Change Management ROI - Prosci Conference Board 2014 Presentation

Copyright Prosci 2014. All rights reserved. www.prosci.com
Adoption and Usage:
The ROI of Change Management
www.prosci.com | 970-203-9332
Research | Methodology | Tools | Training
Prosci
®
June 26, 2014
tcreasey@prosci.com @timcreasey
www.linkedin.com/in/timcreasey/

What are you “personally responsible”
for as change leaders?

theme of the
conference

Stakeholder Analysis
Impact Assessments
Change Management Strategy

Impact Assessments
Communications Plan
Sponsor Roadmap
Coaching Plan
Training Plan
Resistance Management Plan

Impact Assessments
Communications Plan
Sponsor Roadmap
Coaching Plan
Training Plan
Feedback Collection
Sustainment Activities

Impact Assessments
Communications Plan
Sponsor Roadmap
Coaching Plan
Training Plan
Feedback Collection
Drive benefit
realization
Ensure ROI

Impact Assessments
Communications Plan
Sponsor Roadmap
Coaching Plan
Training Plan
Feedback Collection
Drive benefit
realization
Ensure ROI
Enable results and outcomes

Impact Assessments
Communications Plan
Sponsor Roadmap
Coaching Plan
Training Plan
Feedback Collection
Drive benefit
realization
Ensure ROI
employee adoption
and usage of change
…through…

Impact Assessments
Communications Plan
Sponsor Roadmap
Coaching Plan
Training Plan
Feedback Collection
Drive benefit
realization
Ensure ROI
employee adoption
and usage of change
…through…
What you do

Impact Assessments
Communications Plan
Sponsor Roadmap
Coaching Plan
Training Plan
Feedback Collection
Drive benefit
realization
Ensure ROI
employee adoption
and usage of change
…through…
What you do What you deliver

“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

Can you reframe the conversation?
From what you do to what you deliver
Making the case for
change management
Calculating the ROI of
change management

Making the Case for CM
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%

About
Prosci
Research

About
Prosci
Research
1998 2000 2003 2005 2007 2009 2011 2013

About
Prosci
Research
1998 2000 2003 2005 2007 2009 2011 2013
What works?
What doesn’t work?
What to do differently?

About
Prosci
Research
1998 2000 2003 2005 2007 2009 2011 2013
What works?
What doesn’t work?
What to do differently?
x 822
change
leaders
in 2013

US:
34%
Canada:
15%
Europe:
14%
Africa:
5%
Latin
America:
2%
Australia
and NZ:
25%
Asia and Pacific
Islands: 3%Middle
East: 2%
43%
Role: CM
team leader
25%
Over 12 years
CM experience
36%
Job role is
exclusively CM

36%
More than 10K
employees
29%
More than $5B
revenue
52%
Have CM
job roles
36%
Have CMO/
functional group
Top
industries
Banking
Health Care
Gov’t – State
Finance
Gov’t – Federal
25%
Impacted more
than 5K employees
20%
More than $10M
investment
46%
Impacted entire
enterprise
Top
change
types
IT upgrade/installation
ERP system
Culture change
Reorganization
Process optimization


If you talk to a man in a
language he understands,
that goes to his head. If you
talk to him in his language,
that goes to his heart.
Nelson Mandela

16%
46%
77%
96%
0%
20%
40%
60%
80%
100%
Poor Fair Good Excellent
(n=244) (n=653) (n=834) (n=165)
Data from 2007, 2009, 2011, 2013.
Percent of study participants who
met or exceeded project objectives
Change Management Effectiveness

16% 32%
54%
72%
0%
20%
40%
60%
80%
100%
(n=293) (n=793) (n=1032) (n=181)
Data from 2007, 2009, 2011, 2013.
were on or ahead of schedule

48%
63%
71%
81%
0%
20%
40%
60%
80%
100%
(n=258) (n=737) (n=1001) (n=180)
Data from 2007, 2009, 2011, 2013.
were on or ahead of budget

The goal of change management
is to capture and realize
the portion of project benefits
that is dependent on
employee adoption and usage.
Making the case for
change management

Why the CMROI Calculation
Is Interesting
ROI calculations are based on the “delta”

Is Interesting
e.g. Process
Optimization

Is Interesting
e.g. Process
Optimization As-Is

Is Interesting
e.g. Process
Optimization As-Is To-Be

Is Interesting
e.g. Process
Change
Management

Is Interesting
e.g. Process
Change
Management
?

Is Interesting
e.g. Process
Change
Management
?
What is the “delta” for
change management?

Project ROI Results from the
Future-Current Delta

Current

TransitionCurrent

TransitionCurrent Future

Benefits

Benefits
Costs reduced
Revenue generated

Benefits
Costs reduced
Revenue generated
Risks mitigated
Errors reduced

Benefits
Costs reduced
Revenue generated
Risks mitigated
Errors reduced
Quality improved
Service levels met

Benefits
Costs reduced
Revenue generated
Risks mitigated
Errors reduced
Quality improved
Service levels met
Future
Performance
Current
Performance Net
Benefits

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

Individuals Make Their Own
Transitions: Adoption and Usage

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

TC
C T
TC
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

C T F
TC
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
F
F
F
F
F
F
F

Future
Making the Connection
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

Future
Making the Connection
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
Project
results and
outcomes
Individual
adoption
and usage
depend on
and require

Project Benefits Depend on
Employee Adoption and Usage
Solution must be:

Solution must be:
Designed
Developed
Delivered
Effectively

Solution must be:
Designed
Developed
Delivered
Embraced
Adopted
Used
+
Effectively Proficiently

Solution must be:
Designed
Developed
Delivered
Embraced
Adopted
Used
+
Project Benefits
w/ High Adoption
and Usage
Project Benefits
w/ Low Adoption
and Usage

Change management’s “delta”
Solution must be:
Designed
Developed
Delivered
Embraced
Adopted
Used
+
Project Benefits
w/ High Adoption
and Usage
Project Benefits
w/ Low Adoption
and Usage

Project Benefits With and Without
Change Management (Adoption and Usage)

WithWithout

Current
WithWithout
Current

WithWithout
=
X project
benefits
created
Current

WithWithout
=
X project
benefits
created
Current Transition
Adoption
and usage
gets bumpy
Adoption
and usage
takes longer

WithWithout
=
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

WithWithout
=
X project
benefits
created
Adoption
and usage
gets bumpy
Adoption
and usage
takes longer
Adoption
and usage
incomplete
Adoption
and usage
not as expected
<X

Realized by
the change
WITH
change
management
Realized by
the change
WITHOUT
change
management

Realized by
the change
WITH
change
management
Project
Benefits
Realized by
the change
WITHOUT
change
management

Realized by
the change
WITH
change
management
Realized by
the change
WITHOUT
change
management
Project
Benefits
Project
Benefits

Realized by
the change
WITH
change
management
Realized by
the change
WITHOUT
change
management
Benefits
Project
Benefits
Project
Benefits
of
change
management
Contribution of
adoption and usage

Shifting the Conversation

Future
F F F F
F
F F F
F
F
F
F
F
F
F
F
From:
What is the ROI of change management?

Future
F F F F
F
F F F
F
F
F
F
F
F
F
F
To:
What portion of the expected benefits
(future state ROI) depends on employee
adoption and usage?
From:

Future
F F F F
F
F F F
F
F
F
F
F
F
F
F
To:
What portion of the expected benefits
(future state ROI) depends on employee
adoption and usage?
This is the amount of project benefits
(Project ROI) that we can support and capture
with change management
From:

What is the ROI of
change management?
Nebulous
Lacks context

What is the ROI of
change management?
Nebulous
Lacks context
What portion of
project benefits
depend on employee
adoption and usage?
Focused
With context

“People Dependence” of
Project Benefit Varies

Future
Future Future

Future
Dependent on
adoption and
usage
Technical
contribution
Future Future

Future
Dependent on
adoption and
usage
Technical
contribution
Dependent on
adoption and
usage
Technical
contribution
Future

Future
Dependent on
adoption and usage
Technical
contribution
Dependent on
adoption and
usage
Technical
contribution
Dependent on
adoption and
usage
Technical
contribution

Defining Adoption and Usage

Adoption
Employees are doing their
jobs the new way
Adhering to new processes
Exhibiting new behaviors
Using new systems/tools

Adoption
jobs the new way
Usage
Employees are effective in
their “adoption”
Proficiently
Completely
Minimal errors

There is no universal definition of “to adopt” and “to use” –
it depends on your change and its impact on employees
Adoption
jobs the new way
Usage
Employees are effective in
their “adoption”
Proficiently
Completely
Minimal errors

Connection Project Results to Adoption and Usage
Prosci CMROI Model

Prosci CMROI Model
1) Identify the benefits and objectives of the effort

Prosci CMROI Model
2) On a scale of 1 – 10, establish relative contribution

Prosci CMROI Model
3) Evaluate “people dependency” of each

Prosci CMROI Model
4) What % of benefit or objective are realized
IF no one adopts and uses the change?

Prosci CMROI Model
Organizational
Benefits:
1.
2.
3.
4.
Project
Objectives:
1.
2.
3.
4.
5.
Identify

Prosci CMROI Model
Organizational
Benefits:
1. 10
2. 7
3. 7
4. 6
Project
Objectives:
1. 7
2. 3
3. 7
4. 4
5. 4
Relative Contribution

Prosci CMROI Model
Organizational
Benefits:
1. 10 All
2. 7 Low
3. 7 High
4. 6 Medium
Project
Objectives:
1. 7 Medium
2. 3 Medium
3. 7 High
4. 4 Low
5. 4 High
People dependency

Project
Objectives:
1. 7 Medium 55%
2. 3 Medium 40%
3. 7 High 20%
4. 4 Low 85%
5. 4 High 10%
Prosci CMROI Model
4) What % of benefit or objective are realized
IF no one adopts and uses the change?
Organizational
Benefits:
1. 10 All 0%
2. 7 Low 90%
3. 7 High 15%
4. 6 Medium 45%
% benefits captured IF no one adopts

CMROI Calculator Quantifies the Analysis

Based on the relative contribution and benefits if A&U=0,
63% of project benefits depend on adoption and usage

You can purchase the
Prosci CMROI Calculator right now
in the Prosci Portal:
http://portal.prosci.com
to create your free account

Priority is a
function of
context
Stephen Covey

The ROI of change management is
the portion of project benefits
that can be realized
(Project ROI captured)
when we drive
employee adoption and usage
change management

It’s about the results
we deliver, not the
work that we do.
Me

Where To Go As A Change Leader
Making the case for change management
Calculating the ROI of change management

Where To Go As A Change Leader
Making the case for change management
Calculating the ROI of change management
Increasing focus on adoption and usage
Deciding where to allocate resources
Earning an expected seat at the table

Making the case for
change management
change management

Making the case for
change management
change management
for as a change leaders?

Making the case for
change management
change management
for as a change leaders?
Delivering the project benefits
that depend on employee
adoption and usage

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www.change-management.com
The following are trademarks or registered trademarks of Prosci, Inc. All rights reserved. Prosci®; Project Change Triangle™ (PCT™); Awareness Desire Knowledge Ability Reinforcement®;
ADKAR®; Prosci® Change Management Maturity Model™; Preparing for Change, Managing Change, Reinforcing Change™

Prosci is a world-leader in change management
research and development – addressing the “soft”
side of change with process, structure and rigor.
www.prosci.com | 970-203-9332
Our Mission
To help individuals and organizations
build change management competencies
through development and delivery
of research-based, holistic, and easy-to-use
tools and methodologies.
Our Principles
• Research-based
• Holistic
• Easy-to-use
We help organizations capture the portion
of project benefits that depend on
employee adoption and usage of solutions.
Our Offerings
Research Training
Published tools Train-the-Trainer
Online tools Site licenses
Additional ways to
engage with Prosci
Prosci Portal: Online gateway to
your virtual change management
workspace. Includes free resources
and change management apps.
https://portal.prosci.com
Free Tutorials: 10-15 minute reads
on a variety of change management
topics including communication,
resistance, methodology and
integrating change management
with project management.
www.change-management.com/tutorials.htm
Free Webinars: 1-hour interactive
webinars with tips, research data and
suggestions covering many of the
pressing issues facing project leaders
and change practitioners.
www.change-management.com/webinars.htm
Prosci’s 2014
Best Practice
in Change
Management

Change Management ROI - Prosci Conference Board 2014 Presentation

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Change Management ROI - Prosci Conference Board 2014 Presentation