SlideShare a Scribd company logo
© Prosci Inc. All rights reserved.
Prosci
Best Practices in Change Management,
2016 Edition
New areas of research
®
1
© Prosci Inc. All rights reserved.
Prosci Research Foundation
9 studies
17 years
4500 participants
What works?
What doesn’t?
What to do differently?
0
500
1000
102
1120
1998 2015
Participants
2
®
© Prosci Inc. All rights reserved. 3
Culture	
   	
  	
  
Global	
  awareness	
   	
  	
  
Complementary	
  roles	
   	
  	
  
Change	
  Agent	
  Networks	
   	
  	
  
Ver8cal	
  industry	
  customiza8on	
   	
  	
  
Jus8fying	
  CM	
   	
  	
   	
  	
  
Job	
  roles	
  and	
  loca8ons	
   	
  	
   	
  	
   	
  	
  
Advice	
  for	
  new	
  prac88oners	
   	
  	
  
Complex	
  change	
   	
  	
   	
  	
   	
  	
  
Aligning	
  CM	
  with	
  other	
  disciplines	
   	
  	
   	
  	
   	
  	
  
Measurement	
  and	
  metrics	
   	
  	
   	
  	
   	
  	
   	
  	
  
Integra8ng	
  CM	
  and	
  PM	
   	
  	
   	
  	
   	
  	
   	
  	
  
Readiness	
   	
  	
   	
  	
   	
  	
   	
  	
  
Trends	
  in	
  CM	
   	
  	
   	
  	
   	
  	
   	
  	
  
Reinforcement	
  and	
  sustainment	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Satura8on	
  and	
  porGolio	
  management	
  
Organiza8onal	
  change	
  capability	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Team	
  member	
  aIributes	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Resources	
  and	
  budgets	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Resistance	
  management	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Manager	
  Role	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Greatest	
  contributors	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Biggest	
  obstacles	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Methodology	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Sponsorship	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Communica8ons	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
Training	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
   	
  	
  
1998	
  2000	
  2003	
  2005	
  2007	
  2009	
  2011	
  2013	
  2015	
  
Building the
body of knowledge
on change management
Evolution of Prosci Research
New topic area
Major focus
Minor focus
Key
© Prosci Inc. All rights reserved. 4
THE LARGEST BODY OF RESEARCH IN THE
FIELD OF CHANGE MANAGEMENT
TRY A TWO-WEEK FREE TRIAL OF eBEST PRACTICES
Prosci’s comprehensive research allows you to align your
change management efforts with industry best practices,
optimizing your approach to achieve results. Leverage
lessons learned from thousands of change and project
leaders.
Access best practices and benchmark data from anywhere
through the Prosci eBest Practices. Continually updated, this
app contains all of Prosci’s most current and relevant
research. Browse all topics to sharpen your change
management skills or use the Prosci eBest Practices to find
answers to your current questions.
© Prosci Inc. All rights reserved. 5
What to expect in
Prosci’s new 2016
benchmarking report:
New Structure
��  Organization
–  Intro pages
New Topics
–  Culture
–  Industry
–  Change Agent
Networks
…much more…
© Prosci Inc. All rights reserved.
Organization:
Part Two: Change Management Application
Chapter 4: Motivation and Justification
Motivation
Drivers that caused change management
to be applied on the project
Part
Chapter
Section
Finding
6
© Prosci Inc. All rights reserved.
Report Parts:
PART ONE:
Current State of Change Management
PART TWO:
Change Management Application
PART THREE:
Roles in Change Management
PART FOUR:
Adapting and Aligning Change Management
7
© Prosci Inc. All rights reserved. 8
New
research
areas in
Prosci’s
2016 report
© Prosci Inc. All rights reserved.
1.  Impact of culture on change management
2.  Importance of cultural awareness
and global literacy in change
3.  Development and leveraging of
change agent networks
4.  Engagement of complementary roles
in change management work
5.  Customization of change management
for vertical industry segments
6.  Certification in change management
9
New research areas in 2016 report
© Prosci Inc. All rights reserved.
Culture
Instead of the overly cavalier,
“How do I change my culture
in the next 3 months?”
How can I create more successful,
positive change by
understanding and adapting
within the cultures I work?
10
New
© Prosci Inc. All rights reserved.
Culture
What aspects of
organization’s culture
have the biggest
impact on how
changes happen?
Pulling from other
thought leaders’
works on cultural
dimensions:
•  GLOBE
•  Hofstede
•  Trompenaar
11
Individualism vs
Collectivism
The degree to which people act in
ways
that benefit themselves or the group
Power
Distance
The degree to which power is
distributed equally or unequally
throughout a culture
Uncertainty
Avoidance
How much a culture seeks to avoid
and mitigate uncertainty
Assertiveness
The degree to which a person is
expected and allowed to advocate for
themselves
Performance
Orientation
The degree to which high
performance, standards and striving
for excellence
are rewarded
Emotional
Expressiveness
How much or how little people are
expected to display their emotional
state in a professional environment
Six cultural dimensions studied:
© Prosci Inc. All rights reserved.
Culture
12
For the culture section of the study, participants provided
three data points for each of the six cultural dimensions:
Example
For Power Distance, where are you on the spectrum?
Low Moderate High
Because of your place on the spectrum, what were the:
Specific challenges you face:
Unique adaptations you make:
Your specific challenges
Your unique adaptations
© Prosci Inc. All rights reserved.
© Prosci Inc. All rights reserved.
Culture
14
Cross-study cultural dimension data
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Individualism vs. Collectivism
Individualism Balanced Collectivism
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Power Distance
Low Moderate High
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Uncertainty Avoidance
Low Moderate High
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Assertiveness
Low Moderate High
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Performance Orientation
Low Moderate High
0
50
100
0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94
Emotional Expressiveness
Low Moderate High
© Prosci Inc. All rights reserved.
Culture
15
Cultural dimension 1: Individualism vs. Collectivism
Individualistic:
Specific challenges
Unique adaptations
Balanced:
Specific challenges
Unique adaptations
Collectivistic:
Specific challenges
Unique adaptations
Cultural dimension 2: Power Distance
Low:
Specific challenges
Unique adaptations
Moderate:
Specific challenges
Unique adaptations
High:
Specific challenges
Unique adaptations
Cultural dimension 3: Uncertainty Avoidance
Low:
Specific challenges
Unique adaptations
Moderate:
Specific challenges
Unique adaptations
High:
Specific challenges
Unique adaptations
Cultural dimension 4: Assertiveness
Low:
Specific challenges
Unique adaptations
Moderate:
Specific challenges
Unique adaptations
High:
Specific challenges
Unique adaptations
Cultural dimension 5: Performance Orientation
Low:
Specific challenges
Unique adaptations
Moderate:
Specific challenges
Unique adaptations
High:
Specific challenges
Unique adaptations
Cultural dimension 6: Emotional Expressiveness
Low:
Specific challenges
Unique adaptations
Moderate:
Specific challenges
Unique adaptations
High:
Specific challenges
Unique adaptations
Outputs:
Specific challenges
and unique adaptations
For all six of the
cultural dimensions
© Prosci Inc. All rights reserved.
Culture
16
Power Distance
Low Moderate High
Specific challenges
Unique adaptations
Specific challenges
Unique adaptations
Specific challenges
Unique adaptations
Specific challenges
1.  Impaired communication: Due to extensive access, information often skipped levels of the organization which resulted in repeating information
several times. Informal communications led to rumors and decreased the credibility of information surrounding change.
2.  Increased resistance: Low power distance structures resulted in a large amount of resistance because individuals from all levels of the
organization constantly challenged ideas. Employees often did not adhere to changes, and messages were not uniform across the organization.
Conflicts arose between levels of management, and productivity suffered consequently.
3.  Decreased productivity: Productivity decreased due to more time being spent on gaining buy-in, lack of governance and slower decision
processes.
Unique adaptations
1.  Increase engagement: Employee engagement was achieved with an increase in functions and meetings that were used to ensure alignment of
the organization across all levels. The quantity of meetings ensured that employees had multiple opportunities to encounter and engage with the
change project.
2.  Structure communication channels: Communication channels needed to be identified up front to provide a consistent approach for tailoring
messages and to open structured feedback from individuals. Communication plans required consistency and frequency, so content could be
adjusted to incorporate the topics identified from feedback.
3.  Enhance change management plans: Participants in low power distance organizations added structure to change management by placing
stakeholders in key positions, including establishing guidelines to ensure all levels were being communicated with and clearly defining roles and
responsibilities.
© Prosci Inc. All rights reserved.
Specific challenges
Unique adaptations
Specific challenges
Unique adaptations
Specific challenges
1.  Decreased ability to drive change: Leadership had a decreased capability to direct change, had to put more effort into gaining buy-in for change
and had to engage managers more thoroughly.
2.  Increased resistance: Resistance occurred because senior leaders did not account for employees’ input and concerns when dealing with issues
centered on change. Employees were then more likely to resist any aspect of change. Senior leaders appeared to think they had more sway over
employees than they did.
3.  Poor structure: Participants with moderate power distance organizations reported a need to tailor change plans more specifically to groups as
opposed to using a uniform approach. Creating individual plans required more time on the change manager’s part and lowered the effectiveness
of mass communication regarding change.
Unique adaptations
1.  Balance communication: Participants expressed the need to establish balanced communication during change management. Open and honest
feedback was balanced with a clear boundary and understanding of “who has the final say.”
2.  Gain buy-in: Participants reported putting more effort toward gaining employee buy-in. Awareness of the need for and importance of change
management was created by using more meetings and team activities. Other activities to gain buy-in included visible sponsorship engagement,
involvement of key stakeholders, creation of plans for various groups and demonstration of the value of change management.
3.  Empower sponsors: Sponsors in moderate power distance organizations were encouraged to take charge of change as an adaption to the
position on the power distance spectrum. Empowered sponsors bridged the gap between leaders’ direction and employees’ concerns and
feedback.
Culture
17
Power Distance
Low Moderate High
Specific challenges
Unique adaptations
Power Distance
Low Moderate High
Specific challenges
Unique adaptations
© Prosci Inc. All rights reserved.
Power Distance
Specific challenges
Unique adaptations
Specific challenges
Unique adaptations
Specific challenges
Unique adaptations
Culture
18
Power Distance
Low Moderate High
Specific challenges
Unique adaptations
Low Moderate HighLow Moderate High
Specific challenges
Unique adaptations
Specific challenges
1.  Restricted communication: Participants identified too few and poor levels of communication occurring in high power distance organizations. A
large gap was described between senior leaders and frontline employees which resulted in a loss of productivity and increased time for
implementation. Fear among employees and executives appearing unapproachable were primary limitations to communication from lower levels
to executives.
2.  Isolated decision making: Isolated decision making was challenging. Executives made decisions without considering the impact to employees.
Consequently, the alignment of the organization suffered because different levels and groups had different directions.
3.  Lack of employee engagement: Lack of commitment and trust were other challenges for organizations with high power structures. Passive
resistance resulted from these issues because employees felt powerless, unheard and not cared about. Resources had to be reallocated to
account for these avoidable problems.
Unique adaptations
1.  Communicate openly and directly: Participants reported using executive and senior leaders more often during communications. Higher-level
leadership lent authority to communication, and resistant employees were more likely to adopt change when instructed.
2.  Engage leadership: Leadership visibility and engagement ensured that impacted groups understood that company leadership was supportive of
and behind change from the beginning. Early leadership involvement encouraged and promoted early adopters.
© Prosci Inc. All rights reserved.
Culture
19
Adapt your approach to
accommodate your culture:
Increase effectiveness and
avoid common pitfalls
Change practitioners who better
understand the cultures in which they
operate can customize and adapt their
approach to drive more successful
change. The six cultural dimensions in
Prosci’s 2016 report give practitioners
direction in how to adjust their approach.
Cultural	
  dimension	
  1:	
  Individualism	
  vs.	
  Collectivism
Individualistic:
Specific	
  challenges
Unique	
  adaptations
Balanced:
Specific	
  challenges
Unique	
  adaptations
Collectivistic:
Specific	
  challenges
Unique	
  adaptations
Cultural	
  dimension	
  2:	
  Power	
  Distance
Low:
Specific	
  challenges
Unique	
  adaptations
Moderate:
Specific	
  challenges
Unique	
  adaptations
High:
Specific	
  challenges
Unique	
  adaptations
Cultural	
  dimension	
  3:	
  Uncertainty	
  Avoidance
Low:
Specific	
  challenges
Unique	
  adaptations
Moderate:
Specific	
  challenges
Unique	
  adaptations
High:
Specific	
  challenges
Unique	
  adaptations
Cultural	
  dimension	
  4:	
  Assertiveness
Low:
Specific	
  challenges
Unique	
  adaptations
Moderate:
Specific	
  challenges
Unique	
  adaptations
High:
Specific	
  challenges
Unique	
  adaptations
Cultural	
  dimension	
  5:	
  Performance	
  Orientation
Low:
Specific	
  challenges
Unique	
  adaptations
Moderate:
Specific	
  challenges
Unique	
  adaptations
High:
Specific	
  challenges
Unique	
  adaptations
Cultural	
  dimension	
  6:	
  Emotional	
  Expressiveness
Low:
Specific	
  challenges
Unique	
  adaptations
Moderate:
Specific	
  challenges
Unique	
  adaptations
High:
Specific	
  challenges
Unique	
  adaptations
© Prosci Inc. All rights reserved.
Global Literacy
•  Opportunities for
customization
•  Cultural-specific
adaptations
•  Avoid cultural-specific
obstacles
•  Communication needs to
be thought through
1%
5% 4%
34%
56%
Not
Slightly
Neutral
Important
Very
Impact of cultural awareness
on employing change management
20
New
© Prosci Inc. All rights reserved.
Global Literacy
Regional Considerations
21
US:
35%
Canada:
15%
Europe:
15%
Africa:
4%
Latin
America:
2% Australia
and NZ:
24%
Asia and Pacific
Islands: 4%Middle
East: 1%
© Prosci Inc. All rights reserved.
Global Literacy
Regional Considerations
22
Specific analysis by region:
Perception of change management
across regional cultures
Parts of change management that
did not fit with various cultures
Regional-specific causes for resistance
© Prosci Inc. All rights reserved.
© Prosci Inc. All rights reserved.
New
Change Agent Network
39%
?
leveraged formal
change agent
networks to
support change
implementation
Definition of the change agent network
Reasons to use a change agent network
Building a change agent network
Criteria for selecting members
Change agent network roles
Expectations of the change agent network
24
© Prosci Inc. All rights reserved.
© Prosci Inc. All rights reserved.
Change Agent Network
Reasons to use a change
agent network
1.  Extend project support
The primary response was to provide additional support
to the project, often from peers, which expedited change
with fewer obstacles and greater focus.
2.  Use resources efficiently
By using change agent networks, participants readily
allocated resources to necessary points of need. A large
portion of participants indicated that they…
3.  Enhance communication
4.  Align consistent objectives
5.  Increase knowledge
6.  Build credibility
7.  Boost ownership
Change agent network roles
1.  Communication role
The role most commonly identified by respondents was
communication liaison. Members of the change agent
network were used to disseminate communications to
their respective departments, sites or regions to share
information about the change project with a greater
audience and provide various forms of feedback to the
change project team, such as employee concerns.
2.  Leadership role
Respondents frequently identified various leadership
roles for the change agent network. Examples included
acting as the change leader for their department or
region…
3.  Training and support roles
4.  Managing change internally
26
Example findings
© Prosci Inc. All rights reserved.
© Prosci Inc. All rights reserved.
New
Complementary Roles
HR Business Partners
Organization Development
Internal Communications
Business Analysts
Internal Consultants
63%
40%
40%
38%
33%
How each
role engages
with change
management?
28
© Prosci Inc. All rights reserved.
Vertical Industry
Market changes
Technological changes
Operational changes
Organizational changes
Four types of expected change:
24 verticals
29
New
© Prosci Inc. All rights reserved.
Banking
 Market   Operational   Technological
Regulations and
government oversight
New market emergence
Changes in demand
related to customer
expectations
Traditional markets
closing
Increased competition
Changes to customer/
user relationships
Shifting priorities and
business strategies
Consolidation of
operations and focus on
profitability
Digital banking
Automation
Increased need for cyber
security
Vertical Industry
30
© Prosci Inc. All rights reserved.
Education Services
  Market   Operational   Budgetary
Increase in competition
Consolidation
Increase in government
regulations
Change to demand
Increase demand for
eLearning and virtual
products
Changes to curricula
Changes to student
relations
Increased diversity
Shifting student
demographics
Increased collaboration
with commercial
sponsors
Budget changes
Changes to federal/state
funding
Vertical Industry
31
© Prosci Inc. All rights reserved.
Government – State
 Technological   Organizational  Operational
Digitalization
Updates to computer
systems
Virtual tools
Cloud eLearning
modules
Reducing employee
headcount
Increase in privatization
Increase in outsourcing
New or restructured
business model
Changes to priorities
Changes to user/citizen
relationships
Leadership development
Increased need for
employee engagement
Vertical Industry
32
© Prosci Inc. All rights reserved.
Health Care
  Paradigm   Technological   Budgetary
Individual or self-
managed health care
model
Increased regulations
and legislation
Consolidation through
M&A
Standardization of
patient care
Electronic records
New drugs
Patient care technology
Automation
Budget cuts
Loss of funding
Move toward profit-
focused business models
Vertical Industry
33
© Prosci Inc. All rights reserved.
Vertical Industry
34
Group 1 Health Care Educational Services
Group 2
Government – Federal
Government – State
Government – Local/Municipal
Group 3
Banking
Finance
Consulting
Insurance
Group 4
Information Services
Telecommunications
Professional, Scientific,
Technical Services
Group 5
Oil and Gas
Manufacturing
Utilities
Retail Trade
Consumer Goods and
Manufacturing
Challenges and adaptations for CM by industry grouping
© Prosci Inc. All rights reserved. 35
Group 1 Health Care Educational Services
Industry-specific CM challenges
1. Autonomous nature of employees 2. Lack of designated resources
In both health care and education services industries, the unique
responsibilities of employees demanded a high degree of autonomy
and independent thinking. Physicians, nurses, academics and
educators were identified as employees for whom it is difficult to
accept change at face value without convincing and clear evidence.
Lack of resources was noted as the second most common challenge
when trying to implement change management, including monetary
and non-monetary resources. Participants noted a lack of funding
designated specifically for change management. Inadequate non-
monetary resources included specialized change management
training, dedicated change management practitioners and time away
from daily priorities to focus on change management.
Industry-specific CM adaptations
1. Alignment with employee characteristics 2. Communication
Participants identified various ways in which change management
methodology was adapted to work with employees in health care and
education services industries. Examples were to include physicians/
professors on change management teams, to meet expectations of a
high degree of collaboration and to increase stakeholder engagement.
Participants described ways in which communication was adapted to
be most effective in health care and education services industries.
Examples included adapting communication to resemble academic
discourse in education services industries and linking change to
improvements in patient care in health care industries.
Vertical Industry
Challenges and adaptations for CM by industry grouping
© Prosci Inc. All rights reserved.
Certification
74%
Had attended
certification 86%
Would recommend
certification
(only 2% wouldn’t)
Value of
certification
Structured approach gained
Build skills and credentials
Acquire common and universal tools
More likely to achieve desired outcomes
?
36
New
© Prosci Inc. All rights reserved.
1.  Impact of culture on change management
2.  Importance of cultural awareness
and global literacy in change
3.  Development and leveraging of
change agent networks
4.  Engagement of complementary roles
in change management work
5.  Customization of change management
for vertical industry segments
6.  Certification in change management
37
New research areas in 2016 report
© Prosci Inc. All rights reserved.
Prosci
Best Practices in Change Management,
2016 Edition
Available now!
®
www.beinghuman.com | info@beinghuman.com.au| +61 2 9810 6264

More Related Content

Being Human Webinar -New Areas of Research from Prosci 2016 Best Practices Report

  • 1. © Prosci Inc. All rights reserved. Prosci Best Practices in Change Management, 2016 Edition New areas of research ® 1
  • 2. © Prosci Inc. All rights reserved. Prosci Research Foundation 9 studies 17 years 4500 participants What works? What doesn’t? What to do differently? 0 500 1000 102 1120 1998 2015 Participants 2 ®
  • 3. © Prosci Inc. All rights reserved. 3 Culture       Global  awareness       Complementary  roles       Change  Agent  Networks       Ver8cal  industry  customiza8on       Jus8fying  CM           Job  roles  and  loca8ons               Advice  for  new  prac88oners       Complex  change               Aligning  CM  with  other  disciplines               Measurement  and  metrics                   Integra8ng  CM  and  PM                   Readiness                   Trends  in  CM                   Reinforcement  and  sustainment                       Satura8on  and  porGolio  management   Organiza8onal  change  capability                           Team  member  aIributes                           Resources  and  budgets                               Resistance  management                                   Manager  Role                                   Greatest  contributors                                       Biggest  obstacles                                       Methodology                                       Sponsorship                                       Communica8ons                                       Training                                       1998  2000  2003  2005  2007  2009  2011  2013  2015   Building the body of knowledge on change management Evolution of Prosci Research New topic area Major focus Minor focus Key
  • 4. © Prosci Inc. All rights reserved. 4 THE LARGEST BODY OF RESEARCH IN THE FIELD OF CHANGE MANAGEMENT TRY A TWO-WEEK FREE TRIAL OF eBEST PRACTICES Prosci’s comprehensive research allows you to align your change management efforts with industry best practices, optimizing your approach to achieve results. Leverage lessons learned from thousands of change and project leaders. Access best practices and benchmark data from anywhere through the Prosci eBest Practices. Continually updated, this app contains all of Prosci’s most current and relevant research. Browse all topics to sharpen your change management skills or use the Prosci eBest Practices to find answers to your current questions.
  • 5. © Prosci Inc. All rights reserved. 5 What to expect in Prosci’s new 2016 benchmarking report: New Structure –  Organization –  Intro pages New Topics –  Culture –  Industry –  Change Agent Networks …much more…
  • 6. © Prosci Inc. All rights reserved. Organization: Part Two: Change Management Application Chapter 4: Motivation and Justification Motivation Drivers that caused change management to be applied on the project Part Chapter Section Finding 6
  • 7. © Prosci Inc. All rights reserved. Report Parts: PART ONE: Current State of Change Management PART TWO: Change Management Application PART THREE: Roles in Change Management PART FOUR: Adapting and Aligning Change Management 7
  • 8. © Prosci Inc. All rights reserved. 8 New research areas in Prosci’s 2016 report
  • 9. © Prosci Inc. All rights reserved. 1.  Impact of culture on change management 2.  Importance of cultural awareness and global literacy in change 3.  Development and leveraging of change agent networks 4.  Engagement of complementary roles in change management work 5.  Customization of change management for vertical industry segments 6.  Certification in change management 9 New research areas in 2016 report
  • 10. © Prosci Inc. All rights reserved. Culture Instead of the overly cavalier, “How do I change my culture in the next 3 months?” How can I create more successful, positive change by understanding and adapting within the cultures I work? 10 New
  • 11. © Prosci Inc. All rights reserved. Culture What aspects of organization’s culture have the biggest impact on how changes happen? Pulling from other thought leaders’ works on cultural dimensions: •  GLOBE •  Hofstede •  Trompenaar 11 Individualism vs Collectivism The degree to which people act in ways that benefit themselves or the group Power Distance The degree to which power is distributed equally or unequally throughout a culture Uncertainty Avoidance How much a culture seeks to avoid and mitigate uncertainty Assertiveness The degree to which a person is expected and allowed to advocate for themselves Performance Orientation The degree to which high performance, standards and striving for excellence are rewarded Emotional Expressiveness How much or how little people are expected to display their emotional state in a professional environment Six cultural dimensions studied:
  • 12. © Prosci Inc. All rights reserved. Culture 12 For the culture section of the study, participants provided three data points for each of the six cultural dimensions: Example For Power Distance, where are you on the spectrum? Low Moderate High Because of your place on the spectrum, what were the: Specific challenges you face: Unique adaptations you make: Your specific challenges Your unique adaptations
  • 13. © Prosci Inc. All rights reserved.
  • 14. © Prosci Inc. All rights reserved. Culture 14 Cross-study cultural dimension data 0 50 100 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 Individualism vs. Collectivism Individualism Balanced Collectivism 0 50 100 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 Power Distance Low Moderate High 0 50 100 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 Uncertainty Avoidance Low Moderate High 0 50 100 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 Assertiveness Low Moderate High 0 50 100 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 Performance Orientation Low Moderate High 0 50 100 0 5 11 16 22 27 33 38 44 49 55 60 66 71 77 82 88 94 Emotional Expressiveness Low Moderate High
  • 15. © Prosci Inc. All rights reserved. Culture 15 Cultural dimension 1: Individualism vs. Collectivism Individualistic: Specific challenges Unique adaptations Balanced: Specific challenges Unique adaptations Collectivistic: Specific challenges Unique adaptations Cultural dimension 2: Power Distance Low: Specific challenges Unique adaptations Moderate: Specific challenges Unique adaptations High: Specific challenges Unique adaptations Cultural dimension 3: Uncertainty Avoidance Low: Specific challenges Unique adaptations Moderate: Specific challenges Unique adaptations High: Specific challenges Unique adaptations Cultural dimension 4: Assertiveness Low: Specific challenges Unique adaptations Moderate: Specific challenges Unique adaptations High: Specific challenges Unique adaptations Cultural dimension 5: Performance Orientation Low: Specific challenges Unique adaptations Moderate: Specific challenges Unique adaptations High: Specific challenges Unique adaptations Cultural dimension 6: Emotional Expressiveness Low: Specific challenges Unique adaptations Moderate: Specific challenges Unique adaptations High: Specific challenges Unique adaptations Outputs: Specific challenges and unique adaptations For all six of the cultural dimensions
  • 16. © Prosci Inc. All rights reserved. Culture 16 Power Distance Low Moderate High Specific challenges Unique adaptations Specific challenges Unique adaptations Specific challenges Unique adaptations Specific challenges 1.  Impaired communication: Due to extensive access, information often skipped levels of the organization which resulted in repeating information several times. Informal communications led to rumors and decreased the credibility of information surrounding change. 2.  Increased resistance: Low power distance structures resulted in a large amount of resistance because individuals from all levels of the organization constantly challenged ideas. Employees often did not adhere to changes, and messages were not uniform across the organization. Conflicts arose between levels of management, and productivity suffered consequently. 3.  Decreased productivity: Productivity decreased due to more time being spent on gaining buy-in, lack of governance and slower decision processes. Unique adaptations 1.  Increase engagement: Employee engagement was achieved with an increase in functions and meetings that were used to ensure alignment of the organization across all levels. The quantity of meetings ensured that employees had multiple opportunities to encounter and engage with the change project. 2.  Structure communication channels: Communication channels needed to be identified up front to provide a consistent approach for tailoring messages and to open structured feedback from individuals. Communication plans required consistency and frequency, so content could be adjusted to incorporate the topics identified from feedback. 3.  Enhance change management plans: Participants in low power distance organizations added structure to change management by placing stakeholders in key positions, including establishing guidelines to ensure all levels were being communicated with and clearly defining roles and responsibilities.
  • 17. © Prosci Inc. All rights reserved. Specific challenges Unique adaptations Specific challenges Unique adaptations Specific challenges 1.  Decreased ability to drive change: Leadership had a decreased capability to direct change, had to put more effort into gaining buy-in for change and had to engage managers more thoroughly. 2.  Increased resistance: Resistance occurred because senior leaders did not account for employees’ input and concerns when dealing with issues centered on change. Employees were then more likely to resist any aspect of change. Senior leaders appeared to think they had more sway over employees than they did. 3.  Poor structure: Participants with moderate power distance organizations reported a need to tailor change plans more specifically to groups as opposed to using a uniform approach. Creating individual plans required more time on the change manager’s part and lowered the effectiveness of mass communication regarding change. Unique adaptations 1.  Balance communication: Participants expressed the need to establish balanced communication during change management. Open and honest feedback was balanced with a clear boundary and understanding of “who has the final say.” 2.  Gain buy-in: Participants reported putting more effort toward gaining employee buy-in. Awareness of the need for and importance of change management was created by using more meetings and team activities. Other activities to gain buy-in included visible sponsorship engagement, involvement of key stakeholders, creation of plans for various groups and demonstration of the value of change management. 3.  Empower sponsors: Sponsors in moderate power distance organizations were encouraged to take charge of change as an adaption to the position on the power distance spectrum. Empowered sponsors bridged the gap between leaders’ direction and employees’ concerns and feedback. Culture 17 Power Distance Low Moderate High Specific challenges Unique adaptations Power Distance Low Moderate High Specific challenges Unique adaptations
  • 18. © Prosci Inc. All rights reserved. Power Distance Specific challenges Unique adaptations Specific challenges Unique adaptations Specific challenges Unique adaptations Culture 18 Power Distance Low Moderate High Specific challenges Unique adaptations Low Moderate HighLow Moderate High Specific challenges Unique adaptations Specific challenges 1.  Restricted communication: Participants identified too few and poor levels of communication occurring in high power distance organizations. A large gap was described between senior leaders and frontline employees which resulted in a loss of productivity and increased time for implementation. Fear among employees and executives appearing unapproachable were primary limitations to communication from lower levels to executives. 2.  Isolated decision making: Isolated decision making was challenging. Executives made decisions without considering the impact to employees. Consequently, the alignment of the organization suffered because different levels and groups had different directions. 3.  Lack of employee engagement: Lack of commitment and trust were other challenges for organizations with high power structures. Passive resistance resulted from these issues because employees felt powerless, unheard and not cared about. Resources had to be reallocated to account for these avoidable problems. Unique adaptations 1.  Communicate openly and directly: Participants reported using executive and senior leaders more often during communications. Higher-level leadership lent authority to communication, and resistant employees were more likely to adopt change when instructed. 2.  Engage leadership: Leadership visibility and engagement ensured that impacted groups understood that company leadership was supportive of and behind change from the beginning. Early leadership involvement encouraged and promoted early adopters.
  • 19. © Prosci Inc. All rights reserved. Culture 19 Adapt your approach to accommodate your culture: Increase effectiveness and avoid common pitfalls Change practitioners who better understand the cultures in which they operate can customize and adapt their approach to drive more successful change. The six cultural dimensions in Prosci’s 2016 report give practitioners direction in how to adjust their approach. Cultural  dimension  1:  Individualism  vs.  Collectivism Individualistic: Specific  challenges Unique  adaptations Balanced: Specific  challenges Unique  adaptations Collectivistic: Specific  challenges Unique  adaptations Cultural  dimension  2:  Power  Distance Low: Specific  challenges Unique  adaptations Moderate: Specific  challenges Unique  adaptations High: Specific  challenges Unique  adaptations Cultural  dimension  3:  Uncertainty  Avoidance Low: Specific  challenges Unique  adaptations Moderate: Specific  challenges Unique  adaptations High: Specific  challenges Unique  adaptations Cultural  dimension  4:  Assertiveness Low: Specific  challenges Unique  adaptations Moderate: Specific  challenges Unique  adaptations High: Specific  challenges Unique  adaptations Cultural  dimension  5:  Performance  Orientation Low: Specific  challenges Unique  adaptations Moderate: Specific  challenges Unique  adaptations High: Specific  challenges Unique  adaptations Cultural  dimension  6:  Emotional  Expressiveness Low: Specific  challenges Unique  adaptations Moderate: Specific  challenges Unique  adaptations High: Specific  challenges Unique  adaptations
  • 20. © Prosci Inc. All rights reserved. Global Literacy •  Opportunities for customization •  Cultural-specific adaptations •  Avoid cultural-specific obstacles •  Communication needs to be thought through 1% 5% 4% 34% 56% Not Slightly Neutral Important Very Impact of cultural awareness on employing change management 20 New
  • 21. © Prosci Inc. All rights reserved. Global Literacy Regional Considerations 21 US: 35% Canada: 15% Europe: 15% Africa: 4% Latin America: 2% Australia and NZ: 24% Asia and Pacific Islands: 4%Middle East: 1%
  • 22. © Prosci Inc. All rights reserved. Global Literacy Regional Considerations 22 Specific analysis by region: Perception of change management across regional cultures Parts of change management that did not fit with various cultures Regional-specific causes for resistance
  • 23. © Prosci Inc. All rights reserved.
  • 24. © Prosci Inc. All rights reserved. New Change Agent Network 39% ? leveraged formal change agent networks to support change implementation Definition of the change agent network Reasons to use a change agent network Building a change agent network Criteria for selecting members Change agent network roles Expectations of the change agent network 24
  • 25. © Prosci Inc. All rights reserved.
  • 26. © Prosci Inc. All rights reserved. Change Agent Network Reasons to use a change agent network 1.  Extend project support The primary response was to provide additional support to the project, often from peers, which expedited change with fewer obstacles and greater focus. 2.  Use resources efficiently By using change agent networks, participants readily allocated resources to necessary points of need. A large portion of participants indicated that they… 3.  Enhance communication 4.  Align consistent objectives 5.  Increase knowledge 6.  Build credibility 7.  Boost ownership Change agent network roles 1.  Communication role The role most commonly identified by respondents was communication liaison. Members of the change agent network were used to disseminate communications to their respective departments, sites or regions to share information about the change project with a greater audience and provide various forms of feedback to the change project team, such as employee concerns. 2.  Leadership role Respondents frequently identified various leadership roles for the change agent network. Examples included acting as the change leader for their department or region… 3.  Training and support roles 4.  Managing change internally 26 Example findings
  • 27. © Prosci Inc. All rights reserved.
  • 28. © Prosci Inc. All rights reserved. New Complementary Roles HR Business Partners Organization Development Internal Communications Business Analysts Internal Consultants 63% 40% 40% 38% 33% How each role engages with change management? 28
  • 29. © Prosci Inc. All rights reserved. Vertical Industry Market changes Technological changes Operational changes Organizational changes Four types of expected change: 24 verticals 29 New
  • 30. © Prosci Inc. All rights reserved. Banking  Market   Operational   Technological Regulations and government oversight New market emergence Changes in demand related to customer expectations Traditional markets closing Increased competition Changes to customer/ user relationships Shifting priorities and business strategies Consolidation of operations and focus on profitability Digital banking Automation Increased need for cyber security Vertical Industry 30
  • 31. © Prosci Inc. All rights reserved. Education Services   Market   Operational   Budgetary Increase in competition Consolidation Increase in government regulations Change to demand Increase demand for eLearning and virtual products Changes to curricula Changes to student relations Increased diversity Shifting student demographics Increased collaboration with commercial sponsors Budget changes Changes to federal/state funding Vertical Industry 31
  • 32. © Prosci Inc. All rights reserved. Government – State  Technological   Organizational  Operational Digitalization Updates to computer systems Virtual tools Cloud eLearning modules Reducing employee headcount Increase in privatization Increase in outsourcing New or restructured business model Changes to priorities Changes to user/citizen relationships Leadership development Increased need for employee engagement Vertical Industry 32
  • 33. © Prosci Inc. All rights reserved. Health Care   Paradigm   Technological   Budgetary Individual or self- managed health care model Increased regulations and legislation Consolidation through M&A Standardization of patient care Electronic records New drugs Patient care technology Automation Budget cuts Loss of funding Move toward profit- focused business models Vertical Industry 33
  • 34. © Prosci Inc. All rights reserved. Vertical Industry 34 Group 1 Health Care Educational Services Group 2 Government – Federal Government – State Government – Local/Municipal Group 3 Banking Finance Consulting Insurance Group 4 Information Services Telecommunications Professional, Scientific, Technical Services Group 5 Oil and Gas Manufacturing Utilities Retail Trade Consumer Goods and Manufacturing Challenges and adaptations for CM by industry grouping
  • 35. © Prosci Inc. All rights reserved. 35 Group 1 Health Care Educational Services Industry-specific CM challenges 1. Autonomous nature of employees 2. Lack of designated resources In both health care and education services industries, the unique responsibilities of employees demanded a high degree of autonomy and independent thinking. Physicians, nurses, academics and educators were identified as employees for whom it is difficult to accept change at face value without convincing and clear evidence. Lack of resources was noted as the second most common challenge when trying to implement change management, including monetary and non-monetary resources. Participants noted a lack of funding designated specifically for change management. Inadequate non- monetary resources included specialized change management training, dedicated change management practitioners and time away from daily priorities to focus on change management. Industry-specific CM adaptations 1. Alignment with employee characteristics 2. Communication Participants identified various ways in which change management methodology was adapted to work with employees in health care and education services industries. Examples were to include physicians/ professors on change management teams, to meet expectations of a high degree of collaboration and to increase stakeholder engagement. Participants described ways in which communication was adapted to be most effective in health care and education services industries. Examples included adapting communication to resemble academic discourse in education services industries and linking change to improvements in patient care in health care industries. Vertical Industry Challenges and adaptations for CM by industry grouping
  • 36. © Prosci Inc. All rights reserved. Certification 74% Had attended certification 86% Would recommend certification (only 2% wouldn’t) Value of certification Structured approach gained Build skills and credentials Acquire common and universal tools More likely to achieve desired outcomes ? 36 New
  • 37. © Prosci Inc. All rights reserved. 1.  Impact of culture on change management 2.  Importance of cultural awareness and global literacy in change 3.  Development and leveraging of change agent networks 4.  Engagement of complementary roles in change management work 5.  Customization of change management for vertical industry segments 6.  Certification in change management 37 New research areas in 2016 report
  • 38. © Prosci Inc. All rights reserved. Prosci Best Practices in Change Management, 2016 Edition Available now! ® www.beinghuman.com | info@beinghuman.com.au| +61 2 9810 6264