1. Copyright Prosci 2014. All rights reserved. Library of Figures 1 Prosci Change Management ® Please read Right to use this content is governed by the licensing terms and conditions for this online tool. Reproduction and distribution are not permitted under a single-user license without express permission from Prosci. For permission to reproduce or distribute content, contact Prosci at +1 970-203-9332. All trademarks and copyright notices must be retained. Please read Right to use this content is governed by the licensing terms and conditions for this online tool. Reproduction and distribution are not permitted under a single-user license without express permission from Prosci. For permission to reproduce or distribute content, contact Prosci at +1 970-203-9332. All trademarks and copyright notices must be retained.

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3. Copyright Prosci 2014. All rights reserved. Prosci by the Numbers 3 8 16 80% 3,400 20,000+ 70,000+ Longitudinal studies Years of research Fortune 100 companies Research participants Certified practitioners Community members

4. Copyright Prosci 2014. All rights reserved. Prosci History Research company founded in 1994 Sponsor of the Change Management Learning Center World leader in change management research and product development Focused on building internal change management competency 4

5. Copyright Prosci 2014. All rights reserved. Prosci Research History 5 1998First Change Management Study – 102 participants 2000Second Change Management Study – 152 participants 2003 Third Change Management Study – 288 participants 2005 Fourth Change Management Study – 411 participants 2007Fifth Change Management Study – 426 participants 2009Sixth Change Management Study – 575 participants 2011Seventh Change Management Study – 650 participants 2013Eighth Change Management Study – 822 participants

6. Copyright Prosci 2014. All rights reserved. 6 US: 34% Canada: 15% Europe: 14% Africa: 5% Latin America: 2% Australia and NZ: 25% Asia and Pacific Islands: 3% Middle East: 2% Participant Profile

7. Copyright Prosci 2014. All rights reserved. 7

8. 8 A Majority of Change Projects Are Enterprise-Wide

9. Copyright Prosci 2014. All rights reserved. 9 Most Changes Impact a Large Number of Employees

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16. Copyright Prosci 2014. All rights reserved. 16 Research Finding The number one obstacle to success for major change projects is employee resistance and the ineffective management of the people side of change. Data from 327 companies undergoing major change projects; Prosci Best Practices in Business Process Reengineering benchmarking study.

17. Copyright Prosci 2014. All rights reserved. Project Name Purpose ParticularsPeople Connecting Change Management to Business Results 17 Why we are changing What we are changing Who will be changing What does this look like for your project? What is the project

18. Copyright Prosci 2014. All rights reserved. Project Name Purpose ParticularsPeople Connecting Change Management to Business Results 18 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 do from the beginning.

19. Copyright Prosci 2014. All rights reserved. Prosci ® Flight Risk Model 19

20. Copyright Prosci 2014. All rights reserved. Turnover of valued employees Tangible customer impact Active resistance Opt-out of the change Turnover of valued employees Tangible customer impact Active resistance Opt-out of the change Productivity loss Employee dissatisfaction Passive resistance Productivity loss Employee dissatisfaction Passive resistance 20 Prosci ® Flight Risk Model

21. Copyright Prosci 2014. All rights reserved. Speed of Adoption 21 The slope and shape are determined by speed of adoption Expected performance Time (periods) Net cash flow of project period + - 0 Prosci ® ROI of Change Management Model

22. Copyright Prosci 2014. All rights reserved. Ultimate Utilization and Proficiency 22 Proficiency contributes to the “height” of each benefit, including the ongoing benefit after implementation Net cash flow of project period Prosci ® ROI of Change Management Model Time (periods) The height of the benefit after implementation is finished is based on ultimate utilization + - 0

23. Copyright Prosci 2014. All rights reserved. 23 Net cash flow of project period Prosci ® ROI of Change Management Model Time (periods) + - 0 Poorly managed change cash flow Expected cash flow

24. Copyright Prosci 2014. All rights reserved. 24 Prosci ® ADKAR ® Model

25. Copyright Prosci 2014. All rights reserved. Speed of Change Process 25

26. Copyright Prosci 2014. All rights reserved. Preparing for Change Managing Change Reinforcing Change TM Prosci ® 3-Phase Change Management Process 26

27. Copyright Prosci 2014. All rights reserved. Prosci ® 3-Phase Change Management Process Input: A change to how the organization operates and does work Output: Individuals making changes to how they do work – from their own current state to their own future state Benefits to the organization realized ERP IT system New product Online HR benefits system Strategic plan Productivity improvement initiative Merger or acquisition 27

28. Copyright Prosci 2014. All rights reserved. Phase 1 – Preparing for Change Understanding the nature of the change Understanding the groups being changed Creating the right sponsor model Identifying risks Developing special tactics 28 Prosci ® 3-Phase Change Management Process

29. Copyright Prosci 2014. All rights reserved. Phase 2 – Managing Change Communication plan Sponsor roadmap Training plan Coaching plan Resistance management plan 29 Prosci ® 3-Phase Change Management Process

30. Copyright Prosci 2014. All rights reserved. Phase 3 – Reinforcing Change Compliance audits and employee feedback Corrective action and managing resistance After action review and transition management 30 Prosci ® 3-Phase Change Management Process

31. Copyright Prosci 2014. All rights reserved. Comparing Change Management and Project Management 31 Focus: Technical side of moving from current state to future state Focus: People side of moving from current state to future state Process: Initiation Planning Executing Monitoring/ controlling Closing Process: Organizational: Preparing for change Managing change Reinforcing change ™ Individual: ADKAR ® Tools: Statement of work Project charter Business case Work breakdown structure Budget estimations Resource allocation Schedule Tracking Tools: Individual change model Readiness assessment Communication plans Sponsor roadmaps Coaching plans Training plans Resistance management Reinforcement Project management Change management Current state Transition state Future state

32. Copyright Prosci 2014. All rights reserved. Integration of Project Management and Change Management 32 Solution is designed, developed and delivered effectively (Technical side) Solution is embraced, adopted and utilized effectively (People side) + Project management and change management have a joint value proposition oriented toward business results. = Success Project management Change management Current state Transition state Future state

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34. Copyright Prosci 2014. All rights reserved. 34 Who “Does” Change Management? Each ‘gear’ plays a specific role based on how they are related to organizational change

35. Copyright Prosci 2014. All rights reserved. Key Roles in Change Management 35 Executives and senior managers – fulfilling the role of sponsors of change Employee-facing Middle managers and supervisors – fulfilling the role of coach for their direct reports Enabling Change management resource or team – applying a structured approach and enabling others Project team – integrating the “people side” of change Support functions – providing expertise

36. Copyright Prosci 2014. All rights reserved. Sponsor Project team Individuals from the team assigned to change management 36

37. Copyright Prosci 2014. All rights reserved. Sponsor Project team External change management team dedicated to the project 37

38. Copyright Prosci 2014. All rights reserved. Sponsor Project team Outside resources supporting change management leaders Change management leader(s) on project team 38

39. Copyright Prosci 2014. All rights reserved. Sponsor Part or all of project team works on change management program Project team 39

40. Copyright Prosci 2014. All rights reserved. Sponsor Project team Consultant(s) provide change management support 40

41. Copyright Prosci 2014. All rights reserved. Sponsor Project team Communications sub-team Dedicated change management resources on project team Training sub-team Other sub-teams 41

42. Copyright Prosci 2014. All rights reserved. Project team Change management team Sponsor on the team 42

43. Copyright Prosci 2014. All rights reserved. Project team Change management team Mid-level manager sponsor 43

44. Copyright Prosci 2014. All rights reserved. Project team Change management team Mid-level manager sponsor Executive sponsor 44

45. Copyright Prosci 2014. All rights reserved. Project team Change management team Executive sponsor Steering committee 45

46. Copyright Prosci 2014. All rights reserved. Project team Project sponsor Executive-level steering committee Change management team 46