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Defining the Value of Change Management With poll outputs from webinar attendees – July 19 & 20, 2017 Tim Creasey Prosci Chief Innovation Officer [email protected] www.linkedin.com/in/timcreasey
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Defining the value of change management

Jan 21, 2018

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Page 1: Defining the value of change management

Defining the Value of Change Management

With poll outputs from webinarattendees – July 19 & 20, 2017

Tim CreaseyProsci Chief Innovation [email protected]/in/timcreasey

Page 2: Defining the value of change management

© Prosci. All Rights Reserved. 2

Foundation of Change Management

Agenda

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

Page 3: Defining the value of change management

© 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

Page 4: Defining the value of change management

© Prosci. All Rights Reserved. 4

The achievements of an organization

are the results of the combined effort of

each individual.Vince Lombardi

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 5: Defining the value of change management

© Prosci. All Rights Reserved. 5

Current Transition Future

TC F

C C C C C

C C C C C

C C C C

C C C C C

C C C C C

T T T T

T T T T T

T T T

T T T T

T T T T T

F F F

F F F F

F F

F F F

F F F F

T

T

T

F

F

F

F

F

F

F

F

Requires individuals to reach their own future state

An organizational move to a future stateFoundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 6: Defining the value of change management

© Prosci. All Rights Reserved. 6

= LowerROI

= Not What We Expected/Hoped For

= Less Benefit Realization

= Unachieved Improvement

F F

F F F

F

F

F

F

F

F

F

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Failed individual change results infailed organizational change

“Swiss cheese”Future State

Page 7: Defining the value of change management

An email on Mondayfor training on Tuesday

for launch on Wednesday

is NOT the way to prepare and equip individuals to successfully change

M T W R FFoundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 8: Defining the value of change management

© Prosci. All Rights Reserved. 8

Change management:

Preparing, equipping and supporting individuals through the change journeys

they experience as part of your organization

Capturing people-dependent project ROI

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 9: Defining the value of change management

© Prosci. All Rights Reserved. 9

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!

Page 10: Defining the value of change management

© Prosci. All Rights Reserved. 10

What WeARE NOT Selling

What We ARE Selling

Communications

Training

Assessments

Stakeholder Analysis

Magic in a bottle

Manipulation and Spin

Templates

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 11: Defining the value of change management

© Prosci. All Rights Reserved. 11

What Success Looks Like

Buy-in Mindshare Approach Resources

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 12: Defining the value of change management

© Prosci. All Rights Reserved. 12

old new

AlwaysBeClosing

AttunementBuoyancyClarity

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Daniel Pink’s New Selling

Page 13: Defining the value of change management

© Prosci. All Rights Reserved. 13

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

Page 14: Defining the value of change management

© Prosci. All Rights Reserved. 14

SponsorSam

PMPatricia

SolutionSimon

What keeps them up at night?

What gets them up in the morning?

How do they define personal success?

What is their experience with CM?

Objections to CM?

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 15: Defining the value of change management

© Prosci. All Rights Reserved. 15

Poll: How often are you having to sell change management to each of these groups?

2% 2% 3%5% 5%

9%

13%19%

20%

33%

44% 34%

47%

30% 34%

0%

25%

50%

75%

100%

Executives andSenior Leaders

Project Managersand Leaders

SolutionDevelopers

Executives andSenior Leaders

Project Managersand Leaders

SolutionDevelopers

Always

Often

Sometimes

Rarely

Never

Always

Often

Sometimes

Rarely

Never

Always

Often

Sometimes

Rarely

Never

Poll results:Pin drop voting:

Page 16: Defining the value of change management

© Prosci. All Rights Reserved. 16

Priority is a function

of context.

Stephen R. Covey

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 17: Defining the value of change management

© Prosci. All Rights Reserved. 17

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

Page 18: Defining the value of change management

© Prosci. All Rights Reserved. 18

People don’t buy a quarter-inch drill bit, they buy a quarter-inch hole.

You’ve got to study the hole, not the drill. The drill is just the solution for it.

Theodore Levitt (Leo McGinneva)

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 19: Defining the value of change management

© Prosci. All Rights Reserved. 19

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.

Page 20: Defining the value of change management

© Prosci. All Rights Reserved. 20

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

Page 21: Defining the value of change management

© Prosci. All Rights Reserved. 21

For your project, estimate the percent of overall results and outcomes that depends on

employee adoption and usage:

How much are you investing (budget, people, energy) in driving and supporting employee adoption and usage:

depends onadoption

and usageinvested inadoption and usage

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 22: Defining the value of change management

© Prosci. All Rights Reserved. 22

Gartner BPM SummitDec 12, 2014

Prosci Webinar Feb 11, 2015

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Change management is how you capture people-dependent ROI

Page 23: Defining the value of change management

© Prosci. All Rights Reserved. 23

Poll:

Answer without a "%" and round to nearest 0 or 5.

For a project you are supporting now, what percent of the expected results and outcomes depends on people changing how they do their jobs?

Page 24: Defining the value of change management

© Prosci. All Rights Reserved. 24

CHANGE INITIATIVESDEPENDENT ON

ADOPTION AND USAGE

INVESTED INADOPTION AND USAGE

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Now, think about a portfolio

Page 25: Defining the value of change management

© Prosci. All Rights Reserved. 25

Make the connection for your work

Think about a project you are currently supporting.

Identify…1. What are the results and outcomes

expected from this project or initiative?2. What percentage of those results and

outcomes are dependent on individuals doing their jobs a new way?

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 26: Defining the value of change management

© Prosci. All Rights Reserved. 26

How well are individuals performing compared to the level expected in the design

of the change?

How many employees (of the total population)

are demonstrating “buy-in” and are using

the new solution?

How quickly are people up and running on the

new systems, processes and job roles?

Speed of Adoption Ultimate Utilization Proficiency

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

The Human Factors that Determine the Financial Return or ROI

Page 27: Defining the value of change management

© Prosci. All Rights Reserved. 27

Poorly Managed Change Cash Flow Expected Cash Flow

Net

cas

h flo

w o

f pro

ject

per

iod

+

-

0

Time (periods)

Proficiency contributes to the “height” of each benefit, including the ongoing

benefit after implementation

The height of the benefit after implementation is finished is based

on ultimate utilization

The slope and shape are determined by speed of adoption

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

SUP Impact – Expected vs. Poorly Managed

Page 28: Defining the value of change management

© Prosci. All Rights Reserved. 28

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

Page 29: Defining the value of change management

© Prosci. All Rights Reserved. 29

Poll: Have you seen SUP (Speed of Adoption, Ultimate Utilization, Proficiency) impact project outcomes?

5%

4%

13%

38%

40%

0% 20% 40%

No

Yes, once or twice

Yes, occasionally

Yes, regularly

Yes, all the time

Page 30: Defining the value of change management

© Prosci. All Rights Reserved. 30

Think about a project you are currently supporting.

Identify… Definitions of speed of adoption, ultimate utilization and proficiency for your project. Specific assumptions for your project related to:

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

ProbabilitySpeed of Adoption Ultimate Utilization Proficiency

Make the connection for your work

Page 31: Defining the value of change management

© Prosci. All Rights Reserved. 31

Those who trust to chance must abide by the results of chance.

Calvin Coolidge

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 32: Defining the value of change management

© Prosci. All Rights Reserved. 32

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

Page 33: Defining the value of change management

© Prosci. All Rights Reserved. 33

Costs: Risks:

To the project if we do not manage the people side of change well

• Project delays• Missed milestones• Budget overruns• Rework required• Loss of work by project team

• Resistance – active and passive• Project put on hold• Resources not made available• Obstacles appear unexpectedly• Project fails to deliver results• Project is fully abandoned

To the organization if we do not manage the people side of change well

• Productivity plunges(deep and sustained)

• Loss of valued employees• Reduced quality of work

• Impact on customers• Impact on suppliers• Morale declines• Legacy of failed change• Stress, confusion, fatigue• Change saturation

To the organization if this change does not deliver the results we expect

• Lost investment in the project• Lost opportunity to have

invested in other projects

• Expenses not reduced• Efficiencies not gained• Revenue not increased• Market share not captured• Waste not reduced• Regulations not met

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 34: Defining the value of change management

© Prosci. All Rights Reserved. 34

Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage:

Page 35: Defining the value of change management

© Prosci. All Rights Reserved. 35

Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage:

• Abandoning of Service/Tool• abandonment of truly good change• additional project costs• additional training• Additional training• Additional Training• additional training• additional training• Additional training• Additional training = additional time

and costs• additional travel• Alienation of team members• and most importantly me• Anger• Attrition• attrition• Audit Findings• backflips• bad attitudes• bad data• bad data• bad decisions due to incomplete data• Budget cuts affecting project support

staff• Business Unit staff frustrated• Buy another technology solution

• buy new technology - over and over• Cancel project• change calendars• change in system• change overload• Change requests• change taking 2+ years of delay• changing requirements• Changing timelines• company• company cash flow• conflict• conflict within teams because some

have adopted and others haven't• confusion• Confusion• Confusion at end user level• Contract delay penalties• Contracting/Legal Agreement

complications• Contractual penalties• cost of a new technology tool• creating shadow systems and all

maintenance costs for those• Creation of silos between teams• Culture of cynical users• customer

• customer dissatisfaction• Customer Pissed off• cycle of project failures• cycle of rework• cynical employees• cynics• Data quality impacts• declining morale• Decreased confidence in management• delay• Delay to cease contracts and use of

legacy system• Delayed implementation• Delayed results• Delayed rollout• delayed timeline• Delays• Delays• Delays• delays• Delays• disengaged associates• disengagement• Disengagement of stakeholders• dissatisfied customers• dissatisfied customers• distrust

• distrust• distrust in leaders• Domino effects on other projects• double license fees for legacy and new

system• Duplicate / conflicting processes and

procedures creating ambiguity and duplication of work

• egg on CIO face• employee disengagement and lack of

adoption• employee engagement• Employee engagement• employee experience - frustration• employee loss• employee resistance• employee retention• employee retention• Entire overhaul of UI• Excess time spent on task - unnecessary

processing• extended contracts• extended project schedules• Extended project schedules• extended utilization post

implementation

Page 36: Defining the value of change management

© Prosci. All Rights Reserved. 36

Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage:

• extra cost to study the issue• Extra time spend training customers• failed efforts• Failed project results - ultimately audit

failures• Failed projects• Failure to deploy a major CRM

implementation.• failure to provide accurate details• Fear of new systems• Fines• frustrated employees• frustration• Frustration• Frustration• Frustration• Further organizational 'scar tissue'• going back to the drawing board• go-live delay• Had to scrap the entire EMR systems

and replace it with an entirely different (and more costly one).

• halting project and reworking training• Have to replace the entire software

with a new one• Here we go- another project yet again-

we had enough

• Hi Mom• High turnover• 'hypercare' costs - longer project

schedule and costs• Identification of the gaps.• impact to customer• inconsistent ways of working• incorrect information• increase on expenses• Increasing resistance from users• initiative failure• involving people• Kleenex - because people are crying. :(• lack of comprehension of roles and

responsibilities• lack of transparency• lack of trust from end users of tool• Lack of updated data• Lengthened time to ROI• Longer delivery to market• Lose the audience of change• losing excellent employees• Losing key team members• losing resources• loss of credibility• loss of credibility and trust• Loss of efficiency

• loss of institutional knowledge to support change when people resign

• Loss of key accounts• Loss of key high performing talent• loss of key talent• Loss of moral• loss of productivity• Loss of productivity• loss of staff• loss of talent• loss of time• Loss of time and money• Loss of trust for future changes• loss of trust in company• Losses due to incorrect handling of

invoices• Lost clients• lost customers• Lost market value due to

misunderstanding of new products• Lost time• Lost trust• Lots of rework• low adoption• low adoption level• Low morale• Low morale

• Low morale• Low morale• low morale as staff don't know how to

use system• lower morale• Lower traffic because managers

delayed adoption of social media• mail management• Managing resistance during training• miscommunication• miscommunication and rumors• mis-integration• Missed implementation date• Missed implementation dates• Missed requirements• missed target ROI• missing key milestone dates• missing revenue and GP goals• morale• Morale• morale• morale• morale• morale• morale degradation

Page 37: Defining the value of change management

© Prosci. All Rights Reserved. 37

Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage:

• morale issues because of assumed layoffs

• morale of staff• More handholding• more training• Need to retrain the employees• negative comments• negative customer impacts• Negative employee morale• negative impact to reputation of the

project and/or those that have sponsored the change

• Negative impacts to future change• Negative impressions of program• New system not used• No result• no usage by intended audience• Not much engagements from sponsor• not sufficient training time• out of budget• Over cost - impact the initial budget• overtime• Overtime costs and additional resource

cost• overtime of nonexempt workers• people resigning• plummeted service levels

• Poor customer experience• Poor customer service• Poor customer service/deliver• poor marketing• Poor results and unhappy leader's• poor service offering• process change• productivity• productivity results not achieved• Project delays• project delays• project failure• proper engagements with sponsor and

stakeholders can help in mitigation of costs and risks

• pull out part of functionality - less delivered for more money

• pulling in consultants to help post-change

• re designed• re explaining• re implementation• re implementation• re planning• re train• re training• Re training because turn over

• re-assess• REboot• re-communicate• REcommunication costs "lot of

questions"• Redesign• Redesign• Redesign• redesign• Redesign• redesign• redesign• Redevelopment• Redevelopment of software• Redo the project• Redo!• Reduced confidence in future changes• reduced trust in process and project

team• Re-engineer• regret• Regulatory impacts• relaunch• remediation• reorganization• reorganization• reorganization

• repeated training• replace• replace resources• Replace with new system• Reputational Risk• Reputational risk; customer

dissatisfaction• rescope• Rescope• rescope project• Rescope work• Rescoping of project• re-sdlc• resentment• Resignation• Resignations• resignations• Resignations• resignations• resignations• Resistance• REsistance• Resistance• Resistance• resistance

Page 38: Defining the value of change management

© Prosci. All Rights Reserved. 38

Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage:

• Resistance to future change• Resistance to future change because it

went so poorly this time• resistance when it didn't exist initially• Resources• resources had to be sent on other

projects due to project delays• resources undesignated• Re-start of projects• resubmission of insurance billing• retaining talent• retrain• retrain• Retrain• retrain• retrain• re-train• retraining• retraining• retraining• Retraining• Retraining• Retraining• Retraining• Retraining• retraining

• retraining• Retraining• retraining• Re-Training• Re-training• re-training• re-training• re-training of end users• revert• reverting• REview• Rework• Rework• rework• rework• rework• Rework• rework• rework• Rework• Rework• Rework• rework• rework• rework• Rework

• rework and late deliveries to customers• rework and resistance• rework training• rework training• Rework!• Reworks• Rogue solutions and shadow systems• Ruined relationships• salary• Salary costs• salary costs• schedule change• scope change• scope creep• Silos within integrator team• Skepticism• staff dissatisfaction• staff resign• staff turnover• staff turnover• Stagnant workers• Stakeholders not available• starting from square one again• talent• team• teamwork

• Terminations• time away from work to deal with

system errors• too many project managers on a

project• training• training• travel• Trust issues with leaders• turn over• turnover• turnover• Uncertainty• Underdeveloped Requirements• unfilled vacancies• Unnecessary software development• Unorganized Training• Unrealistic deadlines• Unused systems• using incorrect success measures• wasted man hours• Wasted Production time• Weak Sponsorship• What's in it for society• work disruption/stoppage

Page 39: Defining the value of change management

© Prosci. All Rights Reserved. 39

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

We apply change management tominimize negative consequences

Page 40: Defining the value of change management

© Prosci. All Rights Reserved. 40

Think about a project you are currently supporting.

Identify… Specific avoidable costs and mitigatable risks related to the people side of your effort.

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Make the connection for your work

Page 41: Defining the value of change management

© Prosci. All Rights Reserved. 41

Context QuestionsLanguage

If you talk to a man in a language he understands, that goes to his head. If you talk to him

in his language, that goes to his heart.

Nelson Mandela

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 42: Defining the value of change management

© Prosci. All Rights Reserved. 42

Communications

Training

Stakeholders

Resistance

Resilience

Assessments

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

Page 43: Defining the value of change management

© Prosci. All Rights Reserved. 43

Mobilizing People

ResultsTo Deliver

Guiding people through personal change impacts Helping people maximally adopt and use

Success through people Helping organizations get to their desired state

Managing people side of change to drive results

Changing behaviors to achieve business needs

Individual transitions that generate org change

Better business outcomes through people

Faster ROI through leading people through change

Turn business objectives into behavior change

Structured process to produce results

Ensuring organization's objectives are met

Producing results

Benefits realization

Making change stick

Delivering people-dependent ROI

People side of change

Helping people to make a difference

Making things better for people

Identify and manage people risks

Making people willing and able to change

It means effectively moving people to success

Tools and process to move people through change

Moving people from current to future

Helping people get from a to b

Moving people from point a to point b

Navigating the undulating floor

Facilitating transitions with finesse and insight

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Page 44: Defining the value of change management

© Prosci. All Rights Reserved. 44

Poll: Identify words you will STOP using when describing the value of change management

Page 45: Defining the value of change management

© Prosci. All Rights Reserved. 45

Poll: Identify words you will STOP using when describing the value of change management• Accountability• Accountability• accountability• accountable• Adaption• Adoption• adoption• adoption• adoption• adoption• Adoption• Agile• alignment• alignment• Assessment• assessment• Assessment• assessment• Assessment• assessment• Assessment• Assessments• assessments• assessments• assessments• attempt• Audit

• Benefit• better alignment• better training• Body language cues• bottom line• Building capacity• buy-in• buy-in• challenges• Change• change• Change• Change• change• change• change and

communications• change management• change management• Change Management• change management• change management• change management• change management• Change Management• Change management• Change Management

• change management• Change management• change management• Change Management• change management• Change Management• Change Management• Change management• change management =

communication plan• Change Managers• change/communication

plan• coaching• communicate• communicate• communicate• communicate more• communication• communication• Communication• Communication• communication• communication• communication• communication• communication

• communication• Communication• communication• Communication• Communication• communication• communication• Communication• communication• communication• communication• communication• communication• communication• communication• communication• Communication • Communication and

training• communication plan• communication plan• communication plan• Communications• communications• communications• communications• communications

• Communications• communications• communications• communications• Communications• communications• Communications• Communications• Communications and

training• creating awareness• Culture Change• delays• deliverables• development• Disruption• doesn´t want to change• Education and training• Email• engagement• engagement• engagement• engagement• essentially the parts ...

need to talk about ROI• executive sponsorship• fluff

• fluffy• getting buy in• human resources• impact• impact• impact assessment• issues• Issues• leadership• manage• manage changes• Manage people side of

change• Manage resistance• Manage resistance• Manage resistance• Management• management• management• managing resistance• meetings• method

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Poll: Identify words you will STOP using when describing the value of change management• methodology• Methodology• Minimize resistance• Must• Necessary• necessary• Necessary • not able to change• people engagement• People management• people side• people side• plans• Please Do • prevent failure• Problem• problem• Process• process• Process• process change• program• Resilience• Resistance• Resistance• Resistance• Resistance

• resistance• Resistance• Resistance• resistance• resistance• resistance• resistance• resistance• resistance• Resistance• resistance• resistance• Resistance• resistance• resistance• resistance• resistance• Resistance• Resistance• Resistance• resistance• Resistance• resistance• resistance• Resistance and even

Change Management• resistance management

• resistance management• resistance management• Resistance mitigation• Resistance of user

adoption• Resisters• restructure• risk• Risks• Shift• soft• soft• Soft• Soft side• soft side• soft side• soft side• Soft side of benefits• soft skills• soft skills• solution• stakeholder• stakeholder• stakeholder• stakeholder analysis• stakeholder analysis• Stakeholder returns

• Stakeholders• stakeholders• stakeholders• stakeholders• stakeholders• Stakeholders• stakeholders• stakeholders• Stakeholders• stakeholders• Stakeholders• Stakeholders • strategy• strategy• support• Support• surveys• sustainability• talk with instead of talk to• templates• Templates• templates• Templates• things are going to be

different• to be / future state• Training

• training• training• training• training• training• Training• training• training• Training• training• Training• training• training• Training• training• training• Training• training• training• training• Training• training• training• training• Training• Training• Training

• training• training• training• Training• training• training• training• training • training • transformation• transparency• transparency• UAT• Undisciplined• Upskilling• usability• user adoption• Values• want• weaknesses• What's in it for me

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© Prosci. All Rights Reserved. 47

Poll: Identify words you will START using when describing the value of change management

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Poll: Identify words you will START using when describing the value of change management• accomplish• accountability• achieve• achieve expectations• Achieve results• achievement• achievement• actionable• adopt• adoption• Adoption• Adoption• Adoption• adoption• adoption• Adoption• adoption• adoption• Adoption & Usage =

Success• adoption = results• agility• avoiding costs• behavior• benefit• Benefit• Benefit• benefit• benefit realization• benefit realization• Benefit Realization

• benefit realization• Benefit realization• Benefit realized• benefits• benefits• benefits• benefits• benefits• benefits• benefits• Benefits• benefits• Benefits• benefits• Benefits• Benefits• benefits• benefits• benefits • Benefits Realization• benefits realization• Benefits realization• benefits realization• Benefits realization• benefits realization• benefits/results• better• Boost the investment• Bottom line• business case realization• Business growth

• business outcome• Business results• Business Transformation• business value• Buy-in• change management

metrics• change management

outcomes• changing hearts and minds• CMROI• CMROI• Collaboration• Communication• Connect• connect• cost benefit• culture• data• Deliver• deliver results• deliver results• deliver results• Deliverable• Delivering on our

outcomes• delivering results• Delivery of results• desired outcomes• difference it makes• discover

• Early adoption• easier• employees that are excited• empower• empowerment• Enable• engage• engage• engaged• engagement• engagement• engagement• engagement• expected outcome• Expected Proficiency• faster go to market• Future• future• giving results• greater efficiency• Hard facts• heart• help• help us understand• impact• Impact• impact• impact• impact• improvements• Increased acceptance of

usage• increased ROI• increased success through

people focus• innovate• innovation• innovation• intake• intent• Investment• investment• IRR• job satisfaction• Journey• KPI usage• leadership• leadership• let's do it together• maximize outcomes• measurable• Measurable Outcomes• Meeting Expectations• metrics• mobilization• mobilization• Mobilization and results• mobilize• Mobilize• Mobilize• mobilize• Mobilize and deliver

• mobilize deliver• mobilize people• mobilize people• mobilize people • Mobilizing people to

deliver results• Mobilizing people to

deliver results• NPV• NPV• objective• objectives• Objectives• objectives• objectives• Objectives• objectives & deliverables• outcome• outcome• Outcome• Outcome• Outcomes• Outcomes• outcomes• Outcomes• Outcomes• Outcomes• outcomes

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Poll: Identify words you will START using when describing the value of change management• outcomes• outcomes• outcomes• outcomes• Outcomes• Outcomes• outcomes• Outcomes• outcomes• Outcomes and Results• Outlook• partnership• Payback Period• people• people power• People side of change• people side of change• People-dependent ROI• performance• Performance• performance• performance• proficiency• Proficiency• progress• Project success• project success• quick uptake• realization• realization• realized benefits

• result• Results• results• Results• results• results• results• results• Results• Results• results• Results• Results• results• Results• results• results• Results• Results• Results• results• results• Results• Results• Results• results• results• results• results• Results• Results

• results• results• results• results• Results• results• Results• Return of investment• return on investment• return on investment• Return on Investment• Return on Investment• return on investment• Return on Investment• Return on investment• Return on investments• Return on investments• risk• risk management• Risk Mitigation• ROI• ROI• ROI• ROI• ROI• ROI• ROI• roi• ROI• ROI• ROI

• ROI• ROI• ROI• ROI• ROI• ROI• ROI• ROI• ROI• ROI• ROI• ROI• ROI• ROI/ROE• savings• speed• Speed of adoption• Speed of adoption• speed of adoption• speed to transform• stewardship• Success• success• success• success• Success• success• success• Success• Success• success

• success• success• SUP• SUP• support• supporting business to

achieve• sustainability• sustainability• sustainability• Sustainment• sustainment• Sustainment• Sustainment• synergy• TCO• time to skill• together• transparency• trust• try• try• turnover• understand• Us• Utilization• Utilization• utilization• Value• Value• Value

• value• Value• Value• Value• value• Value• Value• value• value• Value• value• value• value add• Value outcome based

results• Value-added• we• We• we• Were results reached?• WIIFM• Win• work together• Working together to see

impact• You

Page 50: Defining the value of change management

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Think about a project you are currently supporting.

Identify… Specific words and phrases you will START using and STOP using when describing the people side impact and value for your project.

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Make the connection for your work

Page 51: Defining the value of change management

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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

Page 52: Defining the value of change management

© Prosci. All Rights Reserved. 52

Top performers:

143%

Worst performers:

35%

Percent of expected value of initiative eventually captured by company

From McKinsey “Helping Employees Embrace Change”http://www.mckinsey.com/insights/organization/helping_employees_embrace_change

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

McKinsey study shows that “effective change management pays”

Page 53: Defining the value of change management

© Prosci. All Rights Reserved. 53

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Think about a project you are currently supporting.

Identify… The importance of meeting objectives, on time and on budget, for your project.

Make the connection for your work

Page 54: Defining the value of change management

© Prosci. All Rights Reserved. 54

Foundation

Selling

Pink’s ABCs

Value Proposition

Context

Perspectives

CMROI

SUP

Costs/Risks

Language

Probability

Five perspectives with a punchy statement for each

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.

Page 55: Defining the value of change management

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Poll: Rank order each value perspective based on how useful it will be to you as you engage others around the value of change management.

41%28%

16% 13%2%

24%

20%

26%24%

7%

15%

15% 30%29%

11%

11%

16%

19%24%

30%

9%21%

8% 10%

51%

0%

25%

50%

75%

100%

CMROI Language SUP Costs/Risks Probability

Top rank – most useful

2nd rank

3rd rank

4th rank

Bottom rank – least useful

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Foundation of Change ManagementConclusionsand Q&A

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

Page 57: Defining the value of change management

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

http://[email protected]