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Prosci Change Management

Why should government care?


Position your projects, yourself and
your county for success during change

Prosci 2010
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The dogmas of the quiet past are inadequate


to the stormy present. The occasion is piled
high with difficulty, and we must rise -- with
the occasion.
As our case is new, so we must think anew,
and act anew.
- Abraham Lincoln

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Are the changes we have underway


in our organization leaving our people behind?

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Organizations are reaching change saturation


Current levels of change saturation

My organization is past
the change saturation point
My organization is at the
point of change saturation
My organization is nearing the
point of change saturation
My organization has some
spare capacity for change
My organization has quite a bit
of spare capacity for change
My organization has plenty of
spare capacity for change

2009
2007

Do not know
0%

5%

10%

15%

20%

25%

30%

Percent of respondents
Prosci 2010
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Prosci. From Proscis 2009 Best Practices in Change Management benchmarking report

Agenda for Today

Defining change management


Individual change management
Organizational change management
Who is involved in managing change
Change management vs. project
management what is the difference?
Arapahoe Countys change management
program

Prosci 2010
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Change Exercise

Prosci 2010
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Change management is:


The process, tools and techniques
to manage the people side of change to
achieve the required business results.

Prosci 2010
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But what is it really?

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10

Why is change so hard?


In 1995, research conducted by John Kotter
showed only 30 percent of all change
initiatives were successful.
Fast forward to 2008 that same survey
showed only 30 percent of all change
initiatives were successful.

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11

TM

Prosci PCT Model


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
Prosci PCT Model
TM

All three elements must be present for project success


Prosci 2010
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The Prosci Project Change Triangle (PCT) is a trademark of Prosci, Inc. All rights reserved.

12

Organizational change can be


represented as three states of change
States of change

Current
state

How things are


done today

Prosci 2010
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Transition
state

How to move from


current to future

Future
state

How things will be


done tomorrow

13

Examples of changes organizations are


currently taking on
Current
state

Transition
state

Future
state

Ad hoc processes

Documented and managed processes

Multiple, legacy systems

One integrated database

Generalists in the call center

Specialists in the call center

No web interface for suppliers

Supplier website integrated into supply chain

Two different companies

Merged organization

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In reality, there are both organizational


and individual future states

Organization

Current
state

Transition
state

How I will do my job after the


change is implemented

How I do my
job today

Individual

Prosci 2010
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Current
state

Future
state

Transition
state

Future
state

15

The organizations future state is actually the


collection of many individual future states
Individuals
Organization

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

Documented and managed processes


One integrated database
Specialists in the call center
Supplier website integrated into supply chain
Merged organization

Prosci 2010
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16

The focus of change management is helping


individuals make their transition
Individuals

Change management drives project


success by supporting individual
transitions required by organizational
projects and initiatives

Prosci 2010
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Current
state

Transition
state

Future
state

Current
state

Transition
state

Future
state

Current
state

Transition
state

Future
state

17

Why Change Management?


Results and outcomes depend upon
individual change
Data shows direct correlation to projects
meeting objectives, schedule and budget
Project and organizations take on costs and
risk when change is not managed
effectively
Prosci 2010
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18

Change management is required to meet


project objectives
Correlation of change management effectiveness to
meeting project objectives
100%

Percent of respondents that met


or exceeded project objectives

90%

95%

80%
80%

70%
60%
50%
49%

40%
30%
20%
10%

17%

0%
Poor
(n=177)

Fair
(n=441)

Good
(n=561)

Excellent
(n=107)

Overall effectiveness of change management program


*Data from 2007, 2009 and 2011

Prosci 2010
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Prosci. From Proscis 2012 Best Practices in Change Management benchmarking report

19

Connecting change management


to business results
Correlation of change management effectiveness
to staying on schedule
100%

Percent of respondents that were


on or ahead of schedule

90%
80%
70%
71%
60%
60%

50%
40%
30%

32%

20%
10%

16%

0%
Poor
(n=134)

Fair
(n=318)

Good
(n=394)

Excellent
(n=72)

Overall effectiveness of change management program


Prosci. From Proscis 2009 Best Practices in Change Management benchmarking report

Prosci 2010
www.change-management.com

* The 2009 report includes data from the 2007 and 2009 study.

20

Connecting change management


to business results
Correlation of change management effectiveness
to staying on budget
100%

Percent of respondents that


were on or under budget

90%
80%

82%

70%

74%

60%
61%
50%
51%
40%
30%
20%
10%
0%
Poor
(n=116)

Fair
(n=299)

Good
(n=386)

Excellent
(n=71)

Overall effectiveness of change management program


Prosci. From Proscis 2009 Best Practices in Change Management benchmarking report

Prosci 2010
www.change-management.com

* The 2009 report includes data from the 2007 and 2009 study.

21

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

Prosci 2010
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22

Primary reasons for applying change


management
Increase probability of project success
Manage employee resistance to change
Build change competency in the organization

Prosci 2010
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23

Change management perspectives


Individual
perspective
Understanding how
one person makes a
change successfully

Prosci 2010
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Organizational
perspective
The tools that project
teams and managers
have to support the
people side of change

24

Equip your managers and


supervisors to lead change
Introduce changes to
how the business
operates

Meet the needs


of their employees

Run the day-to-day


operation and achieve
business results
Prosci 2010
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25

Why are managers so important?

Supervisors/managers are influential


Employees trust them
They are in a position to mitigate resistance
They can build support
They are a preferred sender!

Prosci 2010
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26

Equip your managers and


supervisors to lead change
Provide tools for
managing individual
change:
The ADKAR Model

Prosci 2010
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Awareness
Desire
Knowledge
Ability
Reinforcement

Set expectations
of roles:

Communicator
Advocate
Coach
Liaison
Resistance manager

27

Managing individual change


with ADKAR

Prosci ADKAR Model

Awareness
Desire
Knowledge
Ability
Reinforcement

ADKAR describes the


key building blocks for
successful change
Personal or professional

Success with change


requires all elements of
the ADKAR Model to be
present

2012 Prosci and Bill Cigliano

Reference: Hiatt, J. ADKAR: A model for change in business, government and our community, Learning Center Publications, 2006.
ADKAR is a registered trademark of Prosci. All Rights Reserved.
Prosci 2010

ADKAR and Awareness Desire Knowledge Ability Reinforcement are a registered trademarks of Prosci, Inc. All rights reserved.

www.change-management.com

28

The five building blocks of


successful change
Prosci ADKAR Model

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


2012 Prosci and Bill Cigliano

Reinforcement
Prosci 2010

Reinforcement to sustain the change

ADKAR and Awareness Desire Knowledge Ability Reinforcement are a registered trademarks of Prosci, Inc. All rights reserved.

www.change-management.com

29

ADKAR forms the foundation of successful


organizational change
Ultimately, for a project or initiative to be successful,
individuals in the organization have to do their jobs
differently
ADKAR provides a framework for understanding how
individuals change
Managers and project teams can use ADKAR to:
Guide organizational change management plans
Diagnose gaps and root causes of resistance
Develop corrective actions

Prosci 2010
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30

Prosci 3-Phase Change


Management Process

Proscis organizational
change management process
A structured process for managing
the people side of change on a
project or initiative

Research-based
Holistic
Easy-to-apply
Scalable

Prosci 2010
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31

Phase 1 Preparing for change


Understanding the
nature of the change
Understanding the
groups being changed
Creating the right
sponsorship model and
coalition
Identifying risks
Developing special
tactics
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32

Phase 2 Managing change

Prosci 2010
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Communication plan
Sponsor roadmap
Training plan
Coaching plan
Resistance mgmt plan

33

Phase 3 Reinforcing change


Compliance audit reports
and employee feedback
Corrective action plans
After action review
Transition management

Prosci 2010
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34

Connecting individual and organizational


change management
Change
management
tools

Individual phases
of change
(ADKAR)

Communications

Awareness

Sponsor roadmap

Desire

Coaching

Knowledge

Resistance management

Ability

Training

Reinforcement

Prosci 2010
www.change-management.com

35

Who is involved in managing change


Senior leaders

Project team

The change management


resource on a project plays
the role of enabler
The conductor of the
orchestra
The director of the play

Change
management

Managers and
supervisors

Prosci 2010
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Effective change
management requires
involvement and action by
many in the organization
Employees

36

Senior Leaders

Senior leaders

Active and visible sponsorship is identified as the


top contributor to overall project success in
Proscis five benchmarking studies
Senior leaders are one of two preferred senders of
messages about change

Project team

Change
management

Managers and
supervisors

Prosci 2010
www.change-management.com

Employees

Why is this group important?

What is this groups 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

37

Managers and Supervisors

Senior leaders

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

Project team

Change
management

Managers and
supervisors

Prosci 2010
www.change-management.com

Employees

Why is this group important?

What is this groups 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

38

Employees

Senior leaders

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

Project team

Change
management

Managers and
supervisors

Prosci 2010
www.change-management.com

Employees

Why is this group important?

What is this groups 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)

39

Project Team

Senior leaders

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

Project team

Change
management

Managers and
supervisors

Prosci 2010
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Employees

Why is this group important?

What is this groups role?


Provide timely, accurate and succinct
information about the change (or project)
Integrate change management activities into
project management plans and activities

40

Change management and


project management
Project management

Current
state

Transition
state

Future
state

Change management

Prosci 2010
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Technical side
of the project

People side of
the project

41

Change management is like


project management
However, it is the people side of change
Both aim to deliver value to the business by
supporting initiatives and projects

Prosci 2010
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42

Comparing processes
Project management

Initiation
Planning
Executing
Monitoring and controlling
Closing

Process groups defined in the Project


Management Institutes PMBOK

Prosci 2010
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Change management
Organizational:
Preparing for change
Managing change
Reinforcing change

TM

Individual:

Awareness
Desire
Knowledge
Ability
Reinforcement

43

Comparing tools
Project management

Statement of work
Project charter
Business case
Work breakdown structure
Budget estimations
Resource allocation
Schedule
Tracking

Prosci 2010
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Change management

Individual change model


Readiness assessment
Communication plans
Sponsorship roadmaps
Coaching plans
Training plans
Resistance management
Reinforcement

44

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

Prosci 2010
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How much change


management is needed?
Depends on the amount of
disruption created in
individual employees dayto-day work and the
organization attributes like
culture, value system and
history with past changes

45

Integrating change management and


project management activities
Project management and change management
activities are most effective when they are
integrated
Unfortunately, in many instances change
management is an add-on after the project has
experienced obstacles

Prosci 2010
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46

Problem or
opportunity

Planning

Business
improvement
steps

Design

Development

Implementation

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47

Assessments

Team and
sponsors

Communications

Change
management
process

Coaching and
feedback

Resistance
management
Prosci 2010
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48

Business
improvement
steps

Prosci 2010
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Change
management
process

49

Business
improvement
steps

Change
management
process

Prosci 2010
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50

Research results
When to start change management

p. 29

Project initiation

Project planning

Project design

Project implementation

When did you start CM


activities this time?
When would you start CM
activities next time?

Project closure
0%

10% 20% 30% 40% 50% 60% 70% 80% 90%


Percent of respondents

Prosci. From Proscis 2009 Best Practices in Change Management benchmarking report
Prosci 2010
www.change-management.com

51

Case for Change Management


In order to implement change individuals
are going to have to do their jobs in a new
way.
What amount of project benefits depend
upon employee adoption and usage?

Prosci 2010
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52

What is the adoption, usage and


proficiency for your change?
Who has to adopt and use the change?
What does adoption and usage mean?
How will we know if they have adopted and
are using?

Prosci 2010
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53

The cost of NOT doing


Change Management
REwork, REvisit, REdo, REdesign, REscope,
REschedule, REvamp, REquip, REenter,
Reexamine, REcover

Prosci 2010
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54

Remember the Big Picture:


The amount of Project Benefits are
dependent on adoption and usage.
This is what we can CAPTURE and
DRIVE with change management.

Prosci 2010
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55

Prosci Measurement Matrix


Measuring Change Management Effectiveness

Prosci 2010
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Process

Individual

Speed of
adoption
Utilization rate
Proficiency

ADKAR

Outcome

Organization

Business
performance
against
objectives

Individual
performance
for each job
role

56

Prosci Measurement Matrix


Measuring Change Management Effectiveness

Outcome

Process

Organization

Prosci 2010
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Speed of adoption (ADKAR)


Utilization rate (ADKAR)
Proficiency (ADKAR)

Individual

ADKAR

Measured by group, function,


location

Assessment by immediate
supervisors as part of their role
in leading change

(measurement using web-based


ADKAR assessments)

(measurement using ADKAR


instruments)

Business performance against


objectives
Financial performance
Quality of product
Quality of service
Quality of work life
Speed of implementation
(schedule adherence)

Individual performance for


each job role
Performance against objectives
as defined in personal objectives
with immediate supervisor

57

Applying Change Management


to our Payroll/HRIS Project
Started the Payroll/HRIS project without change
management
We began applying it in May/June.
Increased communication/electronic and print
Increased face-to-face meetings and training
Mailing communication pieces home
Created prhrfeedback@arapahoegov.com
Solicited input E-team, A-team, employees
Here is the reaction
Prosci 2010
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58

Payroll/HRIS Comments

Thank you for the excellent communication youve been providing regarding the
payroll changes. You started the communication early in the process which allows
employees ample time to prepare. I also appreciate the excel tool you designed to help
with the transition, as well as the offers to assist with navigating through the change. I
really appreciate all the efforts that have been made to make this transition as smooth as
possible! - Lori Oswald, Human Services

I like the way this was written. Very clear and simple language, Debbie Atkinson,
Information Technology

Excellent Write Up! Thanks! Grant Miller, Human Services

I wanted to let you all know how impressed I am with how this change is being
managed. The efforts, communications, training sessions and overall coordination
exhibited and offered to ensure our success with this major shift is amazing. Im proud
to be part of an organization who treats its employees with this level of consideration
and respect. Thank you. Eve Torney, Information Technology

Prosci 2010
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59

Arapahoe Countys
Change Management Program
Program Offerings:
Employee-Only Course
Coaching Course
3-Day Practitioner Course
Sponsorship Course
Nearly 300 Employees since February 2013
BOCC Administration, Communication Services, Human Resources,
Human Services, Information Technology, Facilities and Fleet
Management, Finance, Community Resources, Open Spaces, Clerk
and Recorders Office, Sheriffs Office, Public Works and
Development and Performance Management

Prosci 2010
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60

Employee Program Goals


Prepare employees for changes that are impacting them
personally.
Team them how to engage their manager and leadership
team.
Demonstrate effective ways to surface concerns about the
change
Help them understand the change process
Provide knowledge of how to take control of the change
(and take accountability for their success)

Prosci 2010
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61

Coaching Program Goals


Managers, supervisors and project leaders learn
what it takes to become great change leaders.
Prepare managers for changes that are impacting
them personally
Prepare managers to lead and coach their
employees through change

Prosci 2010
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62

3-Day Certification Program


Learn how to lead change effectively, and what it means to
manage the people side of change.
Participants learn how to define a change management
strategy, prepare a change management plan and connect
change management to business results.
Participants spend time working on a real-life project and
walk away with the knowledge, tools and processes to
successfully guide employees through change.

Prosci 2010
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63

Our Change Management Vision


We should work to build change management
competencies and capabilities because we care
about our employees.
But, ultimately its about the customers we serve
the citizens of Arapahoe County.
We owe it to them to provide the BEST County
government in the State of Colorado.

Prosci 2010
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64

How will we know


when we get there?
Great change management is second nature and
part of the DNA of Arapahoe County
Change Management is our standard operating
procedure
Change Management is the norm on projects and
initiatives
All employees have internalized their role in
leading change
Prosci 2010
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65

Position Arapahoe County for success


Level 5

Organizational
Competency

Change management competency is


evident in all levels of the organization and
is part of the organizations intellectual
property and competitive edge

Continuous
process
improvement in
place

Level 4

Organizational
Standards

Organization-wide standards and methods


are broadly deployed for managing and
leading change

Selection of
common approach

Level 3

Multiple
Projects

Comprehensive approach for managing


change is being applied in multiple projects

Examples of best
practices evident

Level 2

Isolated
Projects

Some elements of change management


are being applied in isolated projects

Many different
tactics used
inconsistently

Level 1

Adhoc or
Absent

Little or no change management applied

People-dependent
without any formal
practices or plans

Prosci 2010
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Prosci Change Management Maturity Model

Highest
profitability and
responsiveness

Highest rate of
project failure,
turnover and
productivity loss

66

If you want to make enemies,


try to change something.
- Woodrow Wilson

Prosci 2010
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67

I am all for progress.


I just don't like change.
- Jack Bush

Prosci 2010
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68

Its not so much that were afraid of


change or so in love with the old ways, but
its like that place in between that we fear
Its like being between trapezes.
Its Linus when his blanket is in the dryer.
Theres nothing to hold on to.
Marilyn Ferguson

Prosci 2010
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69

Change Management
Focuses on the people side of organizational change
Involves both an individual and an organizational perspective
Requires action and involvement by leaders and managers
throughout the organization
And project management are both tools that support project
benefit realization project management is the technical side
and change management is the people side
Is most effective when it is launched at the beginning of a
project and integrated into the project activities

Prosci 2010
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70

Prosci 2010
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71

What sound do you want to hear when


your project is completed?

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72

Prosci
1367 South Garfield Ave
Loveland, Colorado, USA 80537
970-203-9332
www.change-management.com

Andrea Rasizer
Director
BOCC Administration/Communication Services
Prosci Certified Change Management Professional
Train the Trainer
arasizer@arapahoegov.com
303-795-4284

Prosci 2010
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