Defining the value of change management
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The document outlines the importance of change management in organizations, emphasizing the need for both technical and people-focused strategies to ensure successful transitions. It highlights the costs and risks associated with poor change management, including decreased productivity and project failures, while presenting data from polls to illustrate the frequency of change management engagement across different roles. Ultimately, the text promotes the concept of capturing people-dependent return on investment (ROI) as essential for achieving expected project benefits.
Defining the value of change management
- 1. Defining the Value of Change Management With poll outputs from webinar attendees – July 19 & 20, 2017 Tim Creasey Prosci Chief Innovation Officer tcreasey@prosci.com www.linkedin.com/in/timcreasey
- 2. © Prosci. All Rights Reserved. 2 Foundation of Change Management Agenda Foundation of Change Management Selling Pink’s ABCs Value Proposition Context Foundation of Change Management Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 3. © Prosci. All Rights Reserved. 3 Current state Transition state Future state Technical Side People Side Design Deliver Develop Embrace Use Adopt Results Outcomes Success Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Successful Change Requires Both the Technical and People Sides
- 4. © Prosci. All Rights Reserved. 4 The achievements of an organization are the results of the combined effort of each individual. Vince Lombardi Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 5. © Prosci. All Rights Reserved. 5 Current Transition Future TC 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 T T T F F F F F F F F Requires individuals to reach their own future state An organizational move to a future state Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 6. © Prosci. All Rights Reserved. 6 = Lower ROI = Not What We Expected/Hoped For = Less Benefit Realization = Unachieved Improvement F F F F F F F F F F F F Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Failed individual change results in failed organizational change “Swiss cheese” Future State
- 7. An email on Monday for training on Tuesday for launch on Wednesday is NOT the way to prepare and equip individuals to successfully change M T W R F Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 8. © Prosci. All Rights Reserved. 8 Change management: Preparing, equipping and supporting individuals through the change journeys they experience as part of your organization Capturing people-dependent project ROI Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 9. © Prosci. All Rights Reserved. 9 Leaders Internal External Project Teams You are selling change management Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Why It Matters To You!
- 10. © Prosci. All Rights Reserved. 10 What We ARE NOT Selling What We ARE Selling Communications Training Assessments Stakeholder Analysis Magic in a bottle Manipulation and Spin Templates Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 11. © Prosci. All Rights Reserved. 11 What Success Looks Like Buy-in Mindshare Approach Resources Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 12. © Prosci. All Rights Reserved. 12 old new Always Be Closing Attunement Buoyancy Clarity Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Daniel Pink’s New Selling
- 13. © Prosci. All Rights Reserved. 13 Value Proposition Value proposition framework from Michael Skok, Startup Secrets: Building a Compelling Value Proposition, www.entrecapitalist.com/resource/building-compelling-value-proposition. Used with permission. A positioning statement that describes for whom you do what uniquely well - Michael Skok 1. Target “buyer” 2. Their problem 3. Your solution 4. Better than the alternative Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 14. © Prosci. All Rights Reserved. 14 Sponsor Sam PM Patricia Solution Simon What keeps them up at night? What gets them up in the morning? How do they define personal success? What is their experience with CM? Objections to CM? Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 15. © Prosci. All Rights Reserved. 15 Poll: How often are you having to sell change management to each of these groups? 2% 2% 3% 5% 5% 9% 13% 19% 20% 33% 44% 34% 47% 30% 34% 0% 25% 50% 75% 100% Executives and Senior Leaders Project Managers and Leaders Solution Developers Executives and Senior Leaders Project Managers and Leaders Solution Developers Always Often Sometimes Rarely Never Always Often Sometimes Rarely Never Always Often Sometimes Rarely Never Poll results:Pin drop voting:
- 16. © Prosci. All Rights Reserved. 16 Priority is a function of context. Stephen R. Covey Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 17. © Prosci. All Rights Reserved. 17 An ounce of context is worth a pound of isolated facts. @daveElf Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 18. © Prosci. All Rights Reserved. 18 People don’t buy a quarter-inch drill bit, they buy a quarter-inch hole. You’ve got to study the hole, not the drill. The drill is just the solution for it. Theodore Levitt (Leo McGinneva) Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 19. © Prosci. All Rights Reserved. 19 Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability CMROI X% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits. CMROI X% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits. SUP The expected project benefits depend on how quickly (speed of adoption), how many (ultimate utilization) and how effectively (proficiency) employees do their jobs the new way. CMROI X% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits. SUP The expected project benefits depend on how quickly (speed of adoption), how many (ultimate utilization) and how effectively (proficiency) employees do their jobs the new way. Costs/Risks The expected project benefits are diminished by avoidable costs (inefficiencies) and mitigatable risks resulting from ignoring the people side of change. CMROI X% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits. SUP The expected project benefits depend on how quickly (speed of adoption), how many (ultimate utilization) and how effectively (proficiency) employees do their jobs the new way. Costs/Risks The expected project benefits are diminished by avoidable costs (inefficiencies) and mitigatable risks resulting from ignoring the people side of change. Language All of the above… results, benefits, objectives, success, ROI CMROI X% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits. SUP The expected project benefits depend on how quickly (speed of adoption), how many (ultimate utilization) and how effectively (proficiency) employees do their jobs the new way. Costs/Risks The expected project benefits are diminished by avoidable costs (inefficiencies) and mitigatable risks resulting from ignoring the people side of change. Language All of the above… results, benefits, objectives, success, ROI Probability The expected project benefits are more likely to be achieved, on time and on budget, with effective change management according to industry data.
- 20. © Prosci. All Rights Reserved. 20 Project ROI CM ROI Project ROI People Dependent Project ROI (CMROI) or Directly connect CM impact to project results, benefits and objectives No longer “resource for CM” – becomes “resource for X% of project results” Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Prosci CMROI Baseline
- 21. © Prosci. All Rights Reserved. 21 For your project, estimate the percent of overall results and outcomes that depends on employee adoption and usage: How much are you investing (budget, people, energy) in driving and supporting employee adoption and usage: depends on adoption and usage invested in adoption and usage Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 22. © Prosci. All Rights Reserved. 22 Gartner BPM Summit Dec 12, 2014 Prosci Webinar Feb 11, 2015 Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Change management is how you capture people-dependent ROI
- 23. © Prosci. All Rights Reserved. 23 Poll: Answer without a "%" and round to nearest 0 or 5. For a project you are supporting now, what percent of the expected results and outcomes depends on people changing how they do their jobs?
- 24. © Prosci. All Rights Reserved. 24 CHANGE INITIATIVES DEPENDENT ON ADOPTION AND USAGE INVESTED IN ADOPTION AND USAGE Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Now, think about a portfolio
- 25. © Prosci. All Rights Reserved. 25 Make the connection for your work Think about a project you are currently supporting. Identify… 1. What are the results and outcomes expected from this project or initiative? 2. What percentage of those results and outcomes are dependent on individuals doing their jobs a new way? Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 26. © Prosci. All Rights Reserved. 26 How well are individuals performing compared to the level expected in the design of the change? How many employees (of the total population) are demonstrating “buy-in” and are using the new solution? How quickly are people up and running on the new systems, processes and job roles? Speed of Adoption Ultimate Utilization Proficiency Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability The Human Factors that Determine the Financial Return or ROI
- 27. © Prosci. All Rights Reserved. 27 Poorly Managed Change Cash Flow Expected Cash Flow Netcashflowofprojectperiod + - 0 Time (periods) Proficiency contributes to the “height” of each benefit, including the ongoing benefit after implementation The height of the benefit after implementation is finished is based on ultimate utilization The slope and shape are determined by speed of adoption Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability SUP Impact – Expected vs. Poorly Managed
- 28. © Prosci. All Rights Reserved. 28 Assumed With poor change management With effective change management Speed of Adoption X% ↓ ↑ Ultimate Utilization Y% ↓ ↑ Proficiency Z% ↓ ↑ Resulting ROI f(X,Y,Z) ↓ ↑ Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 29. © Prosci. All Rights Reserved. 29 Poll: Have you seen SUP (Speed of Adoption, Ultimate Utilization, Proficiency) impact project outcomes? 5% 4% 13% 38% 40% 0% 20% 40% No Yes, once or twice Yes, occasionally Yes, regularly Yes, all the time
- 30. © Prosci. All Rights Reserved. 30 Think about a project you are currently supporting. Identify… Definitions of speed of adoption, ultimate utilization and proficiency for your project. Specific assumptions for your project related to: Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Speed of Adoption Ultimate Utilization Proficiency Make the connection for your work
- 31. © Prosci. All Rights Reserved. 31 Those who trust to chance must abide by the results of chance. Calvin Coolidge Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 32. © Prosci. All Rights Reserved. 32 Costs Risks Individuals Project Organization The RE costs: REwork REdesign REdo REscope REtrain REtreat Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability We apply change management to mitigate risks and reduce costs
- 33. © Prosci. All Rights Reserved. 33 Costs: Risks: To the project if we do not manage the people side of change well • Project delays • Missed milestones • Budget overruns • Rework required • 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 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 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 Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 34. © Prosci. All Rights Reserved. 34 Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage:
- 35. © Prosci. All Rights Reserved. 35 Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage: • Abandoning of Service/Tool • abandonment of truly good change • additional project costs • additional training • Additional training • Additional Training • additional training • additional training • Additional training • Additional training = additional time and costs • additional travel • Alienation of team members • and most importantly me • Anger • Attrition • attrition • Audit Findings • backflips • bad attitudes • bad data • bad data • bad decisions due to incomplete data • Budget cuts affecting project support staff • Business Unit staff frustrated • Buy another technology solution • buy new technology - over and over • Cancel project • change calendars • change in system • change overload • Change requests • change taking 2+ years of delay • changing requirements • Changing timelines • company • company cash flow • conflict • conflict within teams because some have adopted and others haven't • confusion • Confusion • Confusion at end user level • Contract delay penalties • Contracting/Legal Agreement complications • Contractual penalties • cost of a new technology tool • creating shadow systems and all maintenance costs for those • Creation of silos between teams • Culture of cynical users • customer • customer dissatisfaction • Customer Pissed off • cycle of project failures • cycle of rework • cynical employees • cynics • Data quality impacts • declining morale • Decreased confidence in management • delay • Delay to cease contracts and use of legacy system • Delayed implementation • Delayed results • Delayed rollout • delayed timeline • Delays • Delays • Delays • delays • Delays • disengaged associates • disengagement • Disengagement of stakeholders • dissatisfied customers • dissatisfied customers • distrust • distrust • distrust in leaders • Domino effects on other projects • double license fees for legacy and new system • Duplicate / conflicting processes and procedures creating ambiguity and duplication of work • egg on CIO face • employee disengagement and lack of adoption • employee engagement • Employee engagement • employee experience - frustration • employee loss • employee resistance • employee retention • employee retention • Entire overhaul of UI • Excess time spent on task - unnecessary processing • extended contracts • extended project schedules • Extended project schedules • extended utilization post implementation
- 36. © Prosci. All Rights Reserved. 36 Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage: • extra cost to study the issue • Extra time spend training customers • failed efforts • Failed project results - ultimately audit failures • Failed projects • Failure to deploy a major CRM implementation. • failure to provide accurate details • Fear of new systems • Fines • frustrated employees • frustration • Frustration • Frustration • Frustration • Further organizational 'scar tissue' • going back to the drawing board • go-live delay • Had to scrap the entire EMR systems and replace it with an entirely different (and more costly one). • halting project and reworking training • Have to replace the entire software with a new one • Here we go- another project yet again- we had enough • Hi Mom • High turnover • 'hypercare' costs - longer project schedule and costs • Identification of the gaps. • impact to customer • inconsistent ways of working • incorrect information • increase on expenses • Increasing resistance from users • initiative failure • involving people • Kleenex - because people are crying. :( • lack of comprehension of roles and responsibilities • lack of transparency • lack of trust from end users of tool • Lack of updated data • Lengthened time to ROI • Longer delivery to market • Lose the audience of change • losing excellent employees • Losing key team members • losing resources • loss of credibility • loss of credibility and trust • Loss of efficiency • loss of institutional knowledge to support change when people resign • Loss of key accounts • Loss of key high performing talent • loss of key talent • Loss of moral • loss of productivity • Loss of productivity • loss of staff • loss of talent • loss of time • Loss of time and money • Loss of trust for future changes • loss of trust in company • Losses due to incorrect handling of invoices • Lost clients • lost customers • Lost market value due to misunderstanding of new products • Lost time • Lost trust • Lots of rework • low adoption • low adoption level • Low morale • Low morale • Low morale • Low morale • low morale as staff don't know how to use system • lower morale • Lower traffic because managers delayed adoption of social media • mail management • Managing resistance during training • miscommunication • miscommunication and rumors • mis-integration • Missed implementation date • Missed implementation dates • Missed requirements • missed target ROI • missing key milestone dates • missing revenue and GP goals • morale • Morale • morale • morale • morale • morale • morale degradation
- 37. © Prosci. All Rights Reserved. 37 Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage: • morale issues because of assumed layoffs • morale of staff • More handholding • more training • Need to retrain the employees • negative comments • negative customer impacts • Negative employee morale • negative impact to reputation of the project and/or those that have sponsored the change • Negative impacts to future change • Negative impressions of program • New system not used • No result • no usage by intended audience • Not much engagements from sponsor • not sufficient training time • out of budget • Over cost - impact the initial budget • overtime • Overtime costs and additional resource cost • overtime of nonexempt workers • people resigning • plummeted service levels • Poor customer experience • Poor customer service • Poor customer service/deliver • poor marketing • Poor results and unhappy leader's • poor service offering • process change • productivity • productivity results not achieved • Project delays • project delays • project failure • proper engagements with sponsor and stakeholders can help in mitigation of costs and risks • pull out part of functionality - less delivered for more money • pulling in consultants to help post- change • re designed • re explaining • re implementation • re implementation • re planning • re train • re training • Re training because turn over • re-assess • REboot • re-communicate • REcommunication costs "lot of questions" • Redesign • Redesign • Redesign • redesign • Redesign • redesign • redesign • Redevelopment • Redevelopment of software • Redo the project • Redo! • Reduced confidence in future changes • reduced trust in process and project team • Re-engineer • regret • Regulatory impacts • relaunch • remediation • reorganization • reorganization • reorganization • repeated training • replace • replace resources • Replace with new system • Reputational Risk • Reputational risk; customer dissatisfaction • rescope • Rescope • rescope project • Rescope work • Rescoping of project • re-sdlc • resentment • Resignation • Resignations • resignations • Resignations • resignations • resignations • Resistance • REsistance • Resistance • Resistance • resistance
- 38. © Prosci. All Rights Reserved. 38 Poll: Identify some specific, concrete AVOIDABLE COSTS and MITIGATABLE RISKS your projects have incurred due to poor adoption and usage: • Resistance to future change • Resistance to future change because it went so poorly this time • resistance when it didn't exist initially • Resources • resources had to be sent on other projects due to project delays • resources undesignated • Re-start of projects • resubmission of insurance billing • retaining talent • retrain • retrain • Retrain • retrain • retrain • re-train • retraining • retraining • retraining • Retraining • Retraining • Retraining • Retraining • Retraining • retraining • retraining • Retraining • retraining • Re-Training • Re-training • re-training • re-training • re-training of end users • revert • reverting • REview • Rework • Rework • rework • rework • rework • Rework • rework • rework • Rework • Rework • Rework • rework • rework • rework • Rework • rework and late deliveries to customers • rework and resistance • rework training • rework training • Rework! • Reworks • Rogue solutions and shadow systems • Ruined relationships • salary • Salary costs • salary costs • schedule change • scope change • scope creep • Silos within integrator team • Skepticism • staff dissatisfaction • staff resign • staff turnover • staff turnover • Stagnant workers • Stakeholders not available • starting from square one again • talent • team • teamwork • Terminations • time away from work to deal with system errors • too many project managers on a project • training • training • travel • Trust issues with leaders • turn over • turnover • turnover • Uncertainty • Underdeveloped Requirements • unfilled vacancies • Unnecessary software development • Unorganized Training • Unrealistic deadlines • Unused systems • using incorrect success measures • wasted man hours • Wasted Production time • Weak Sponsorship • What's in it for society • work disruption/stoppage
- 39. © Prosci. All Rights Reserved. 39 Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability We apply change management to minimize negative consequences
- 40. © Prosci. All Rights Reserved. 40 Think about a project you are currently supporting. Identify… Specific avoidable costs and mitigatable risks related to the people side of your effort. Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Make the connection for your work
- 41. © Prosci. All Rights Reserved. 41 Context QuestionsLanguage If you talk to a man in a language he understands, that goes to his head. If you talk to him in his language, that goes to his heart. Nelson Mandela Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 42. © Prosci. All Rights Reserved. 42 Communications Training Stakeholders Resistance Resilience Assessments Templates Return on Investment Benefit Realization Results Outcomes Objectives Sustainment Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability In the Words You Use
- 43. © Prosci. All Rights Reserved. 43 Mobilizing People ResultsTo Deliver Guiding people through personal change impacts Helping people maximally adopt and use Success through people Helping organizations get to their desired state Managing people side of change to drive results Changing behaviors to achieve business needs Individual transitions that generate org change Better business outcomes through people Faster ROI through leading people through change Turn business objectives into behavior change Structured process to produce results Ensuring organization's objectives are met Producing results Benefits realization Making change stick Delivering people-dependent ROI People side of change Helping people to make a difference Making things better for people Identify and manage people risks Making people willing and able to change It means effectively moving people to success Tools and process to move people through change Moving people from current to future Helping people get from a to b Moving people from point a to point b Navigating the undulating floor Facilitating transitions with finesse and insight Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 44. © Prosci. All Rights Reserved. 44 Poll: Identify words you will STOP using when describing the value of change management
- 45. © Prosci. All Rights Reserved. 45 Poll: Identify words you will STOP using when describing the value of change management • Accountability • Accountability • accountability • accountable • Adaption • Adoption • adoption • adoption • adoption • adoption • Adoption • Agile • alignment • alignment • Assessment • assessment • Assessment • assessment • Assessment • assessment • Assessment • Assessments • assessments • assessments • assessments • attempt • Audit • Benefit • better alignment • better training • Body language cues • bottom line • Building capacity • buy-in • buy-in • challenges • Change • change • Change • Change • change • change • change and communications • change management • change management • Change Management • change management • change management • change management • change management • Change Management • Change management • Change Management • change management • Change management • change management • Change Management • change management • Change Management • Change Management • Change management • change management = communication plan • Change Managers • change/communication plan • coaching • communicate • communicate • communicate • communicate more • communication • communication • Communication • Communication • communication • communication • communication • communication • communication • communication • Communication • communication • Communication • Communication • communication • communication • Communication • communication • communication • communication • communication • communication • communication • communication • communication • Communication • Communication and training • communication plan • communication plan • communication plan • Communications • communications • communications • communications • communications • Communications • communications • communications • communications • Communications • communications • Communications • Communications • Communications and training • creating awareness • Culture Change • delays • deliverables • development • Disruption • doesn´t want to change • Education and training • Email • engagement • engagement • engagement • engagement • essentially the parts ... need to talk about ROI • executive sponsorship • fluff • fluffy • getting buy in • human resources • impact • impact • impact assessment • issues • Issues • leadership • manage • manage changes • Manage people side of change • Manage resistance • Manage resistance • Manage resistance • Management • management • management • managing resistance • meetings • method
- 46. © Prosci. All Rights Reserved. 46 Poll: Identify words you will STOP using when describing the value of change management • methodology • Methodology • Minimize resistance • Must • Necessary • necessary • Necessary • not able to change • people engagement • People management • people side • people side • plans • Please Do • prevent failure • Problem • problem • Process • process • Process • process change • program • Resilience • Resistance • Resistance • Resistance • Resistance • resistance • Resistance • Resistance • resistance • resistance • resistance • resistance • resistance • resistance • Resistance • resistance • resistance • Resistance • resistance • resistance • resistance • resistance • Resistance • Resistance • Resistance • resistance • Resistance • resistance • resistance • Resistance and even Change Management • resistance management • resistance management • resistance management • Resistance mitigation • Resistance of user adoption • Resisters • restructure • risk • Risks • Shift • soft • soft • Soft • Soft side • soft side • soft side • soft side • Soft side of benefits • soft skills • soft skills • solution • stakeholder • stakeholder • stakeholder • stakeholder analysis • stakeholder analysis • Stakeholder returns • Stakeholders • stakeholders • stakeholders • stakeholders • stakeholders • Stakeholders • stakeholders • stakeholders • Stakeholders • stakeholders • Stakeholders • Stakeholders • strategy • strategy • support • Support • surveys • sustainability • talk with instead of talk to • templates • Templates • templates • Templates • things are going to be different • to be / future state • Training • training • training • training • training • training • Training • training • training • Training • training • Training • training • training • Training • training • training • Training • training • training • training • Training • training • training • training • Training • Training • Training • training • training • training • Training • training • training • training • training • training • transformation • transparency • transparency • UAT • Undisciplined • Upskilling • usability • user adoption • Values • want • weaknesses • What's in it for me
- 47. © Prosci. All Rights Reserved. 47 Poll: Identify words you will START using when describing the value of change management
- 48. © Prosci. All Rights Reserved. 48 Poll: Identify words you will START using when describing the value of change management • accomplish • accountability • achieve • achieve expectations • Achieve results • achievement • achievement • actionable • adopt • adoption • Adoption • Adoption • Adoption • adoption • adoption • Adoption • adoption • adoption • Adoption & Usage = Success • adoption = results • agility • avoiding costs • behavior • benefit • Benefit • Benefit • benefit • benefit realization • benefit realization • Benefit Realization • benefit realization • Benefit realization • Benefit realized • benefits • benefits • benefits • benefits • benefits • benefits • benefits • Benefits • benefits • Benefits • benefits • Benefits • Benefits • benefits • benefits • benefits • Benefits Realization • benefits realization • Benefits realization • benefits realization • Benefits realization • benefits realization • benefits/results • better • Boost the investment • Bottom line • business case realization • Business growth • business outcome • Business results • Business Transformation • business value • Buy-in • change management metrics • change management outcomes • changing hearts and minds • CMROI • CMROI • Collaboration • Communication • Connect • connect • cost benefit • culture • data • Deliver • deliver results • deliver results • deliver results • Deliverable • Delivering on our outcomes • delivering results • Delivery of results • desired outcomes • difference it makes • discover • Early adoption • easier • employees that are excited • empower • empowerment • Enable • engage • engage • engaged • engagement • engagement • engagement • engagement • expected outcome • Expected Proficiency • faster go to market • Future • future • giving results • greater efficiency • Hard facts • heart • help • help us understand • impact • Impact • impact • impact • impact • improvements • Increased acceptance of usage • increased ROI • increased success through people focus • innovate • innovation • innovation • intake • intent • Investment • investment • IRR • job satisfaction • Journey • KPI usage • leadership • leadership • let's do it together • maximize outcomes • measurable • Measurable Outcomes • Meeting Expectations • metrics • mobilization • mobilization • Mobilization and results • mobilize • Mobilize • Mobilize • mobilize • Mobilize and deliver • mobilize deliver • mobilize people • mobilize people • mobilize people • Mobilizing people to deliver results • Mobilizing people to deliver results • NPV • NPV • objective • objectives • Objectives • objectives • objectives • Objectives • objectives & deliverables • outcome • outcome • Outcome • Outcome • Outcomes • Outcomes • outcomes • Outcomes • Outcomes • Outcomes • outcomes
- 49. © Prosci. All Rights Reserved. 49 Poll: Identify words you will START using when describing the value of change management • outcomes • outcomes • outcomes • outcomes • Outcomes • Outcomes • outcomes • Outcomes • outcomes • Outcomes and Results • Outlook • partnership • Payback Period • people • people power • People side of change • people side of change • People-dependent ROI • performance • Performance • performance • performance • proficiency • Proficiency • progress • Project success • project success • quick uptake • realization • realization • realized benefits • result • Results • results • Results • results • results • results • results • Results • Results • results • Results • Results • results • Results • results • results • Results • Results • Results • results • results • Results • Results • Results • results • results • results • results • Results • Results • results • results • results • results • Results • results • Results • Return of investment • return on investment • return on investment • Return on Investment • Return on Investment • return on investment • Return on Investment • Return on investment • Return on investments • Return on investments • risk • risk management • Risk Mitigation • ROI • ROI • ROI • ROI • ROI • ROI • ROI • roi • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI • ROI/ROE • savings • speed • Speed of adoption • Speed of adoption • speed of adoption • speed to transform • stewardship • Success • success • success • success • Success • success • success • Success • Success • success • success • success • SUP • SUP • support • supporting business to achieve • sustainability • sustainability • sustainability • Sustainment • sustainment • Sustainment • Sustainment • synergy • TCO • time to skill • together • transparency • trust • try • try • turnover • understand • Us • Utilization • Utilization • utilization • Value • Value • Value • value • Value • Value • Value • value • Value • Value • value • value • Value • value • value • value add • Value outcome based results • Value-added • we • We • we • Were results reached? • WIIFM • Win • work together • Working together to see impact • You
- 50. © Prosci. All Rights Reserved. 50 Think about a project you are currently supporting. Identify… Specific words and phrases you will START using and STOP using when describing the people side impact and value for your project. Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Make the connection for your work
- 51. © Prosci. All Rights Reserved. 51 6x Increase in likelihood of meeting objectives with excellent change management 48% 62% 70% 81% 0% 100% Poor Fair Good Excellent 14% 32% 52% 71% 0% 100% Poor Fair Good Excellent 15% 42% 76% 94% 0% 100% Poor Fair Good Excellent 0% 100% Poor Fair Good Excellent Met or exceeded objectives On schedule On budget Change Management Effectiveness Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Prosci research shows that effective change management drives outcomes
- 52. © Prosci. All Rights Reserved. 52 Top performers: 143% Worst performers: 35% Percent of expected value of initiative eventually captured by company From McKinsey “Helping Employees Embrace Change” http://www.mckinsey.com/insights/organization/helping_employees_embrace_change Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability McKinsey study shows that “effective change management pays”
- 53. © Prosci. All Rights Reserved. 53 Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Think about a project you are currently supporting. Identify… The importance of meeting objectives, on time and on budget, for your project. Make the connection for your work
- 54. © Prosci. All Rights Reserved. 54 Foundation Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability Five perspectives with a punchy statement for each CMROI X% of expected project benefits are directly tied to employees adopting and using the change; change management’s value is delivering that portion of benefits. SUP The expected project benefits depend on how quickly (speed of adoption), how many (ultimate utilization) and how effectively (proficiency) employees do their jobs the new way. Costs/Risks The expected project benefits are diminished by avoidable costs (inefficiencies) and mitigatable risks resulting from ignoring the people side of change. Language All of the above… results, benefits, objectives, success, ROI Probability The expected project benefits are more likely to be achieved, on time and on budget, with effective change management according to industry data.
- 55. © Prosci. All Rights Reserved. 55 Poll: Rank order each value perspective based on how useful it will be to you as you engage others around the value of change management. 41% 28% 16% 13% 2% 24% 20% 26% 24% 7% 15% 15% 30% 29% 11% 11% 16% 19% 24% 30% 9% 21% 8% 10% 51% 0% 25% 50% 75% 100% CMROI Language SUP Costs/Risks Probability Top rank – most useful 2nd rank 3rd rank 4th rank Bottom rank – least useful
- 56. © Prosci. All Rights Reserved. 56 Foundation of Change Management Conclusions and Q&A Foundation of Change Management Selling Pink’s ABCs Value Proposition Context Foundation of Change Management Selling Pink’s ABCs Value Proposition Context Perspectives CMROI SUP Costs/Risks Language Probability
- 57. Prosci Solutions Delivering organizational results by catalyzing individual transitions http://www.prosci.com | http://blog.prosci.com changemanagement@prosci.com Build individual change competencies Apply change management on initiatives Embed organizational change capability http://www.prosci.com solutions@prosci.com