Marie Franko's document discusses change management and benefit realization. It defines change management and differentiates it from project management. The document highlights that change management focuses on helping employees embrace change and realizing benefits, while project management focuses on tasks and timelines. The McKinsey study is discussed, finding that companies who addressed change management at multiple levels realized 129% ROI on projects compared to 35% ROI for those addressing few or no levels. Effective change management is key to fully realizing benefits from projects.

1. Change Management 101
Benefit Realization
Marie Franko, RN, BSN
Friday - May 31, 2013

2. • Marie Franko, BSN, RN
o Clinical Consultant
o 13 years of healthcare experience
o 6 years of Healthcare Informatics
o 7 years of clinical nursing experience

3. • Define change management
• Differentiate between change
management and project management
• Understanding benefit realization and its
effect on projects

4. Change: /CHānj/
• Verb – to make or become DIFFERENT
• Noun - the act or instance of making or becoming
DIFFERENT

5. When a perception of loss or loss of control is impending, we
feel threatened. It is the “threatening change” that is feared.1
1 - (Howardell, 2004, para. 3)
Fear of Loss
• Position
• The ability to perform
assigned tasks
• Your job

6. “The oldest and strongest emotion of mankind is fear, and the oldest
and strongest kind of fear is fear of the unknown.” – H.P. Lovecraft
Fear of the Unknown
• Instinctual response to potential danger
• Paralysis
• Avoidance or escape
• Relates to future events

8. • A business fable about change
• Work and personal life
• Effects and reactions to change
In the end, you will understand….

9. Adapt and find your way to the cheese

10. Predetermining
the Need
Preliminary
Discussions
Determining
“How”
Implement &
Manage
Support,
Maintain, and
Reassess the
Change
Reemerging
Habits
Acceptance

13. A relationship that benefits everyone involved
Project Management
Change Management

14. 1- (Francis, 2009)
• Planning, scheduling and controlling activities
• Application of skills, tools and techniques

15. Project
Management
Change
Management
Problem
Solving
Quality Control
Building
Confidence
Communication
Planning
Risk Analysis

16. 1- (Francis, 2009)

17. from a “how can we achieve” perspective
How many of you evaluate the cost of
change management before any project?
• Optimum return on investment (ROI)
• People management
“Cost-benefit analysis”, 2013
Yes
No
16%
84%

18. Understanding the reality of change
• Healthcare initiatives
• Individuals
• Behaviors
• Processes
• Tools /Resources
• Benefit realization
• Collective results of individual change
“Cost-benefit analysis”, 2013

19. “I’m not
responsible for
managing the
‘soft’ side of the
project”
“Having a
communication
plan is
enough”
“We don’t need
to manage
change, that’s
Administration’s
job”
“Aren’t we
managing
change through
the project?”

20. The McKinsey Study
Organizational Change Management (OCM)
Helping employees embrace change [Article]. The McKinsey Quarterly, 4, 17-20.
• 10 years of independent studies
• 40 Companies
• Banks
• Hospitals
• Manufacturers
• Utilities
• Successful change factors
• Unsuccessful change factors

21. The McKinsey Study
Organizational Change Management (OCM)
Helping employees embrace change [Article]. The McKinsey Quarterly, 4, 17-20.
• Expected targeted project value
• Actual targeted project value
52%
Failed
42%
Gained
26%
1/3 or <

22. Project
Management
OCMSenior
Management
Middle Management
Frontline Staff – End Users

23.  Commitment
 Communication
 Financial Incentives
 Nonfinancial Incentives
 Leadership
 Stretch Targets
Senior
Management

24.  Decision Authority
 People Management Skills
 Project Management Skills
Middle Management

25.  Skills
 Tools
 Motivation
Frontline Staff – End Users

26. Helping employees embrace change [Article]. The McKinsey Quarterly, 4, 17-20.
Senior
Management
Middle Management
Frontline Staff – End Users
7 Companies
issues on one
level11 Companies
issues on two
levels
0 Levels
1 Level
2 Levels
3 Levels
35%
11 Companies
129%
7 Companies
143%
11 Companies
68%
11 Companies
Actual ROI

27. Senior Executives
• Lack of commitment
Middle Managers
• Defective PM Skills
Frontline Staff
• Lack of training
• Confusion

29. ROI
100%

30. 143% ROI Return on
Investment (ROI)
Project Costs
Net Project Benefits

31. Project Costs
35% Return on
Investment (ROI)
Net Project Benefits

32. 1- (Francis, 2009)
Scope Timeline Cost

33. 1- (Francis, 2009)
Scope
Benefit not
fully realized

34. 1- (Francis, 2009)
Timeline
Implementation is
Delayed

35. 1- (Francis, 2009)
Cost
Higher
Implementation
Cost

36. Who here believes that your current
project will effect individuals doing their
job a new way?
“Cost-benefit analysis”, 2013

37. Are we doing what it takes to convince our staff or are
we just building great systems?
Change installed:
Benefits not realized
Change installed:
Benefits realized
“Cost-benefit analysis”, 2013

38. 4 -
The objective is to “express the benefits of change management in terms of
expected project benefits”
What are the
benefits of
change
management?
Let’s Think
What if we changed the way we think……
How does the
employee adoption
and usage rate
benefit the project?
“Cost-benefit analysis”, 2013

40. Keep the
cheese moving
Remember
to keep
moving with
the cheese
Check your
cheese for
mold regularly
Be ready
for when
the cheese
moves
The faster you let
your cheese go,
the sooner you
can enjoy new
cheese
Enjoy the
journey and
the taste of
new cheese

41. 1. Fear. (n.d.). In Fear. Retrieved August 14, 2012, from http://en.wikipedia.org/wiki/fear
2. Francis, C. (2009). Change management: the missing link for PM success. Retrieved from
http://www.projecttimes.com/articles/change-management-the-missing-link-for-pm-
success.html
3. Howardell, D. (2004). Overcoming People’s Fear of Change. Retrieved from
www.theacagroup.com/overcome.htm
4. Jerico, P. (2009). NoFear in Work and in Life [PowerPoint slides]. Retrieved from
www.slideshare.net/pilarjerico/no-fear-2184060
5. Johnson, S. (1998). Who Moved My Cheese? New York, NY: Penguin Putnam.
6. LaClair, J. A., Rao, R. P., & Curry, K. (2002). Helping employees embrace change [Article]. The
McKinsey Quarterly, 4, 17-20.
7. Mostashari, F. (2012, January 6). 12 Months of Health Information Technology: A Year of Momentous
Progress [Blog post]. Retrieved from http://www.healthit.gov/buzz-blog/from-the-onc-desk/12-
months-health-information-technology-year-momentous-progress/
8. Cost-benefit analysis for change management from http://www.change-management.com/tutorial-
case-mod5.htm