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IT PM Lunch Training
Business Transition & Change Management
Introduction
Alex Ragan
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
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.
1st communication or1st rumor
Incr
easi
ng re
sist
ance
Dec
reas
ing
prod
uctiv
ity
Time
Worry / uncertainty
Comfort / security
Risk / flight
Prosci® Flight Risk Model4 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
1st communication or1st rumor
Incr
easi
ng re
sist
ance
Dec
reas
ing
prod
uctiv
ity
Time
Worry / uncertainty
Comfort / security
Risk / flight
Prosci® Flight Risk Model5 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
1st communication or1st rumor
Incr
easi
ng re
sist
ance
Dec
reas
ing
prod
uctiv
ity
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
1st communication or1st rumor
Incr
easi
ng re
sist
ance
Dec
reas
ing
prod
uctiv
ity
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
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
People Adopt Change At Different RatesA 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
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
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)
Per
cent
of r
espo
nden
ts th
at m
et
or e
xcee
ded
proj
ect o
bjec
tives
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
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)
Per
cent
of r
espo
nden
ts th
at
wer
e on
or u
nder
bud
get
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
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)
Per
cent
of r
espo
nden
ts th
at w
ere
on o
r ahe
ad o
f sch
edul
e
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 effectivenessto staying on schedule
Benefits of Business Transition Management
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 ModelThe 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
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
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
How things are done today
How things will be done tomorrow
How to move from current
to future
Currentstate
Transitionstate
Futurestate
17
3 States of Change
IndividualsOrganization
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Currentstate
Transitionstate
Futurestate
Change management drives project success by supporting individual transitions required by organizational projects and initiatives
Importance of Individuals Change
Project Management— Explore— Planning— Executing — Stabilization— Closure
Business Transition Management— Organizational:
– Preparing for change
– Managing change– Reinforcing
change TM
— Individual:– Awareness– Desire– Knowledge– Ability– Reinforcement®
Comparing Processes
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
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
Pha
ses
of a
cha
nge
proj
ect
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
Ineffective change management
Ineffective project management
Pha
ses
of a
cha
nge
proj
ect
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
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 Process
Prosci® 3-Phase Change Management Process
Business Transition Management Process
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 tactics25
Phase 2 – Managing Transition
Communication plan
Sponsor roadmap Training plan Coaching plan Resistance
Management Plan
26
Phase 3 – Reinforcing Transition
Compliance audit reports and employee feedback
Corrective action plans
After action review
Transition management
27
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
Changemanagement
Senior leaders
Managers and supervisors Employees
28 28
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
Backup
31
Risk assessment grid
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
Changemanagement
Senior leaders
Managers and supervisors Employees
32 32
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
Changemanagement
Senior leaders
Managers and supervisors Employees
33 33
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
Changemanagement
Senior leaders
Managers and supervisors Employees
34 34
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
Changemanagement
Senior leaders
Managers and supervisors Employees
35 35