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Copyright © 2014 Prosci Inc. All rights reserved. Best Practices in Change Management Briefing Please read Right to use this content is governed by the licensing terms and conditions for this online tool. Reproduction and distribution are not permitted under a single-user license without express permission from Prosci. For permission to reproduce or distribute content, contact Prosci at +1 970-203-9332. All trademarks and copyright notices must be retained. 1

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Page 1: Copyright © 2014 Prosci Inc. All rights reserved. Best Practices in Change Management Briefing Please read Right to use this content is governed by the

Copyright © 2014 Prosci Inc. All rights reserved.

Best Practices in Change Management Briefing

Please readRight to use this content is governed by the licensing terms and conditions for this online tool. Reproduction and distribution are not permitted under a single-user license without express permission from Prosci. For permission to reproduce or distribute content, contact Prosci at +1 970-203-9332. All trademarks and copyright notices must be retained.

Please readRight to use this content is governed by the licensing terms and conditions for this online tool. Reproduction and distribution are not permitted under a single-user license without express permission from Prosci. For permission to reproduce or distribute content, contact Prosci at +1 970-203-9332. All trademarks and copyright notices must be retained.

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Page 2: Copyright © 2014 Prosci Inc. All rights reserved. Best Practices in Change Management Briefing Please read Right to use this content is governed by the

Copyright © 2014 Prosci Inc. All rights reserved.

Best Practices in Change Managementbenchmarking report

• Findings:– Key success factors – What works – What doesn't work– Mistakes to avoid

• Topics include:– Communication – Sponsorship – Resistance – Reinforcement – Team activities – Managers and

supervisors – Change saturation

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Page 3: Copyright © 2014 Prosci Inc. All rights reserved. Best Practices in Change Management Briefing Please read Right to use this content is governed by the

Copyright © 2014 Prosci Inc. All rights reserved.

Prosci Research History

3 3

1998 First Change Management Study – 102 participants

2000 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

2013 Eighth Change Management Study – 822 participants

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4

Participant Profile p. 11

US:34%

Canada:15% Europe:

14%

Africa:5%

LatinAmerica:

2% Australiaand NZ:

25%

Asia and PacificIslands: 3%Middle

East: 2%

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Copyright © 2014 Prosci Inc. All rights reserved.

A Majority of Projects Impact Business Processes

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A Majority of Change Projects Are Enterprise-Wide

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Most Changes Impact a Large Number of Employees

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Project investment

0%

5%

10%

15%

20%

25%

30%

$100K orless

$100K to$500K

$500K to$1M

$1M to$5M

$5M to$10M

More than$10M

Per

cent

of r

espo

nden

ts

Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.

2000

2003

2005

2007

2009

2011

2013

8 8

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Copyright © 2014 Prosci Inc. All rights reserved.

9 9

Who contributed?

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Findings covered in this briefing

• Correlation

• Greatest contributors to success

• Greatest obstacles to success

• Sponsor role

• Methodology

• Resistance

• Communication

• Organizational competency

• Change saturation

10 10

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Copyright © 2014 Prosci Inc. All rights reserved.

11 11

Data Supports the Connection

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Copyright © 2014 Prosci Inc. All rights reserved.

12 12

Data Supports the Connection

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Copyright © 2014 Prosci Inc. All rights reserved.

13 13

Data Supports the Connection

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Greatest contributors to success

1. Active and visible executive sponsorship

2. Structured change management approach

3. Dedicated change management resources and funding

4. Frequent and open communication about the change and the need for change management

5. Employee engagement and participation

6. Engagement and integration with project management

7. Engagement with and support from middle management

In all eight studies,

sponsorship was

#1

How effective are

your sponsors?

14 14

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Biggest obstacles to success

1. Ineffective change management sponsorship

2. Resistance to change from employees

3. Insufficient change management resourcing

4. Division between project management and change management

5. Middle management resistance

Division between

project management

and change

management was

new to the list in

2013, pushing

ineffective

communications off

the list from 2011.

15 15

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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 is not just signing

checks and charters!

It is not just signing

checks and charters!

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17 17

Sponsors Do Not Understand Their Role

p. 114

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Applying a structured approach to change management

#2 contributor

to success

0%

10%

20%

30%

40%

50%

60%

70%

80%

2003 2005 2007 2009 2011

Per

cent

of r

espo

nden

ts

© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

18 18

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Factors for selecting a methodology

• Previous experience with a methodology

• Credible, well-known and recognized approach

• Compatible with project, company, culture or industry

• Flexibility and customization

• Ease of use and scalability– Easy to follow– Easy to understand– Easy to explain to others in the

organization– Flexible and scalable– Quickly adaptable to the

change– Clear templates, tools,

frameworks and structure– Accessible and available

resources– Practical – Uses business or organizational

language as opposed to jargon*Combined from the 2009 and 2012 Best Practices in Change Management report

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When to start change management activities?

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Resistance: most common reasons employees resist change

1. Lack of awareness

2. Impact on current job role

3. Organization’s past performance with change

4. Lack of visible support and commitment from managers

5. Job loss

Employee resistance

is the #3 obstacle

to success

It is not about the

solution you are

implementing

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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

5. Impact to their team

Manager resistance

is the #5 obstacle

It's not about the

particular solution,

so how do you

overcome these

reasons?

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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

Effective

communication

is critical

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Communication: Preferred senders of change messages

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p. 136

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Organizational competency

People-dependent without any formal practices or plans

Many different tactics used

inconsistently

Examples of best practices evident

Selection of common approach

Continuous process

improvement in place

Highest rate of project failure, turnover and

productivity loss

Little or no change management appliedAdhoc or

AbsentLevel 1

Some elements of change management are being applied in isolated projects

Isolated

ProjectsLevel 2

Comprehensive approach for managing change is being applied in multiple projects

Multiple

ProjectsLevel 3

Organization-wide standards and methods are broadly deployed for managing and

leading change

Organizational

StandardsLevel 4

Highest profitability and responsiveness

Change management competency is evident in all levels of the organization and is part of the organization’s intellectual property and

competitive edge

Organizational CompetencyLevel 5

People-dependent without any formal practices or plans

Many different tactics used

inconsistently

Examples of best practices evident

Selection of common approach

Continuous process

improvement in place

Highest rate of project failure, turnover and

productivity loss

Little or no change management appliedAdhoc or

AbsentLevel 1

Some elements of change management are being applied in isolated projects

Isolated

ProjectsLevel 2

Comprehensive approach for managing change is being applied in multiple projects

Multiple

ProjectsLevel 3

Organization-wide standards and methods are broadly deployed for managing and

leading change

Organizational

StandardsLevel 4

Highest profitability and responsiveness

Change management competency is evident in all levels of the organization and is part of the organization’s intellectual property and

competitive edge

Organizational CompetencyLevel 5

Prosci Change Management Maturity Model © Prosci

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Change Management Maturity Model

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Levels of change saturation

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0% 5% 10% 15% 20% 25% 30% 35%

Do not know

Plenty of capacity

Quite a bit of capacity

Somespare capacity

Nearing saturation point

At saturation point

Past saturation point

Percent of respondents

Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.

Level of change saturation

2013

2011

2009

2007

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Consequences of change saturation

Individual behaviors exhibited in a change-saturated environment

• Disengagement and apathy• Frustration and increased stress• Fatigue and burnout • More resistance to change• Confusion• Cynicism and skepticism

Symptoms of change saturation with projects and project teams

• Changes did not realize benefits • Lack of resources • Changes were not sustained• Projects failed to gain momentum

Organizational symptoms of a change- saturated environment

• Higher turnover• A decline in productivity• Increased absenteeism• Loss of focus on business basics• Negative morale

Page 29: Copyright © 2014 Prosci Inc. All rights reserved. Best Practices in Change Management Briefing Please read Right to use this content is governed by the

Copyright © 2014 Prosci Inc. All rights reserved.

All findings are from Prosci’s 2014 Best Practices in Change

Management benchmarking report

Find out more at:www.change-management.com/best-practices-report.htm

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