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Prosci by the numbers 6 11 66% 2,000 4,000+ 38,000+ Longitudinal studies Years of research Fortune 500 companies Research participants Certified practitioners Registered members Copyright Prosci 2009

Prosci history Research company founded in 1994 Sponsor of the Change Management Learning Center World leader in change management research and product development Focused on building internal change management competency Prosci has rich history in research and product development. Founded in 1994, Prosci created and sponsors the Change Management Learning Center, an online learning environment for change leaders. With more than 38,000 members world-wide, the Change Management Learning center offers tutorials, articles, webinars and resources for both beginners and advanced change management professionals. Prosci is the world leader in change management research and has a long standing reputation for excellence in product development. Because Prosci is not a consulting firm, we have always maintained an objective and independent research perspective. Prosci’s mission is to build internal change capability within your organization, and our analysts and developers strive for the most comprehensive and easy-to-use tools for managing change. Copyright Prosci 2009

Prosci research history 1998 First Change Management Study – 102 companies 2001 Second Change Management Study – 152 companies 2003 Third Change Management Study – 288 companies 2005 Fourth Change Management Study – 411 companies Prosci’s first change management study was conducted in 1998, and was the first of six longitudinal studies conducted by Prosci in the last decade. With each study the number of participants increased. The 2009 study will mark the first time that Prosci released an integrated report, combining data and findings from multiple years that will serve as a comprehensive desk reference for best practices in change management. 2007 Fifth Change Management Study – 426 companies 2009 Sixth Change Management Study – 575 companies Copyright Prosci 2009

Copyright Prosci 2009

Copyright Prosci 2009

Copyright Prosci 2009

Copyright Prosci 2009

Copyright Prosci 2009

Copyright Prosci 2009

The number one obstacle to success for major change projects is employee resistance and the ineffective management of the people side of change. Data from 327 companies undergoing major change projects; Prosci Best Practices in Business Process Reengineering benchmarking study. Copyright Prosci 2009

Preparing for change Managing change Reinforcing change ™

Prosci’s Change Management Process Input: A change to how the organization operates and does work Output: Individuals making changes to how they do work – from their own current state to their own future state Benefits to the organization realized ERP Merger or acquisition Strategic plan IT system New product Productivity improvement initiative Online HR benefits system

Phase 1 – Preparing for change Prosci’s Change Management Process Phase 1 – Preparing for change Understanding the nature of the change Understanding the groups being changed Creating the right sponsor model Identifying risks Developing special tactics

Phase 2 – Managing change Prosci’s Change Management Process Phase 2 – Managing change Communication plan Sponsor roadmap Training plan Coaching plan Resistance mgmt plan

Phase 3 – Reinforcing change Prosci’s Change Management Process Phase 3 – Reinforcing change Compliance audits and employee feedback Corrective action and managing resistance After action review and transition management

Comparing CM and PM Focus: Technical side of moving from current state to future state Process: Initiation Planning Executing Monitoring/ controlling Closing Tools: Statement of work Project charter Business case Work breakdown structure Budget estimations Resource allocation Schedule Tracking Process: Organizational: Preparing for change Managing change Reinforcing change Individual: ADKAR Tools: Individual change model Readiness assessment Communication plans Sponsorship roadmaps Coaching plans Training plans Resistance management Reinforcement Focus: People side of moving from current state to future state

Integration of project management and change management Solution is designed, developed and delivered effectively (Technical side) + Solution is embraced, adopted and utilized effectively (People side) = SUCCESS Complimentary disciplines with a common objective

Who “does” change management? Each ‘gear’ plays a specific role based on how they are related to organizational change 36

Key roles in change management Employee-facing Executives and senior leaders – fulfilling the role of sponsors of change Middle managers and supervisors – fulfilling the role of coach for their direct reports Enabling Change management resource or team – applying a structured approach and enabling others Project team – integrating the “people side” of change Copyright Prosci 2009

Sponsor Project team Individuals from the team assigned to change management

Sponsor Project team External change management team dedicated to the project

Sponsor Project team Change management leader(s) on project team Outside resources supporting change management leaders

Sponsor Project team Part or all of project team works on change management program

Sponsor Project team Consultant(s) provide change management support

Sponsor Project team Dedicated change management resources on project team Communications sub-team Training sub-team Other sub-teams

Change management team Sponsor on the team Project team Change management team

Mid-level manager sponsor Change management team Project team Change management team

Mid-level manager sponsor Change management team Executive sponsor Mid-level manager sponsor Project team Change management team

Change management team Steering committee Executive sponsor Project team Change management team

Executive-level steering committee Change management team Project sponsor Project team Change management team