individual future states

Organization

Individual

How I do my job today

How I will do my job after the change is implemented

Currentstate

Transitionstate

Futurestate

Currentstate

Transitionstate

Futurestate

The organization’s future state is actually the collection of many individual future states

Organization

Individuals

Documented and managed processes

One integrated database

Specialists in the call center

Supplier website integrated into supply chain

Merged organization

Futurestate

Currentstate

Transitionstate

Futurestate

Currentstate

Transitionstate

Futurestate

Currentstate

Transitionstate

Futurestate

Currentstate

Transitionstate

Futurestate

Currentstate

Transitionstate

Futurestate

Currentstate

Transitionstate

Futurestate

The focus of change management is helping individuals make their transition

Change management drives project success by supporting individual transitions required by organizational projects and initiatives

Individuals

Currentstate

Transitionstate

Futurestate

Currentstate

Transitionstate

Futurestate

Currentstate

Transitionstate

Futurestate

Prosci history

• Research company founded in 1994• Sponsor of the Change Management Learning

Center• World leader in change management research

and product development• Focused on building internal change

management competency

Copyright Prosci 2009

Research Foundation

1998 First Change Management Study – 102 participants

2001 Second Change Management Study – 152 participants

2003 Third Change Management Study – 288 participants

2005 Fourth Change Management Study – 411 participants

2007 Fifth Change Management Study – 426 participants

2009 Sixth Change Management Study – 575 participants

2011 Seventh Change Management Study – 650 participants

Change management is about achieving project objectives

17%

49%

80%

95%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Poor(n=177)

Fair(n=441)

Good(n=561)

Excellent(n=107)

Per

cent

of r

espo

nden

ts th

at m

et

or e

xcee

ded

proj

ect o

bjec

tives

Overall effectiveness of change management program

Correlation of change management effectiveness to meeting project objectives

© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

*Data from 2007, 2009 and 2011

There are consequences of not managing the people side of change

• Lower productivity• Passive resistance• Active resistance • Turnover of valued employees• Disinterest in the current or future state• Arguing about the need for change• More people taking sick days or not showing up• Changes not fully implemented• People finding work-arounds• People revert to the old way of doing things• The change being totally scrapped• Divides are created between ‘us’ and ‘them’

2007 © Prosci

Primary reasons for applying change management

• Increase probability of project success• Manage employee resistance to change• Build change competency in the

organization

Managing individual change with ADKAR®

• ADKAR® describes the key building blocks for successful change – Personal or professional

• Success with change requires all elements of the ADKAR® Model to be present

Reference: Hiatt, J. ADKAR: A model for change in business, government and our community, Learning Center Publications, 2006.ADKAR is a registered trademark of Prosci. All Rights Reserved.

Prosci® ADKAR® Model

ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are a registered trademarks of Prosci, Inc. All rights reserved.

The ADKAR® Model

• Awareness of the need for change.– What is the nature of the change?– Why is the change happening?– What is the risk of not changing?

For your employees, what is the level of Awareness of the need to change?

ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.

The ADKAR® Model

• Desire to support the change.– Personal motivation to support the change– Organizational drivers to support the change

For your employees, what is the level of Desire to support and participate in the change?

ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.

The ADKAR® Model

• Knowledge on how to change.– Knowledge, skills and behaviors required during

and after the change– Understanding how to change

For your employees, what is the level of Knowledge on how to change?

ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.

The ADKAR® Model

• Ability to implement new skills.– Demonstrated ability to implement the change– Barriers that may inhibit implementing the change

For your employees, what is the level of Ability to implement the change?

ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.

The ADKAR® Model

• Reinforcement to sustain the change.– Mechanisms to keep the change in place– Recognition, rewards, incentives, successes

For your employees, what is the level of Reinforcement to sustain the change?

ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.

24

ADKAR Exercise

The five building blocks of successful change

Awareness Awareness of the need for change

Desire Desire to participate and support the change

Knowledge Knowledge on how to change

Ability Ability to implement required skills and behaviors

Reinforcement® Reinforcement to sustain the change

Prosci® ADKAR® Model

ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are a registered trademarks of Prosci, Inc. All rights reserved.

ADKAR® applications

• Change management planning

• Diagnosing gaps

• Developing corrective actions

RAKDA

Overarching Principles

R Q A

Results of the Project

Quality of the Solution

Acceptance of the

Organization

27

Greatest contributors to success

1. Active and visible executive sponsorship

2. Frequent and open communications

3. Structured change management approach

4. Dedicated resources for change management

5. Employee participation 6. Engagement with and support

from middle management

Biggest obstacles to success

1. Ineffective change sponsorship from senior leaders

2. Insufficient change management resources and funding

3. Resistance to the change from employees

4. Middle management resistance5. Ineffective communications

Resistance: most common reasons employees resist change

1. Lack of awareness2. Impact on current job role3. Organization’s past

performance with change4. Lack of visible support and

commitment from managers5. Job loss

Resistance: most common reasons managers resist change

1. Lack of awareness about and involvement in the change

2. Loss of control or negative impact on job role

3. Increased workload and lack of time

4. Culture of change resistance and past failures

Communication

• Most effective– Face-to-face

• Most important messages– Impact to the individual– Why the change is happening

• Do differently next time– More communication– Have a communication strategy– Communicate earlier

Communication: Preferred senders of change messages

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Change management team leader

Change management team member

Project team leader

Project team member

Human Resources representative

The employee's supervisor

Department head

Senior manager

Executive manager

CEO/President

Percent of respondents

Business messagesPersonal messages

© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

34

Two Primary Goals of CM

• Level of Acceptance• Speed of adoption

If people don’t change how they do their job, then it doesn’t matter what specific changes are implemented