Prosci Webinar: Future of Change Management The slides, PDF file of the slides, the one page handout and the contained content are designed for use with participation in the webinar. Reproduction and distribution without permission are prohibited. If you are interested in distributing this information in your organization, please contact an Account Manager at license@prosci.com or +1-970-203-9332. Prosci Change Management Webinar 2014 Benchmarking Report Future of Change Management webinar@prosci.com 1 Copyright Prosci 2014. All rights reserved. Prosci’s Mission To help individuals and organizations build their own change management competencies through development and delivery of research- Our Principles: Our Resources: • Research-based • Holistic • Easy-to-use • • • • based, holistic, and easy-to-use tools and Published products and tools Web-based tools and applications Face-to-face training Train-the-Trainer methodologies. ……………………………………............................................................. Prosci by the #s: 8 16 80% 3400+ 20,000+ 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 Webinars ® • Educational • Thought provoking • Insights into new development 2 • New ideas, phraseology, language, and frameworks • Give you at least an hour per week to think about change management Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 1 Prosci Webinar: Future of Change Management Agenda: Where we’ve come from Where we are today Next two years: Internal trends Next five years: External trends The changing landscape I see 3 Copyright Prosci 2014. All rights reserved. Prosci Research Foundation ® • 8 studies • 16 years • 3400 participants What works? What doesn’t? What to do differently? 4 Study 1998 2000 2003 2005 2007 2009 2011 Participants 102 152 288 411 426 575 650 2013 822 Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 2 Prosci Webinar: Future of Change Management Structure of the Report Motivation for CM Use of methodology Change management job roles CM team and structure CM resources CM budget PM and CM integration Change readiness CM effectiveness and measurement CM capability and competency Justifying change management Change saturation Portfolio management Unique change types Aligning CM with specific approaches 5 Overview Overview Executive overview Greatest contributors to success Greatest change management obstacles What to do differently Change management trends Advice for practitioners Structure Structure Methodology and Overview Practice Areas Enterprise Enterprise Change Change Management Management Change management activities Sponsorship Managers and supervisors Communications Training Resistance Reinforcement and feedback Consultants Training on change management Copyright Prosci 2014. All rights reserved. Prosci’s industry leading research, now available online with new functionality - Intuitive, expand/collapse navigation for four click access to any finding “Favorite” any finding for easy retrieval Add “Notes” to any finding and associate to your projects Create your own “Playlists” of related and relevant findings Available now in the: 6 Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 3 Prosci Webinar: Future of Change Management Best Practices in Change Management – 2014 Edition Hardcopy: $349 prosci.com/bp Know your discipline Leverage latest data and new research on cutting-edge topics like measurement, resourcing and budgeting, and integrating with project management. Know what worked for others Gain countless insights with focused tips and suggestions that can provide support whether you are structuring your overall approach or customizing specific activities. Know what not to do Online in the Prosci Portal Avoid mistakes and missing a crucial step or action by acquiring the foresight that comes from practitioners who share what they would have done differently. Know what to do next Plan concrete steps with actionable findings to guide both how you structure your change management approach and how you execute specific practice areas. 7 Copyright Prosci 2014. All rights reserved. Change Management Timeline NEXT TWO YEARS 1990s Pre-1990 8 2000s NEXT FIVE YEARS The changing landscape I see Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 4 Prosci Webinar: Future of Change Management Change Management Timeline Pre-1990 1990s 2000s Foundations: Understanding how humans experience change and human systems 9 NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see Arnold Van Gennep (1909) Kurt Lewin (1951) Richard Beckhard 1969 William Bridges (1979) Copyright Prosci 2014. All rights reserved. Change Management Timeline Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS Daryl Conner (1992) Jeanenne LaMarsh (1995) On the radar: Change management enters the business vernacular 10 The changing landscape I see Todd Jick (1993) John Kotter (1996) Spencer Johnson, M.D. (1998) Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 5 Prosci Webinar: Future of Change Management Change Management Timeline Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see formalization of Processes and tools: Positions and job roles: Formalization: Evolution of structure and rigor in change management 11 Organizational functions: Copyright Prosci 2014. All rights reserved. Change Management Timeline Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see formalization of Processes and tools: Formalization: Evolution of structure and rigor in change management 12 Prosci Change Management Methodology Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 6 Prosci Webinar: Future of Change Management Change Management Timeline Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see formalization of Positions and job roles: HELLO my JOB is Director, Change Management Change Management Specialist Change Analyst Change Management Consultant Formalization: Evolution of structure and rigor in change management 13 Change Manager Change Management Analyst Manager – Organizational Change Management Copyright Prosci 2014. All rights reserved. Change Management Timeline Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see formalization of Organizational functions: Formalization: Evolution of structure and rigor in change management 14 Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 7 Prosci Webinar: Future of Change Management Change Management Timeline Pre-1990 1990s 2000s NEXT TWO NEXT FIVE YEARS YEARS 2 year: 1. Awareness 2. Application 3. Leadership 4. CMOs 5. Use of methodology 6. Emphasis on plans 7. Focus on individual 8. Need to manage portfolio 9. Engagement with PM 15 The changing landscape I see 5 year: 1. Maturation of the practices 2. Internal capability building 3. Expansion as profession 4. Acceptance 5. Integration with PM 6. Greater application Copyright Prosci 2014. All rights reserved. Internal Trends: Next 2 Years 1. Greater awareness of the need for change management Because organizations are seeing the impact on meeting project objectives 2. Broader application of change mgmt 3. Increased leadership support for change management Percent of study participants who met or exceeded objectives 4. Greater effort to establish a CMO or dedicated functional group 46% 5. Increased use of methodologies and tools to manage the people side of change 16% 6. Greater emphasis on training, communications and reinforcement plans Poor 7. Increased focus on impacted individuals 8. Recognition of the need for change portfolio management 9. More engagement and earlier integration with project management 16 96% 77% (n=244) Fair (n=653) Good (n=834) Excellent (n=165) Change Management Effectiveness Prosci 2014 Benchmarking Data Copyright © Prosci 2014. All rights reserved. Data from 2007, 2009, 2011, 2013. Drives adoption Addresses risks and costs Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 8 Prosci Webinar: Future of Change Management Internal Trends: Next 2 Years 1. Greater awareness of the need for change management Increased internal competency Practitioners and line managers 2. Broader application of change mgmt 3. Increased leadership support for change management 4. Greater effort to establish a CMO or dedicated functional group 5. Increased use of methodologies and tools to manage the people side of change Earlier application Initiation 8. Recognition of the need for change portfolio management Implementation Closure More types, broader application Becoming requirement Initiation 9. More engagement and earlier integration with project management 17 Design More projects 6. Greater emphasis on training, communications and reinforcement plans 7. Increased focus on impacted individuals Planning Planning Design Implementation Closure Decision gate Copyright Prosci 2014. All rights reserved. Internal Trends: Next 2 Years 1. Greater awareness of the need for change management More formalization Individual Milestones 2. Broader application of change mgmt 3. Increased leadership support for change management Inputs: Organizational Deliverables 4. Greater effort to establish a CMO or dedicated functional group 5. Increased use of methodologies and tools to manage the people side of change 6. Greater emphasis on training, communications and reinforcement plans Increased use of methodology 12% 35% 18% 42% 7. Increased focus on impacted individuals 8. Recognition of the need for change portfolio management Outputs: 7% 28% 35% Provider/Thought-Leader (Prosci) 7% Provider/Thought-Leader (Other) 28% Combo/Hybrid/Mixture 18% Internally Developed 12% Consultant Provided Methodologies used Copyright © Prosci 2014. Best Practices in Change Management – 2014 Edition 9. More engagement and earlier integration with project management 18 Added structure Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 9 Prosci Webinar: Future of Change Management Internal Trends: Next 2 Years 1. Greater awareness of the need for change management 2. Broader application of change mgmt 3. Increased leadership support for change management 4. Greater effort to establish a CMO or dedicated functional group 5. Increased use of methodologies and tools to manage the people side of change Improved training, communications and reinforcement Ensure sufficient usage for outcomes Leveraging new developments Social media 6. Greater emphasis on training, communications and reinforcement plans Gaming 7. Increased focus on impacted individuals 8. Recognition of the need for change portfolio management 9. More engagement and earlier integration with project management 19 Copyright Prosci 2014. All rights reserved. Internal Trends: Next 2 Years 1. Greater awareness of the need for change management Increased focus on impacted groups, engagement, adoption 2. Broader application of change mgmt 3. Increased leadership support for change management 4. Greater effort to establish a CMO or dedicated functional group 5. Increased use of methodologies and tools to manage the people side of change 6. Greater emphasis on training, communications and reinforcement plans 7. Increased focus on impacted individuals 8. Recognition of the need for change portfolio management Future F F F F F F F F F F F F F F F F 9. More engagement and earlier integration with project management 20 Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 10 Prosci Webinar: Future of Change Management Internal Trends: Next 2 Years More often 1. Greater awareness of the need for change management 2. Broader application of change mgmt Earlier 3. Increased leadership support for change management Initiation Planning Design Implementation Closure 4. Greater effort to establish a CMO or dedicated functional group 5. Increased use of methodologies and tools to manage the people side of change 6. Greater emphasis on training, communications and reinforcement plans Collaboration Project Management Design, Develop, Deliver Solution Effectively 7. Increased focus on impacted individuals 8. Recognition of the need for change portfolio management People Processes Tools Solution is Embraced, Adopted and Used Proficiently Change Management 9. More engagement and earlier integration with project management 21 Copyright Prosci 2014. All rights reserved. Change Management Timeline Pre-1990 1990s 2000s 2 year: 1. Awareness 2. Application 3. Leadership 4. CMOs 5. Use of methodology 6. Emphasis on plans 7. Focus on individual 8. Need to manage portfolio 9. Engagement with PM 22 NEXT TWO NEXT FIVE YEARS YEARS The changing landscape I see 5 year: 1. Maturation of the practices 2. Internal capability building 3. Expansion as profession 4. Acceptance 5. Integration with PM 6. Greater application Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 11 Prosci Webinar: Future of Change Management Discipline Trends: Next 5 Years 1.Continued maturation of the practice of change management 2. Focus on building internal capabilities and core competency 3. Expansion of change management as a profession Definition of the practice Formalization, discipline, rigor Toolset evolving: emphasis on accessibility, simplification, easy-to-use Measurement, metrics, scorecards 4. Continued elevation of acceptance 5. Further integration with project management Evolution of practice with new technologies: social media, gaming Specialization 6. Greater application of change management 23 Copyright Prosci 2014. All rights reserved. Discipline Trends: Next 5 Years 1.Continued maturation of the practice of change management 2. Focus on building internal capabilities and core competency 3. Expansion of change management as a profession 4. Continued elevation of acceptance 5. Further integration with project management 6. Greater application of change management 24 Building internal capabilities Standard approach Part of culture Prosci Enterprise Change Management Emphasis on resilience and capacity 1) Common, consistent, constant application of processes and tools CMOs 2) Internal change leadership competencies throughout the org Seen as part of all jobs Increased individual competencies 3) Organizational capability and core competency Developed by treating ECM like a project and a change to be managed Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 12 Prosci Webinar: Future of Change Management Discipline Trends: Next 5 Years 1.Continued maturation of the practice of change management Recognized profession More positions 2. Focus on building internal capabilities and core competency Greater demand for skills 3. Expansion of change management as a profession Shortage of practitioners 4. Continued elevation of acceptance 24,582 results Certification, accreditation, credentialing 5. Further integration with project management Career paths 6. Greater application of change management 25 Copyright Prosci 2014. All rights reserved. Discipline Trends: Next 5 Years 1.Continued maturation of the practice of change management 2. Focus on building internal capabilities and core competency 3. Expansion of change management as a profession 4. Continued elevation of acceptance 5. Further integration with project management 6. Greater application of change management 26 Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. More types of projects Across more functions/departments Required work stream Technical Work Stream People Side Work Stream Integrated into change systems Lean Continuous Process Improvement Six Sigma Strategic Planning Willingness to apply structure prosci.com/bp #cmbp14 @Prosci 13 Prosci Webinar: Future of Change Management Change Management Timeline Pre-1990 1990s 2000s 2 year: 1. Awareness 2. Application 3. Leadership 4. CMOs 5. Use of methodology 6. Emphasis on plans 7. Focus on individual 8. Need to manage portfolio 9. Engagement with PM 27 NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see 5 year: 1. Maturation of the practices 2. Internal capability building 3. Expansion as profession 4. Acceptance 5. Integration with PM 6. Greater application Copyright Prosci 2014. All rights reserved. Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see The changing landscape I see Increased application + Maturation of the practice and profession + Changing role of the CM SME Increased internal capabilities 28 Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 14 Prosci Webinar: Future of Change Management Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see The changing landscape I see Increased application More types of projects + More parts of the organization Maturation of the practice and profession + More organizations Increased internal capabilities 29 Copyright Prosci 2014. All rights reserved. Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see The changing landscape I see Increased application + Maturation of the practice and profession + Increased internal capabilities 30 Sophistication toward simplification Inclusion of new “technologies” Standards and certification Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 15 Prosci Webinar: Future of Change Management Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see The changing landscape I see Hardwiring into change processes Increased application + Standard work stream for any change Maturation of the practice and profession + Growing individual skills throughout Increased internal capabilities 31 Copyright Prosci 2014. All rights reserved. Pre-1990 1990s 2000s NEXT TWO YEARS NEXT FIVE YEARS The changing landscape I see The changing landscape I see “Democratization” of change management Enabling others through coaching and consultative support Changing role of the CM SME Continued shift from “what we do” to “what we deliver” 32 Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. 16 Prosci Webinar: Future of Change Management Best Practices in Change Management – 2014 Edition Hardcopy: $349 prosci.com/bp Know your discipline Leverage latest data and new research on cutting-edge topics like measurement, resourcing and budgeting, and integrating with project management. Know what worked for others Gain countless insights with focused tips and suggestions that can provide support whether you are structuring your overall approach or customizing specific activities. Know what not to do Online in the Prosci Portal Avoid mistakes and missing a crucial step or action by acquiring the foresight that comes from practitioners who share what they would have done differently. Know what to do next Plan concrete steps with actionable findings to guide both how you structure your change management approach and how you execute specific practice areas. 33 Copyright Prosci 2014. All rights reserved. Change Management Timeline NEXT TWO YEARS 1990s Pre-1990 34 Copyright Prosci 2014. All rights reserved. Copyright 2014 Prosci. All rights reserved. NEXT FIVE YEARS 2000s The changing landscape I see prosci.com/bp #cmbp14 @Prosci 17