WHY ORGANIZATIONAL CHANGE

MANAGEMENT IS CRITICAL TO DIGITAL

TRANSFORMATION#PerficientDigital

2#PerficientDigital

ABOUT PERFICIENT

Perficient is the leading digital transformation

consulting firm serving Global 2000 and enterprise

customers throughout North America.

With unparalleled information technology, management consulting,

and creative capabilities, Perficient and its Perficient Digital agency

deliver vision, execution, and value with outstanding digital

experience, business optimization, and industry solutions.

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PERFICIENT PROFILEFounded in 1997

Public, NASDAQ: PRFT

2015 revenue $473.6 million

Major market locations:

Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chattanooga, Chicago,

Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax, Houston,

Indianapolis, Lafayette, Milwaukee, Minneapolis, New York City,

Northern California, Oxford (UK), Southern California, St. Louis, Toronto

Global delivery centers in China and India

>2,800 colleagues

Dedicated solution practices

~90% repeat business rate

Alliance partnerships with major technology vendors

Multiple vendor/industry technology and growth awards

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PRESENTERS

David ChapmanOCM Practice Lead

PerficientBlog: http://bit.ly/2bPNG1C

Michael PorterManaging Principal

Perficient

Michael.Porter@perficient.com

@porterondigital

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WHAT ARE WE TALKING

ABOUT?

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DIFFERENT VIEWS OF “CHANGE MANAGEMENT”

Information Technology

Handling change requests

Project Management

Office

Organizing & managing project

plans

Organizational Change

Management

Preparing workforce for new ways of

operating

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WORKING DEFINITION OF CHANGE MANAGEMENT

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WHAT IS DIGITAL TRANSFORMATION?

“The realignment of, or new investment

in, technology and business models

to more effectively engage digital

customers at every point in the

customer experience lifecycle.”

~Altimeter

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“All I’m saying is, now is the time to develop the technology to deflect an asteroid.”

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WHERE DIGITAL TRANSFORMATION AND OCM BISECT

Digital transformation is a reaction

to either disruption or dislocation

Think about what that means to the

people in your organization…

Source: Strategy and Research 2016

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WHERE DIGITAL TRANSFORMATION AND OCM BISECT

Common activities that result from digital strategy

• Program to manage all multiple projects

• New roles created

• Mobile APIs

• New site

• Updated ecommerce engine

• Multiple rollouts of new tools and systems

• Unification of in store and online experience

• Unification of web and mobile experience

12#PerficientDigital

WHERE DIGITAL TRANSFORMATION AND OCM BISECT

Common activities that result from digital strategy

• Program to manage all multiple projects

• New roles created

• Mobile APIs

• New site

• Updated ecommerce engine

• Multiple rollouts of new tools and systems

• Unification of in store and online experience

• Unification of web and mobile experience

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WHY IS IT IMPORTANT?

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WHAT IF YOU BUILT IT, AND THEY DIDN’T COME?

Two-thirds of all projects FAIL – fail to meet business objectives, scope,

timeline, and ultimately ROI*

Why?

× Not usually technology

The cause is usually poor adoption*2016 Prosci Best Practices in Change Management

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CHANGE IS HARD

• The reality is that change is hard – people

are naturally resistant to change.

• When we talk about digital transformation,

we’re talking transformative change.

That’s big change.

• Think behavior change. Think culture

change. We’re not just adding a new

widget to our system.

• Change happens one person at a time.

It’s not group-think, and we’re not

lemmings!

CHANGE IS HARD

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CHANGE IS DIFFERENT

Managers/Line Personnel

• What does it mean for my job?

• Do I still have a job?

• Will it make my job easier?

Executives

• Will this improve my top line?

Bottom line?

• Will this excite my people?

• What happens if this initiative fails?

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HUMAN IMPACT ON ROI

• The first question we have to ask is, “How much of the benefits that I’m targeting via my

pending change are dependent on people actually engaging with the new solution?”

• It’s not uncommon for this number to be > 75%

• There usually is inherent value in new technology, but the majority of the benefit

comes from people using the system.

0

50

100

Return on Investment (ROI)

%

People Technology

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WORKING DEFINITION OF CHANGE MANAGEMENT

Change management’s impact on project success • Projects with change management are 6 times more likely to

meet or exceed project objectives*

• Change management increases the probability of staying on schedule and budget, resulting in higher benefit realizationand ROI

Change management minimizes disruptions and decreases the

time required to realize productivity gains planned by the project.

*2016 Prosci Best Practices in Change Management

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Poll QuestionWhat is your experience with Organizational Change Management within your

organization?

a. We have Change Management capabilities in-house

b. We generally outsource the Change Management function to a consulting firm

c. We haven’t focused on Change Management but we are looking into it

d. We generally don’t have a need for Change Management

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HOW DO YOU GO ABOUT IT?

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START WITH STRATEGY

Insights Strategy Planning

DiscoveryKnowledge Transfer

Stakeholder WorkshopsDiscovery Workshops

ResearchPrimary Research

Secondary ResearchAnalytics Review

ExperienceValue Proposition

Experience MappingMental Modelling

Business Alignment

VisionVision Statement

Vision CompsExperience Vision

ProgramProgram Plan

Governance PlanChange Management

ResourceResource Planning

Center of Excellence

BenchmarkingCompetitive AnalysisPerformance Baseline

AnalysisTech Assessment

Readiness AssessmentCXIQ

CapabilitiesCapabilities MatrixProcess Mapping

TechnologyTechnical Design

POCPlatform Selection

Integration Strategy

OutcomesGap Analysis

Business CaseROI Analysis

Strategy RealizationMeasurement

RoadmapRoadmap Planning

Implementation Planning

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DON’T FORGET INNOVATION

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T1 T2 T3 T4+

Fo

un

da

tio

nR

ed

Oc

ea

nB

lue

Ocean

SOA/API/Web Services Overhaul

Self-Service Portal Redesign

Bring New Business Units Online

UI/UX, Tracking, Analytics, Monitoring/Alerting, Security, Scalability, and Stability

.COM SEO/SEM Along with Site Redesign

Digital / Mobile / Innovation Center of Excellence

Portal

Consolidation

Continuous

Improvement

DIGITAL ROADMAP

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TRANSFORMATIONAL

CHANGE & APPROACH

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TYPES OF CHANGE

• New state is largely unknown – emerges from visioning, trial

and error discovery, and learnings

• Requires a fundamental shift in mindset, behavior, and culture

to support new business direction

• Critical mass of organization must operate from

a new mindset and behavior for initiative to be sustained

• Improvement of what is

• New state is a prescribed enhancement of

the old state

• Design and implementation of a desired new state

• Requires management of the transition process to dismantle

the old state while putting in the new state

• Managed timetable

Developmental

Change

Transitional

Change

Transformational

Change

Applied from Beyond Change Management, Dean Anderson & Linda Ackerman Anderson, 2010

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APPROACHES TO TRANSITIONAL CHANGE

• We generally approach transitional changes with relatively “straight forward”

change management.

Well-communicated case for change

Job impact assessment

Clear change plan

High employee involvement in designing and implementing plan

• The significant factor for success is an engaged sponsor

Sound communications and training plans

Adequate support and integration time

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DEEP DIVE INTO TRANSFORMATIONAL CHANGE

• Defined as a “radical shift of strategy, structure, systems, process, or technology, so

significant that it requires a shift in culture.”*

• The new state that will evolve will largely be uncertain at the time of project inception

• Transformational projects create instability and uncertainty in an organization

1) We are pursuing an emerging target

2) Because we don’t know the end game with 100% certainty, resistance goes up.

As resistance goes up, commitment and performance levels become uncertain.

• Human and cultural issues thus become key drivers

Wo

rry

Res

ista

nce

Pro

du

ctivity

RO

I

*Applied from Beyond Change Management, Dean Anderson & Linda Ackerman Anderson, 2010

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DIGITAL TRANSFORMATIONAL CHANGE

• Digital change is designed to change the way we work – it’s not a new application, a new

system or a new process. It’s all of those!

• Digital transformational change requires a behavior change

+ + =

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CASE EXAMPLE: YAMMER

Yammer is a social networking service used for private communication within organizations

RE-EMERGENCE

Death

Chaos

Birth

Growth

Success Plateau

Applied from Beyond Change Management, Dean Anderson & Linda Ackerman Anderson, 2010

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APPROACHES TO TRANSFORMATIONAL CHANGE

• Change leaders must formulate strategies and methods to transform mindsets

and culture for digital transformation projects to be successful.

Address leaders and change targets

Engage stakeholders very actively

Build two-way communications channels

• Listening is critical

• Developing a culture of openness and authenticity

Ensure vision is grasped and understood via the case for change

Turn resistance into commitment

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NOW WHAT?

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HOW TO TAKE THE FIRST STEPS

• First, you must assess what “type” of digital transformation and change you

are undertaking at the program and project levels.

a) Developmental (Small)

b) Transitional (Medium)

c) Transformational (Large)

• Then, you must assess what your change management capabilities and

capacities are – what’s available to you?

LITE VERSION

Get the ball rolling; transition

execution to client

LEADERSHIP MODEL

Provide the strategic

Change leadership

through the project

FULL SUPPORT

Provide the leadership and

bandwidth for a complete

change program

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FINAL THOUGHTS ON CHANGE MANAGEMENT

FOR DIGITAL TRANSFORMATION

• Digital transformations are life changing – for an organization and its people

• Change management is all about protecting the investment in the project and

achieving the target ROI

• There are ways we can calculate and quantify the impact of change management

has on the target ROI

• You can’t start change management work too early, but you can start it too late!

• Change management is not send an email on Monday, train on Tuesday, and

implement on Wednesday

• All projects will include some form of change management – the question is,

who will do it and how well will it get done?

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Poll QuestionWith your company’s digital transformation, what are you doing to ensure successful

change?

a. We have people focused on it. They are tied at the hip with our digital strategists.

b. We know it’s important. It’s in our plan. We just haven’t gotten to it yet.

c. Most of my company asks, “Why plan for change?”

d. I sat through this whole webinar and I still don’t know what you are talking about.

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QUESTIONS?

Please submit your questions in

the chat box

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