The drive towards digital transformation impacts every area of an organization from vision and strategy to architecture, technology, and operations. Working in a digital world requires many employees to change the way they do their jobs, but without the proper preparation and support, they might not be able to successfully make that transition. According to Prosci's Best Practices in Change Management, critical business initiatives – such as engaging in a digital transformation – that utilize a proven change management approach are 95% more likely to be successful than those that do not. We broke down change management in digital transformation, reviewed the elements that make a program successful, and answered common questions, including: -What exactly is change management? -How does it work? -Why is it so important for digital transformation? -What benefits should I expect? -What are the first steps I should take?

1. WHY ORGANIZATIONAL CHANGE
MANAGEMENT IS CRITICAL TO DIGITAL
TRANSFORMATION
#PerficientDigital

2. 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.

3. 3#PerficientDigital
PERFICIENT PROFILE
Founded 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

4. 4#PerficientDigital
PRESENTERS
David Chapman
OCM Practice Lead
Perficient
Blog: http://bit.ly/2bPNG1C
Michael Porter
Managing Principal
Perficient
Michael.Porter@perficient.com
@porterondigital

5. 5#PerficientDigital
WHAT ARE WE TALKING
ABOUT?

6. 6#PerficientDigital
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

7. 7#PerficientDigital
WORKING DEFINITION OF CHANGE MANAGEMENT

8. 8#PerficientDigital
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

9. 9#PerficientDigital
“All I’m saying is, now is the time
to develop the technology to
deflect an asteroid.”

10. 10#PerficientDigital
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

11. 11#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

12. 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

13. 13#PerficientDigital
WHY IS IT IMPORTANT?

14. 14#PerficientDigital
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

15. 15#PerficientDigital
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

16. 16#PerficientDigital
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?

17. 17#PerficientDigital
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

18. 18#PerficientDigital
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 realization
and 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

19. 19#PerficientDigital
Poll Question
What 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

20. 20#PerficientDigital
HOW DO YOU GO ABOUT IT?

21. 21#PerficientDigital
START WITH STRATEGY
Insights Strategy Planning
Discovery
Knowledge Transfer
Stakeholder Workshops
Discovery Workshops
Research
Primary Research
Secondary Research
Analytics Review
Experience
Value Proposition
Experience Mapping
Mental Modelling
Business Alignment
Vision
Vision Statement
Vision Comps
Experience Vision
Program
Program Plan
Governance Plan
Change Management
Resource
Resource Planning
Center of Excellence
Benchmarking
Competitive Analysis
Performance Baseline
Analysis
Tech Assessment
Readiness Assessment
CXIQ
Capabilities
Capabilities Matrix
Process Mapping
Technology
Technical Design
POC
Platform Selection
Integration Strategy
Outcomes
Gap Analysis
Business Case
ROI Analysis
Strategy Realization
Measurement
Roadmap
Roadmap Planning
Implementation
Planning

22. 22#PerficientDigital
DON’T FORGET INNOVATION

23. 23#PerficientDigital
T1 T2 T3 T4+
FoundationRedOcean
Blue
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

24. 24#PerficientDigital
TRANSFORMATIONAL
CHANGE & APPROACH

25. 25#PerficientDigital
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

26. 26#PerficientDigital
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

27. 27#PerficientDigital
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
Worry
Resistance
Productivity
ROI
*Applied from Beyond Change Management, Dean Anderson & Linda Ackerman Anderson, 2010

28. 28#PerficientDigital
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
+ + =

29. 29#PerficientDigital
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

30. 30#PerficientDigital
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

31. 31#PerficientDigital
NOW WHAT?

32. 32#PerficientDigital
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

33. 33#PerficientDigital
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?

34. 34#PerficientDigital
Poll Question
With 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.

35. 35#PerficientDigital
QUESTIONS?
Please submit your questions in
the chat box

36. 36#PerficientDigital
FOLLOW US ONLINE
• Perficient.com/SocialMedia
• Facebook.com/Perficient
• Twitter.com/PRFT_Transform
• Blogs.perficient.com/digitaltransformation
• YouTube.com/Perficient
Perficient.com/insights/guides
Perficient.com/insights/webinars