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Measuring Impactwww.prosci.com/webinarsMeasuring Impact of Change ManagementPresented by Lisa Kempton and Andrew Horlick1 Prosci, Inc. All Rights Reserved.1Agenda1. How do you define success for a change initiative?2. What roles are involved in defining and ensuring success?3. How do you explain to your sponsor the contribution of changemanagement to achieving success?4. What, how and when should you measure to demonstrate the value ofchange management? Prosci, Inc. All Rights Reserved.22 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinars“ Begin with the end in mind.”Stephen CoveyAuthor of The 7 Habits ofHighly Effective People3How do you define successfor a change initiative?4 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsWe Change for a ReasonInstallation*Benefits Realization**Daryl Conner5 Prosci, Inc. All Rights Reserved.5ProjectChallenge Prosci, Inc. All Rights Reserved.AdoptionChallenge66 Prosci, Inc. All rights reserved.
Measuring ionChallengeInstall whiteboardsat patient bedsidesin hospitals.Improve two‐waycommunication in hospitalsbetween patients, familiesand care providers.7 Prosci, Inc. All Rights Reserved.7The Definition of Success: Two PartsProject ObjectivesWhat the project achieves Reserved. Prosci.Prosci, AllInc.RightsAll RightsReserved.1.How will the project contribute tosolving the problem or realizingthe opportunity?2.What will the project produce orenable?3.How will you know the objectiveshave been achieved?Organizational BenefitsWhat the organization gains1.What is the problem oropportunity for the organization?2.If the problem is solved oropportunity is realized, what willbe the benefit(s)?3.How will you know the benefitshave been realized?88 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsThe Finesta Case StudyFinesta Financial LLC (Finesta)is a fictional company used byProsci as a sample company.Finesta Financial specializes in innovativeservices to plan and fund a company’sgrowth strategy, especially to global markets.Finesta launched a strategic initiative to addressemployee performance management. The aimof the Performance Excellence Project or ‘PEP’is to achieve operational excellence goals byaligning performance goals, increasingindividual accountability and supportingemployee development. Reserved. Prosci.Prosci, AllInc.RightsAll RightsReserved.99Finesta Example StatementsProject ObjectivesWhat will the project achieve?Employee performancemanagement excellence bygoing for the GOLD!:1. Goal alignment2. Open communication3. Learning focused4. Delivering results Reserved. Prosci.Prosci, AllInc.RightsAll RightsReserved.Organizational BenefitsWhat will the organization gain?Achievement of operationalexcellence goals byaligning performance goals,increasing individualaccountability and supportingemployee development.1010 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsFinesta Example MetricsHow will you know?Project ObjectivesWhat will the project achieve?Organizational BenefitsWhat will the organization gain?1. Goal alignment: 80% of performanceplans show alignment betweenorganizational and individual goals2. Open communication: 80% of employeesreport they receive meaningfuldevelopmental feedback monthly3. Learning focused: 75% of employees havea development plan4. Delivering results: 85% of employeesagree they have the tools, resources andsupport to be successful1. Achieve workforce strength targets andreduce regrettable turnover by 15%2. Increase scores for key drivers ofengagement by 30%3. Contribute to achieving operationalexcellence goals by aligning systems,processes and people to support strategicobjectives Reserved. Prosci.Prosci, AllInc.RightsAll RightsReserved.1111Your Definition of SuccessProject ObjectivesWhat will your project achieve?Organizational BenefitsWhat will your organization gain?Consider:1. How will the project contribute to solving theproblem or realizing the opportunity?2. What will the project produce or enable?3. How will you know?Consider:1. What is the problem or opportunity for theorganization?2. If the problem is solved or opportunity isrealized, what will be the benefit(s)?3. How will you know? Reserved. Prosci.Prosci, AllInc.RightsAll RightsReserved.1212 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsWhat roles are involved in definingand ensuring success?13Roles in Defining SuccessRole of the Sponsor Clearly articulate the why (purpose). Clearly identify the definition ofsuccess, including both projectobjectives and organizational benefits.“Are you working harder than your sponsor?” Prosci, Inc. All Rights Reserved.Role of the Change Practitioner Extract and package the definitionof success by asking greatquestions and ensuring clarity. Why do we need to change? What is the problem or opportunity forthe organization? What are the benefits the organization isseeking from this change? How would we know that the project isachieving what is expected?1414 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsUse the 4 P’s to Connect and Align People to SuccessProject:Purpose:Particulars:People:What is the project?Why are we changing?What are we changing?Who will be changing?PerformanceExcellence Project(PEP) To achieve operational excellence goals by aligningperformance goals, increasing individual accountability and supporting employee development. Project Objectives: 1. Goal alignment: 80% of performance plans show alignment between organizational and individual goals 2. Open communication: 80% of employees report theyreceive meaningful developmental feedback monthly3. Learning focused: 75% of employees have adevelopment plan4. Delivering results: 85% of employees agree they havethe tools, resources and support to be successfulOrganizational Benefits:1. Achieve workforce strength targets and reduceregrettable turnover by 15%2. Increase scores for key drivers of engagement by 30%3. Contribute to achieving operational excellence goals byaligning systems, processes and people to supportstrategic objectivesProcessesSystemsToolsJob rolesCritical behaviorsMindset/attitudes/beliefsPerformance reviewsChicago office SharedServices (2,500 employees): Finance Accounting Purchasing Legal Human Resources Information TechnologyHong Kong office(1,950 employees): All functions15 Prosci, Inc. All Rights Reserved.15How would you explain to yourSponsor the contribution ofchange management to achieving success?16 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsCapture the People‐Dependent Portion of ROIProject 1: Install motion‐activatedlights in meeting roomsProject 2: Install recycle andcompost bins in the officeHow much of the expected ROI depends on adoption and usage?17 Prosci, Inc. All Rights Reserved.17The Key QuestionFor your project, what percentageof overall results and outcomesdepends on employee adoption andusage of the change?70% Prosci, Inc. All Rights Reserved.The follow‐up question:How much are we investing(budget, people, energy) in driving andsupporting employee adoption and usage?3%1818 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsWhat, how and when should you measure todemonstrate the value of change management?19What to Measure: Three Performance LevelsBegin with the end in mindOrganizational PerformanceDid the initiative deliverwhat was expected?Individual PerformanceHow effectively did impactedindividuals adopt and use the change?Change Management PerformanceHow well did we “do”change management? Prosci, Inc. All Rights Reserved.Project Objectives andOrganizational BenefitsAdoption and Usage(Adoption, Utilizationand Proficiency)EffectiveChange Management2020 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsThe Three Performance Levels Are ConnectedOrganizational outcomes are the collective result of individual changeOrganizational PerformanceDid the initiative deliverwhat was expected?Individual PerformanceHow effectively did impactedindividuals adopt and use the change?Change Management PerformanceHow well did we “do”change management?Connect individual performancemetrics to organizational benefitsConnect CM activities tosuccessful individual transitions21 Prosci, Inc. All Rights Reserved.21How to Measure: Track Performance Throughout The Project Prosci, Inc. All Rights Reserved.Organizational PerformanceDid the initiative deliverwhat was expected?PCTAssessmentProject Objectives andOrganizational BenefitsIndividual PerformanceHow effectively did impactedindividuals adopt and use the change?ADKARAssessmentAdoption and UsageChange Management PerformanceHow well did we “do”change management?Progressto PlanEffectiveChange Management(Adoption, Utilizationand Proficiency)2222 Prosci, Inc. All rights reserved.
Measuring ancePCT Assessment Tracks Organizational Performanceby Measuring the Strength of Four Critical AspectsDid the initiative deliver whatwas expected?Project ObjectivesWhat the project achievesOrganizational BenefitsWhat the organization gains23 Prosci, Inc. All Rights Reserved.23Measuring the Strength of Your Definition of Success Prosci, Inc. All Rights Reserved.2424 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinars25 Prosci, Inc. All Rights Reserved.25IndividualPerformanceHow effectively did impactedindividuals adopt and use thechange?ADKAR Assessment Tracks IndividualPerformance by Measuring ADKAR TransitionsSpeed of AdoptionHow quickly are people up andrunning on the new systems,processes and job roles?Ultimate UtilizationHow many employees aredemonstrating “buy‐in” and areusing the new solution?ProficiencyHow well are individualsperforming compared to thelevel expected? Prosci, Inc. All Rights Reserved.KickoffGo LiveADKAOutcomesR2626 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsMeasure Performance: Sequential Change Prosci. All Rights Reserved.2727Measure Performance: Iterative Change Prosci. All Rights Reserved.2828 Prosci, Inc. All rights reserved.
Measuring Impactwww.prosci.com/webinarsMeasure the Contribution of CM to Benefits RealizationWhat can you start defining and measuring?Organizational PerformanceDid the initiative deliverwhat was expected?PCTAssessmentProject Objectives andOrganizational BenefitsIndividual PerformanceHow effectively did impactedindividuals adopt and use the change?ADKARAssessmentAdoption and UsageChange Management PerformanceHow well did we “do”change management?Progressto PlanEffectiveChange Management(Adoption, Utilizationand Proficiency)29 Prosci. All Rights Reserved.29Your global partner for change successHeadquartersCanada OfficeAustralia and NZ Officesolutions@prosci.com 1 970 203 9332info can@prosci.com 1 902 826 9090info.anz@prosci.com 61 2 9810 6264Mexico OfficeChile OfficeSpain Officecontacto.latam@prosci.com 52 55 1107 6758contacto.latam@prosci.com 56 9 7384 3330contacto.iberia@prosci.com 34 9 1286 687230 Prosci, Inc. All rights reserved.
solutions@prosci.com 1 970 203 9332 Canada Office info_can@prosci.com 1 902 826 9090 Australia and NZ Office info.anz@prosci.com 61 2 9810 6264 Mexico Office contacto.latam@prosci.com 52 55 1107 6758 Chile Office contacto.latam@prosci.com 56 9 7384 3330 Spain Office contacto.iberia@prosci.com 34 9 1286 6872 29 30
