Top five benchmarking insights

Report insight #5 - Dedicate resources to change management

Finding:

Participants were asked what they would do differently on their next project. The number one response was:

Dedicate resources to change management. Create a change management team or lead position to select and adopt a methodology and improve the organization's understanding of the value of change management. Empower these individuals to prepare and educate executives, managers and project team members on change management tools, processes and techniques.

What it means:

Time and resources dedicated to change management showed up as number five in the 2003 report related to what participants would do differently. As organizations have recognized the importance of a change management, they have started to dedicate the appropriate resources to make it a success.

If you have control over resource allocation or the structure of work on the project, make change management a priority! Many times, resource (and mindshare) allocation is a sponsor issue. If you are finding a lack of resources being dedicated to change management, you may need to look up the chain and build support for change management higher in the organization.

The CM Pilot (online) and the Change Management Toolkit (hardcopy) contain Prosci's 3-Phase Change Management process and the associated checklists, guidelines, templates and assessments so you can begin applying the methodology immediately. These tools can also be licensed for use by change agents and project teams throughout your company. Call 970-203-9332 for more information.

Report insight #4 - Use of a methodology

Finding:

Use of a particular change management methodology.

Did you use a particular change management methodology (2005)?

Did you use a particular change management methodology (2003)?

 What it means:

The methodology flip-flop! This observation is one of the biggest changes observed in the 2005 study. Two years ago only 34% of participants used a formal model to manage change (as opposed to ad hoc activities), compared to 55% in the 2005 study.

If you are still approaching change management without a structured methodology, you are now in the minority! No matter where the methodology comes from (externally provided or internally developed), you need to provide change agents with some structure around how to manage the human side of change.

Prosci's 3-Phase Change Management methodology walks users through the process of preparing for change, managing change and reinforcing change. Assessments and templates make this an applicable and scalable process. The methodology is available in both online and hardcopy versions. 

Report insight #3 - Reasons for resistance

Finding:

Primary reasons front line employees resist change

Participants cited several factors that contributed to employee resistance to change. The top five were:

1. Employees were not aware of the business need for change. Employees did not understand why a change was being made nor did they understand how the change would impact them (WIIFM - what's in it for me).
2. Lay-offs were announced or feared as part of the change. Employees were concerned at the prospect of being unemployed and the direct financial implications involved.
3. Employees were unsure if they had the skills needed for success in the future state. Employees were concerned about new responsibilities, changing technologies and whether they would be able perform well under a new performance measurement system.
4. Individuals were comfortable with the current state. Employees wanted to maintain the personal rewards and sense of accomplishment and fulfillment provided by the status quo.
5. Employees believed they were being asked to do more with less, or do more for the same pay.

Primary reasons managers resist change

Manager resistance is attributed to a number of different factors. Participants identified these top reasons for mid-level manager resistance:

1. Loss of power and control. Managers perceived change as having a negative impact on their span of control and on their careers.
2. Overloaded with current responsibilities. Managers already had many demanding responsibilities and the change created one more thing to manage. In some cases there was already too much change going on in the organization.
3. Lacked awareness of the need for change. Managers did not understand the business need for change or the risks of not changing.
4. Lacked the required skills. Some managers did not have the skills to manage change or employee resistance. Other managers lacked the skills required to succeed in their new roles. They resisted because they felt unprepared to manage the change.
5. Fear, uncertainty and doubt. Managers lacked clarity surrounding the change. They were skeptical about the change or fearful and uncertain about the future state.

 What it means:

There are several important lessons from these two lists above.

• The reasons employees resist change are different than the reasons managers resist change. Resistance is not a uniform phenomenon - understanding the 'why' of resistance allows you to better execute the 'how' of overcoming the resistance.
• Often, many change managers and project teams believe resistance stems from disagreement with the future state - but research shows that most causes of resistance are related to the current state, and not the actual 'change' or future state a project is creating.
• Teams can take actions to mitigate many of the reasons for resistance. Proactively identifying potential resistance and its causes can help teams build buy-in early on and minimize resistance as the change is introduced. For example, creatively and effectively creating awareness around the business need for change can counteract one of the biggest causes of resistance for both managers and front-line employees. Use the list above as a starting point and develop proactive measures to address these issues.

Report insight #2 - Biggest obstacle: resistance

Finding:

Greatest obstacles to successful change:

 What it means:

Don't be surprised by resistance! Expect it! Plan for it! With effective change management, you can prevent, overcome and mitigate resistance.

Understand what is causing resistance. The 2005 study breaks out the top reasons for resistance for both front-line employees and managers. Change agents can use both proactive and reactive resistance management techniques to make changes more successful. 

And the #1 insight from the 2005 best practice report...
Greatest contributor: sponsorship

Finding:

Participants were asked to identify their greatest contributor to overall project success. Number one greatest contributor:  Active and visible sponsorship.

However, one half ranked their sponsors as average to poor when asked to evaluate how 'active and visible' the sponsor was during change, and only half of the participants felt their sponsors understood the role and responsibilities related to managing change.

What it means:

For the third consecutive study, the role of the sponsor was highlighted as the greatest contributor to overall project success. In the 2005 study, this was cited three times more frequently than any other factor. For Prosci, this is much more of a "well, duh" finding than an "aha" - no surprises here.

The conclusion from the two findings above is that as change agents, you need to make sure your sponsors understand how important their involvement is and what effective sponsorship looks like.

The 2005 study provides the most complete and concrete checklist of sponsor activities available. The itemized list is a great foundation for a 'sponsor checklist' you can use with your sponsors. Teams must act as enablers to ensure that sponsors are executing and sending the 'right' messages.