1000 500 0 Prosci Webinar: New areas of research Prosci Best Practices in Change Management, 2016 Edition New areas of research 1 Prosci Research Foundation 9 studies 17 years 4500 participants What works? What doesn t? What to do differently? 102 Participants 1120 1998 2015 2 Copyright 2016 Prosci. All rights reserved. 1
Building the body of knowledge on change management Evolution of Prosci Research Key New topic area Major focus Minor focus Global awareness Complementary roles Change Agent Networks Vertical industry customization Justifying CM Job roles and locations Advice for new practitioners Complex change Aligning CM with other disciplines Measurement and metrics Integrating CM and PM Readiness Trends in CM Reinforcement and sustainment Saturation and portfolio management Organizational change capability Team member attributes Resources and budgets Resistance management Manager Role Greatest contributors Biggest obstacles Methodology Sponsorship Communications Training 1998 2000 2003 2005 2007 2009 2011 2013 2015 3 THE LARGEST BODY OF RESEARCH IN THE FIELD OF CHANGE MANAGEMENT Prosci s comprehensive research allows you to align your change management efforts with industry best practices, optimizing your approach to achieve results. Leverage lessons learned from thousands of change and project leaders. TRY A TWO-WEEK FREE TRIAL OF ebest PRACTICES Access best practices and benchmark data from anywhere through the Prosci ebest Practices. Continually updated, this app contains all of Prosci s most current and relevant research. Browse all topics to sharpen your change management skills or use the Prosci ebest Practices to find answers to your current questions. 4 Copyright 2016 Prosci. All rights reserved. 2
What to expect in Prosci s new 2016 benchmarking report: New Structure Organization Intro pages New Topics Industry Change Agent Networks much more 5 Organization: Part Two: Change Management Application Chapter 4: Motivation and Justification Motivation Part Chapter Section Drivers that caused change management to be applied on the project Finding 6 Copyright 2016 Prosci. All rights reserved. 3
Report Parts: PART ONE: Current State of Change Management PART TWO: Change Management Application PART THREE: Roles in Change Management PART FOUR: Adapting and Aligning Change Management 7 New research areas in Prosci s 2016 report 8 Copyright 2016 Prosci. All rights reserved. 4
New research areas in 2016 report 1. Impact of culture on change management 2. Importance of cultural awareness and global literacy in change 3. Development and leveraging of change agent networks 4. Engagement of complementary roles in change management work 5. Customization of change management for vertical industry segments 6. Certification in change management 9 Instead of the overly cavalier, How do I change my culture in the next 3 months? How can I create more successful, positive change by understanding and adapting within the cultures I work? 10 Copyright 2016 Prosci. All rights reserved. 5
What aspects of organization s culture have the biggest impact on how changes happen? Pulling from other thought leaders works on cultural dimensions: GLOBE Hofstede Trompenaar Six cultural dimensions studied: Individualism vs Collectivism Power Distance Uncertainty Avoidance Assertiveness Performance Orientation Emotional Expressiveness The degree to which people act in ways that benefit themselves or the group The degree to which power is distributed equally or unequally throughout a culture How much a culture seeks to avoid and mitigate uncertainty The degree to which a person is expected and allowed to advocate for themselves The degree to which high performance, standards and striving for excellence are rewarded How much or how little people are expected to display their emotional state in a professional environment 11 For the culture section of the study, participants provided three data points for each of the six cultural dimensions: Example For Power Distance, where are you on the spectrum? Because of your place on the spectrum, what were the: you face: Your specific challenges you make: Your unique adaptations 12 Copyright 2016 Prosci. All rights reserved. 6
Cross-study cultural dimension data Individualism vs. Collectivism Assertiveness 100 100 50 50 0 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 Individualism Balanced Collectivism 0 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 Power Distance Performance Orientation 100 100 50 50 0 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 0 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 Uncertainty Avoidance Emotional Expressiveness 100 100 50 50 0 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 0 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 13 Outputs: and unique adaptations For all six of the cultural dimensions Cultural dimension 1: Individualism vs. Collectivism Individualistic: Balanced: Cultural dimension 2: Power Distance Collectivistic: Cultural dimension 3: Uncertainty Avoidance Cultural dimension 4: Assertiveness Cultural dimension 5: Performance Orientation Cultural dimension 6: Emotional Expressiveness 14 Copyright 2016 Prosci. All rights reserved. 7
Power Distance 1. Impaired communication: Due to extensive access, information often skipped levels of the organization which resulted in repeating information several times. Informal communications led to rumors and decreased the credibility of information surrounding change. 2. Increased resistance: Low power distance structures resulted in a large amount of resistance because individuals from all levels of the organization constantly challenged ideas. Employees often did not adhere to changes, and messages were not uniform across the organization. Conflicts arose between levels of management, and productivity suffered consequently. 3. Decreased productivity: Productivity decreased due to more time being spent on gaining buy-in, lack of governance and slower decision processes. 1. Increase engagement: Employee engagement was achieved with an increase in functions and meetings that were used to ensure alignment of the organization across all levels. The quantity of meetings ensured that employees had multiple opportunities to encounter and engage with the change project. 2. Structure communication channels: Communication channels needed to be identified up front to provide a consistent approach for tailoring messages and to open structured feedback from individuals. Communication plans required consistency and frequency, so content could be adjusted to incorporate the topics identified from feedback. 3. Enhance change management plans: Participants in low power distance organizations added structure to change management by placing stakeholders in key positions, including establishing guidelines to ensure all levels were being communicated with and clearly defining roles and responsibilities. 15 1. Decreased ability to drive change: Leadership had a decreased capability to direct change, had to put more effort into gaining buy-in for change and had to engage managers more thoroughly. 2. Increased resistance: Resistance occurred because senior leaders did not account for employees input and concerns when dealing with issues centered on change. Employees were then more likely to resist any aspect of change. Senior leaders appeared to think they had more sway over employees than they did. 3. Poor structure: Participants with moderate power distance organizations reported a need to tailor change plans more specifically to groups as opposed to using a uniform approach. Creating individual plans required more time on the change manager s part and lowered the effectiveness of mass communication regarding change. Power Distance 1. Balance communication: Participants expressed the need to establish balanced communication during change management. Open and honest feedback was balanced with a clear boundary and understanding of who has the final say. 2. Gain buy-in: Participants reported putting more effort toward gaining employee buy-in. Awareness of the need for and importance of change management was created by using more meetings and team activities. Other activities to gain buy-in included visible sponsorship engagement, involvement of key stakeholders, creation of plans for various groups and demonstration of the value of change management. 3. Empower sponsors: Sponsors in moderate power distance organizations were encouraged to take charge of change as an adaption to the position on the power distance spectrum. Empowered sponsors bridged the gap between leaders direction and employees concerns and feedback. 16 Copyright 2016 Prosci. All rights reserved. 8
Power Distance 1. Restricted communication: Participants identified too few and poor levels of communication occurring in high power distance organizations. A large gap was described between senior leaders and frontline employees which resulted in a loss of productivity and increased time for implementation. Fear among employees and executives appearing unapproachable were primary limitations to communication from lower levels to executives. 2. Isolated decision making: Isolated decision making was challenging. Executives made decisions without considering the impact to employees. Consequently, the alignment of the organization suffered because different levels and groups had different directions. 3. Lack of employee engagement: Lack of commitment and trust were other challenges for organizations with high power structures. Passive resistance resulted from these issues because employees felt powerless, unheard and not cared about. Resources had to be reallocated to account for these avoidable problems. 1. Communicate openly and directly: Participants reported using executive and senior leaders more often during communications. Higher-level leadership lent authority to communication, and resistant employees were more likely to adopt change when instructed. 2. Engage leadership: Leadership visibility and engagement ensured that impacted groups understood that company leadership was supportive of and behind change from the beginning. Early leadership involvement encouraged and promoted early adopters. 17 Adapt your approach to accommodate your culture: Increase effectiveness and avoid common pitfalls Cultural dimension 1: Individualism vs. Collectivism Individualistic: Balanced: Cultural dimension 2: Power Distance Collectivistic: Cultural dimension 3: Uncertainty Avoidance Change practitioners who better understand the cultures in which they operate can customize and adapt their approach to drive more successful change. The six cultural dimensions in Prosci s 2016 report give practitioners direction in how to adjust their approach. Cultural dimension 4: Assertiveness Cultural dimension 5: Performance Orientation Cultural dimension 6: Emotional Expressiveness 18 Copyright 2016 Prosci. All rights reserved. 9
Global Literacy Impact of cultural awareness on employing change management 1% Not 5% 4% Slightly 34% 56% Very Important Neutral Opportunities for customization Cultural-specific adaptations Avoid cultural-specific obstacles Communication needs to be thought through 19 Global Literacy Regional Considerations US: 35% Canada: 15% Latin America: Europe: 15% Middle East: 1% Africa: 4% Asia and Pacific Islands: 4% 2% Australia and NZ: 24% 20 Copyright 2016 Prosci. All rights reserved. 10
Global Literacy Regional Considerations Specific analysis by region: Perception of change management across regional cultures Parts of change management that did not fit with various cultures Regional-specific causes for resistance 21 Change Agent Network? 39% leveraged formal change agent networks to support change implementation Definition of the change agent network Reasons to use a change agent network Building a change agent network Criteria for selecting members Change agent network roles Expectations of the change agent network 22 Copyright 2016 Prosci. All rights reserved. 11
Change Agent Network Change agent network roles 1. Communication role The role most commonly identified by respondents was communication liaison. Members of the change agent network were used to disseminate communications to their respective departments, sites or regions to share information about the change project with a greater audience and provide various forms of feedback to the change project team, such as employee concerns. 2. Leadership role Respondents frequently identified various leadership roles for the change agent network. Examples included acting as the change leader for their department or region 3. Training and support roles 4. Managing change internally Reasons to use a change agent network 1. Extend project support The primary response was to provide additional support to the project, often from peers, which expedited change with fewer obstacles and greater focus. 2. Use resources efficiently By using change agent networks, participants readily allocated resources to necessary points of need. A large portion of participants indicated that they 3. Enhance communication 4. Align consistent objectives 5. Increase knowledge 6. Build credibility 7. Boost ownership 23 Complementary Roles Internal Communications 63% HR Business Partners Internal Consultants Business Analysts Organization Development 40% 40% 38% 33% How each role engages with change management? 24 Copyright 2016 Prosci. All rights reserved. 12
Vertical Industry 24 verticals Four types of expected change: Market changes Technological changes Operational changes Organizational changes 25 Banking Vertical Industry Market Operational Technological Regulations and government oversight New market emergence Changes in demand related to customer expectations Traditional markets closing Increased competition Changes to customer/user relationships Shifting priorities and business strategies Consolidation of operations and focus on profitability Digital banking Automation Increased need for cyber security 26 Copyright 2016 Prosci. All rights reserved. 13
Vertical Industry Education Services Market Operational Budgetary Increase in competition Consolidation Increase in government regulations Change to demand Increase demand for elearning and virtual products Changes to curricula Changes to student relations Increased diversity Shifting student demographics Increased collaboration with commercial sponsors Budget changes Changes to federal/state funding 27 Vertical Industry Government State Technological Organizational Operational Digitalization Updates to computer systems Virtual tools Cloud elearning modules Reducing employee headcount Increase in privatization Increase in outsourcing New or restructured business model Changes to priorities Changes to user/citizen relationships Leadership development Increased need for employee engagement 28 Copyright 2016 Prosci. All rights reserved. 14
Vertical Industry Health Care Paradigm Technological Budgetary Individual or selfmanaged health care model Increased regulations and legislation Consolidation through M&A Standardization of patient care Electronic records New drugs Patient care technology Automation Budget cuts Loss of funding Move toward profitfocused business models 29 Vertical Industry Challenges and adaptations for CM by industry grouping Group 1 Health Care Educational Services Group 2 Group 3 Group 4 Government Federal Government State Banking Finance Information Services Telecommunications Government Local/Municipal Consulting Insurance Professional, Scientific, Technical Services Group 5 Oil and Gas Manufacturing Utilities Retail Trade Consumer Goods and Manufacturing 30 Copyright 2016 Prosci. All rights reserved. 15
Vertical Industry Challenges and adaptations for CM by industry grouping Group 1 Health Care Educational Services Industry-specific CM challenges 1. Autonomous nature of employees 2. Lack of designated resources In both health care and education services industries, the unique responsibilities of employees demanded a high degree of autonomy and independent thinking. Physicians, nurses, academics and educators were identified as employees for whom it is difficult to accept change at face value without convincing and clear evidence. Industry-specific CM adaptations 1. Alignment with employee characteristics 2. Communication Participants identified various ways in which change management methodology was adapted to work with employees in health care and education services industries. Examples were to include physicians/ professors on change management teams, to meet expectations of a high degree of collaboration and to increase stakeholder engagement. Lack of resources was noted as the second most common challenge when trying to implement change management, including monetary and non-monetary resources. Participants noted a lack of funding designated specifically for change management. Inadequate non-monetary resources included specialized change management training, dedicated change management practitioners and time away from daily priorities to focus on change management. Participants described ways in which communication was adapted to be most effective in health care and education services industries. Examples included adapting communication to resemble academic discourse in education services industries and linking change to improvements in patient care in health care industries. 31 Certification 74% Had attended certification 86%? Would recommend certification (only 2% wouldn t) Value of certification Structured approach gained Build skills and credentials Acquire common and universal tools More likely to achieve desired outcomes 32 Copyright 2016 Prosci. All rights reserved. 16
New research areas in 2016 report 1. Impact of culture on change management 2. Importance of cultural awareness and global literacy in change 3. Development and leveraging of change agent networks 4. Engagement of complementary roles in change management work 5. Customization of change management for vertical industry segments 6. Certification in change management 33 Prosci Best Practices in Change Management, 2016 Edition Available now! www.prosci.com solutions@prosci.com +1 970 203 9332 Copyright 2016 Prosci. All rights reserved. 17