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Change Management: Essential for Organizations Success Khaled Al-Mobarak Member of the Board Change Management Sub-Group President, Mawj Training & Consulting Dubai Quality Group Change Management Sub-Group

Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

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Page 1: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Change Management: Essential for Organizations Success

Khaled Al-Mobarak Member of the Board

Change Management Sub-Group President,

Mawj Training & Consulting

Dubai Quality Group Change Management Sub-Group

Page 2: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Welcome … & Thank you for attending

Mawj Training & Consulting

Is in the business of providing only change management Training & Consulting since 2007.

Khaled Al-Mobarak

Speaker, Trainer and consultant in change management with over 33 years experience.

Page 3: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Agenda 1. Introduction

Why Change?

Why Manage Change?

What is Change Management?

2. Change Management CM Benefits (ROI)

CM Best Practice

Prosci® ADKAR® Model

CM Methodology & Tools

3. Conclusion

ADKAR and ADKAR terms are registered trademarks of Prosci, Inc. All rights reserved. Used with permission. www.change-management.com.

Page 4: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

it's all about adaptability. If you can't adapt, then you will be erased by history.

failed-blackberry-/why05/nov/2013www.theguardian.com/commentisfree/http://

"A tech giant rises – another falls," said the on the Financial Times.

Fail? Why

Page 5: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

What Happened to Kodak?

Established 1880 File for bankruptcy on 2010

2010 Established

Sold to Facebook in 2012 for 1 Billion US$

Page 6: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Change in advertisements

Change in the Air (Royal Jordanian Airlines)

Drive Change

(Audi)

Change we need

(Obama)

We can Change (Al-Najrani Company)

Page 7: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients
Page 8: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Bigger

change Faster

change

More complex

change More interconnected

change

Page 9: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

What type of Changes …

System changes

Business Processes changes

Job role changes

Organizational structure changes

Marketing, Sales …. changes

Page 10: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Quotes on CHANGE

"The rate of change is not going to slow down. competition in most industries will probably speed up even more in the next few decades." — John P. Kotter / Leading Change

"Your success in life isn't based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business." — Mark Sanborn

"Change has a bad reputation in our society. In fact, change is necessary in life to keep us moving ... to keep us growing ... to keep us interested . ... Imagine life without change. It would be static ... boring ... dull." — Dr. Dennis O'Grady

Page 11: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Change is not Easy…

70% of all change initiatives fail.

A recent study showed that when doctors tell heart patients they will die if they don't change their habits, only one in seven will be able to follow through successfully. No Desire to change: even when it's literally a matter of life or death.

Source: Harvard Business Review http://hbr.org/product/baynote/an/12599-PDF-ENG?referral=00506&cm_sp=baynote-_-customers_who_viewed-_-12599-PDF-ENG

Page 12: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Putting people into the equation

12

Project Name

Why we are

changing

What we are

changing

Who will be

changing

What does this look like for your project?

Purpose Particulars People

What is the

project

P-P-P-P: A framework for connecting projects and people

© Prosci Inc. All rights reserved www.change-management.com.

Page 13: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Putting people into the equation

13

Project Name Purpose Particulars People

P-P-P-P: A framework for connecting projects and people

What percentage of your project outcomes are linked to people changing how they do work?

If people don’t change how they do their job, then the

particulars don’t matter and the purpose won’t be realized

© Prosci Inc. All rights reserved www.change-management.com.

Page 14: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Establishing a framework for successful projects

Prosci® PCT™ Model

© Prosci Inc. All rights reserved www.change-management.com.

People Side Technical Side

Page 15: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Successful change requires both the technical and people sides

Current Transition Future

Technical Side

People Side

Design

Deliver

Develop

Embrace

Use

Adopt

Page 16: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Comparing Change Management and Project Management

Focus: Technical side of moving from current state to future state

Focus: People side of moving from current state to future state

Project Management

Change Management

Current Transition Future

Page 17: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Primary Reasons for applying Change Management

Increase probability of project success

Manage employee resistance to change

Build change competency into the organization

© Prosci Inc. All rights reserved www.change-management.com.

Page 18: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Three “people side” ROI factors

Speed of adoption

Ultimate utilization

Proficiency

• How quickly did people

make the change?

• How many of them made

the change?

• How effective were they in

their own future state?

© Prosci Inc. All rights reserved www.change-management.com.

Page 19: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Per

form

ance

Time

Page 20: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Prosci by the numbers

9

18

80%

4,500

30,000+

70,000+

Longitudinal studies

Years of research

Fortune 100 companies

Research participants

Certified practitioners

Registered members

Page 21: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

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)

Pe

rce

nt o

f re

sp

on

de

nts

th

at m

et

or

exce

ed

ed

pro

ject

ob

jective

s

Overall effectiveness of change management program

Correlation of change management effectiveness to meeting objectives

21

6x

© Prosci Inc. All rights reserved www.change-management.com.

Page 22: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

The Prosci® ADKAR® Model The five building blocks of successful change

Awareness of the need for change

Desire to participate and support the change

Knowledge on how to change

Ability to implement required skills and behaviors

Reinforcement to sustain the change ®

ADKAR and ADKAR terms are registered trademarks of Prosci, Inc. All rights reserved. Used with permission. www.change-management.com.

Page 23: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Change begins with understanding why

23

Awareness

Desire

Knowledge

Ability

Reinforcement ®

Requires answers to: • What is the nature of the change? • Why is the change needed? • What is the risk of not changing? Impacted by: • View of the current state • Credibility of the sender

Prosci research finding: #1 reason for resistance is not knowing why the change was taking place – a lack of awareness.

ADKAR and ADKAR terms are registered trademarks of Prosci, Inc. All rights reserved. Used with permission. www.change-management.com.

Page 24: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Change involves a personal decision

24

Awareness

Desire

Knowledge

Ability

Reinforcement ®

Requires: • What’s In It For Me (WIIFM)? • Context • A personal decision Impacted by: • Personal motivators • Organizational motivators • Inhibitors

“Some people change when they see the light, others when they feel the heat.”

ADKAR and ADKAR terms are registered trademarks of Prosci, Inc. All rights reserved. Used with permission. www.change-management.com.

Page 25: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Change requires knowing how

25

Awareness

Desire

Knowledge

Ability

Reinforcement ®

Requires: • Knowledge for the transition • Knowledge for the future state • Learning new tools, processes,

behaviors Impacted by: • Current knowledge base • Availability of education and training • Time to learn

Trap: Jumping straight to the “K” without the necessary “A” and “D” in place

Just send them to training!

ADKAR and ADKAR terms are registered trademarks of Prosci, Inc. All rights reserved. Used with permission. www.change-management.com.

Page 26: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Change ultimately requires action in the right direction

26

Awareness

Desire

Knowledge

Ability

Reinforcement ®

Requires: • Action in the right direction • Demonstrated capability Impacted by: • Knowledge-Ability gap • Time and resources available • Blocks and barriers

At this point in the model the change is realized. But we are not finished!

ADKAR and ADKAR terms are registered trademarks of Prosci, Inc. All rights reserved. Used with permission. www.change-management.com.

Page 27: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Change must be reinforced to be sustained

Awareness

Desire

Knowledge

Ability

Reinforcement ®

Requires: • Visible value or consequences • Recognition, Rewards, Successes Impacted by: • What is meaningful and valued • Alignment of incentives • Performance measurement

It is our natural, psychological and physiological tendency to revert =

project does not deliver the intended results

ADKAR and ADKAR terms are registered trademarks of Prosci, Inc. All rights reserved. Used with permission. www.change-management.com.

Page 28: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Current State Awareness

Desire

Reinforcement®

Ability

Knowledge

Future State Prosci® ADKAR® Model

ADKAR and ADKAR terms are registered trademarks of Prosci, Inc. All rights reserved. Used with permission. www.change-management.com.

Page 29: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

ADKAR Personal Change Exercise

1. Think of a failed personal Change

2. Rate each ADKAR element from 1 to 5

1 means the lowest

5 means the highest

Awareness

Desire

Knowledge

Ability

Reinforcement

Now Identify the beerier point that is 3 or less from top down for this failed personal Change

Page 30: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Preparing for

Change tab

Managing

Change tab

Reinforcing

Change tab

In the

toolkit

Prosci® change management process

-www.change .2013 Prosci© . Used with Permission .management.com

Preparing for Change, Management Change, Reinforcing Change are trademarks of Prosci."

Page 31: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Projects Success Ineffective change management

Ineffective project management

Pha

ses o

f a

pro

ject

Awareness Desire AbilityKnowledge Reinforcement

Post-implementation

Implementation

Concept and Design

Business need

SuccessFailure A

Failure B

Required elements of change for employees

© Prosci 2016. ADKAR and ADKAR terms are registered trademarks of Prosci. All Rights Reserved. Used with permission. www.change-management.com

Page 32: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Prosci’s value proposition

To help organizations build internal change management

competencies through the development and delivery of tools

and methodologies that are:

Holistic Research-based Easy-to-use

© Prosci 2016. All Rights Reserved. Used with permission. www.change-management.com

Page 33: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

What if we don’t manage change?

Additional costs to:

The project

The organization

Additional risks to:

The project

The organization

What if the change is not implemented?

© Prosci Inc. All rights reserved www.change-management.com.

Page 34: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Costs and risks Costs: Risks:

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

• Project delays • Missed milestones • Budget overruns • Rework required on design • 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 this 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 made 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

© Prosci Inc. All rights reserved www.change-management.com.

Page 35: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Plus, the two costly letters in change implementation: “R” & “E”

When change management is ignored or brought on to a project late, there are many “RE” costs

REdesign

REwork

REvisit

REdo

REevaluate

REtrain

REscope

REschedule

And a few more REs: REgress REpeat REsources REsistance REtreat

$$$

© Prosci Inc. All rights reserved www.change-management.com.

Page 36: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Research Finding # 1

The number one obstacle to success for major change projects

is ineffective sponsorship.

* Data from 1120 participants, 2016 Change Management Best Practices study.

Page 37: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Sponsors Do Not Understand Their Role

Copyright © 2016 Prosci Inc. Best Practices in Change Management – 2016 Edition

0% 10% 20% 30% 40%

No Understanding

Slight Understanding

Some Understanding

Adequate Understanding

Complete Understanding

2015 2013 2009 2007

58%

12% 11%

12%

11%

30%

34%

32%

32%

32%

33%

31% 36%

19% 18% 18%

15%

6%

7%

7%

5%

Page 38: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Applies to any business change

Business process design

Technology/system upgrades

Restructuring / Re-organization

Six Sigma / TQM

Expansion or downsizing

Business model changes/new ventures

New marketing campaigns

Job redesign

Changes that impact suppliers or customers

Page 39: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Summery For Organizations to be Successful, applying Change Management to every project is Essential.

Change Management Activities are:

Communications

Sponsorship

Training

Resistance Management

Reinforcement

Page 40: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Awareness

Desire

Reinforcement®

Knowledge

Ability

Communications

Sponsor roadmap

Training

Coaching

Resistance management

How can we achieve projects success, by effective Change Management?

Prosci® ADKAR® Change Model

Prosci Change Management methodology

Outcome

Organizational Change Management

Individual Change Management

Activities

Page 41: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Conclusion “If you want to achieve what you want out of this

project, then the people side of change matters and must be managed with a holistic, structured approach for change management, and I can help

you do that.”

Change management is not an optional add-on, it is an essential benefit realization and value

creation tool that is necessary because changes ultimately come to life in how people do their jobs.

© Prosci Inc. All rights reserved www.change-management.com.

Page 42: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Courses offered:

• Change Management Certification Program (3 days)

• Change Management Sponsor Program for Executives (1 day) • Change Management Coaching Program for Managers (1 day) • Change Management Employee Orientation (1 day) • Delivering Project Results workshop for Project team (1 day) • Change Management Fundamentals Program for all (1 day)

We offer Public & Private training

Page 43: Change Management: Essential for Organizations Success€¦ · Change is not Easy… 70% of all change initiatives fail. A recent study showed that when doctors tell heart patients

Thank You

On behalf of Mawj Training & Consulting the only Authorized provider of Prosci change management training

Questions?

it.com-www.mawjMore information at it.com-khaled@mawj email:

phone: +966-505-822-964 (KSA)

+971-558-795-691 (UAE)