Change Management: The Missing Link in Electronic Procurement Implementations

Government Procurement in the Americas

Conference

October 28-29, 2015

Richard Hudson

Copyright Evans Incorporated 2015. All rights reserved

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Change Management

the missing link in electronic

procurement implementations

What is the main reason financial/procurement

system implementations fail?

1. Project team not skilled

2. Lack of leadership commitment

3. Weak program planning

4. Institutional resistance

5. Inappropriate technology

6. Inadequate capacity to sustain

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What is the main reason financial/procurement

system implementations fail?

1. Inadequate Capacity to Sustain - 30 projects

2. Institutional Resistance – 23 projects

3. Weak program planning – 22 projects

4. Lack of leadership Commitment – 17 projects

5. Project team not skilled – 17 projects

6. Inappropriate technology – 13 projects

* Financial Management Information Systems, 25 Years Experience on what Works and

What Doesn’t. Cem Dener, Joanna Watkins, William Dorotinsky. 2011.

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What is change management?

“The process of helping people understand the need

for change and motivating them to take actions which

result in sustained changes in behavior”.

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Successful change management helps organizations

and their people perform better

Organizational Change Management is NOTTraining on software

An IT service management discipline

Periodic communication on status of implementation

Taking the Sponsor to dinner

“Soft” or “Easy”

Why is change management important?

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The reality of change

- Performance

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P E

R F

O R

M A

N C

E

T I M E

REALISTIC

EXPECTED

ACTUAL

CHANGE

INTRODUCEDCHANGE

INTRODUCED

ACTUAL

No Change

Management

REALIZED

With Change

Management

Less disruption

Faster change adoption

Optimize results

The reality of change

- People

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ResistanceExploration

CommitmentDenial

Preparation

Acceptance

Change interventions

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Opposing Forces

• Loss of Control

• Vested Interest

• Weak Integration

• Fear of Job Loss

• Limited Awareness

• Non Aligned Cultures

Supporting Forces

• External Demand

• Fiscal Crises

• Change Champions

• Cross Departmental

Communication

• Internal Efficiency Demands

• Technology Redundancy

• Clear Vision

1. Change Readiness

2. Leadership Commitment

3. Stakeholder Management

4. Effective Communication

5. Monitoring Impacts

6. Portfolio Management

Successful

change requires:

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Time allows us to introduce only three of these

Leadership Commitment

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What leadership support exists?

Is it at the right level?

How are you building on it?

Requirements for

Successful Change

1. Change Readiness


3. Stakeholder

Management




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The top five mistakes top-level sponsors

make during a major change

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1. Failed to remain visible and actively demonstrate support

2. Failed to communicate messages about the need for the change

3. Failed to build a coalition of support

4. Assumed all employees were on-board regarding the change

5. Delegated or abdicated the sponsorship role

Source: Best Practices in Change Management

– 2012 Edition. Prosci, Inc. 2012

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Stakeholder Management

- Addressing resistance

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Requirements for

Successful Change

1. Change Readiness






• Resistance to change is to be

expected

• Resistance must be channeled

constructively and addressed

directly – it cannot be ignored!

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Meet the Stake Holders

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Resistance

- Starts with the individual

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Think

Feel

Do

Awareness of

need for change

Understand and

commit to change

Translate thoughts and

feelings into actions

People don’t resist change, they resist being changed

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Which Group is the Most Resistant to Change?

1. Executives / Ministerial Levels

2. Senior-level Officials

3. Middle-level Managers

4. Front-line supervisors

5. Front-line employees

6. Other

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Which Group is the Most Resistant to Change?

1. Executives / Ministerial Levels ……. 5%

2. Senior-level Officials ……..………... 12%

3. Middle-level Managers …..……….…. 37%

4. Front-line supervisors ………………... 16%

5. Front-line employees ……….……….. 24%

6. Other ……………………………………..…... 6%

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Source: A global survey of private and public sector from Best Practices in

Change Management – 2012 Edition. Prosci, Inc. 2012.

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Addressing resistance

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Managerial Managerial

Supervisory Supervisory

Technical

Administrative

Change must be led and managed by staff within the

impacted organizations

Leaders

Middle

Management

Front-Line

Staff

Civil Service Executives

POLITICAL APPOINTEES

Middle Management

must become

agents for change

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Communications

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Requirements for

Successful Change

1. Change Readiness






Sources of Poor Communications:

• Inconsistent messages

• Not addressing why

• Difficulty engaging with everyone

• Long gaps between communications

• Poor timeliness with regards to what

is actually happening

I. Contact

II. Awareness

III. Understand

V. Adopt

VI. Institutionalize

IV. Install

Unaware

Confusion

Negative

Perception

Lack of

Support

Change

Abandoned

Preparation

Acceptance

Commitment

Degre

e o

f Support

for

the c

hange

Time

Change Communications– Checking in or out?

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From whom do employees prefer to hear communications

about the organizational need for change ?

1. CEO/Minister

2. Executive/ Senior Official

3. Department Head

4. The Employee’s Supervisor

5. Human Resources Representative

6. Project Team Lead

7. Change Management Team

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about the organizational need for change ?

1. CEO/Minister …..……………………………. 47%

2. Executive/ Senior Official ……………. 31%

3. Department Head ….……………………….. 7%

4. The Employee’s Supervisor ……………… 4%

5. Human Resources Representative …… 3%

6. Project Team Lead ……………….………… 2%

7. Change Management Team …….……… 0%

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2012 Edition. Prosci, Inc. 2012.


about how a change affects them personally?

1. CEO/Minister

2. Executive/ Senior Official

3. Department Head

4. The Employee’s Supervisor

5. Human Resources Representative

6. Project Team Lead

7. Change Management Team

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about how a change affects them personally?

1. CEO/Minister …….……………………………. 4%

2. Executive/ Senior Official ..……………. 6%

3. Department Head ………………..………... 10%

4. The Employee’s Supervisor ……………… 69%

5. Human Resources Representative ….. 3%

6. Project Team Lead ……………..………….. 2%

7. Change Management Team ……………... 3%

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2012 Edition. Prosci, Inc. 2012.

Impact of development approach on

change management

Custom• Less Impact (if automate current)

• Easier to Sustain

Richard Hudson

Copyright Evans Incorporated 2015. All rights reserved23

COTS• Proven Solutions

• User Groups

But the lines between Custom & COTS are blurring……

Major Critical Success Factors are:- Leadership commitment

- Engaged stakeholders

- Effective communications

- Readiness for change

Change Management - Common Pitfalls

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Planning Execution

Start late Only focus on the rational

Program design fails to include

change

Not dealing proactively with

resistance

Create too much fanfareFail to understand information

network

No sense of urgencyOver rely on structure and systems to

change behavior

Not involving all stakeholders Fail to target communications and

provide feedback mechanisms

Not creating a coalition of leaders Over rely on consultants

Ignoring cultureFail to consider organizational

capacity

Forcing through too much change Declare victory too soon

Thank You !!

3110 Fairview Park DriveSuite 1100Falls Church, VA 22042T: 703.663.2480F: 703.852.7333www.evansincorporated.com

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Richard Hudson

Director

T: 202.330.3832

F: 703.852.7333

[email protected]

Change Management: The Missing Link in Electronic Procurement Implementations

Leadership & Management

Transcript of Change Management: The Missing Link in Electronic Procurement Implementations