This document provides an overview and agenda for an IT PM lunch training on business transition and change management. It discusses key concepts around change management including: defining business transition management as managing the people side of change; explaining why change management is important using models that show how resistance increases and productivity decreases without it; comparing project management and change management processes and tools; and outlining Prosci's three phase change management process of preparing for transition, managing transition, and reinforcing transition.

1. IT PM Lunch Training
Business Transition & Change
Management Introduction
Alex Ragan

2. Agenda
 What is Business Transition Management
 Why Business Transition Management Matters
 PROSCI Change Management Model
 Project Management vs. Business Transition Management
 3 Phases of Business Transition Management
 Roles of Business Transition Management
 Alex’s Key Take-Aways

3. What is Business Transition Management
 “The process, tools and techniques to
manage the people side of change to
achieve the required business results”
PROSCI – Change Management Learning Center 2014
 Not to be confused with “Change Management” that is
focused on scope, resource, schedule, design “change”
recent discussed.

4. 1st communication or
1st rumor
Increasingresistance
Decreasingproductivity
Time
Worry / uncertainty
Comfort / security
Risk / flight
Prosci®
Flight Risk Model
4 4
• People are
naturally change
adverse.
• With any change,
you can expect a
decline in
productivity and an
increase in
resistance.
• CM helps remove
barriers and
shepherd the
people through the
process of change
When Change Is Managed Well

5. 1st communication or
1st rumor
Increasingresistance
Decreasingproductivity
Time
Worry / uncertainty
Comfort / security
Risk / flight
Prosci®
Flight Risk Model
5 5
When There Isn’t Business Transition
Management
• The reality is
that change
creates
instability
and
introduces
risk to the
organization.
• People’s
personal and
professional
lives play a
role

6. 1st communication or
1st rumor
Increasingresistance
Decreasingproductivity
Time
Project 1
Project 3
Project 2
Prosci®
Flight Risk Model
When There Is To Much Change
• Multiple changes
within the
organization
aggravate and
compound this
risk.
• People and
organizations
have limits on
how much
change can be
successfully
absorbed at any
one time

7. 1st communication or
1st rumor
Increasingresistance
Decreasingproductivity
Time
Dept. A
Dept. B
Dept. C
Dept. D
Prosci®
Flight Risk Model
• The degree of
adverse impact
will vary by group
• Long term goal is
to develop an
organization
adopts a
common change
language and
embraces
change as part of
their DNA and
Organizational Culture Plays A Role

8. Building Blocks of Transition
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.
© 2012 Prosci and Bill Cigliano
8

9. People Adopt Change At Different Rates
A D K A RPerson A
A D K A RPerson B
A D K A RPerson C
A D K A RPerson D
A D K A RPerson E
A D K A RPerson F
A D K A RPerson G
A D K A RPerson H
A D K A RPerson I

10. Project
Name
Purpose Particulars People
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 from the beginning
The ‘people side’ side of change is key to project and organizational success
Why Business Transition Management Matters

11. 16%
46%
77%
96%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=244)
Fair
(n=653)
Good
(n=834)
Excellent
(n=165)
Percentofrespondentsthatmet
orexceededprojectobjectives
Overall effectiveness of change management program
* Data from 2007, 2009, 2011 and 2013
Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of change management effectiveness
to meeting project objectives
Benefits of Business Transition Management

12. 48%
63%
71%
81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=258)
Fair
(n=737)
Good
(n=1001)
Excellent
(n=180)
Percentofrespondentsthat
wereonorunderbudget
Overall effectiveness of change management program
* Data from 2007, 2009, 2011 and 2013
Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of change management effectiveness to staying on budget
Benefits of Business Transition Management

13. 16%
32%
54%
72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
(n=293)
Fair
(n=793)
Good
(n=1032)
Excellent
(n=181)
Percentofrespondentsthatwere
onoraheadofschedule
Overall effectiveness of change management program
* Data from 2007, 2009, 2011 and 2013
Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition.
Correlation of change management effectiveness
to staying on schedule
Benefits of Business Transition Management

14. PROSCI Model For Change
 Based on client interactions.
 A framework that describes the
elements needed for initiatives to
be successful.
 Projects are at risk if any one of
the three elements is missing.
Prosci®
PCTTM
Model
The Prosci® Project Change Triangle (PCT) is a trademark of Prosci, Inc. All rights reserved.
 Leadership / Sponsorship
provides guidance and
governance
 Project Management gives
structure to the technical side of
the change
 Change Management supports
the people side of the change
All three elements must be present for project success

15.  Project management is the set of
processes and tools applied to business
problems or opportunities to develop and
implement a solution.
 One of the key components is having a
change defined – you must know what is
changing (processes, systems, job roles,
organizational structure, etc.) in order to
manage that change effectively.
 Project management involves
understanding the tradeoff between the
time, cost and scope of change that can
be achieved.
 Finally, project management is the
application of the discipline called 'project
management' that is a structured approach
for managing tasks, resources, and budget
in order to achieve a defined
deliverable. Successful changes apply
project management tools and processes
to their initiatives.
Prosci®
PCTTM
Model
Project Management Focus

16.  Change management is the application of a set of
processes, tools and practices that are used to
manage the people side of a change. Change
management is the bridge between
“implementing a solution” and an organization
ultimately realizing the benefits associated with
the change.
 Change management requires two perspectives –
an individual perspective (how people
experience change) and an organizational
perspective (how groups can be managed
through a change).
 Change management is the process of helping
employees transition from the current state to
the future state (as defined by the change) in a
way that minimizes productivity loss, negative
customer impact and employee turnover, while at
the same time maximizes the speed of adoption
and ultimate utilization of the change throughout
the organization.
 Tools like communication, sponsorship and
coaching are used to help employees make their
own individual transition.
 Business results are only achieved when
employees are involved and participating in
the change. Change management is the final
element of realizing change effectively.
Prosci®
PCTTM
Model
Change Management Focus

17. How things
are done today
How things will
be done
tomorrow
How to move
from current
to future
Current
state
Transition
state
Future
state
17
3 States of Change

18. IndividualsOrganization
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Current
state
Transition
state
Future
state
Change management
drives project success by
supporting individual
transitions required by
organizational projects
and initiatives
Importance of Individuals Change

19.  Project Management
— Explore
— Planning
— Executing
— Stabilization
— Closure
 Business Transition
Management
— Organizational:
– Preparing for change
– Managing change
– Reinforcing changeTM
— Individual:
– Awareness
– Desire
– Knowledge
– Ability
– Reinforcement®
Comparing Processes

20. Comparing Tools
 Project Management
— Problem Statement
— Value Statement
— Design Document
— Work Breakdown Structure
— Budget Estimations
— Resource Allocation
— Schedule
— Tracking
 Change Management
— Individual change model
— Readiness assessment
— Communication plans*
— Sponsorship roadmaps
— Coaching plans
— Training plans*
— Resistance management
— Reinforcement
* Some Change Management Tools are already typically used in
Project Management, but not sufficient by themselves

21. What Is The Right Amount?
 How much project
management is
needed?
— Depends on the
complexity and degree
of change to processes,
systems, organization
structure and job roles
 How much change
management is
needed?
— Depends on the amount
of disruption created in
individual employees’
day-to-day work and the
organization attributes
like culture, value
system and history with
past changes

22. Phasesofachangeproject
Required elements of change for employees
Awareness Desire AbilityKnowledge Reinforcement
Post-implementation
Implementation
Concept and Design
Business need
Successful
Change
© Prosci
22 22
PM & CM Working Together

23. Ineffective change management
Ineffective project management
Phasesofachangeproject
Awareness Desire AbilityKnowledge Reinforcement
Post-implementation
Implementation
Concept and Design
Business need
SuccessFailure A
Failure B
Required elements of change for employees
© Prosci
23
PM & CM Not Working Together

24.  A structured process for managing
the ‘people side’ of change on a
project or initiative
 Parallel processes & compliment
existing SDLC / Frameworks
Prosci’s Change Management ProcessProsci®
3-Phase Change
Management Process
Business Transition Management Process

25. Phase 1 – Preparing for Transition
 Understanding the
nature of the change
 Understanding the
groups being
changed
 Creating the right
sponsorship model
and coalition
 Identifying risks
 Developing special
tactics
25

26. Phase 2 – Managing Transition
 Communication plan
 Sponsor roadmap
 Training plan
 Coaching plan
 Resistance
Management Plan
26

27. Phase 3 – Reinforcing Transition
 Compliance audit
reports and
employee feedback
 Corrective action
plans
 After action review
 Transition
management
27

28. Who Drives Change? – Everyone!
 The Change Management
Plan & Team is the cog that
drives change throughout
the organization.
 Effective change
management requires
involvement and action by
many in the organization
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
28 28

29. Alex’s Key Take-Aways
 Multiple levels & approaches to applying Transition
Management concepts, not a one-size-fits-all
 Simply having a user perspective on change will aid in
adoption and realization of project / change value
 PROSCI Model easily plugs into existing ESS PM
Framework as well as multiple “Agile” based strategies
 More involvement and utilization of Project Sponsor and
People Managers
 Start Early!
 Customer impressions and opinions of project success
stand to improve with adoption of Business Transition
Management concepts

30. Backup

31. 31
Risk assessment grid

32. Senior leaders
 Why is this group important?
— Active and visible sponsorship is
identified as the top contributor to
overall project success in Prosci’s
five benchmarking studies
— Senior leaders are one of two
preferred senders of messages
about change
 What is this group’s role?
— Participate actively and visibly
throughout the project
— Build the needed coalition of
sponsorship with peers and other
managers
— Communicate the business
messages about the change
effectively with employees
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
32 32

33. Managers & supervisors
 Why is this group important?
— Managers and supervisors are the
other preferred sender of messages
about change
— This group has a unique and well-
developed relationship with the
employees being impacted by the
change
 What is this group’s role?
— Communicate the personal
messages about the change with
their direct reports
— Conduct group and individual
coaching sessions
— Identify, analyze and manage
resistance
— Provide feedback to the rest of the
change management ‘gears’
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
33 33

34. Employees
 Why is this group important?
— Employees will ultimately make
changes to how they do their day-
to-day work
— Their acceptance and use of the
solution determines the success of
the project and the ongoing benefit
derived from the change
—
 What is this group’s role?
— Seek out information related to the
business reasons for change and
the personal impact of the change
— Provide feedback and reaction to
the change and the change
management efforts
— Take control of the personal
transition (using an individual
change management model like
ADKAR)
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
34 34

35. Project Team
 Why is this group important?
— The project team designs and
develops the ‘change’ – they are
the ones who introduce new
processes, systems, tools, job roles
and responsibilities
— This group provides much of the
specific information about the
change to the other ‘gears’
 What is this group’s role?
— Provide timely, accurate and
succinct information about the
change (or project)
— Integrate change management
activities into project management
plans and activities
Project team
Change
management
Senior leaders
Managers and
supervisors
Employees
35 35