A high impact way to connect employee adoption of change with project results and ROI.

1. Prosci® Change Management
Webinars
A new look at the
ROI of Change
Management
Presented by
Catherine Smithson
December 2015

2. Introducing Being Human
• Founded in 1993
• Our mission: develop
change-capable
people and
organisations so they
achieve the benefits of
change.
• Exclusive Prosci
Primary Affiliate
Australia and New
Zealand.
2

3. Prosci by the numbers
• 1994 – Founded in Loveland
(Denver) Colorado, USA
• 8 global Benchmarking
Reports
• 16 years of longitudinal
research
• 3,400+ research participants
• 63 countries
• 80% Fortune 500 companies
• 30,000+ Certified practitioners
worldwide
• 4,000+ Certified practitioners
Australia/New Zealand
3

4. Topics
• Why care about the ROI of
Change Management?
• Connecting Change
Management to benefits
and outcomes
• Q&A
Getting back to Normal…
it’s a town in Illinois USA.

5. Prosci 2014 Best Practices in Change
Management Benchmarking Report
• 822 participants
• 63 countries
• Top 3 roles:
• Change Management team
leader
• External consultant
• Project team leader
• 244 pages
• 38 new topics
The largest body of Change Management knowledge in the world.
5
2% 2% 3%
5%
14%
15%
25%
34%
Middle East
Latin America
Asia and Pacific
Islands
Africa
Europe
Canada
Australia and New
Zealand
United States

6. Snapshot of participants - ANZ
6

7. Change has changed
7

8. 8

9. 9

10. The amount of change is expected to increase
10

11. Yet success rates of change remain low
IBM Making Change Work Report While the Work Keeps Changing Report
August 2014
1,400 organisations globally, over 20 industries,

12. And many organisations lack change
capabilities
12
IBM Making Change Work Report While the Work Keeps Changing Report
August 2014
1,400 organisations globally, over 20 industries,

13. 76%
Leaders see the need for investing in enterprise
change capability
“Our ability to adapt is
a key source of
competitive
advantage.”
Pricewaterhousecoopers 2008
“Organisational agility
is critical to business
success.”
McKinsey 2009
90%

14. Moving from “hit and miss” change….
14
to consistent, successful implementation and
benefit realisation with
high employee engagement

15. Reframing Change Management
• “Change Management is a
required consultation process in
our Enterprise Agreement”.
• “Change Management is a
deliverable of Project
Management.”
• “Change Management is primarily
training and communications”.
• “Change Management is a nice to
have”
• Change Management is
performed by Change Managers”.

16. 16

17. Organisations change for a reason
PerformancePerformance
>
© Prosci Inc. All rights reserved www.change-management.com
Current
state
Transition
state
Future
state

18. Expected Results and Outcomes
Results and Outcomes
Benefit Realisation
Value Creation
Return on Investment (ROI)
Delivering on the project
promise
18
Future
© Prosci Inc. All rights reserved www.change-management.com

20. Individuals make their own transitions:
Adoption and usage
The individual is the unit of change
© Prosci Inc. All rights reserved www.change-management.com

21. 21

22. Results and outcomes depend on employee
adoption and usage
Solution must be:
• Designed
• Developed
• Delivered
and
• Embraced
• Adopted
• Used
22
Future
Effectiveness = Quality x Acceptance
General Electric – 1980s
© Prosci Inc. All rights reserved www.change-management.com

23. “Soft side” drives success on
“hard side”
• How much value does a
new process deliver if no
one follows it?
• How much value does a
new technology or system
deliver if no one uses it?
• How much benefit is
realised if the people drift
back to the “old ways”?
With a very large,
negative ROI
© Prosci Inc. All rights reserved www.change-management.com

24. The Swiss Cheese Syndrome
24
“Most teams implemented, but the
team in {Sydney} are still in
transition.”
“Key users are still struggling, they
need more support.”
“The new operating model has rolled
out but teams are still operating in
silos”.
“There is a wide variation in the
benefits being realised in different
parts of the business.”
“We need to start Phase 2 to capture
all the expected benefits.”

25. Poll: What is the “people dependence” of the
expected benefits of your change?
• Select a current or
completed change
• Estimate the % of benefits
that are dependent on
“people doing their jobs
differently”, i.e. adoption
and usage.
• 0 – 25%
• 26 - 50%
• 51 – 75%
• 76 -100%
25

26. 26

27. How much do we need to invest in Change to achieve
the required employee adoption and usage?
What do we risk if we underinvest in driving
behavioural change?
27

28. Change Management increases
success rates by a factor of 6
Change Management increases the probability
of success
• "Of the 165 research
participants who reported
having excellent change
management effectiveness,
96% met or exceeded
project objectives"
• "Participants with the highest
level of change management
effectiveness were 6X more
likely to meet or exceed
project objectives"
28
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)
P
e
rc
e
n
t
o
f
re
s
p
o
n
d
e
n
ts
th
a
t
m
e
t
o
r
e
xc
e
e
d
e
d
p
ro
je
c
t
o
b
je
c
tiv
e
s
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
2014 Best Practices in Change Management Report.
822 participants in 63 countries. Prosci copyright 2013.
28

29. 29
Change Management drives staying on budget
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)
P
e
rc
e
n
t
o
f
re
s
p
o
n
d
e
n
ts
th
a
t
w
e
re
o
n
o
r
u
n
d
e
r
b
u
d
g
e
t
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
Percentageofrespondentsthatmetorexceeded
projectobjectives

30. Change Management drives staying on
schedule
30
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)
P
e
rc
e
n
t
o
f
re
s
p
o
n
d
e
n
ts
th
a
t
w
e
re
o
n
o
r
a
h
e
a
d
o
f
s
c
h
e
d
u
le
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 schedule
Percentageofrespondentsthatmetorexceeded
projectobjectives

31. “So, does anyone else feel that their needs aren’t being met?”

32. Current approaches to selling CM
• Reduce employee
resistance
• Improve employee
engagement – CM as an
engagement driver
• Drive culture change
• Mitigating project risk
• Build a change capable
workforce & organisation
• Compliance or governance
• Deliver business results and
outcomes
32

33. 33

34. Changing the conversation from what we do
to what we deliver
34
Communications Plan
Training
Engagement Workshops
Impact Assessments
Stakeholder Management
Manage resistance
Town Hall Meetings
Readiness
Assessments

35. A new definition of Change Management
Change Management how we assist people to make
the individual transitions required for the change to
succeed.
35
Change Management is how we capture the
behavioural change portion of the expected results.
Change Management Process
and Plans Leadership at all levels

36. Getting more specific on ROI
36
What’s the connection between Change Management
and project results and outcomes?
Do all projects need Change Management to succeed?
How do we quantify the Change Management
investment required in a project?
How can we target Change Management investment on a
project so it delivers the best return?

37. New directions in quantifying the ROI of
Change Management
• Which benefits are most
significant?
• What is the dependence on
Adoption and Usage?
• Which employees are most critical
to realising these benefits?
• What is the risk assessment for
these groups?
• What level of investment in
Change Management will support
those employees in making the
transition?
37

38. The unified value proposition
Solution is designed,
developed and delivered
effectively
(Technical side)
Solution is embraced, adopted
and utilised effectively
(People side)
+
Complementary disciplines with a common objective
Project management
Change management
Current Transition FutureCurrent Transition Future
© Prosci Inc. All rights reserved www.change-management.com

39. Prosci CMROI Calculator
www.portal.prosci.com
• Enter expected benefits
• Estimate % of benefits that
depend on “people
change” , ie adoption and
usage
• Scenario analysis:
• with no CM
• with excellent CM
• Calculate the ROI of CM
• Single or multiple benefits
• Financial or non financial
benefits
39

40. More info
40
Being Human
beinghuman.com.au
Prosci
• change-management.com
• prosci.com
• portal.prosci.com