4 Change Catalyzing Questions

Copyright Prosci 2015. All rights reserved.
Prosci Change Management Webinar
4 Change Catalyzing Questions
1
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Copyright Prosci 2015. All rights reserved.3
Originally delivered:
Dec 12, 2014
Las Vegas, NV
March 19, 2015
London, UK
June 2, 2015
Sydney, AU
March 6, 2015
Phoenix, AZ
May 15, 2015
Chicago, IL
July 30, 2015
Dallas, TX
Business Process Management
(BPM) Summit – Keynote
Improving Customer
Experience in Utilities Leading Change
in Higher Education

4 Change Catalyzing Questions
Enabling You to Cross the Chasm
Requirements Results
Outputs Outcomes
Specifications Sustainment
Installation Realization
Solutions Benefits4

“Knowing what to do with a toon is easy.
It's getting them to do it that's hard.“
Ender to Bean in Ender’s Game, Orson Scott Card
5

Ownership
Accountability
Empowerment
Consistency
Predictability
Control
6

Bigger
Change
7

Faster
Change8

More
Complex
Change9

More
Multi-
Disciplinary
10

More
Cross
Functional
11

More Information
12

More Connected
13

V.U.C.A. World
14

Change ultimately comes to life
One person at a time
15

The achievements
of an organization
are the results of
the combined
effort of each
individual.
Vince Lombardi
16

Successful change requires both
the technical and people sides
Current Transition Future
Technical side
People side
Design
Develop
Deliver
Embrace
Adopt
Use
Results
Outcomes
Success
=+
Installation*
Realization*
* Daryl Conner
17

TransitionCurrent Future
Results and Outcomes Depend on
Employee Adoption and Usage
WithchangemanagementWithout
=
X project
benefits
created
Current FutureTransition
Adoption
and usage
gets bumpy
Adoption
and usage
takes longer
Adoption
and usage
incomplete
Adoption
and usage
not as expected
<X
18

The Gap
A great idea
A perfectly
optimized
process
An effectively
managed
project
Results and
outcomes
Benefit
realization
Sustained
ROI
EMPLOYEE
ADOPTION
AND USAGE
OF THE
SOLUTION
19

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
Ultimately requires individuals to move
from their own current to their own future
An organizational move from the current to the future
20

If we do not support and equip
individual transitions,
then our future state looks nothing
like the future state we expected
F F
F F F
F
F
F
F
F
F
F
F
F F F
F F F F
F F
F F F
F F F F
F
F
F
F
F
F
F
F
21

= lower ROI
= less benefit realization
= unachieved improvement
= not what we expected/hoped for
F F
F F F
F
F
F
F
F
F
F
F
F F F
F F F F
F F
F F F
F F F F
F
F
F
F
F
F
F
F
instead of
22

Change management helps
mitigate mission critical project risks
23

16%
46%
77%
96%
0%
100%
Poor Fair Good Excellent
Change Management Effectiveness
Percent who met or
exceeded objectives
Change management correlates
directly with project success
6x
Increase in likelihood
of meeting objectives
with excellent change
management
24

Employee adoption and usage
of change has a
direct and concrete impact
on achieving expected
results and outcomes
25

Change
Catalyzing
Questions
Why – Who – How Much – What
26

Change Management Blueprint
For Driving Adoption and ROI
Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
adoption
and usage?
What
can we do to drive adoption and usage?
27

It is not the
answer that
enlightens, but
the question.
Eugène Ionesco
28

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
adoption
and usage?
What
29

Why Are We Changing?
-100
100
300
500
700
900
Future
Organizational Benefits Project Objectives
Revenue
Costs
Profits
Efficiencies
Compliance
Safety
Process Excellence
Customer Satisfaction
Specific metrics and
measurements for
improvement
How work will be different
after the change
30

Project
Objectives
Correct inventory levels held
Reduced transportation costs
Reduced cycle time
Reduction of waste in system
Organizational
Benefits
Maximizing gross margin return on
inventory invested (GMROII)
Improve Asset Turnover
Reduce Work In Process Inventory
Example: Supply Chain Optimization
31

Project
Objectives
Data entry kept up-to-date
Accurate information entered
Accurate reports generated
Increased use by all employees
Organizational
Benefits
Increase revenue by:
Turning leads into customers/clients
Increasing wallet share per client
Example: CRM (Customer Relationship Management)
32

Project
Objectives
1. ?
2. ?
3. ?
4. ?
5. ?
Your Project
Organizational
Benefits
1. ?
2. ?
3. ?
4. ?
5. ?
33

Clear Definition of Goals and
Objectives Drives Results
Poorly
Defined
Goals and
Objectives
Adequately
Defined
Well
Defined
Very
Well
Defined
= met objectives= exceeded objectives
34

If you don't
know where
you are going,
you might
wind up
someplace else.
Yogi Berra
35

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
adoption
and usage?
What
36

F
Who Has to Do Their
Jobs Differently?
F F F F
F F F F
F F F
F F F
F F F F
F
F
F
F
F
F
Future
Organizational
Benefits
and Project
Objectives
Individual
adoption
and usage
depend on
and require
Project
Objectives
1.
2.
3.
4.
5.
Organizational
Benefits
1.
2.
3.
4.
5.
37

Adoption
Employees are doing
their jobs the new way
Adhering to new processes
Exhibiting new behaviors
Using new systems/tools
Usage
Employees are effective
in their “adoption”
Proficiently
Completely
Minimal errors
Who Has to Do Their
Jobs Differently?
38

Who Has to Do Their
Jobs Differently?
Individual Transitions
Group What does “to adopt and use” mean for this group?
39

Aspects of a
person’s job
you can impact
Processes
Systems
Tools
Job
roles
Critical
behaviors
Mindset/
Attitudes/
Beliefs
Reporting
structure
Performance
reviews
Compensation
Location
Aspects of
a person’s
job your
change can
impact
40

Even within complex systems,
the individual is the unit of change
Family
Networks
Communities
Geographies
Demography-s
Countries
Teams
Workgroups
Departments
Functions
Enterprise
Industry
41

Who Has to Do Their
Jobs Differently?
Group
What “to adopt
and use” means?
How big of
an impact?
Aspects of
job impacted
Processes
Systems
Tools
Job roles
Critical behaviors
Mindset/Attitude/Belief
Reporting structure
Performance reviews
Compensation
Location
43

Just because it is
common sense
does not mean it is
common practice!
Will Rogers
44

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
adoption
and usage?
What
45

Future
Adoption
contributionFuture
How Much Depends on
Adoption and Usage?
Net Project Benefit
Dependent on
adoption and
usage
Not dependent
on adoption
and usage
Installation
contribution
ROI =
Expected Project Benefit – Project Cost
Project Cost
Net Project Benefit
Project Cost
=
46

How Much Depends on
Adoption and Usage?
Value/benefit
you expect from
the change effort
(Project ROI)
Portion of benefit
that depends on
individual transitions
(CMROI)
“People Dependency”
None AllHighLow Medium
47

How Much Depends on
Adoption and Usage?
Example variables that impact “people dependence”
Few employees impacted
Few job aspects changed
Similar to what we know
Incremental
Many employees impacted
Many job aspects changed
Drastically different
Disruptive
48

How Much Depends on
Adoption and Usage?
Project
Objectives
1.
2.
3.
4.
5.
Organizational
Benefits
1.
2.
3.
4.
5.
Indicate how dependent
this benefit or objective
is on PEOPLE
ADOPTING AND USING
THE CHANGE
49

Gartner BPM Summit
Dec 12, 2014
Prosci Webinar
Feb 11, 2015
50

How Much Depends on
Adoption and Usage?
%
of expected project
benefits depend on
adoption and usage
is the ROI of change management
51

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
adoption
and usage?
What
52

What Can We Do To Drive
Adoption and Usage?
CHANGE
MANAGEMENT
53

Change management:
CHānj ‘manijmǝnt
How we catalyze employee
adoption and usage to
capture the portion of project
benefits that depends on people
changing how they do their jobs
Catalyzing
to deliver
organizational results
54

How does
this person
make a
successful
personal
change?
55

M T W R F
An email on Monday
for training on Tuesday
for launch on Wednesday
is NOT the way to prepare
and equip individuals to
successfully change
56

Prosci
®
ADKAR
®
Model
Reinforcement
To sustain the change
Ability
To implement required skills and behaviors
Knowledge
On how to change
Desire
To participate and support the change
Awareness
Of the need for change
57

Real Life Example of ADKAR
58
SAVE OUR PLANET
Dear Guest,
Every day millions of gallons of
water are used to wash towels that
have only been used once.
YOU MAKE THE CHOICE:
A towel on the rack means
“I will use again.”
A towel on the floor means:
“Please replace.”

A Few More Real Life Examples
59
Same change, different Desires

A Few More Real Life Examples
60
App introduction screens – K and A
The
Weather
Channel
Fandango
Pulse

Prosci
®
ADKAR
®
Model
Reinforcement
“I will continue to…”
Ability
“I am able to…”
Knowledge
“I know how to…”
Desire
“I have decided to…”
Awareness
“I understand why…”
61

Awareness
What is the nature of the change?
Why is the change happening? Why now?
What happens if we don’t change?
Change begins with understanding why
Awareness IS:
Awareness of the NEED for change
Awareness is NOT:
Awareness that a change is happening
62

Desire is tricky because
You cannot MAKE Desire, but…
You can INFLUENCE Desire
Desire
What’s in it for me (WIIFM)?
What are the personal motivating factors?
What are the organizational motivations?
Change involves personal decisions
63

Knowledge
Training on and learning new behaviors,
skills, processes and tools
During and after the change occurs
Change requires knowing how
Knowledge is NECESSARY but not
SUFFICIENT for creating change
This is what Knowledge without
Awareness and Desire looks like
64

Ability
Demonstrated capability to implement the
change in performance or behavior
Change requires action in the right direction
There can be a Knowledge-Ability Gap
Knowledge = Ability/
Knowledge
Knowledge
Knowledge
Ability
Ability
Ability
65

Reinforcement
Actions that increase the likelihood that
the change will be continued
Recognition and rewards to sustain
Change must be reinforced to be sustained
Without Reinforcement,
it is our tendency to revert back:
• Natural
• Physical
• Psychological
66

ADKAR Defines Success: For One
Person or Organization-Wide Changes
Change with
one person
Or five
people…
Or twenty
people…
Or 1000
people…
67

Adoption and Usage?
Defines the
MILESTONES
of successful
individual
change
Awareness Desire Knowledge Ability Reinforcement
Awareness “I understand why…”
Desire “I have decided to…”
Knowledge “I know how to…”
Ability “I am able to…“
Reinforcement®
“I will continue to…”
68

Adoption and Usage?
Individual:
Awareness Desire Knowledge Ability Reinforcement
Communication plan
Sponsor roadmap
Coaching plan
Training plan
Resistance Mgmt
Organizational:
69

Adoption and Usage?
Initiate Plan Design Develop Deploy
“Go Live”Kick off
Phase 3:
Reinforcing
Change
Phase 2:
Managing
Change
Phase 1:
Preparing
for Change
A D K A R
Strategy Plans Measures
General
Project
Lifecycle
Individual
Change Journey
Milestones
Organizational
Change Mgmt
Activities
Major events
Prosci
®
ADKAR
®
Model
Prosci
®
3-Phase
Process
70

Adoption and Usage?
Outputs:
Individual
Adoption
Usage
Project
Results
Outcomes
Benefits
Value
Inputs:
Defined
change
Technical
solution
Individual Change
Management Work Stream
Milestones needed for a
single person to make a
change successfully
Organizational Change
Management Work Stream
Deliverables (strategy
and plans) that support
71

Sponsorship
Communications
Middle Management
Engagement
Employee
Engagement
Change Management
Approach
Change Management
Resources
Integrating with PM
The Goal:
Employee
adoption
and usage
Top Contributors to Success – Relationship to Adoption and Usage
Copyright © 2014 Prosci Inc. Best Practices in Change Management – 2014 Edition
What Can We Do (Right) To Drive
Adoption and Usage?
72

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
adoption
and usage?
What
PUNCHLINE
You can drive more successful change
when you begin answering:
WHY
WHO
HOW MUCH
WHAT
73

Why
are we changing?
Who
has to do their
jobs differently?
How
Much
depends on
adoption
and usage?
What
74

SUCCESS
SUCCESS
Adoption drives ROI
You can drive adoption
75

Prosci Solution
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
76

4 Change Catalyzing Questions

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