Slides Prosci What Is CM and Why 2024

What Change Management is and Why it Matters
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Presented by: Bryan Carey VP of Instruction
2
© Prosci, Inc. All rights reserved
Agenda
1. What is Change 2. The Value of a 3. Change Management

Management Structured Approach is Critical to Project
Success
Bigger Faster
change change
More complex More interconnected

change change
4
First Impressions of Change

Management
1. We don’t need this – we have delivered
a lot of projects successfully.
2. Why am I here? I already know change management.
3. This could be interesting, but I’m not sure yet.
4. It’s about time – we have needed this for a while!
Agenda

Success
6
1. What Is Change Management?
Change management is the application of a

structured process and set of tools for leading the
people side of change to achieve a desired outcome.
How Organizations Often Handle Change

M T W R F
An email on Monday for training on Tuesday for “go live” on Wednesday
is NOT the way to prepare and equip individuals to successfully change
8
Define Change Management
On a Project Level On an Organizational Level
Change management is the application A leadership competency for enabling

of a structured process and set of tools change within an organization.
for leading the people side of change
to achieve a desired outcome. A strategic capability designed to increase
change capacity and responsiveness.
©
© Prosci,
Prosci, Inc.
Inc. All
All Rights
Rights Reserved.
Reserved. 9
Successful Change Requires Both Technical and People Sides

“Technical side”
executed by
project management
discipline
“People side”
executed by
change management
discipline
10
We Tend to Focus on Change at the Organizational Level
Implementing an ERP
Installing electronic medical records
Future
Documenting and optimizing business processes
Move to a new physical location
11
What is Change?
A movement out of Through To ultimately reach
Current Transition Future
Implementing an ERP Documenting and optimizing

business processes
Installing electronic Move to a new
medical records physical location
12
The True Unit of Change is the Individual
C C C C C T T T T T F F F F F
C C Current
C C C T TTransition
T T T F F Future
F F F
13
Why Is Change Management Important?
14
We Apply Change Management to…

Mitigate Consequences of the “Swiss Cheese Future State”
Instead of
Lower History of Failed Unachieved Not What We

ROI Changes Improvement Expected/
Hoped For
15
Improves Change Outcomes
Percent of Respondents That Met or Exceeded Project Objectives

100%
88%
80% 73%
60%
7X
39%
40%
20% 13%
3X
0%
Poor Fair Good Excellent
Source: Prosci Research Hub
16
The People Side of Change Is How to Close the Gap
Requirements Results
The People Side of Change

Outputs Outcomes
Specifications Sustainment
Installation Realization*
*The Leader's Challenge: Installation or Realization, Conner Partners, 2004
17
Agenda

Success
18
2 ‐ The Value of a Structured Approach Top 7 Greatest Contributors

to Change Success
1. Active and visible executive

A structured approach improves change management sponsorship
effectiveness, and therefore increases the likelihood 2. Structured change management
of change success. approach
3. Employee engagement and
The Prosci Methodology focuses on individual participation
adoption and usage, while offering a structured 4. Frequent and open communication
process to guide the development and execution 5. Dedicated change management
of organizational strategies and plans. resources
6. Integration and engagement with
project management
7. Engagement with people managers
19
Prosci Asked: What are the Benefits of

Using a Structured Approach?
1. Definition of activities, roles, language, processes, tools
and assessments
2. Systematic structure resulting in a consistent and
repeatable approach
3. Logical, detailed progression of stages
4. Easier to understand and explain
5. Support for the value of change management
6. Identification of gaps and common mistakes
20
Use of Methodology Increases Effectiveness
Did Not Use a Particular Methodology

3%
Excellent Used a Particular Methodology
10%
Research Finding 23%

Good
49%
59% of participants who used a
methodology reported good 47%
or excellent change management Fair
effectiveness compared to 26% 34%
that did not use a methodology.
27%
Poor
7%
0% 10% 20% 30% 40% 50% 60%

Percent of respondents
21
When to Start Change Management

“Adoption and usage”
Proactive (not fire fighting)
from the beginning
85% Should Did
36%
26%
20% 17%
12%
2% 1% 0% 1%
Initiation Planning Design Implementation Closure

47% 44% 43% 34% 29%
% that met or exceeded objectives
22
5 Tenets of Change Management

We change for Why are we changing?
Tenet 1
a reason.
Organizational change requires Who has to do their job

Tenet 2
individual change. differently (and how)?
Organizational outcomes are the collective How much of our outcomes depend
Tenet 3
result of individual change. on adoption and usage?
Change management is an enabling framework What will we do to support

Tenet 4
for managing the people side of change. adoption and usage?
We apply change management to realize the How will driving adoption and usage
Tenet 5
benefits and desired outcomes of change. improve results?
23
We Change for a Reason
Begin with Project Health

Prosci Change Triangle (PCT) Model
24
Prosci Change Triangle (PCT) Model: Critical Aspects for Success
Governance and direction

Decisions and actions
A reason for change
Defined benefits and objectives
Units of measure
People side
Individual and organizational
Technical side Engage, adopt, use
Time, cost, scope
Design, develop, deliver
25
5 Questions for Effective Change

For your change, take a few minutes and complete page 3
Benefits Risks
Capture Definition of Success:
Organizational
1. Why are we changing? Outcomes of The risks of

the change not changing
2. Why are we changing now?
3. What is changing?
What you
Individual
4. What is not changing? gain from What you risk

buying in and by opting out
succeeding
5. What is the risk of not changing?
26
The Drivers of Change:

Internal/External + Current Conditions/Future Aspirations
Current Conditions
Market and economic shifts
Strategic plans
Customer demands
Internal performance
Competitive threats
Continuous improvement
New technologies
Demands to do more with less
Regulation/legislation
Internal External
Lower costs
Larger market share
Higher revenues
More satisfied customers
Fewer errors
Less risk exposure
Greater efficiencies
Future Aspirations
27
Organizational Change Requires Individual Change
Helping individuals through ADKAR
28
An Organizational Move to a Future State
Current Transition Future
Ultimately requires individuals to move from

their current to their future state
29
ADKAR Model on a Page

ADKAR element Definition What you hear Triggers for building
Why?
A Awareness Of the need for change “I understand why…” Why now?
What if we don’t?
WIIFM
To participate and
D Desire support the change
“I have decided to…” Personal motivators
Organizational motivators
Within context (after A&D)

K Knowledge On how to change “I know how to…” Need to know during
Need to know after
Size of the K‐A gaps

To implement required
A Ability skills and behaviors
“I am able to…” Barriers/capacity
Practice/coaching
Mechanisms
R Reinforcement To sustain the change “I will continue to…” Measurements
Sustainment
30
Organizational Outcomes are the

Collective Result of Individual Change
31
Individual Change Management

Practical uses of the ADKAR Model
Making sense Guiding change Measuring

of change management plans progress
Diagnosing Developing Enabling managers

gaps corrective actions and supervisors
32
Aligning ADKAR Milestones With Sequential Change

ADKAR milestones describe individual progress and
need to align with the lifecycle of the initiative.
Kickoff Go Live Outcomes
Align Ability
A D K A R
with Go Live
Unfortunate
Reality A D K A R
33
Aligning ADKAR Model With Sequential and Iterative Change

Sequential Change Process Waterfall
A change that results from a Plan Discover Design Develop Deploy Sustain
series of progressive steps that
culminate in a singular push
to the organization.
A D K A R
Iterative Change Process Agile PDCA

R
A change that results from repeated A
Project A
cycles of change, with each cycle Level A D R Act Plan
K
moving toward the final, intended
D
outcome. Plan Sustain
Check Do K
A D K A R
A D K A R A
Release/
Sprint Level A D K A R R
34
Prosci 3‐Phase Process
Phases and stages
35
Use a Structured Change Management Process

Input Output
A change to how the Customized strategy and plans

organization operates for the change efforts
and does work
Concrete action steps to drive
• ERP System adoption and usage
• Strategic Initiative
• New Technology Achievement of expected
• New Benefits Program results and outcomes
• Merger or Acquisition
Realization of benefits for
• New Product the organization
• Productivity Improvement
• Process Change
36
Core Roles in Change Management

Employee‐Facing Roles Enabling Roles
• Authorize the change • Apply structure and intent to change

• Fulfill three key roles: (ABCs) • Enable and equip other change roles
• Actively and visibly participate throughout • Collaborate on a unified approach
Sponsor the project Change with the project manager
• Build a coalition of sponsorship with peers
and managers Practitioner
• Communicate directly with employees
• Support direct reports in their change • Design, develop and deliver the
journeys technical solution with employee
• Fulfill five key roles: (CLARC) adoption and usage in mind from the
beginning
• Communicator Project
People • Liaison • Collaborate on a unified approach
Manager • Advocate Manager with the change practitioner
• Resistance Manager
• Coach
37
Agenda

Success
38
3‐ Change Management is Critical to Success Top 7 Greatest Contributors

to Change Success
1. Active and visible executive

To drive and capture the portion of project benefits that sponsorship
depends on employee adoption and usage of the change. 2. Structured change management
approach
Not just a communication and training plan 3. Employee engagement and
participation
Not just managing resistance
4. Frequent and open communication
Not making sure everyone is happy 5. Dedicated change management
resources
Driving adoption and usage to deliver project outcomes 6. Integration and engagement with
project management
7. Engagement with people managers
© Prosci Inc., Prosci Research Hub

39
39
The Definition of Success: 2 Parts
Project Objectives Organizational Benefits

What the project achieves What the organization gains
• How will the project contribute • What is the problem or
to solving the problem or realizing opportunity for the organization?
the opportunity?
• If the problem is solved or the
• What will the project produce opportunity is realized, what will
or enable? be the benefit(s)?
• How will you know the objectives • How will you know the benefits
have been achieved? have been realized?
40
Employee adoption
and usage of change
has a direct and
concrete impact on
achieving expected
results and outcomes
41
Measurement
Criteria for Measuring Change

Management Effectiveness:
1. Adoption metrics Think about your

2. Qualitative/feedback metrics
project – brainstorm
two or three metrics
3. Employee performance for each of the
4. Overall project performance five criteria listed.
5. Team effectiveness
42
Defining Adoption and Usage
Adoption Usage
Employees are doing Employees are effective
their jobs the new way in their “adoption”
• Adhering to new processes
• Proficiently
• Exhibiting new behaviors
• Completely
• Using new systems/tools
• Minimal errors
There is no universal definition of “to adopt” and “to use” –

it depends on your change and its impact on employees.
43
Intent of Change Management

To drive and capture the portion of project benefits
dependent on adoption and usage
Change • Some expected benefits depend upon employee
Management adoption and usage
is Critical to
Project Success Organizational Benefits
F F F F
F F F F
Future
F F F F
Project Objectives
F F F F
44
Example: Customer Relationship Management
• Increased revenue
Organizational Benefits • Improved operational efficiencies
• Improved customer experience
• Increase revenue with Customer Segment A by 45% within

three years
Project Objectives • Reduce customer acquisition cost by 25% within three years
• Improve Net Promoter Score from +5 to +40 within
three years
45
“People Dependence” of Project Benefit Varies

Adoption Contribution
Installation Contribution
Example variables that impact “people dependence” (adoption contribution)
Many employees impacted Few employees impacted
Many aspects of work impacted Few aspects of work impacted
Drastically different than what we know Very similar to what we know
Disruptive Incremental
46
We Apply Change Management to…

Drive People‐Side Outcome Variables
Speed of Adoption Ultimate Utilization Proficiency
How quickly are people up and How many employees How well are individuals
running on the new systems, (of the total population) are performing compared to the
processes and job roles? demonstrating “buy‐in” and are level expected in the design
using the new solution? of the change?
47
Capture the People‐Dependent Portion of ROI

Project 1: Install motion‐activated Project 2: Install recycle and
lights in meeting rooms compost bins in the office
How much of the expected ROI depends on adoption and usage?

________ ________
48
Bringing Change Impact Into Focus
We’re implementing Which will have a “medium”

a new CRM system impact on your job
49
10 Aspects of Change Impact
Not all groups are impacted by the change in the same way or to the same degree.
Impacted groups benefit from an individualized approach.
50
The Key Question
For your project, what percentage The follow‐up question:

of overall results and outcomes How much are we investing
depends on employee adoption and (budget, people, energy) in driving and
usage of the change? supporting employee adoption and usage?
3% of total investment
in support of adoption
Installation
contribution 70% 3%
Adoption
contribution
97% of total investment on

technical side of solution
51
“ It’s not the strongest

or the most intelligent
who will survive, but
those who can best
manage change.”
Charles Darwin
English naturalist, geologist and biologist, best known
for his contributions to the science of evolution.
52
What are the three best theories of change management?
53
Why People Choose Prosci

Why People Choose Prosci
Focus on Results
The Prosci Methodology uniquely integrates individual
and organizational change management to deliver
business results.
Research Based
At Prosci, our mission is to enable individuals and
organizations to build internal change capabilities through
research‐based, holistic and easy‐to‐use solutions.
Easy to Use
Prosci has certified 100,000+

change practitioners
Holistic Training
54
Questions?
©
55
© Prosci.
Prosci, All
Inc.Rights Reserved.
All Rights Reserved. 55
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Let's Circle Back!

Connect with other attendees on
the Prosci CM User Group to keep
the conversation going.
adkar.me/LI
56
Contact Us:
solutions@prosci.com | +1 970 203 9332 |prosci.com
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What Change Management is and Why it Matters

Let's Circle Back!

© Prosci, Inc. All Rights Reserved. 1

What Change Management is and Why it Matters

© Prosci, Inc. All Rights Reserved. 2

1. What is Change 2. The Value of a 3. Change Management

© Prosci, Inc. All Rights Reserved. 3

More complex More interconnected

© Prosci, Inc. All Rights Reserved. 4

First Impressions of Change

2. Why am I here? I already know change management.

3. This could be interesting, but I’m not sure yet.

4. It’s about time – we have needed this for a while!

© Prosci, Inc. All Rights Reserved. 5

1. What is Change 2. The Value of a 3. Change Management

© Prosci, Inc. All Rights Reserved. 6

1. What Is Change Management?

Change management is the application of a

© Prosci, Inc. All Rights Reserved. 7

How Organizations Often Handle Change

An email on Monday for training on Tuesday for “go live” on Wednesday

is NOT the way to prepare and equip individuals to successfully change

© Prosci, Inc. All Rights Reserved. 8

Define Change Management

On a Project Level On an Organizational Level

Change management is the application A leadership competency for enabling

Successful Change Requires Both Technical and People Sides

© Prosci, Inc. All Rights Reserved. 10

We Tend to Focus on Change at the Organizational Level

Installing electronic medical records

Move to a new physical location

© Prosci, Inc. All Rights Reserved. 11

A movement out of Through To ultimately reach

Current Transition Future

Implementing an ERP Documenting and optimizing

© Prosci, Inc. All Rights Reserved. 12

The True Unit of Change is the Individual

© Prosci, Inc. All Rights Reserved. 13

Why Is Change Management Important?

© Prosci, Inc. All Rights Reserved. 14

We Apply Change Management to…

Lower History of Failed Unachieved Not What We

© Prosci, Inc. All Rights Reserved. 15

Improves Change Outcomes

Percent of Respondents That Met or Exceeded Project Objectives

© Prosci, Inc. All Rights Reserved. 16

The People Side of Change Is How to Close the Gap

The People Side of Change

© Prosci, Inc. All Rights Reserved. 17

1. What is Change 2. The Value of a 3. Change Management

© Prosci, Inc. All Rights Reserved. 18

2 ‐ The Value of a Structured Approach Top 7 Greatest Contributors

1. Active and visible executive

© Prosci, Inc. All Rights Reserved. 19

Prosci Asked: What are the Benefits of

© Prosci, Inc. All Rights Reserved. 20

Use of Methodology Increases Effectiveness

Did Not Use a Particular Methodology

Research Finding 23%