MNASQ Program Meeting October 9, 2012

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1 Best Practices in Change Management MNASQ Program Meeting October 9, 2012

2 WHY CHANGE MANAGEMENT? 2

3 Why Change Management? Increases probability of project success Manages employee resistance to change Builds change competency in the organization Increasingly important as we deal with increasing rate of change

4 Why Change Management? Connect to business results Mitigate negative consequences Translate change management to financial performance 4

5 Correlation of change management effectiveness to meeting project objectives 100% 90% 95% Percent of respondents that met or exceeded project objectives 80% 70% 60% 50% 40% 30% 20% 10% 17% 49% 80% 0% Poor (n=177) Fair (n=441) Good (n=561) Overall effectiveness of change management program Excellent (n=107) *Data from 2007, 2009 and 2011 Prosci. From Prosci s 2012 Best Practices in Change Management benchmarking report 5

6 Correlation of change management effectiveness to staying on schedule 100% 90% Percent of respondents that were on or ahead of schedule 80% 70% 60% 50% 40% 30% 20% 10% 0% 16% Poor (n=215) 34% Fair (n=532) 57% Good (n=679) Overall effectiveness of change management program *Data from 2007, 2009 and % Excellent (n=116) Prosci. From Prosci s 2012 Best Practices in Change Management benchmarking report 6

7 Correlation of change management effectiveness to staying on budget 100% 90% Percent of respondents that were on or under budget 80% 70% 60% 50% 40% 30% 20% 48% 63% 71% 82% 10% 0% Poor (n=188) Fair (n=498) Good (n=661) Overall effectiveness of change management program *Data from 2007, 2009 and 2011 Excellent (n=116) Prosci. From Prosci s 2012 Best Practices in Change Management benchmarking report 7

8 1 st communication or 1 st rumor Prosci Flight Risk Model Dept. A Increasing resistance Decreasing productivity Dept. C Dept. B Dept. D Productivity loss Employee dissatisfaction Passive resistance Turnover of valued employees Tangible customer impact Active resistance Opt-out of the change Time Copyright Prosci All rights reserved. 8

9 Change is a process Current State Transition Future State Not an event. 9

10 Five Tenets of Change Management #1 We change for a reason. #2 Organizational change requires individual change. #3 Organizational outcomes are the collective result of individual change. #4 Change management is an enabling framework for managing the people side of change. #5 The application of change management helps to realize the benefits and desired outcomes of change. 10

11 11

12 ADKAR Model Represents the 5 elements of change that must be achieved for change to be a success. Developed by PROSCI after studying change patterns of more than 700 organizations. An effective tool for managing change at an individual level and guides activities at the organizational level. 12

13 Awareness Change begins with understanding why. What is the nature of the change? Why is the change needed? What is the risk of not changing? Resistance to change is the norm. Lack of awareness is the most common reason for resistance. 13

14 Desire Change involves personal decisions What s in it for me (WIIFM) A personal choice A decision to engage & participate Awareness = Desire Often considered most difficult step to achieve 14

15 Knowledge Change requires knowing how Understanding how to change Training on processes & tools Learning new skills 15

16 Ability Change requires action in the right direction The demonstrated capability to implement the change Achievement of the desired change in performance or behavior Knowledge = Ability 16

17 Reinforcement Change must be reinforced to be sustained Actions that increase the likelihood that a change will be continued Recognition & rewards that sustain the change 17

18 SUCCESS FACTORS? 18

19 Success Factors 19

20 Success Factors -Sponsorship Active, visible, engaged sponsorship Talk about it formally & informally Communicate directly with employees at all levels Demonstrate commitment in words & actions Build a coalition of sponsorship Employees evaluate importance of change based on what they see & hear from senior leaders Involvement, Commitment, Action Sponsor is a verb not a title 20

21 Success Factors -Sponsorship What are some of the things you can do to create active & engaged sponsors? 21

22 Success Factors -Sponsorship What are some of the things you can do to create active & engaged sponsors? Project teams ranked over 50% of their sponsors as having a moderate to low understanding of their role in managing the people side of change and graded them average to poor in terms of sponsorship activities. 22

23 Success Factors -Sponsorship Assess sponsor competencies Is the sponsor at the right level? Does sponsor support the change? What is sponsors track record? What is sponsors communication style? Prepare the sponsor Training Assistance Clear responsibilities Examples of good sponsorship activities Examples of common mistakes 23

24 Success Factors -Sponsorship Plans Sponsor Roadmap Communication Plan Coaching Plan Regular meetings with sponsor Hold sponsor accountable 24

25 The critical role of coaching your sponsor 100% Correlation of change management effectiveness to meeting project objectives 90% 95% Percent of respondents that met or exceeded project objectives 80% 70% 60% 50% 40% 30% 20% 10% 17% 49% 80% 0% Poor (n=177) Fair (n=441) Good (n=561) Overall effectiveness of change management program Excellent (n=107) *Data from 2007, 2009 and 2011 Prosci. From Prosci s 2012 Best Practices in Change Management benchmarking report 25

26 Success Factors Communication Employees often do not hear or internalize key messages from managers, despite efforts to create the most complete & clear communications. Often must hear a message 5 to 7 times before they internalize the message. Preferred senders of change messages Sponsor Immediate Supervisor/Manager 26

27 Success Factors Communication Send the right message To the right audience At the right time From the right sender Through the right channel Think you ve communicated enough? Communicate MORE! More communication was the #1 do differently next time suggestion. 27

28 Success Factors - Approach Not everyone changes at the same pace A structured approach ensures objectives realized 28

29 29

30 Contact Info Resources 30

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