prosci €¦ · prosci © 2008 what we will talk about • frameworks for change management •...

Prosci © 2008

Best Practices in managing change

Prosciwww.change-management.com

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

Prosci © 2008

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%

Prosci © 2008

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


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?


0%

10%

20%

30%

40%

50%

60%

70%

Yes No Don't know

Per

cent

of r

espo

nden

ts

2003

2005

2007

Prosci © 2008

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


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:


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3) Communications

• Most effective– ???

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


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


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:


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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


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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

Prosci © 2008

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:


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5) Participation

• Focus groups • Input to the design of the change• Proactive interactions • Feedback


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:


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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.

Prosci © 2008

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]

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