Prosci "Presenting the Value of Change Management in Context" Webinar

Prosci "Presenting the Value of Change Management in Context" Webinar
Copyright Prosci 2015. All rights reserved. webinar@prosci.com Prosci Change Management Webinar Presenting the Value of Change Management in Context 1
Copyright Prosci 2015. All rights reserved. Prosci by the #s: 8 16 80% 3400+ 30,000+ 70,000+ Longitudinal studies Years of research Fortune 100 companies Research participants Certified practitioners Community members Contact Prosci: Telephone: +1-970-203-9332 Email: webinar@prosci.com Website: www.prosci.com Tools or downloads referenced in this free webinar are for webinar educational purposes; reproduction or distribution of these tools in your organization will require additional steps on your part. ……………………………………............................................................. Prosci’s Mission Our Principles: • Research-based • Holistic • Easy-to-use Our Resources: • Published products and tools • Web-based tools and applications • Face-to-face training • Train-the-Trainer To help individuals and organizations build their own change management competencies through development and delivery of research- based, holistic, and easy-to-use tools and methodologies. Prosci® Webinars • Educational • Thought provoking • Insights into new development • New ideas, phraseology, language, and frameworks • Give you at least an hour per week to think about change management ……………………………………............................................................. 2
Copyright Prosci 2015. All rights reserved. Agenda 3 What is the ROI/value of change management? What portion of project results and outcomes depends on employees adopting and using the change? What is the project trying to achieve? How people dependent are the benefits? Analyze Act
Copyright Prosci 2015. All rights reserved. How Are Others Justifying Change Management? 4 To senior leaders To project teams • Benefit realization and financial outcomes • Project impact • Risk management • Increase project results and outcomes • Focus on adoption and usage • Minimize risks Prosci 2014 Benchmarking Data Copyright © Prosci Inc. All rights reserved. Had to justify change management 65%60%
Copyright Prosci 2015. All rights reserved. BLUF: Bottom Line Up Front • Directly connect CM impact to project results, benefits and objectives • No longer “resource for CM” – becomes “resource for X% of project results” 5 Project ROI CM ROI Project ROI People Dependent (CMROI) or Adoption contribution Installation contribution 100% 50% 36%
Copyright Prosci 2015. All rights reserved. The Gap A great idea A perfectly optimized process An effectively managed project Results and outcomes Benefit realization Sustained ROI EMPLOYEE ADOPTION AND USAGE OF THE SOLUTION 6
Copyright Prosci 2015. All rights reserved. “Knowing what to do with a toon is easy. It's getting them to do it that's hard.“ Ender to Bean in Ender’s Game, Orson Scott Card 7
Copyright Prosci 2015. All rights reserved. TransitionCurrent Future Results and Outcomes Depend on Employee Adoption and Usage WithchangemanagementWithout = X project benefits created Current FutureTransition Adoption and usage gets bumpy Adoption and usage takes longer Adoption and usage incomplete Adoption and usage not as expected <X 8
Copyright Prosci 2015. All rights reserved. How Much Depends on Adoption and Usage? TransitionCurrent Future Current FutureTransition Expected benefits Consequences of poor adoption and usage is the ROI of change management 9
Copyright Prosci 2015. All rights reserved. How Much Depends on Adoption and Usage? % of expected project benefits depend on adoption and usage is the ROI of change management 10
Copyright Prosci 2015. All rights reserved. CMROI Calculator Snapshot • Cloud-based • Quantify contribution of adoption and usage • Tool flow follows CMROI logic flow • Multiple calculations, Multiple projects 11 CMROI Calculator $25 USD/mo. Full access, no obligation 14 day trial Free Trial Find in Available Resources Scroll below description to activate your trial TRIAL AVAILABLE
Copyright Prosci 2015. All rights reserved.12 Prosci CMROI Calculator - Getting Started Log into the Portal. Activate CMROI Calculator free trial. Click “Get Started.” Add a Project (with name) or select an existing project from a different app. Click “Add a Calculation” then give your calculation a Name (you can do multiple calculations on a project) Select type of calculation: Multiple Benefit or Single Benefit
Copyright Prosci 2015. All rights reserved. What is the project trying to achieve? 0 500 Future Organizational Benefits Project Objectives Revenue Costs Profits Efficiencies Compliance Safety Process Excellence Customer Satisfaction Specific metrics and measurements for improvement How work will be different after the change 14
Copyright Prosci 2015. All rights reserved. What is the project trying to achieve? IDENTIFY BENEFITS AND OBJECTIVES Project Objectives 1. Meaningful use incentives 2. One patient, one chart 3. Billing and claim error reduction 4. Physician communication 5. Modernization of platform Organizational Benefits 1. Patient throughput and experience 2. Lower cost, higher revenue 3. Risk and fine reduction 4. Clinical best practices 5. Patient empowerment Example: EHR in ACME Health 15
Copyright Prosci 2015. All rights reserved. What is the project trying to achieve? RELATIVE CONTRIBUTION Project Objectives 1. Meaningful use incentives 4 2. One patient, one chart 6 3. Billing and claim error reduction 6 4. Physician communication 5 5. Modernization of platform 3 Organizational Benefits 1. Patient throughput and experience 9 2. Lower cost, higher revenue 6 3. Risk and fine reduction 7 4. Clinical best practices 3 5. Patient empowerment 8 16 Example: EHR in ACME Health
Copyright Prosci 2015. All rights reserved. Screenshot 17 Prosci CMROI Calculator Snapshot – What is the project trying to achieve?
Copyright Prosci 2015. All rights reserved. Translate the Conceptual to Calculations and Graphs 19 Project ROI People Dependent (CMROI) Two questions: 1.How much of the benefit/objective depends on adoption and usage (all-high-medium-low-none)? 2.What percent of the benefit/ objective do we get if NO ONE CHANGES HOW THEY DO THEIR JOBS (adoption and usage = 0)? 64%
Copyright Prosci 2015. All rights reserved. Future Adoption contribution How Much Depends on Adoption and Usage? Net Project Benefit Dependent on adoption and usage Not dependent on adoption and usage Installation contribution ROI = Expected Project Benefit – Project Cost Project Cost Net Project Benefit Project Cost = 20
Copyright Prosci 2015. All rights reserved. 1. Benefit #1 2. Benefit #2 3. Benefit #3 4. Objective A 5. Objective B 6. Objective C 1. Benefit #1 People dependent: Low 2. Benefit #2 People dependent: Medium 3. Benefit #3 People dependent: High 4. Objective A People dependent: All 5. Objective B People dependent: None 6. Objective C People dependent: High 1. Benefit #1 People dependent: Low If NO ONE adopts, we get: 65% 2. Benefit #2 People dependent: Medium If NO ONE adopts, we get: 40% 3. Benefit #3 People dependent: High If NO ONE adopts, we get: 10% 4. Objective A People dependent: All If NO ONE adopts, we get: 0% 5. Objective B People dependent: None If NO ONE adopts, we get: 100% 6. Objective C People dependent: High If NO ONE adopts, we get: 5% How much depends on adoption and usage? 21
Copyright Prosci 2015. All rights reserved. How people dependent are the benefits? QUALITATIVE: all, high, medium, low, none Project Objectives 1. Meaningful use incentives 4 High 2. One patient, one chart 6 High 3. Billing and claim error reduction 6 High 4. Physician communication 5 High 5. Modernization of platform 3 Low Organizational Benefits 1. Patient throughput and experience 9 All 2. Lower cost, higher revenue 6 Low 3. Risk and fine reduction 7 High 4. Clinical best practices 3 All 5. Patient empowerment 8 Low 22 Example: EHR in ACME Health
Copyright Prosci 2015. All rights reserved. How people dependent are the benefits? QUANTITATIVE: if adoption and usage = 0 Project Objectives 1. Meaningful use incentives 4 High 35% 2. One patient, one chart 6 High 25% 3. Billing and claim error reduction 6 High 35% 4. Physician communication 5 High 10% 5. Modernization of platform 3 Low 90% Organizational Benefits 1. Patient throughput and experience 9 All 0% 2. Lower cost, higher revenue 6 Low 75% 3. Risk and fine reduction 7 High 35% 4. Clinical best practices 3 All 0% 5. Patient empowerment 8 Low 65% 23 Example: EHR in ACME Health
Copyright Prosci 2015. All rights reserved.24 Prosci CMROI Calculator Snapshot – How people dependent are the benefits?
Copyright Prosci 2015. All rights reserved. Example: EHR in ACME Health Results Project Objectives 1. Meaningful use incentives 4 High 35% 2. One patient, one chart 6 High 25% 3. Billing and claim error reduction 6 High 35% 4. Physician communication 5 High 10% 5. Modernization of platform 3 Low 90% Organizational Benefits 1. Patient throughput and experience 9 All 0% 2. Lower cost, higher revenue 6 Low 75% 3. Risk and fine reduction 7 High 35% 4. Clinical best practices 3 All 0% 5. Patient empowerment 8 Low 65% 64% Of what you expect from this effort depends on employee adoption and usage Adoption contribution Installation contribution 100% 50% 36% 26
Copyright Prosci 2015. All rights reserved. Translating to Linear Relationship 27 Adoption contribution Installation contribution 100% 50% 36% Benefits captured Adoption and Usage 100% 50% 0% 0% 100%50% 36% 64% 36%
Copyright Prosci 2015. All rights reserved. Adding “with no CM” Scenario 28 Adoption and usage will not be “0” even without any change management Expect LOWER A&U with no CM if: Expect HIGHER A&U even with no CM if: People are at saturation People have capacity Attempting to "do over" a failed change First pass at an exciting initiative Replacing a beloved system Replacing a system people bemoan A large departure from what people know Not that much of a departure from what people know The culture is resistant to change The culture is adoptive of change
Copyright Prosci 2015. All rights reserved. Adding “with no CM” Scenario 29 Adoption contribution Installation contribution 100% 50% 36% Take your best guess (based on factors) at what adoption and usage would be even with no CM Adoption contribution Installation contribution 100% 50% 36% Even with no CM 51% 13% 36% With an adoption and usage of 20% (with no CM), an additional 13% of benefits are captured
Copyright Prosci 2015. All rights reserved. Installation contribution Adoption contribution 100% 50% 36% Even with no CM 51% 13% 36% Translating to Linear Relationship 30 Benefits captured Adoption and Usage 100% 50% 0% 0% 100%50% 36% 20% With no CM, an adoption and usage of 20% yields 49% of expected benefits With CM, we can improve adoption and usage and capture much of the additional 51% of benefits on the table
Copyright Prosci 2015. All rights reserved. Screenshot 31 Prosci CMROI Calculator Snapshot – Results and scenario analysis
Copyright Prosci 2015. All rights reserved. What can we really achieve by catalyzing adoption and usage? That is change management! 32 51% Installation contribution Adoption contribution 100% 50% 36% Even with no CM 51% 13% 36%
Copyright Prosci 2015. All rights reserved. Engage the Team in the Calculation • Who better to provide the answers to “what are we trying to achieve?” and “how people dependent are the benefits?” – Commitment and engagement – Proof is in the pudding 34 Prosci CMROI Calculator and a projector enables co-creation of calculation
Copyright Prosci 2015. All rights reserved. Be Ready to Answer Their Next Questions What is “adoption and usage” for my change? Okay, so how do we increase adoption and usage? 35
Copyright Prosci 2015. All rights reserved. What Is “Adoption and Usage” for My Change? • Your segue to position change management and start identifying impacted groups. • Meaningful conversation with the project team: • Who has to adopt and use the change? • What does adoption and usage mean? • How will we know if they have adopted and are using? Great question! 36
Copyright Prosci 2015. All rights reserved. Who Has To Adopt and Use the Change? • Impacted groups you identify are addressed in Prosci’s methodology in many ways: Five Tenets Tenet 2 “… requires individual change.” ADKAR They are the ones going through ADKAR Phase 1 Impact Index group data Who is on the sponsor diagram? Phase 2 Audiences for communications plans Influences managers to engage in coaching Phase 3 Foundation for feedback and audit of compliance 37
Copyright Prosci 2015. All rights reserved. What Does Adoption and Usage Mean and How Will We Measure It? Who has to adopt and use the change? What does adoption and usage mean? How will we know? Identify the specific individuals or groups that have to do their jobs a new way when this change is implemented. List 3 to 5 specific changes for each group (process, tools, system, behavior, reporting relationships, performance measurement, etc.). Identify how you will measure or determine if each change has taken place (i.e. that adoption and usage has occurred). 1. 2. 3. 4. 5. 38
Copyright Prosci 2015. All rights reserved. Okay, So How Do We Increase Adoption and Usage? Your segue to talk about change management as the solution for driving the adoption and usage needed so that project benefits are realized. Great question! Prosci’s Five Tenets of Change Management: Tenet 4: Change management is an enabling framework for managing the people side of change. Tenet 5: We apply change management to realize the benefits and desired outcomes of change. 39
Copyright Prosci 2015. All rights reserved. Change Management Is the Discipline for Driving Adoption and Usage We apply change management to drive the adoption and usage necessary for project benefits to be realized Individual change management How does one person make a change successfully? Organizational change management What processes and tools can project teams use to drive individual change? Awareness Desire Knowledge Ability Reinforcement® Phase 1 – Preparing for change Strategy Phase 2 – Managing change Plans and deliverables Phase 3 – Reinforcing change™ 40
Copyright Prosci 2015. All rights reserved. When senior leaders are active and visible participants throughout the project… When we communicate directly, frequently and from preferred senders… 41 Connecting change management activities to adoption and usage We can increase employee adoption and usage When senior leaders are active and visible participants throughout the project… When we communicate directly, frequently and from preferred senders… When we apply a structured approach and assign a dedicated resource… When managers and supervisors support their employees through the change process… When employees are engaged in the process and feel involved and valued… When senior leaders are active and visible participants throughout the project… When we communicate directly, frequently and from preferred senders… When we apply a structured approach and assign a dedicated resource… When managers and supervisors support their employees through the change process… When employees are engaged in the process and feel involved and valued… When resistance is proactively identified and effectively managed… When we provide a compelling case and answer: Why? Why now? What if not? …
Copyright Prosci 2015. All rights reserved. CMROI – Shifting the Conversation 42 Why should we… invest in change management? How much should we… What value do we get when we… Can’t we just send an email and not… Because a significant portion of project benefits (X%) depends on employee adoption and usage, and change management helps us drive adoption and usage.
Copyright Prosci 2015. All rights reserved. 0 500 1000 Future Presenting the ROI of Change Management in Context Webinar Agenda www.change-management.com/webinars.htm changemanagement@prosci.com What is the ROI/value of change management? Nebulous No context What portion of project results and outcomes depends on employees adopting and using the change? With context What is the project trying to achieve? How people dependent are the benefits? Analyze Act What is the project trying to achieve? How people dependent are the benefits? Analyze Act Adoption contribution Installation contribution 100% 50% 36% Benefits captured Adoption and Usage 100% 50% 0% 0% 100%50% 36% 64% 36% Scenario Analysis: 1. People dependency 2. With no CM 3. With great CM Organizational Benefits Project Objectives Engage the team in co-creation Answer “what is adoption and usage for my change?” and “how do we increase adoption and usage?” Prosci’s new CMROI Calculator is now available: CMROI Calculator Full access, no obligation 14 day trial Free Trial Find in Available Resources Scroll below description to activate your trial Adoption contributionInstallation contribution
Copyright Prosci 2015. All rights reserved. Tab 3: Analyze results and scenarios. Enter “adoption and usage” with no change management scenario. Enter “adoption and usage” with change management scenario. Prosci Change Management CMROI Calculator ® Available in the Prosci Portal Your virtual change management workbench Free and quick to create your account $30 USD/mo. Activation link Scroll to Maturity Model Audit in Available Resources Activate your free trial to get started. $30 / Month $300 / Year http://portal.prosci.com CMROI Calculator $25 USD/mo Full access, no obligation 14 day trial CMROI CALCULATOR Prosci ® Free Trial Get started 1) Create your Project 2) Click “Add a Calculation” 3) Give your calculation a name 4) Select Calculation Type: “Multiple Benefit” or “Single Benefit” Calculation Enter your calculation data and analyze results Tab 1: Enter your benefits and objectives. Click “+ Add a Benefit” to add more rows. Give a “relative contribution” score for each on a 1-10 scale Tab 2: Evaluate how dependent each benefit/objective is on people. Qualitative: AllNone dropdown Quantitative: Estimate % achieved if NO ONE adopts the change The calculator shows the portion of project benefits that depend on adoption and usage which are the portion of benefits you can help deliver through change management.

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Prosci "Presenting the Value of Change Management in Context" Webinar