©Prosci. Used with permission under terms of license agreement. The People Side of Change APSAC Professional Development Presentation

©Prosci. Used with permission under terms of license agreement. Getting Started How many people take pride in the way you do your work today? How many people believe that the work you do everyday directly contributes to Purdue’s success? Look to the person next to you and thank them for a job well done.

©Prosci. Used with permission under terms of license agreement. Employees Have Found Meaning in Their Work Most employees feel their work matters -- that they’re contributing to something larger than themselves. The majority of our employees have found a sense of meaning in the work they do today.

©Prosci. Used with permission under terms of license agreement. Change Readiness and Comfort Comfort with the current state Do not underestimate the power of “comfort” with how things are today The natural reaction to change is pause and reflection “Many change agents are surprised by the reaction to change, when in fact they should plan for many reactions.”

©Prosci. Used with permission under terms of license agreement. Three Phases of Change Current State Transition State Future State

©Prosci. Used with permission under terms of license agreement. Current State Employees generally prefer the current state Current State Transition State Future State

©Prosci. Used with permission under terms of license agreement. Future State The future state is unknown to the employee. Current State Transition State Future State

©Prosci. Used with permission under terms of license agreement. Transition State The transition state creates stress and anxiety Current State Transition State Future State

©Prosci. Used with permission under terms of license agreement. Today’s Discussion What is change management? How do we manage change from both the individual and organizational perspective? How do we manage readiness?

©Prosci. Used with permission under terms of license agreement. What is Change Management? A structured process and set of tools for leading the people side of change.

©Prosci. Used with permission under terms of license agreement. Understanding Impact of Change on Everyday Jobs

©Prosci. Used with permission under terms of license agreement. Change Management Maturity Model (Prosci) Highest rate of project failure, turnover and productivity loss Highest probability of success People-dependent without any formal practices or plans Little or no change management appliedAdhoc or absent Level 1 Many different tactics used inconsistently Some elements of change management are being applied in isolated projects Isolated projects Level 2 Examples of best practices evident Comprehensive approach for managing change is being applied in multiple projects Multiple projects Level 3 Selection of common approach Organization-wide standards and methods are broadly deployed for managing and leading change Organizational standards Level 4 Continuous process improvement in place Change management competency is evident in all levels of the organization and is part of the organization’s culture and intellectual property. Organizational competency Level 5 Highest rate of project failure, turnover and productivity loss Highest probability of success People-dependent without any formal practices or plans Little or no change management appliedAdhoc or absent Level 1 Many different tactics used inconsistently Some elements of change management are being applied in isolated projects Isolated projects Level 2 Examples of best practices evident Comprehensive approach for managing change is being applied in multiple projects Multiple projects Level 3 Selection of common approach Organization-wide standards and methods are broadly deployed for managing and leading change Organizational standards Level 4 Continuous process improvement in place Change management competency is evident in all levels of the organization and is part of the organization’s culture and intellectual property. Organizational competency Level 5

©Prosci. Used with permission under terms of license agreement. Blending Organizational and Individual Approach At an organizational level Using a structured change management approach Engaging sponsors in the change process At an individual level Building change competency of managers and supervisors Equipping employees to have the right conversations about change and how the change impacts them

©Prosci. Used with permission under terms of license agreement. OnePurdue’s Comprehensive Change Management Approach Phase 3–Reinforcing change Phase 2–Managing change Phase 1–Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Develop change management plans Take action and implement plans Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes

©Prosci. Used with permission under terms of license agreement. Sizing the change Assessing the organization Creating a change management strategy Sizing the change Assessing the organization Creating a change management strategy Assessing team competencies Preparing the change management team Acquiring resources Assessing team competencies Preparing the change management team Acquiring resources Assessing sponsor competencies Developing sponsor models and enabling sponsors Identifying sponsors and stakeholders Assessing sponsor competencies Developing sponsor models and enabling sponsors Identifying sponsors and stakeholders Outputs: Sizing the change profile Organizational attributes profile Change management strategy guidelines Change management team structure Sponsor structure and responsibilities Phase 1Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Develop change management plans Take action and implement plans Phase 2–Managing change Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes Phase 3–Reinforcing change Phase 1 – Preparing for Change – assesses the current state and prepares for the transition.

©Prosci. Used with permission under terms of license agreement. Phase 2Managing change Phase 1Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Develop change management plans Take action and implement plans Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes Phase 3Reinforcing change Awareness Desire Knowledge Ability Reinforcement Desired outcomes Customized activity design Change characteristics Organizational attributes Outputs: Communications plan Supervisory coaching plan Training plan Readiness management plan Sponsor roadmap Project team activities Master schedule Phase 2 -- Managing Change -- can be linked to the transition phase. ADKARADKAR

©Prosci. Used with permission under terms of license agreement. Phase 3 – Reinforcing Change -- provides a framework for assessing and reinforcing progress within the future state. Listening to employees and gathering feedback Auditing compliance with new processes, systems and roles Analyzing change management effectiveness Listening to employees and gathering feedback Assessing effectiveness of new processes, systems and roles Analyzing change management effectiveness Developing corrective action plans Enabling sponsors and coaches to manage resistance Identifying root causes and pockets of resistance Developing action plans Enabling sponsors and coaches to manage readiness Identifying root causes related to readiness Celebrating early successes and reinforcing the change Conducting “After action reviews” and transferring ownership Implementing corrective action Celebrating early successes and reinforcing the change Conducting “After action reviews” and transferring ownership Implementing action plans Phase 1Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Develop change management plans Take action and implement plans Phase 2–Managing change – Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes Phase 3Reinforcing change

©Prosci. Used with permission under terms of license agreement. OnePurdue’s Comprehensive Change Management Approach Phase 3–Reinforcing change Phase 2–Managing change Phase 1–Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Develop change management plans Take action and implement plans Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes

©Prosci. Used with permission under terms of license agreement. Sizing the Change Scope the Change (workgroup, department, division, enterprise) Determine Number of Individuals Impacted Define Change Type (policy, process, system, organization, job roles, etc.) Determine Amount of Change (incremental improvement v. dramatic change)

©Prosci. Used with permission under terms of license agreement. Organizational Attributes Value system and culture (adaptability to change) Capacity for change (how much more change can the organization absorb) Leadership styles and power distribution Residual effects of past changes (past failures may result in “baggage” that burdens a future change) Middle-management’s predisposition to change

©Prosci. Used with permission under terms of license agreement. Organizational Assessment Grid Medium riskHigh risk Low riskMedium risk Change characteristics (44) Organizational Attributes (50) Low Change Readiness High Change Readiness Small Incremental Large Disruptive (44, 50) (60) (30) (0)(30)(60)

©Prosci. Used with permission under terms of license agreement. OnePurdue’s Comprehensive Change Management Approach Phase 3–Reinforcing change Phase 2–Managing change Phase 1–Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Develop change management plans Take action and implement plans Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes

©Prosci. Used with permission under terms of license agreement. ADKAR is useful for individual change management between supervisor and employees. Awareness Desire Knowledge Ability Reinforcement

©Prosci. Used with permission under terms of license agreement. ADKAR is based on basic human truths that are present even in the absence of change. Awareness of surroundings and self. The need to have control over our life. A quest for growth and knowledge. A hope to make a meaningful contribution. The need to be recognized and appreciated. ADKAR

©Prosci. Used with permission under terms of license agreement. ADKAR Awareness of the need for change (why). Desire to support and participate in the change (our choice). Knowledge about how to change (the learning process). Ability to implement the change (turning knowledge into action). Reinforcement to sustain the change (celebrating success).

©Prosci. Used with permission under terms of license agreement. The ADKAR Model Awareness of the need for change. The nature of the change. Why is the change happening? What is the risk of not changing?

©Prosci. Used with permission under terms of license agreement. The ADKAR Model Desire to support the change. Personal motivation to support the change. Organizational drivers to support the change.

©Prosci. Used with permission under terms of license agreement. The ADKAR Model Knowledge on how to change. Understanding how to change. The details of what to do.

©Prosci. Used with permission under terms of license agreement. The ADKAR Model Ability to implement new skills. Demonstrated ability to implement the change.

©Prosci. Used with permission under terms of license agreement. The ADKAR Model Reinforcement to sustain the change. Recognition, rewards, incentives, realized benefits.

©Prosci. Used with permission under terms of license agreement. Not Everyone Changes at the Same Pace AwarenessDesireKnowledgeAbilityReinforcement Person B AwarenessDesireKnowledgeAbilityReinforcement Person B AwarenessDesireKnowledgeAbilityReinforcement Person D AwarenessDesireKnowledgeAbilityReinforcement Person D AwarenessDesireKnowledgeAbilityReinforcement Person C AwarenessDesireKnowledgeAbilityReinforcement Person C AwarenessDesireKnowledgeAbilityReinforcement Person A AwarenessDesireKnowledgeAbilityReinforcement Person H AwarenessDesireKnowledgeAbilityReinforcement Person H AwarenessDesireKnowledgeAbilityReinforcement Person G AwarenessDesireKnowledgeAbilityReinforcement Person G AwarenessDesireKnowledgeAbilityReinforcement Person E AwarenessDesireKnowledgeAbilityReinforcement Person E AwarenessDesireKnowledgeAbilityReinforcement Person I AwarenessDesireKnowledgeAbilityReinforcement Person I Person F AwarenessDesireKnowledgeAbilityReinforcement Person F AwarenessDesireKnowledgeAbilityReinforcement Person F AwarenessDesireKnowledgeAbilityReinforcement Person F AwarenessDesireKnowledgeAbilityReinforcement

©Prosci. Used with permission under terms of license agreement. Create ADKAR Profile for Each Employee

©Prosci. Used with permission under terms of license agreement. Mapping ADKAR to Change Management Tools Communications Sponsor Roadmap Supervisory Coaching Training ReadinessMgmt Why are these channels critical for change management? Why are these channels critical for change management?

©Prosci. Used with permission under terms of license agreement. Mapping ADKAR cont. These channels enable project team to facilitate organization through phases of ADKAR. Communications Sponsor Roadmap Supervisory Coaching Training ReadinessMgmt Awareness Desire Knowledge Ability Reinforcement Awareness Desire Knowledge Ability Reinforcement

©Prosci. Used with permission under terms of license agreement. ADKAR Model ADKAR describes the required phases that an individual will go through when faced with change. ADKAR is a foundational tool for understanding “how, why and when” to use different change management tools.

©Prosci. Used with permission under terms of license agreement. OnePurdue’s Comprehensive Change Management Approach Phase 3–Reinforcing change Phase 2–Managing change Phase 1–Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Develop change management plans Take action and implement plans Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes

©Prosci. Used with permission under terms of license agreement. Best Practices Approach to Reinforcing Change Preferred senders Immediate supervisor Best Practices: Repeat messages 5 to 7 times Use face-to-face Answer WIIFM (What’s In It For Me) Utilize question and answer format Understand their interpretation

©Prosci. Used with permission under terms of license agreement. Factors Influencing Employee’s Perspective on Change Whether they trust the sender What they have heard from others How satisfied they are with work Experience with other changes at work

©Prosci. Used with permission under terms of license agreement. Common Change Management Error A common mistake change management teams make is to not train managers and supervisors in the basic principles and tools for managing change. These managers will be instrumental in your overall success.

©Prosci. Used with permission under terms of license agreement. OnePurdue Partners with the Supervisor Communications Sponsor Roadmap Supervisory Coaching Training ReadinessMgmt One Purdue OCM is bringing aboard a communications manager 3/06/06 Consultation on how to utilize critical change management tools 04/03/06

©Prosci. Used with permission under terms of license agreement. Today’s Discussion Understanding three phases of change (Current, Transition & Future) Change management is a structured process and set of tools for leading the people side of change. Individual change is managed through the ADKAR model. Supervisors are the lynchpin to change management success.