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1
Leading People through ChangeChange Management
Change management is:
The process, tools and techniques to manage the people side of change to
achieve the required business results.
3
Transformation Without Change Management
Change #1
Change #2
Change #3
Change #4
Future State
4
Transformation WithChange Management
Change #1
Change #2
Change #3
Change #4
Future State
5
Transformation WithChange Management
Change #1
Change #2
Change #3
Change #4
Future State
“Organizations don’t change –people within organizations change.”
New ERPFocus on the
customer Updated IT systems
New marketing approach
New product
Online HR benefits system
New strategy
Productivity improvement initiative
Mergers and acquisitions
Any business change requires individuals to do their jobs differently to be
successful
Employee Safety
“Everyone thinks of changing the world, but no one thinks of changing himself.”
Leo Tolstoy
Organizational change can be represented as three states of change
States of change
How things are done today
How things will be done tomorrow
How to move from current to
future
Currentstate
Transitionstate
Futurestate
Examples of changes organizations are currently taking on
Ad hoc processes Documented and managed processes
Multiple, legacy systems One integrated database
Generalists in the call center Specialists in the call center
No web interface for suppliers Supplier website integrated into supply chain
Two different companies Merged organization
Currentstate
Transitionstate
Futurestate
In reality, there are both organizational and individual future states
Organization
Individual
How I do my job today
How I will do my job after the change is implemented
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
The organization’s future state is actually the collection of many individual future states
Organization
Individuals
Documented and managed processes
One integrated database
Specialists in the call center
Supplier website integrated into supply chain
Merged organization
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
The focus of change management is helping individuals make their transition
Change management drives project success by supporting individual transitions required by organizational projects and initiatives
Individuals
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Prosci history
• Research company founded in 1994• Sponsor of the Change Management Learning
Center• World leader in change management research
and product development• Focused on building internal change
management competency
Copyright Prosci 2009
Research Foundation
1998 First Change Management Study – 102 participants
2001 Second Change Management Study – 152 participants
2003 Third Change Management Study – 288 participants
2005 Fourth Change Management Study – 411 participants
2007 Fifth Change Management Study – 426 participants
2009 Sixth Change Management Study – 575 participants
2011 Seventh Change Management Study – 650 participants
Change management is about achieving project objectives
17%
49%
80%
95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor(n=177)
Fair(n=441)
Good(n=561)
Excellent(n=107)
Per
cent
of r
espo
nden
ts th
at m
et
or e
xcee
ded
proj
ect o
bjec
tives
Overall effectiveness of change management program
Correlation of change management effectiveness to meeting project objectives
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
*Data from 2007, 2009 and 2011
There are consequences of not managing the people side of change
• Lower productivity• Passive resistance• Active resistance • Turnover of valued employees• Disinterest in the current or future state• Arguing about the need for change• More people taking sick days or not showing up• Changes not fully implemented• People finding work-arounds• People revert to the old way of doing things• The change being totally scrapped• Divides are created between ‘us’ and ‘them’
2007 © Prosci
Primary reasons for applying change management
• Increase probability of project success• Manage employee resistance to change• Build change competency in the
organization
Managing individual change with ADKAR®
• ADKAR® describes the key building blocks for successful change – Personal or professional
• Success with change requires all elements of the ADKAR® Model to be present
Reference: Hiatt, J. ADKAR: A model for change in business, government and our community, Learning Center Publications, 2006.ADKAR is a registered trademark of Prosci. All Rights Reserved.
Prosci® ADKAR® Model
ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are a registered trademarks of Prosci, Inc. All rights reserved.
The ADKAR® Model
• Awareness of the need for change.– What is the nature of the change?– Why is the change happening?– What is the risk of not changing?
For your employees, what is the level of Awareness of the need to change?
ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.
The ADKAR® Model
• Desire to support the change.– Personal motivation to support the change– Organizational drivers to support the change
For your employees, what is the level of Desire to support and participate in the change?
ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.
The ADKAR® Model
• Knowledge on how to change.– Knowledge, skills and behaviors required during
and after the change– Understanding how to change
For your employees, what is the level of Knowledge on how to change?
ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.
The ADKAR® Model
• Ability to implement new skills.– Demonstrated ability to implement the change– Barriers that may inhibit implementing the change
For your employees, what is the level of Ability to implement the change?
ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.
The ADKAR® Model
• Reinforcement to sustain the change.– Mechanisms to keep the change in place– Recognition, rewards, incentives, successes
For your employees, what is the level of Reinforcement to sustain the change?
ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.
24
ADKAR Exercise
The five building blocks of successful change
Awareness Awareness of the need for change
Desire Desire to participate and support the change
Knowledge Knowledge on how to change
Ability Ability to implement required skills and behaviors
Reinforcement® Reinforcement to sustain the change
Prosci® ADKAR® Model
ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are a registered trademarks of Prosci, Inc. All rights reserved.
ADKAR® applications
• Change management planning
• Diagnosing gaps
• Developing corrective actions
RAKDA
Overarching Principles
R Q A
Results of the Project
Quality of the Solution
Acceptance of the
Organization
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Greatest contributors to success
1. Active and visible executive sponsorship
2. Frequent and open communications
3. Structured change management approach
4. Dedicated resources for change management
5. Employee participation 6. Engagement with and support
from middle management
Biggest obstacles to success
1. Ineffective change sponsorship from senior leaders
2. Insufficient change management resources and funding
3. Resistance to the change from employees
4. Middle management resistance5. Ineffective communications
Resistance: most common reasons employees resist change
1. Lack of awareness2. Impact on current job role3. Organization’s past
performance with change4. Lack of visible support and
commitment from managers5. Job loss
Resistance: most common reasons managers resist change
1. Lack of awareness about and involvement in the change
2. Loss of control or negative impact on job role
3. Increased workload and lack of time
4. Culture of change resistance and past failures
Communication
• Most effective– Face-to-face
• Most important messages– Impact to the individual– Why the change is happening
• Do differently next time– More communication– Have a communication strategy– Communicate earlier
Communication: Preferred senders of change messages
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other
Change management team leader
Change management team member
Project team leader
Project team member
Human Resources representative
The employee's supervisor
Department head
Senior manager
Executive manager
CEO/President
Percent of respondents
Business messagesPersonal messages
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
34
Two Primary Goals of CM
• Level of Acceptance• Speed of adoption
If people don’t change how they do their job, then it doesn’t matter what specific changes are implemented