Best Practices in managing change. Prosci

Transcription

1 Best Practices in managing change Prosci

2 2007 Copyright Prosci and Bill Cigliano

3 What we will talk about Frameworks for change management Best practice findings 426 organizations, 59 countries How well are you applying best practices on your project?

4

5 Why Change Management? To increase probability of your project s success To proactively manage your employee s resistance to change To build change management competency into your organization

6 Ultimately, it is about meeting project objectives Participants who met or exceeded OBJECTIVES 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 17% 45% 75% 88% Poor Fair Good Excellent Overall effectiveness of change management program Data from Prosci's 2007 Best Practices in Change Management benchmarking study

7 Connecting CM to business results Start with 4 columns

8 The first column heading is Project name Project Name What is the project we are thinking about? Examples: Supply Chain Optimization, Global ERP, ACME 2015, ebenefits 2.5

9 Next, add the heading Purpose Project Name Purpose What are the goals or outcomes the project is trying to achieve? Examples: Reduce cost, increase revenue, improve margin, introduce new product, reallocate inventory, streamline business processes, merge parts of the organization, implement unified data source for entire organization, implement common business practices

10 Third, add the heading Particulars Project Name Purpose Particulars What is actually being changed? Specific changes that will be made to business processes, systems, tools, job roles, organization structures what is actually being changed?

11 Finally, add the heading People Project Name Purpose Particulars People Who has to do their jobs differently? With the new processes, systems, tools, job roles, organization structures whose day-today work will be impacted?

12 We now have a context for the project why, what and who is changing Project Name Purpose Particulars People Why we are changing What we are changing Who will be changing

13 Positioning change management

14 Change management is: Change management is the process, tools and techniques to manage the people-side of change to achieve the required business outcome. Project Name Purpose Particulars People

15 Research results from Best Practices in Change Management benchmarking report

16 Prosci by the numbers % 1,600 2, ,000+ Longitudinal studies Years of research Fortune 500 companies Research participants Certified practitioners Registered members

17 Research Foundation First Change Management Study 102 orgs Second Change Management Study 152 orgs Third Change Management Study 288 orgs 2005 Fourth Change Management Study 411 orgs 2007 Fifth Change Management Study 426 orgs

18 2007 data geographic distribution U.S. 42% Africa 9% Asia and Pacific Islands 13% Australia 7% Europe 16% Central and South America 5% Canada 8%

19 Participating organizations United Nations U.S. 42% Motorola Europe 16% Kraft University of California Africa 9% Standard Bank of South Africa HP Central and South America 5% Symantec Intel Asia and Pacific Islands 13% US Department of Defense Aflac Canada 8% NASA Australia 7%

20 Type of change Process/system/ Org and Job role Process change System change Org change Job role change Staffing reduction Other 0% 10% 20% 30% 40% 50% Percent of respondents

21 Scope of change 60% 50% Percent of respondents 40% 30% 20% 10% 0% Within a workgroup Single department Multiple departments Single division Multiple divisions Entire enterprise

22 Impacted employees 30% 25% Percent of respondents 20% 15% 10% 5% 0% Less than to to to to to 5000 More than 5000

23 Project investment 30% 25% Percent of respondents 20% 15% 10% 5% 0% $100K or less $100K to $500K $500K to $1M $1M to $5M $5M to $10M More than $10M

24 Report overview Findings: Key success factors What works What doesn't Mistakes to avoid Topics Communication Sponsorship Resistance Reinforcement Team activities Managers and supervisors Change saturation... Learn more about the complete report at:

25 Greatest contributors to success From the 2007 benchmarking report: 1. Active and visible executive sponsorship 2. Structured change management approach 3. Frequent and open communications 4. Dedicated resources for CM 5. Employee participation

26 1) Sponsorship 1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation In the 2007 study, sponsorship was #1 on the list of contributors by a 4:1 margin In 2005, sponsorship was #1 In 2003, sponsorship was #1 In 2000, sponsorship was #1 In 1998, sponsorship was #1

27 What is the role of the sponsor? Participate actively and visibly throughout the project Build a coalition of sponsorship and manage resistance Communicate directly with employees It It is not just signing checks and charters!

28 Do sponsors understand their role? 5 - Complete understanding of roles and responsibilities 4 - Adequate understanding 3 - Some understanding 56% 2 - Slight understanding 1 - No understanding of what sponsorship means 0% 5% 10% 15% 20% 25% 30% 35% 40% Percent of respondents

29 Sponsorship audit Active and visible executive sponsorship The project has an executive sponsor identified who is at the right level. Score The executive sponsor has a solid understanding of his or her role. The executive sponsor is ready, willing and able to participate actively and visibly throughout the entire project. The executive sponsor is ready, willing and able to build a coalition with key business leaders and managers. The executive sponsor is ready, willing and able to communicate directly with employees. Total: 1 = Strongly disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly agree

30 2) Approach 1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation Did you use a structured approach to change management? Percent of respondents 70% 60% 50% 40% 30% 20% % 0% Yes No Don't know

31 Selection criteria for methodology 1. Easy to use Easy to implement Easy to understand Easy to communicate to others Simple Practical Structured and systematic Logical Comprehensive and holistic 2. Previous experience with a methodology 3. Proven to be effective 4. Matched the need 5. Flexibility and customization

32 When to start change management activities? Project initiation Project planning Project design Project implementation Project closure When did you start CM activities this time? When would you start CM activities next time? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Percent of respondents

33 Approach audit Structured change management approach A holistic, structured change management approach has been selected and applied. A detailed change management strategy is being developed. Score A complete set of change management plans are being created. Change management activities are being integrated into the overall project plan. Change management activities are scheduled to begin at the initiation of the project. Total: 1 = Strongly disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly agree

34 3) Communications 1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation Most effective ??? Face-to-face Most important messages Impact to the individual Why the change is happening What is changing

35 Communication: Preferred senders of change messages CEO/President Executive manager Senior manager Department head The employee's supervisor Project team member Project team leader CM team member CM team leader Other Personal messages Business messages 0% 10% 20% 30% 40% 50% 60% Percent of respondents

36 What to do differently next time regarding communications? 1. Communicate more often 2. Engage managers and supervisors 3. Make the communication plan a formal project deliverable 4. Start communicating earlier 5. Use more methods and channels

37 Communication audit Frequent and open communications A communications plan is being created that identifies and segments impacted groups. The communication plan utilizes preferred senders of change messages. Score The need for change and the risks of not changing are central in the communications plan. Communications sharing how the change benefits the organization and end-users are being prepared. Total: 1 = Strongly disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly agree

38 4) Resources 1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation On average, participants cited that approximately 25% of total project FTE were dedicated to change management activities Over 50% still reported having too few change management resources

39 Average budget for change management $1,400,000 Average budget for change management $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- $100K or less $100K to $500K $500K to $1M $1M to $5M $5M to $10M More than $10M Investment being made in the project

40 Change management FTE relative to project investment Average FTE dedicated to change management $100K or less $100K to $500K $500K to $1M $1M to $5M $5M to $10M More than $10M Investment being made in the project

41 Resources audit Dedicated resources for change management The project has an identified and dedicated resource focusing on change management. Change management resources are available throughout the entire project - from planning through implementation. Change management resources are adequately trained. Score Total: 1 = Strongly disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly agree

42 5) Participation 1) Sponsorship 2) Approach 3) Communications 4) Resources 5) Participation Focus groups Input to the design of the change Proactive interactions Feedback Changes only succeed when employees ultimately change how they do their jobs.

43 Participation audit Employee participation Employees have been given input into the design of the solution. Score Systems are in place to proactively gather feedback. Metrics and measurements are created to evaluate employee adoption of the change. Total: 1 = Strongly disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly agree

44 Score calculation 1) Sponsorship score (out of 25) 2) Approach score (out of 25) 3) Communications score (out of 20) 4) Resources score (out of 15) 5) Participation score (out of 15) Total score: (out of 100)

45 Score interpretation Score Under 59 Interpretation You are doing a good job of applying change management best practices on your project. According to data on change management effectiveness, projects with scores of are more likely to meet their objectives and finish on schedule. There is work to be done. While you are doing okay on some of the factors, the change management program overall is not performing at a level that would ensure project success. Immediate and significant work is required to get the project on track. Research shows that projects with ineffective change management face more resistance, experience more barriers and surprise obstacles and are less likely to meet their objectives.

46 How well are you applying change management best practices? Participants who met or exceeded OBJECTIVES 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 17% 45% 75% 88% Poor Fair Good Excellent Overall effectiveness of change management program Data from Prosci's 2007 Best Practices in Change Management benchmarking study

47 Prosci Research 1367 South Garfield Ave Loveland, Colorado, USA