1. Copyright © 2014 Prosci Inc. All rights reserved. Best Practices in Change Management Briefing 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. 1

2. Copyright © 2014 Prosci Inc. All rights reserved. Best Practices in Change Management benchmarking report Findings: –Key success factors –What works –What doesn't work –Mistakes to avoid Topics include: –Communication –Sponsorship –Resistance –Reinforcement –Team activities –Managers and supervisors –Change saturation 2

3. Copyright © 2014 Prosci Inc. All rights reserved. Prosci Research History 3 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

4. Copyright © 2014 Prosci Inc. All rights reserved. 4 Participant Profile p. 11 US: 34% Canada: 15% Europe: 14% Africa: 5% Latin America: 2% Australia and NZ: 25% Asia and Pacific Islands: 3% Middle East: 2%

5. Copyright © 2014 Prosci Inc. All rights reserved. A Majority of Projects Impact Business Processes 5

6. Copyright © 2014 Prosci Inc. All rights reserved. A Majority of Change Projects Are Enterprise-Wide 6

7. Copyright © 2014 Prosci Inc. All rights reserved. Most Changes Impact a Large Number of Employees 7

8. Copyright © 2014 Prosci Inc. All rights reserved. Project investment 8

9. Copyright © 2014 Prosci Inc. All rights reserved. 9 Who contributed?

10. Copyright © 2014 Prosci Inc. All rights reserved. Findings covered in this briefing Correlation Greatest contributors to success Greatest obstacles to success Sponsor role Methodology Resistance Communication Organizational competency Change saturation 10

11. Copyright © 2014 Prosci Inc. All rights reserved. 11 Data Supports the Connection

12. Copyright © 2014 Prosci Inc. All rights reserved. 12 Data Supports the Connection

13. Copyright © 2014 Prosci Inc. All rights reserved. 13 Data Supports the Connection

14. Copyright © 2014 Prosci Inc. All rights reserved. Greatest contributors to success 1.Active and visible executive sponsorship 2.Structured change management approach 3.Dedicated change management resources and funding 4.Frequent and open communication about the change and the need for change management 5.Employee engagement and participation 6.Engagement and integration with project management 7.Engagement with and support from middle management In all eight studies, sponsorship was #1 How effective are your sponsors? 14

15. Copyright © 2014 Prosci Inc. All rights reserved. Biggest obstacles to success 1.Ineffective change management sponsorship 2.Resistance to change from employees 3.Insufficient change management resourcing 4.Division between project management and change management 5.Middle management resistance Division between project management and change management was new to the list in 2013, pushing ineffective communications off the list from 2011. 15

16. Copyright © 2014 Prosci Inc. All rights reserved. What is the role of the sponsor? Participate actively and visibly throughout the project Build a coalition of sponsorship and manage resistance Communicate directly with employees It is not just signing checks and charters! 16

17. Copyright © 2014 Prosci Inc. All rights reserved. 17 Sponsors Do Not Understand Their Role p. 114

18. Copyright © 2014 Prosci Inc. All rights reserved. Applying a structured approach to change management #2 contributor to success 18

19. Copyright © 2014 Prosci Inc. All rights reserved. Factors for selecting a methodology Previous experience with a methodology Credible, well-known and recognized approach Compatible with project, company, culture or industry Flexibility and customization Ease of use and scalability –Easy to follow –Easy to understand –Easy to explain to others in the organization –Flexible and scalable –Quickly adaptable to the change –Clear templates, tools, frameworks and structure –Accessible and available resources –Practical –Uses business or organizational language as opposed to jargon *Combined from the 2009 and 2012 Best Practices in Change Management report 19

20. Copyright © 2014 Prosci Inc. All rights reserved. When to start change management activities? 20

21. Copyright © 2014 Prosci Inc. All rights reserved. Resistance: most common reasons employees resist change 1.Lack of awareness 2.Impact on current job role 3.Organization’s past performance with change 4.Lack of visible support and commitment from managers 5.Job loss Employee resistance is the #3 obstacle to success It is not about the solution you are implementing 21

22. Copyright © 2014 Prosci Inc. All rights reserved. Resistance: most common reasons managers resist change 1.Lack of awareness about and involvement in the change 2.Loss of control or negative impact on job role 3.Increased workload and lack of time 4.Culture of change resistance and past failures 5.Impact to their team Manager resistance is the #5 obstacle It's not about the particular solution, so how do you overcome these reasons? 22

23. Copyright © 2014 Prosci Inc. All rights reserved. Communication Most effective –Face-to-face Most important messages –Impact to the individual –Why the change is happening Do differently next time –More communication –Have a communication strategy –Communicate earlier Effective communication is critical 23

24. Copyright © 2014 Prosci Inc. All rights reserved. Communication: Preferred senders of change messages 24 p. 136

25. Copyright © 2014 Prosci Inc. All rights reserved. Organizational competency 25

26. Copyright © 2014 Prosci Inc. All rights reserved. Change Management Maturity Model 26

27. Copyright © 2014 Prosci Inc. All rights reserved. Levels of change saturation 27

28. Copyright © 2014 Prosci Inc. All rights reserved. Consequences of change saturation Individual behaviors exhibited in a change-saturated environment Disengagement and apathy Frustration and increased stress Fatigue and burnout More resistance to change Confusion Cynicism and skepticism Symptoms of change saturation with projects and project teams Changes did not realize benefits Lack of resources Changes were not sustained Projects failed to gain momentum Organizational symptoms of a change- saturated environment Higher turnover A decline in productivity Increased absenteeism Loss of focus on business basics Negative morale

29. Copyright © 2014 Prosci Inc. All rights reserved. All findings are from Prosci’s 2014 Best Practices in Change Management benchmarking report Find out more at: www.change-management.com/best-practices-report.htm 29