Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The People Case: How to Convince Your Organisation to Invest in Change

579 views

Published on

Having trouble convincing your stakeholders of the need to invest in Change Management capability? Do you face a constant challenge promoting the value of Change Management within your organisation?

Hear first-hand our practical tips on how to communicate the return on investment of Change Management.

Published in: Business
  • Be the first to comment

  • Be the first to like this

The People Case: How to Convince Your Organisation to Invest in Change

  1. 1. The People Case: How to convince your organisation to invest in change Presented by: Joanne Rinaldi August 2016
  2. 2. Change Management Workshop for Project Managers Get your Project Managers singing from the same song sheet with Change Management EXCLUSIVE OFFER Take 2: one at full price and 2nd at half price Take 3: two at full price and 3rd is free Promotional code – DPR2016 2
  3. 3. 3 Introducing Being Human •  Founded in 1993 •  Our mission: develop change- capable people and organisations so they achieve the benefits of change •  Exclusive Prosci Primary Affiliate for Australia and New Zealand
  4. 4. Where to find today’s slides and recording •  Being Human Company Linked in Profile – Follow us •  Catherine Smithson’s Linked In profile •  Being Human’s Facebook page •  www.slideshare.net Search for Being Human Pty Ltd (now includes option to listen to recording) •  YouTube - Search for Being Human Pty Ltd 4
  5. 5. 5 A research company focused on change management: •  Value Proposition: To help organisations build internal change management competencies through the development and delivery of tools and methodologies that are: Holistic Research- based Easy-to-use Best practices research Model, process and tool development Knowledge transfer Competency building
  6. 6. Primary reasons for applying change management •  Increase probability of project success •  Project benefits that depend on employee adoption and usage of the change - ROI •  Manage employee resistance to change •  Build change competency into the organisation
  7. 7. Successful change requires both the technical and people sides 7 Current Transition Future Technical side People side Design Develop Deliver Embrace Adopt Use + Both aim to deliver value to the business by supporting initiatives and projects
  8. 8. 8 Better Change Management = More Likely to Meet Objectives Industry research supports Prosci’s findings: •  McKinsey •  IBM •  PWC
  9. 9. Connecting Change Management to Business Results 9 Project Why are we changing? What are we changing? Who will need to change? What is our Pay-off? If people don’t change how they do their job, then it doesn’t matter what specific changes are implemented. If people don’t change how they do their job, then we ultimately won’t achieve what we set out to do from the beginning.
  10. 10. 10 Change Management Goal To drive and capture the portion of project benefits that depend on employee adoption and usage of the change. ROI of change: Speed of adoption How quickly are people up and running on the new systems, processes and job roles? Ultimate utilisation How many employees (of the total population) are demonstrating “buy-in” and are using the new solution? Proficiency How well are individuals performing compared to the level expected in the design of the change?
  11. 11. ROI of Change Management
  12. 12. 12 Change Management Best Practices • Trends
  13. 13. 13 14% 57% 62% 80% 89% 0% 50% 100% Other Organizational structure changes Job role changes Systems changes Process changes A Majority of Projects Types of changes reported on in Prosci’s 2015 study 2016 Best Practices in Change Management Report. 1,120 participants in 56 countries. Prosci Inc copyright 2016.
  14. 14. 14 The amount of change is increasing 2016 Best Practices in Change Management Report. 1,120 participants in 56 countries. Prosci Inc copyright 2016.
  15. 15. 15 Levels of change saturation 3% 4% 5% 15% 29% 26% 18% 3% 3% 4% 13% 25% 25% 27% 3% 4% 4% 11% 23% 27% 28% 0% 10% 20% 30% 40% Do not know My organization has plenty of spare capacity for change My organization has quite a bit of spare capacity for change My organization has some spare capacity for change My organization is nearing the point of change saturation My organization is at the point of change saturation My organization is past the change saturation point Percent of respondents 2015 2013 2011 2016 Best Practices in Change Management Report. 1,120 participants in 56 countries. Prosci Inc copyright 2016.
  16. 16. 16 Change Management Effectiveness 0% 10% 20% 30% 40% 50% 60% Yes No Don't know 2013 2015 42% of participants in the 2015 study reported measuring CM effectiveness 2016 Best Practices in Change Management Report. 1,120 participants in 56 countries. Prosci Inc copyright 2016.
  17. 17. 17 Approximately 10% indicated that performance was better than expected and over a third met expectations. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Don't know Too early to tell Lower than expected In line with expectation Faster, greater or more than expected Adoption Utilisation Proficiency Defining and measuring ROI 2016 Best Practices in Change Management Report. 1,120 participants in 56 countries. Prosci Inc copyright 2016.
  18. 18. 18 What does resistance look like?
  19. 19. 19 INCREASINGRESISTANCE DECREASINGPRODUCTIVITY TIME Prosci ® Flight Risk Model Change creates instability and introduces risk Productivity loss Employee dissatisfaction Passive resistance Turnover of valued employees Tangible customer impact Active resistance Opt-out of the change COMFORT/SECURITY WORRY/UNCERTAINTY RISK/FLIGHT
  20. 20. 20 2016 Best Practices in Change Management Report. 1,120 participants in 56 countries. Prosci Inc copyright 2016. • Proactive (not fire fighting) • “Adoption and usage” from the beginning When to start change management?
  21. 21. 21 Who is involved in managing change? •  The change management resource on a project plays the role of enabler •  The conductor of the orchestra •  The director of the play •  Effective change management requires involvement and action by many in the organisation Middle managers and supervisors Change management resource/team Executives and senior managers Project team Employees
  22. 22. 22 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’
  23. 23. Conclusion •  Increase probability of project success by managing the ‘people side’ of change •  Change management and project management are both tools that support project benefit realisation – change management is the ‘people’ side – ROI •  Manage employee resistance to change •  Change management requires action and involvement by leaders and managers throughout the organisation – enablers to build change competency into the organisation
  24. 24. 24
  25. 25. Where to find today’s slides and recording •  Being Human Company Linked in Profile – Follow us •  Catherine Smithson’s Linked In profile •  Being Human’s Facebook page •  www.slideshare.net Search for Being Human Pty Ltd (now includes option to listen to recording) •  YouTube - Search for Being Human Pty Ltd 25
  26. 26. More info 26 beinghuman.com.au •  Free Prosci Webinars •  Free Community of Practice Webinars •  Change Conversations Seminar, Canberra, May 25 Prosci •  change-management.com •  prosci.com •  portal.prosci.com

×