Five Tenets of Change Management

C H A N G E M A N A G E M E N T
Five Tenets of Change Management
Prosci Webinar

© Prosci. All Rights Reserved. 2
Agenda
• Understand the
What, Why and How
of change management
• Explore the 5 Tenets of CM
• Apply the 5 Tenets of CM
to one of your iniFaFves
Blank sheet
of paper

Introduc4on of the 5 Tenets of CM
Change Management: The People Side
of Change by HiaK and Creasey
1st ediFon: Sept 2003
2nd ediFon: Dec 2012
Rewrite of Chapter 1:
“Why change management?”
Advancement and simpliﬁcaFon
of the case for change management

Priority is a
function
of context.
Stephen R. Covey

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3
4
5
We change for a reason.
OrganizaFonal change requires individual change.
OrganizaFonal outcomes are the collecFve
result of individual change.
Change management is an enabling framework
for managing the people side of change.
We apply change management to realize the
beneﬁts and desired outcomes of change.
Prosci Five Tenets of CM

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Current Transition Future
A movement
out of
Through
To ulFmately
reach
* Arnold Van Gennep
“The Rites of Passage” +
Many other contributors
to the discipline
What is change?

“Current”

“TransiFon”

“Future”

Ending Neutral Zone New Beginning Bridges
Present TransiFon Future
Beckhard/
Harris
Red: Loss and Doubt
Yellow: Discomfort &
Discovery
Green: Understanding
and IntegraFon
Salerno/
Brock
Current Delta Desired LaMarsh
Upstream Midstream Downstream
Ackerman/
Anderson
Unfreeze Moving Re-Freeze Lewin
Present TransiFon Desired Conner
3 States of Change Comparisons
Van
Gennep
SeparaFon Liminality IncorporaFon

Today’s States of Change:
Many simultaneous – but s4ll Current-Transi4on-Future
C T F
C T F T F T F T F
C T F
T F
C T F C T F
C T F C T
C T F T F T F C
C T F
C T F C T F
T F C T
C T F
T F T F C
C T F
C T F T F T F T F T F
C T F C
C T
C T
F

Results, Outcomes and Beneﬁts
come from future state > current state
CurrentFuture
>
Costs are lower than they were
Revenues are higher than they were
Errors are fewer than they were
Eﬃciencies are larger than they were

Internal External
Triggers
Goals
Strategic plans
Internal performance
CompeFFve threats
Customer demands
Market and economic shijs
New technologies
RegulaFon/legislaFon Demands to do more with less
Costs lowered
Revenues increased
Market share gained
Errors reduced
Eﬃciencies gained
Customers more saFsﬁed
Risk exposure decreased
ConFnuous improvement
The reasons for change
Internal/External + Triggers/Goals
RelaFonships extended

List the “reasons” for
your change:

What are the
objecFves, beneﬁts
and expected results
and outcomes for the
project or iniFaFve?
1
Reasons

C H A N G E M A N A G E M E N T

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5

Future
ImplemenFng an ERP
Installing Electronic
Medical Records
DocumenFng and opFmizing
business processes
Move to a new
physical locaFon
We tend to focus on change
at the organiza4onal level.

OrganizaFons Don’t Change;
Individuals Do

I had used the old legacy system… Now I’m using the new integrated system
I had done what I needed to… Now I’m following the new processes
I had reported to… Now I’m reporFng to
F FFC C C
But each organiza4onal change impacts
how speciﬁc employees do their jobs
F F
F F F F F
C C
C C C C C

Transition
T
Current Future
C C C C C
C C C C C
C C C C C
C C C C C
C C C C C
T T T T
T T T T T
T T T
T T T T
T T T T T
F F F
F F F F
F F F
F F F
F F F F
T
T
T
F
F
F
F
F
F
F
F
The true unit of change is the individual

And your ini4a4ve will impact certain
aspects of how people do their jobs
Processes
Tools
Systems CompensaFon
Performance Reviews
ReporFng Structure
CriFcal Behaviors
Job Roles
LocaFon
Mindset/Aqtudes/Beliefs
Aspects of a
Person’s Job You
Can Impact

Yesterday Job Aspect Tomorrow
Size of
impact
Processes
Systems
Tool
Job Roles
Critical Behaviors
Mindset/Attitudes/Beliefs
Reporting Structure
Performance Reviews
Compensation
Location
Deﬁning impact across the 10 aspects

IdenPfy the groups
impacted by the
change:

Which individuals
(groups) have to do
their jobs diﬀerently
when this change is
implemented?
2
Impacted
groups
Reasons
1

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5

The achievements
of an organization
are the results of the
combined effort of
each individual.
Vince Lombardi

Current Transition Future
TC F
C C C C C
C C C C C
C C C C
C C C C C
C C C C C
T T T T
T T T T T
T T T
T T T T
T T T T T
F F F
F F F F
F F
F F F
F F F F
T
T
T
F
F
F
F
F
F
F
F
Ultimately requires individuals to move
from their own current to their own future
An organizational move to a future state

“People side of change” is
about closing the gap
Requirements Results
Outputs Outcomes
Specifications Sustainment
Installation RealizaPon
Solutions Beneﬁts
*
* Daryl Conner

How well are individuals
performing compared to the
level expected in the design of
the change?
How many employees
(of the total populaFon) are
demonstraFng “buy-in” and are
using the new soluFon?
How quickly are people up and
running on the new systems,
processes and job roles?
Speed of AdopPon UlPmate UPlizaPon Proﬁciency
3 People Side Factors
Determine/Constrain Results

AdopFon
contribuFon
InstallaFon
contribuFon
AdopFon
contribuFon
InstallaFon
contribuFon
AdopFon
contribuFon
InstallaFon
contribuFon
How much of our expected results and
outcomes depends on adop4on and usage?
Future
AdopFon
contribuFon
InstallaFon
contribuFon
20%
50%
80%
AdopFon ContribuFon = People Dependency of ROI
None All High Low Medium
PorFon of beneﬁt
that depends on
individual transiFons
(CMROI)

“The results and outcomes
of workplace changes are
intrinsically and inextricably
Fed to individual employees
doing their jobs diﬀerently.”

Change Management: The People Side of Change
(page 1)

Future
F F F
F F F F
F F F
F F F
F F F F
F
F
F
F
F
F
F
F
Future
Connec4ng reasons to impacted groups
Reason #1
Reason #2
Reason #3
Reason #4
Impacted group A
Impacted group B
Impacted group C
Impacted group D
Impacted group E

Draw the
connecPons:

Which groups must
adopt and use the
change in order for
each “reason” or
objecFve to be
achieved?
3
Impacted
groups
Reasons
Connections
Bonus:
EsFmate the percentage of
expected results and outcomes
that depend on people changing
how they do their jobs?
21

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M T W R F

An email on Monday
for training on Tuesday
for launch on Wednesday
is NOT the way to prepare and
equip individuals to
successfully change

Change management:
Preparing, equipping
and supporting individuals
through the change journeys
they experience as
part of your organizaFon

Prosci® ADKAR® Model
Individual Change Outcomes
A Awareness “I understand why…”
R Reinforcement “I will conFnue to…”
A Ability “I am able to…”
K Knowledge “I know how to…”
D Desire “I have decided to…”
When you create: You hear:

Prosci® 3 - Phase Change Management Process
Develop a customized and scaled approach
Create deliverables and plans to support ADKAR
Ensure that the change sPcks
•  Readiness assessments
•  Risk evaluaFon
•  Impact Index
•  Special tacFcs
•  Sponsor assessment diagram
•  Team preparaFon
•  CommunicaFon plan
•  Sponsor roadmap
•  Coaching plan
•  Training plan
•  Resistance management plan
•  Feedback collecFon
•  Compliance audits
•  Gap idenFﬁcaFon
•  CorrecFve acFons
•  Success celebraFons
•  Measurement
A holisFc, research-based, tool-rich
structured approach

Execs &
Senior Leaders
Front-Line
Middle Managers
& Supervisors
Change
resource/
team
Project
Team
Project
SMEs and
support
C C C C C
C C C C C
C C C C C
C C C C C
C C C C C
T
T
T T T T
T T T T T
T T T
T T T T
T T T T T
T
T
F F F F
F F F F
F F F
F F F
F F F F
F
F
F
F
F
F
F
ABC
CLARC
Adopt
& Use
Structure
Enable
Integrate
Focus
ExperFse
Experience
OrganizaFon Structure Change Structure
Roles in Change Management

Top Contributors to Success
GOAL:

Drive adopFon
and usage to
deliver expected
results and
outcomes
Sponsorship
CommunicaFon
Manager
Engagement
Employee
Engagement
Approach
Resources
IntegraFon
with PM

Notes on your
change management
approach:
•  Are we using a
structured approach?
•  Is it scaled and
customized?
•  Do we have a budget?
•  Who is doing the
change management?
•  Are we aligning with
best pracFces?
4
Impacted
groups
Reasons
Change
management
approach
Connections3
21

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48%
62%
70%
81%
0%
100%
Poor Fair Good Excellent
14%
32%
52%
71%
0%
100%
15%
42%
76%
94%
0%
100%
0%
100%
We apply change management to…
Improve likelihood of change outcomes
•  Improve project results
and outcomes
•  Drive benefit realizaFon
and financial return
•  Minimize risks
•  Reduce “re” costs
Met or exceeded objecPves
On schedule
On budget
Change Management EffecFveness

= Lower
ROI
= Not What We
Expected/Hoped For
= Less Beneﬁt
RealizaFon
= Unachieved
Improvement
Avoid a “Swiss cheese” future state
F F
F F F
F
F
F
F
F
F
F

Minimize nega4ve consequences

Mi4gate and reduce costs and risks
Costs Risks
Individuals
Project
OrganizaFon
The RE costs:
REwork REdesign
REdo REcope
REtrain REtreat

Drive people-side outcome variables
How well are individuals
performing compared to the
level expected in the design of
the change?
How many employees
(of the total populaFon) are
demonstraFng “buy-in” and are
using the new soluFon?
How quickly are people up and
running on the new systems,
processes and job roles?
Speed of AdopPon UlPmate UPlizaPon Proﬁciency

Capture people-dependent ROI
Gartner BPM Summit
Dec 12, 2014
Prosci Webinar
Feb 11, 2015

Deliver results and outcomes

Change management:
CHānj ‘manijmǝnt
Mobilizing people
to realize results

Tenet 5 Summary
Improve likelihood of change outcomes
Meet or exceed objecFves, on Fme and on budget
Avoid a “Swiss cheese” future state
Minimize negaFve consequences
MiFgate and reduce costs and risks
Drive people-side outcome variables
Capture people-dependent ROI
Deliver results and outcomes
We apply change
management to…

What do we hope to
realize with CM:

IdenFfy the value you
can create when you
do a great job of
preparing, equipping
and supporFng
people through the
changes they
experience (likelihood
of success, costs and
risks miFgaFon, etc.)
5
Impacted
groups
Reasons
Connections
Realization
and impact
Change
management
approach
4
3
21

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You Can Apply the Five Tenets

1.  We change for a reason.
Q: What are the reasons for your change? What are the organizaFonal
benefits and project objecFves?
2.  OrganizaPonal change requires individual change.
Q: Who has to do their jobs differently (and how) as a result of your
project or iniFaFve?
3.  OrganizaPonal outcomes are the collecPve result of individual change.
Q: How do the individual transiFons connect directly to the outcomes
you expect from your change?
4.  Change management is an enabling framework for managing the
people side of change.
Q: What structured approach are you taking to prepare, equip and
support employees through the change?
5.  We apply change management to realize the benefits and desired
outcomes of change.
Q: How important are the benefits and desired outcomes of the
change? How much are you willing to do (and invest) to make sure they
are realized by mobilizing employee adopFon and usage?
Interview ques4ons for your project managers and team members:
R
ma
a
4
1
5
Impacted
groups
R easons
Connections
R ealization
and impact
Change
management
approach
4
3
21

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Prosci Solution

Delivering organizaFonal results by
catalyzing individual transiFons

hKp://www.prosci.com | hKp://blog.prosci.com
changemanagement@prosci.com
Build individual change competencies
Apply change management on iniFaFves
Embed organizaFonal change capability
hKp://www.prosci.com
soluFons@prosci.com

Five Tenets of Change Management

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