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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
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.
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.
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
What Happened to Kodak?
Established 1880 File for bankruptcy on 2010
2010 Established
Sold to Facebook in 2012 for 1 Billion US$
Change in advertisements
Change in the Air (Royal Jordanian Airlines)
Drive Change
(Audi)
Change we need
(Obama)
We can Change (Al-Najrani Company)
Bigger
change Faster
change
More complex
change More interconnected
change
What type of Changes …
System changes
Business Processes changes
Job role changes
Organizational structure changes
Marketing, Sales …. changes
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
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
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.
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.
Establishing a framework for successful projects
Prosci® PCT™ Model
© Prosci Inc. All rights reserved www.change-management.com.
People Side Technical Side
Successful change requires both the technical and people sides
Current Transition Future
Technical Side
People Side
Design
Deliver
Develop
Embrace
Use
Adopt
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
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.
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.
Per
form
ance
Time
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
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.
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.
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.
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.
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.
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.
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.
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.
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
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."
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
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
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.
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.
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.
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.
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%
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
Summery For Organizations to be Successful, applying Change Management to every project is Essential.
Change Management Activities are:
Communications
Sponsorship
Training
Resistance Management
Reinforcement
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
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.
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
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)