prosci webinar roi of change management december 2015

Prosci® Change Management Webinars A new look at the ROI of Change Management Presented by Catherine Smithson December 2015

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 Australia and New Zealand.

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Prosci by the numbers •  1994 – Founded in Loveland

(Denver) Colorado, USA •  8 global Benchmarking

Reports •  16 years of longitudinal

research •  3,400+ research participants •  63 countries •  80% Fortune 500 companies •  30,000+ Certified practitioners

worldwide •  4,000+ Certified practitioners

Australia/New Zealand

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Topics

•  Why care about the ROI of

Change Management? •  Connecting Change

Management to benefits and outcomes

•  Q&A

Getting back to Normal… it’s a town in Illinois USA.

Prosci 2014 Best Practices in Change Management Benchmarking Report

• 822 participants • 63 countries • Top 3 roles:

•  Change Management team leader

•  External consultant •  Project team leader

• 244 pages • 38 new topics

The largest body of Change Management knowledge in the world.

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2% 2% 3% 5%

14%

15%

25%

34%

Middle East

Latin America

Asia and Pacific Islands

Africa

Europe

Canada

Australia and New Zealand

United States

Snapshot of participants - ANZ

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Change has changed

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The amount of change is expected to increase

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Yet success rates of change remain low

IBM Making Change Work Report While the Work Keeps Changing Report August 2014

1,400 organisations globally, over 20 industries,

And many organisations lack change capabilities

12 IBM Making Change Work Report While the Work Keeps Changing Report

August 2014 1,400 organisations globally, over 20 industries,

76%

Leaders see the need for investing in enterprise change capability

“Our ability to adapt is a key source of

competitive advantage.”

Pricewaterhousecoopers 2008

“Organisational agility is critical to business

success.” McKinsey 2009

90%

Moving from “hit and miss” change….

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to consistent, successful implementation and benefit realisation with

high employee engagement

Reframing Change Management •  “Change Management is a

required consultation process in our Enterprise Agreement”.

•  “Change Management is a deliverable of Project Management.”

•  “Change Management is primarily training and communications”.

•  “Change Management is a nice to have”

• Change Management is performed by Change Managers”.

Organisations change for a reason

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

Current state

Transition state

Future state

Expected Results and Outcomes

Results and Outcomes Benefit Realisation

Value Creation Return on Investment (ROI)

Delivering on the project promise

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Future

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

Individuals make their own transitions: Adoption and usage

The individual is the unit of change


Results and outcomes depend on employee adoption and usage

Solution must be: • Designed • Developed • Delivered

and • Embraced • Adopted • Used

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Future

Effectiveness = Quality x Acceptance General Electric – 1980s


“Soft side” drives success on “hard side”

• How much value does a new process deliver if no one follows it?

• How much value does a new technology or system deliver if no one uses it?

• How much benefit is realised if the people drift back to the “old ways”?

With a very large, negative ROI


The Swiss Cheese Syndrome

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“Most teams implemented, but the team in {Sydney} are still in transition.” “Key users are still struggling, they need more support.” “The new operating model has rolled out but teams are still operating in silos”. “There is a wide variation in the benefits being realised in different parts of the business.” “We need to start Phase 2 to capture all the expected benefits.”

Poll: What is the “people dependence” of the expected benefits of your change?

• Select a current or completed change

• Estimate the % of benefits that are dependent on “people doing their jobs differently”, i.e. adoption and usage.

• 0 – 25% • 26 - 50% • 51 – 75% • 76 -100%

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How much do we need to invest in Change to achieve the required employee adoption and usage?

What do we risk if we underinvest in driving

behavioural change?

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Change Management increases success rates by a factor of 6

Change Management increases the probability of success

•  "Of the 165 research participants who reported having excellent change management effectiveness, 96% met or exceeded project objectives"

•  "Participants with the highest level of change management effectiveness were 6X more likely to meet or exceed project objectives"

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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)

Percent of respondents that met

or exceeded project objectives

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

2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.

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Change Management drives staying on budget

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)

Percent of respondents that

were on or under budget



Correlation of change management effectiveness to staying on budget

Per

cent

age

of re

spon

dent

s th

at m

et o

r exc

eede

d

proj

ect o

bjec

tives

Change Management drives staying on schedule

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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)

Percent of respondents that were

on or ahead of schedule



Correlation of change management effectivenessto staying on schedule

Per

cent

age

of re

spon

dent

s th

at m

et o

r exc

eede

d

proj

ect o

bjec

tives

“So, does anyone else feel that their needs aren’t being met?”

Current approaches to selling CM • Reduce employee

resistance •  Improve employee

engagement – CM as an engagement driver

• Drive culture change • Mitigating project risk • Build a change capable

workforce & organisation • Compliance or governance • Deliver business results and

outcomes

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Changing the conversation from what we do to what we deliver

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Communications Plan

Training

Engagement Workshops

Impact Assessments

Stakeholder Management

Manage resistance

Town Hall Meetings Readiness Assessments

A new definition of Change Management

Change Management how we assist people to make the individual transitions required for the change to

succeed.

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Change Management is how we capture the behavioural change portion of the expected results.

Change Management Process and Plans Leadership at all levels

Getting more specific on ROI

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What’s the connection between Change Management and project results and outcomes?

Do all projects need Change Management to succeed?

How do we quantify the Change Management

investment required in a project?

How can we target Change Management investment on a project so it delivers the best return?

New directions in quantifying the ROI of Change Management

•  Which benefits are most significant?

•  What is the dependence on Adoption and Usage?

•  Which employees are most critical to realising these benefits?

•  What is the risk assessment for these groups?

•  What level of investment in Change Management will support those employees in making the transition?

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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 Future Current Transition Future


Prosci CMROI Calculator www.portal.prosci.com • Enter expected benefits • Estimate % of benefits that

depend on “people change” , ie adoption and usage

• Scenario analysis: •  with no CM •  with excellent CM

• Calculate the ROI of CM • Single or multiple benefits •  Financial or non financial

benefits 39

More info

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Being Human beinghuman.com.au Prosci •  change-management.com •  prosci.com •  portal.prosci.com

prosci webinar roi of change management december 2015

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