Five Tenets of Change Management

C H A N G E M A N A G E M E N T

FiveTenetsofChangeManagementProsci Webinar

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Agenda

• UnderstandtheWhat,WhyandHowofchangemanagement

• Explorethe5TenetsofCM

• Applythe5TenetsofCMtooneofyouriniFaFves

Blanksheetofpaper


Introduc4on of the 5 Tenets of CM

ChangeManagement:ThePeopleSideofChangebyHiaKandCreasey

1stediFon:Sept20032ndediFon:Dec2012

RewriteofChapter1:“Whychangemanagement?”

AdvancementandsimplificaFonofthecaseforchangemanagement


Priority is a function

of context.

Stephen R. Covey


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Wechangeforareason.

OrganizaFonalchangerequiresindividualchange.

OrganizaFonaloutcomesarethecollecFveresultofindividualchange.

Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.

Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.

Prosci Five Tenets of CM


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Wechangeforareason.







Current Transition Future

Amovementoutof Through ToulFmately

reach

*ArnoldVanGennep“TheRitesofPassage” + Manyothercontributors

tothediscipline

What is change?


“Current”

“TransiFon”

“Future”

Ending NeutralZone NewBeginningBridges

Present TransiFon FutureBeckhard/Harris

Red:LossandDoubt Yellow:Discomfort&Discovery

Green:UnderstandingandIntegraFon

Salerno/Brock

Current Delta DesiredLaMarsh

Upstream Midstream DownstreamAckerman/Anderson

Unfreeze Moving Re-FreezeLewin

Present TransiFon DesiredConner

3 States of Change Comparisons

VanGennep SeparaFon Liminality IncorporaFon


Today’s States of Change: Many simultaneous – but s4ll Current-Transi4on-Future

C T F

C T F T F T F T F

C T F

T F

C T F C T F

C T F C T

C T F T F T FCC T F

C T F C T F

T F C T

C T F

T F T FC

C T FC T F T F T F T F T F

C T F C

C T

C T

F


Results, Outcomes and Benefits come from future state > current state

Current Future > Costsarelowerthantheywere

RevenuesarehigherthantheywereErrorsarefewerthantheywere

Efficienciesarelargerthantheywere


Internal External

Triggers

Goals

Strategicplans

Internalperformance

CompeFFvethreats

Customerdemands

Marketandeconomicshijs

Newtechnologies

RegulaFon/legislaFonDemandstodomorewithless

Costslowered

Revenuesincreased

Marketsharegained

Errorsreduced

Efficienciesgained

CustomersmoresaFsfied

Riskexposuredecreased

ConFnuousimprovement

The reasons for change Internal/External + Triggers/Goals

RelaFonshipsextended


Listthe“reasons”foryourchange:WhataretheobjecFves,benefitsandexpectedresultsandoutcomesfortheprojectoriniFaFve?

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Reasons



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Wechangeforareason.







Future

ImplemenFnganERP

InstallingElectronicMedicalRecords

DocumenFngandopFmizingbusinessprocesses

MovetoanewphysicallocaFon

We tend to focus on change at the organiza4onal level.


OrganizaFonsDon’tChange;IndividualsDo


Ihadusedtheoldlegacysystem… NowI’musingthenewintegratedsystem

IhaddonewhatIneededto… NowI’mfollowingthenewprocesses

Ihadreportedto… NowI’mreporFngto

F F F C C C

But each organiza4onal change impacts how specific employees do their jobs

F F

F F F F F

C C

C C C C C


Transition

T

Current Future

C 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 F

T

T

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F

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F

The true unit of change is the individual


And your ini4a4ve will impact certain aspects of how people do their jobs

Processes

Tools

SystemsCompensaFon

PerformanceReviews

ReporFngStructure

CriFcalBehaviors

JobRoles

LocaFon

Mindset/Aqtudes/Beliefs

AspectsofaPerson’sJobYou

CanImpact


Yesterday JobAspect Tomorrow Sizeofimpact

Processes

Systems

Tool

Job Roles

Critical Behaviors

Mindset/Attitudes/Beliefs

Reporting Structure

Performance Reviews

Compensation

Location

Defining impact across the 10 aspects


IdenPfythegroupsimpactedbythechange:Whichindividuals(groups)havetodotheirjobsdifferentlywhenthischangeisimplemented?

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Impacted groups

Reasons

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Wechangeforareason.







The achievements of an organization

are the results of the combined effort of

each individual.

Vince Lombardi


Current Transition Future

T C 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

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F

Ultimately requires individuals to move from their own current to their own future

An organizational move to a future state


“People side of change” is about closing the gap

Requirements ResultsOutputs Outcomes

Specifications Sustainment

Installation RealizaPon

Solutions Benefits

*

*DarylConner


Howwellareindividualsperformingcomparedtothelevelexpectedinthedesignof

thechange?

Howmanyemployees(ofthetotalpopulaFon)are

demonstraFng“buy-in”andareusingthenewsoluFon?

Howquicklyarepeopleupandrunningonthenewsystems,processesandjobroles?

SpeedofAdopPon UlPmateUPlizaPon Proficiency

3 People Side Factors Determine/Constrain Results


AdopFoncontribuFon

InstallaFoncontribuFon

AdopFoncontribuFon


AdopFoncontribuFon


How much of our expected results and outcomes depends on adop4on and usage?

Future AdopFon

contribuFon


20%

50%

80%

AdopFonContribuFon=PeopleDependencyofROI

None AllHighLow Medium

PorFonofbenefitthatdependson

individualtransiFons(CMROI)


“TheresultsandoutcomesofworkplacechangesareintrinsicallyandinextricablyFedtoindividualemployeesdoingtheirjobsdifferently.”

ChangeManagement:ThePeopleSideofChange(page1)


Future

F F F

F F F F

F F F

F F F

F F F F

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F Future

Connec4ng reasons to impacted groups

Reason#1

Reason#2

Reason#3

Reason#4

ImpactedgroupA

ImpactedgroupB

ImpactedgroupC

ImpactedgroupD

ImpactedgroupE


DrawtheconnecPons:Whichgroupsmustadoptandusethechangeinorderforeach“reason”orobjecFvetobeachieved? 3

Impacted groups

Reasons

Connections

Bonus:EsFmatethepercentageofexpectedresultsandoutcomesthatdependonpeoplechanginghowtheydotheirjobs?

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Wechangeforareason.







M T W R F

AnemailonMondayfortrainingonTuesdayforlaunchonWednesday

isNOTthewaytoprepareandequipindividualstosuccessfullychange


Changemanagement:

Preparing,equippingandsupporting individualsthroughthechangejourneys

theyexperienceaspartofyourorganizaFon


Prosci® ADKAR® Model Individual Change Outcomes

A Awareness “Iunderstandwhy…”

R Reinforcement “IwillconFnueto…”

A Ability “Iamableto…”

K Knowledge “Iknowhowto…”

D Desire “Ihavedecidedto…”

Whenyoucreate: Youhear:


Prosci® 3 - Phase Change Management Process

Developacustomizedandscaledapproach

CreatedeliverablesandplanstosupportADKAR

EnsurethatthechangesPcks

•  Readinessassessments•  RiskevaluaFon•  ImpactIndex

•  SpecialtacFcs•  Sponsorassessmentdiagram•  TeampreparaFon

•  CommunicaFonplan•  Sponsorroadmap•  Coachingplan

•  Trainingplan•  Resistancemanagementplan

•  FeedbackcollecFon•  Complianceaudits•  GapidenFficaFon

•  CorrecFveacFons•  SuccesscelebraFons•  Measurement

AholisFc,research-based,tool-richstructuredapproach


Execs & Senior Leaders

Front-Line

Middle Managers & Supervisors

Change resource/

team

Project Team

Project SMEs and

support

C 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 T T

T

T

F F F F

F F F F

F F F

F F F

F F F F

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ABC

CLARC

Adopt

&Use

Structure

Enable Integra

te

Focus

ExperFse

Experience

OrganizaFonStructure ChangeStructure

Roles in Change Management


Top Contributors to Success

GOAL:

DriveadopFonandusageto

deliverexpectedresultsandoutcomes

Sponsorship

CommunicaFon

ManagerEngagement

EmployeeEngagement

Approach

Resources

IntegraFonwithPM


Notesonyourchangemanagementapproach:

•  Areweusingastructuredapproach?

•  Isitscaledandcustomized?

•  Dowehaveabudget?• Whoisdoingthechangemanagement?

•  ArewealigningwithbestpracFces? 4

Impacted groups

Reasons

Change management

approach

Connections 3

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Wechangeforareason.







48%

62% 70%

81%

0%

100%

Poor Fair Good Excellent

14%

32%

52%

71%

0%

100%


15% 42%

76%

94%

0%

100%

Poor Fair Good Excellent 0%

100%


We apply change management to… Improve likelihood of change outcomes

•  Improveprojectresultsandoutcomes

•  DrivebenefitrealizaFonandfinancialreturn

•  Minimizerisks

•  Reduce“re”costs

MetorexceededobjecPvesOnscheduleOnbudget

ChangeManagementEffecFveness


=LowerROI

=NotWhatWeExpected/HopedFor

=LessBenefitRealizaFon

=UnachievedImprovement

We apply change management to… Avoid a “Swiss cheese” future state

F F

F F F

F

F

F

F

F

F

F


We apply change management to… Minimize nega4ve consequences


We apply change management to… Mi4gate and reduce costs and risks

Costs Risks

Individuals

Project

OrganizaFon

TheREcosts:REwork REdesignREdo REcopeREtrain REtreat


We apply change management to… Drive people-side outcome variables

Howwellareindividualsperformingcomparedtothelevelexpectedinthedesignof

thechange?

Howmanyemployees(ofthetotalpopulaFon)are

demonstraFng“buy-in”andareusingthenewsoluFon?

Howquicklyarepeopleupandrunningonthenewsystems,processesandjobroles?

SpeedofAdopPon UlPmateUPlizaPon Proficiency


We apply change management to… Capture people-dependent ROI

GartnerBPMSummitDec12,2014

ProsciWebinarFeb11,2015


We apply change management to… Deliver results and outcomes


Changemanagement:CHānj ‘manijmǝnt

Mobilizingpeopletorealizeresults


Tenet 5 Summary

Improvelikelihoodofchangeoutcomes

MeetorexceedobjecFves,onFmeandonbudget

Avoida“Swisscheese”futurestate

MinimizenegaFveconsequences

MiFgateandreducecostsandrisks

Drivepeople-sideoutcomevariables

Capturepeople-dependentROI

Deliverresultsandoutcomes

Weapplychangemanagementto…


WhatdowehopetorealizewithCM:IdenFfythevalueyoucancreatewhenyoudoagreatjobofpreparing,equippingandsupporFngpeoplethroughthechangestheyexperience(likelihoodofsuccess,costsandrisksmiFgaFon,etc.)

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Impacted groups

Reasons

Connections

Realization and impact

Change management

approach

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Wechangeforareason.





You Can Apply the Five Tenets


1.   Wechangeforareason.Q:Whatarethereasonsforyourchange?WhataretheorganizaFonalbenefitsandprojectobjecFves?

2.   OrganizaPonalchangerequiresindividualchange.Q:Whohastodotheirjobsdifferently(andhow)asaresultofyourprojectoriniFaFve?

3.   OrganizaPonaloutcomesarethecollecPveresultofindividualchange.Q:HowdotheindividualtransiFonsconnectdirectlytotheoutcomesyouexpectfromyourchange?

4.   Changemanagementisanenablingframeworkformanagingthepeoplesideofchange.Q:Whatstructuredapproachareyoutakingtoprepare,equipandsupportemployeesthroughthechange?

5.   Weapplychangemanagementtorealizethebenefitsanddesiredoutcomesofchange.Q:Howimportantarethebenefitsanddesiredoutcomesofthechange?Howmuchareyouwillingtodo(andinvest)tomakesuretheyarerealizedbymobilizingemployeeadopFonandusage?

Interview ques4ons for your project managers and team members:

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Impacted groups

Reasons

Connections

Realization and impact

Change management

approach

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Impactedgroups

R easons

Connections

R ealiz ationandimpact

Changemanagementapproach

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Wechangeforareason.







Prosci Solution

DeliveringorganizaFonalresultsbycatalyzingindividualtransiFons

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Five Tenets of Change Management