The document discusses the past, present, and future of change management and its importance for project managers. It describes three ages of change management: 1) a people-focused approach with good intentions, 2) an optional extra to support project success, and 3) a key success factor integrated with project management. Data shows that change management increases project success rates by focusing on adoption and individual transitions. The future holds embedding change capabilities into organizations and making change everyone's responsibility. Change management will continue to partner closely with project management to achieve benefits.

1. The Future of Change
Management and
Why it Matters to
Project Managers
Presented by
Catherine Smithson
May 2017

2. Introducing Being Human
• Founded in 1993
• Our mission: develop
change-capable people
and organisations so
they achieve the
benefits of change.
• Prosci Primary Affiliate
Australia and New
Zealand.
2
Getting back to Normal…
it’s a town in Illinois USA.

3. Prosci by the numbers
3

4. Topics
1. The three ages of Change Management
2. A new business case
3. What does the future hold and why it
matters to Project Managers
4

5. The three ages of Change Management
5

6. 1st age – Warm and fluffy stuff
• Good intentions
• Strong people focus
• Often located in L&D, HR, OD
• Many different approaches
• Little partnership with PMs
• Fire fighters
6

7. 2nd age - Optional extra
• Focus on project success
• Use of standard methodology and
tools
• Located in projects
• Partnerships with PMs
• Pro-active
• But …. LIFO syndrome
7

8. 3rd age - Key success factor with PM
• Strong focus on project benefits and
outcomes
• More recognition of value-add
• Trusted advisor role
• Targeted and tailored
• Integration with other business
disciplines
8

9. Enabling vs employee facing roles
9

10. Bigger
Change
10
Faster
Change
More Complex
Change
More Cross
Functional
Change is the new “business as usual”

11. Most executives recognise the need for
embedding change capability
11
76%
Our ability to adapt is a key
source of competitive
advantage.”
PriceWaterhouseCoopers 2008
90%
“Organisational agility is
critical to business
success.”
McKinsey 2009

12. 37%
45%
52%
61%
65%
Level 1
Level 2
Level 3
Level 4
Level 5
Project success rate by maturity level:
Organisations with higher Change Management
maturity have higher project success rates
Prosci 2016 Best Practices in Change Management Benchmarking Report.
1120 participants in 56 countries. Prosci copyright 2016 c

14. Application growing at the project level
14
of organisations apply a
Change Management
methodology
of organisations applying
Change Management
across the organisation
Prosci 2016 Best Practices in Change Management Benchmarking Report.
1120 participants in 56 countries. Prosci copyright 2016 c

15. Strong integration with Project Management
15
Percentage of participants who integrated
Project Management and Change Management
77%
20%
3%
0%
20%
40%
60%
80%
100%
Yes No Don't know
Integration makes an impact on
achieving project objectives
58%
42%
0%
50%
100%
Integrated Did not
integrateProsci 2016 Best Practices in Change Management Benchmarking Report.
1120 participants in 56 countries. Prosci copyright 2016 c

16. Awareness that successful change is leader led
16
Projects with effective Sponsorship are
three times more likely to achieve objectives
than those without
Prosci 2016 Best Practices in Change Management Benchmarking Report.
1120 participants in 56 countries. Prosci copyright 2016

17. Following the lead of Project Management
• Body of Knowledge/Best Practices
• Professional Associations
• Accreditations and Education
• Methodology and Tools
• Dedicated practitioners
• Evidence to demonstrate ROI
17

18. A new business case for Change Management
18

19. Organisations change for a reason
PerformancePerformance
>
© Prosci Inc. All rights reserved www.change-management.com
Current
state
Transition
state
Future
state

20. Future
Implementing an ERP
Installing Electronic
Medical Records
Documenting and optimising
business processes
Move to a new
physical location
We tend to focus on change at the organisational
level
© Prosci Inc. All rights reserved www.change-management.com

21. 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 state
An organisational move to a future state
© Prosci Inc. All rights reserved www.change-management.com

22. Transition
T
Current Future
C 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 F
T
T
T
F
F
F
F
F
F
F
F
The true unit of change is the individual
© Prosci Inc. All rights reserved www.change-management.com

23. The Swiss Cheese Future State
TransitionCurrent Future = Benefits
Current FutureTransition
23© Prosci Inc. All rights reserved www.change-management.com
= ?

24. 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
© Prosci Inc. All rights reserved www.change-management.com

25. Results and outcomes depend on employee
adoption and usage
Solution must be:
• Designed
• Developed
• Delivered
and
• Embraced
• Adopted
• Used
25
Future
Effectiveness = Quality x Acceptance
General Electric – 1980s
© Prosci Inc. All rights reserved www.change-management.com

26. The unified value proposition
Solution is designed,
developed and delivered
effectively
(Technical side)
Solution is embraced, adopted
and utilised effectively
(People side)
+
Complementary disciplines with a common objective
Project management
Change management
Current Transition FutureCurrent Transition Future
© Prosci Inc. All rights reserved www.change-management.com

27. “People side of change” is about closing the gap
Requirements Results
Outputs Outcomes
Specifications Sustainment
Installation Realisation
Solutions Benefits
*
* Daryl Conner
© Prosci Inc. All rights reserved www.change-management.com

28. The data tells the story: Change Management
drives results
28
Change Management increases
success rates by a factor of 6

29. Change Management drives staying on schedule
29
Percentageofrespondentsthatmetor
exceeded
projectobjectives

30. 30
Change Management drives staying on budget
Percentageofrespondentsthatmetor
exceeded
projectobjectives

31. 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
3 People Side Factors
Determine results from change
© Prosci Inc. All rights reserved www.change-management.com

32. Adoption
contribution
Installation
contribution
Adoption
contribution
Installation
contribution
Adoption
contribution
Installation
contribution
How much of our expected results and
outcomes depends on adoption and usage?
Future
Adoption
contribution
Installation
contribution
20%
50%
80%
Adoption Contribution = People Dependency of ROI
None AllHighLow Medium
Portion of benefit
that depends on
individual transitions
(CMROI)
© Prosci Inc. All rights reserved www.change-management.com

33. Two questions to put Change Management
on the agenda
1. What is the approx percentage of project benefits that
are dependent on people adopting & using the change?
2. What is the approx % of focus & resources on the project
are dedicated to ensuring people adopt the change and use
it proficiently?
33

34. A new definition
Preparing, equipping
and supporting individuals to adopt and
use the change so organisational
benefits are achieved

35. What does the future hold?
35
1. Embedding Change
capabilities into
organisational DNA
2. Change as everyone’s
job

36. 36

37. Single view of change – air traffic control for all
Project and BAU change
37

38. The partnership with Project Management
• Alignment and integration
• Resourcing and roles
• PMs as advocates for
investing in Change
Management
• Closing the gap
38
Requirements Results
Outputs Outcomes
Specifications Sustainment
Installation Realisation
Solutions Benefits

39. More info
39
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