prosci defining the value of change management - webinar overview
TRANSCRIPT
Defining the Value of Change Management
© Prosci. All Rights Reserved. 2
Foundation of Change ManagementAgenda Foundation of Change Management
SellingPink’s ABCs
Value Proposition
Context
Foundation of Change Management
SellingPink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
Defining the Value of Change Management
Live WebinarJuly 19, 2017 – 11AM EDTJuly 20, 2017 – 4PM EDT
Register at: www.prosci.com/webinars
© Prosci. All Rights Reserved. 3
Currentstate
Transitionstate
Futurestate
Technical Side
People Side
Design
Deliver
Develop
Embrace
Use
Adopt
ResultsOutcomes
Success
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
Successful Change Requires Boththe Technical and People Sides
© Prosci. All Rights Reserved. 4
Leaders
Internal External
ProjectTeams
You are selling change
management
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
Why It Matters To You!
© Prosci. All Rights Reserved. 5
old
ABCnew
ABCAlwaysBeClosing
AttunementBuoyancyClarity
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
Daniel Pink’s New Selling
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Value Proposition
Value proposition framework from Michael Skok, Startup Secrets: Building a Compelling Value Proposition, www.entrecapitalist.com/resource/building-compelling-value-proposition. Used with permission.
A positioning statement that describes for whom you do what uniquely well
- Michael Skok
1. Target “buyer” 2. Their problem 3. Your solution 4. Better than the alternative
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
© Prosci. All Rights Reserved. 7
An ounce of context is worth
a pound of isolated facts.
@daveElf
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
© Prosci. All Rights Reserved. 8
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
CMROIX% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits.
CMROIX% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits.
SUPThe expected project benefits depend on how quickly (speed of adoption), how many (ultimate utilization) and how effectively (proficiency) employees do their jobs the new way.
CMROIX% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits.
SUPThe expected project benefits depend on how quickly (speed of adoption), how many (ultimate utilization) and how effectively (proficiency) employees do their jobs the new way.
Costs/RisksThe expected project benefits are diminished by avoidable costs (inefficiencies) and mitigatable risks resulting from ignoring the people side of change.
CMROIX% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits.
SUPThe expected project benefits depend on how quickly (speed of adoption), how many (ultimate utilization) and how effectively (proficiency) employees do their jobs the new way.
Costs/RisksThe expected project benefits are diminished by avoidable costs (inefficiencies) and mitigatable risks resulting from ignoring the people side of change.
Language All of the above… results, benefits, objectives, success, ROI
CMROIX% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits.
SUPThe expected project benefits depend on how quickly (speed of adoption), how many (ultimate utilization) and how effectively (proficiency) employees do their jobs the new way.
Costs/RisksThe expected project benefits are diminished by avoidable costs (inefficiencies) and mitigatable risks resulting from ignoring the people side of change.
Language All of the above… results, benefits, objectives, success, ROI
ProbabilityThe expected project benefits are more likely to be achieved, on time and on budget, with effective change management according to industry data.
© Prosci. All Rights Reserved. 9
Project ROI CMROI
Project ROI
PeopleDependentProject ROI
(CMROI)
or
Directly connect CM impact to project results, benefits and objectives
No longer “resource for CM” – becomes “resource for
X% of project results”
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
Prosci CMROI Baseline
© Prosci. All Rights Reserved. 10
Assumed With poorchange management
With effectivechange management
Speed of AdoptionX% ↓ ↑
Ultimate UtilizationY% ↓ ↑
ProficiencyZ% ↓ ↑
Resulting ROI f(X,Y,Z) ↓ ↑
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
© Prosci. All Rights Reserved. 11
Costs Risks
Individuals
Project
Organization
The RE costs:REwork REdesign
REdo REscopeREtrain REtreat
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
We apply change management tomitigate risks and reduce costs
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CommunicationsTraining
StakeholdersResistance
ResilienceAssessments
Templates
Return on Investment
Benefit Realization
Results
Outcomes
Objectives
Sustainment
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
In the Words You Use
© Prosci. All Rights Reserved. 13
6xIncrease in likelihood of meeting objectives with excellent change
management
48%
62%70%
81%
0%
100%
Poor Fair Good Excellent
14%
32%
52%
71%
0%
100%
Poor Fair Good Excellent
15%42%
76%
94%
0%
100%
Poor Fair Good Excellent0%
100%
Poor Fair Good Excellent
Met or exceeded objectivesOn scheduleOn budget
Change Management Effectiveness
Foundation
Selling
Pink’s ABCs
Value Proposition
Context
Perspectives
CMROI
SUP
Costs/Risks
Language
Probability
Prosci research shows that effectivechange management drives outcomes
Prosci SolutionsDelivering organizational results by
catalyzing individual transitions
http://www.prosci.com | http://[email protected]
Build individual change competenciesApply change management on initiativesEmbed organizational change capability
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