the people case: how to convince your organisation to invest in change

The People Case: How to convince your organisation to invest in change Presented by: Joanne Rinaldi August 2016

Change Management Workshop for Project Managers

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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

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

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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

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

Successful change requires both the technical and people sides

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Current Transition Future

Technical side

People side

Design Develop Deliver

Embrace Adopt Use

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Both aim to deliver value to the business by supporting initiatives and projects

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Better Change Management = More Likely to Meet Objectives

Industry research supports Prosci’s findings: •  McKinsey •  IBM •  PWC

Connecting Change Management to Business Results

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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.

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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?

ROI of Change Management

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Change Management Best Practices

• Trends

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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.

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The amount of change is increasing


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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


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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


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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


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What does resistance look like?

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INC

RE

AS

ING

RE

SIS

TAN

CE

D

EC

RE

AS

ING

PR

OD

UC

TIV

ITY

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 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?

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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

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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’

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

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

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More info

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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