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Transcript of ERP – Getting from Here to There with Organizational Change Management Session #25045 March 11,...
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ERP – Getting from Here to There with Organizational Change Management
Session #25045March 11, 2008
Alliance 2008 ConferenceLas Vegas, Nevada
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Overview
Delaware’s ERP history Organizational Change Management
(OCM) – what is it? Creation of the State’s OCM Team Project Management processes
integrate with OCM processes OCM processes and tools for
success
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State of Delaware ERP Systems
ERP Systems In Progress Implemented
PeopleSoft HCM V8.8 (HR/BA/PR/TL) X
eBenefits XPeopleSoft HCMV8.9 XComponents of Pay V8.9 X
Time & Labor 8.8 X X
PeopleSoft Financials V 8.9 X
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Payroll Human Resources Statewide Technology
PHRST
Delaware
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Delaware’s ERP Background
State of Delaware 71 Organizations
35 State Agencies 19 School Districts 17 Charter Schools
36,000 Employees 12 Unions Represented
37 Different Locals
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1990’s — Various False Starts July 1999
PeopleSoft Human Resource Version 6.02 implemented
Benefits Administration & Payroll — Unsuccessful
Rolled back to Mainframe Legacy System
1990’s
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August 1999 – February 2000
Project managed by consultants Low team morale Multiple project plans to ‘fit’
budget Production support for Human
Resources Chain of command – multiple
reporting structure
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March – December 2000
Became a ‘state – managed’ project
Acquired additional state resources
Rearranged project team Added full time Change
Management team Single reporting structure
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December 2000 – July 2001
Change Management Team formed Strategy developed Prepared (readied) State Organizations End-User training (1300+)
Successful HR (V6.02 to 7.51) Upgrade & Benefits/Payroll implementation
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ERP Lessons Learned
High – level commitment Acquire “Best of the Best” state
resources Avoid modifications – re-engineer
1st Visionary Change Management Production support project plan
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PHRST Upgrade V7.51 to V8.8
Client Server to Web based Not much functionality change One year timeline
Planning began in April 03 before actual funding July 1
Tremendous change to look and feel! Internet education
Go live was a non-event!
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42% Leadership 27% Organizational &
Cultural Issues 23% People Issues 4% Technology Issues 4% Other Organizational issues left
unchecked often lead to project failure
Why ERP Implementations Fail
Source: Organization Dynamics, Jim Markowsky
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Department of Technology &
Information
Office of Major ProjectsOrganizational Change Management
Team
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State Agency Transformation
Governor & General Assembly established new agency The Department of Technology &
Information Office of Major Projects
Chief Program Officer Project Management Team Organizational Change Management
Team
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State CIO
Chief Program Officer
Project Management Team
OCM Team
Enterprise Architecture
Team
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Project Management
Project Initiation
Project Planning
Project Executing
Project Controlling
Project Closing
Change Management
Managing Change-Planning
Managing Change-Execute
Preparing for Change
Monitoring Change
Transition
Process Integration
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Organizational Change
Management
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Change Management Team’s Mission
Provide the structure and guidance necessary to effectively prepare organizations for the successful acceptance of cultural change in order to achieve their business strategy.
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What is Organizational Change Management? Definition
The organized, systematic application of knowledge, tools, and resources of change that provide organizations with a key process to achieve their business strategy
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Organizational Change Management Objectives
Provide awareness Ensure understanding Facilitate acceptance Care, listen, and respond Manage people’s expectations Ensure readiness Champion the project
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Greatest Success Factors
Active and visible sponsorship Use of organizational change
management processes & tools Effective communications Employee involvement Effective project leadership and
planning
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Greatest Obstacles
Resistance from employees and managers
Inadequate senior management & sponsorship
Cultural barriers Lack of change management
expertise
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Project Management & OCM
in Delaware IT Projects
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Preparing Process
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Assessing the Organization
Project Assessment questionnaire Organizational traits Change traits Plot the project on the Risk
Determination Table
Stakeholder Analysis
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Risk Determination Table
Modified from Prosci Change Management Toolkit
Assessing the Organization
Medium-High Risk
Low Risk
High Risk
Medium-Low Risk
12 24 60
Change Traits
110
44
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Organizational Traits
Small incremental change to a change resistant organization
Large Disruptive Change to a Change Resistant Organization
Small incremental change to a change-able organization
Large Disruptive Change to a Change-able Organization
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Stakeholder Analysis
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OCM Tailoring
Based on answers in the assessment
Determines which tools to use Sponsor roadmap Coaching plan Readiness methodology Training Strategy
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Change Management Team Model
Sponsor
Project Team
Communications Coordinator
Change Management Specialist / Readiness
Lead
PROJECT INITIATION
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ExecutiveSponsors
Project TeamChange Management
Project Lead
Communications Coordinator
Change Management
Coach
Change Management
Coach
Change Management
Coach
Change Management
Coach
Gre
en
Team
Yellow
Team
Blu
e
Blu
e
Team
Team
Red
Team
ProjectDirector
ERP Team ModelState Orgs.
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Managing Planning Process
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Provides Recommended change management
team structure Sponsor Activities Communication Plan Readiness Methodology Training and Coaching Plans Resistance Management Plan
Comprehensive Organizational Change Management Plan
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ComfortComfort
UnawareUnawareDenialDenial
AnxietyAnxiety
InsightInsight
What is happening?
What’s in itfor me?
What will I do differently tomorrow?
How do I prepare?
How do I staymotivated?
Organizational Change Phasesand Communication
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Communication Plan
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The majority of messages should
come from the CEO and the direct
supervisor
Who Should Deliver the Messages?
©2005 Prosci Best Practices in Change Management
Executive Manager
11%
Senior Mgmt11%
Department Head9%
Employee's Supervisor
31%
CEO/President25%
Change MgmtTeam Member
7%
Change Mgmt Team Leader
6%
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Executive Manager
11%Senior Mgmt
11%
Department Head9%
Employee's Supervisor
31%
CEO/President25%
Change MgmtTeam Member
7%
Change Mgmt Team Leader
6%
•The current situation and rationale for the change
•Business issues or drivers that created the need for the change
•Competitive issues or changes in the marketplace
•What might happen if the change is not made
•Vision of the organization after the change is made
•Overall timeframe
•Alignment of the change with business strategy
©2005 Prosci Best Practices in Change Management
Who Should Deliver the Messages?
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•The impact on daily activities
•Why employees want to go along
•Job security
•Specific ways they are expected to aid the change
•Resources for assistance and ways to provide feedback
Executive Manager
11%Senior Mgmt
11%
Department Head9%
Employee's Supervisor
31%
CEO/President25%
Change MgmtTeam Member
7%
Change Mgmt Team Leader
6%
©2005 Prosci Best Practices in Change Management
Who Should Deliver the Messages?
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Information Sheets
FACT sheets - awareness Impacts/Info sheets Training information Coaching information Count-down to system
implementation
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Information SheetsAwareness Info Sheet Coaching Info Sheet
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Communication Tracking Spreadsheet
Communication Title Media Date Sent Sent from and to
Organization/Team Phone Email Address
Follow-up Needed Yes No
Type of Follow-up Needed Meeting Phone call Email Other
Comments
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Managing Executing Process
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“Readiness”
Preparing/Tracking/Reporting
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OCM Readiness Methodology
All Project Teams
INPUT
Functional Impacts
Successful System Implementation
End Users
Readiness Checklist
Master Readiness Tracking Spreadsheet
Functional Impacts Documentation
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Readiness
Tracking, Measuring, and Reporting Functional Impacts Spreadsheet Master Readiness Tracking Spreadsheet Readiness Checklist On-site Tracking Station OCM Status
Executive Sponsor Readiness Reporting
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Functional Impacts
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Master Readiness Tracking Spreadsheet
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Readiness Checklists
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Executive Sponsor Reporting
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Training
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Training
Assure training steps are in place
Training strategy Training Plan Training Design Materials
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Coaching
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Customized Coaching Plan Prepare managers and
supervisors to coach their employees through the change
Coaching Plan
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Transition & Monitoring Processes
• Knowledge transfer• Collect & Analyze
Feedback• Lessons Learned
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Transition
Develop Transition plan
Plan to train organization resources
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Transition Ownership toBusiness Owner Knowledge Transfer Plan
Identifies required skills by project team role
Assesses current skills Develops an agreed upon action
plan and milestones Re-assesses semi-annually for life
of project
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Monitoring Change
Survey End Users Post implementation
Three months Six months One year
Monitor Help Desk Training
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Reinforcing Process
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Collecting, Reporting, and Analyzing Feedback
Work resistance plans Celebrate!
Milestone successes Implementation successes
Reinforcement
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Integration is Key
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Achieving Successful Organizational Change for ERP Projects
Dedicate resources to Organizational Change Management
Secure visible executive sponsorship early in the project
Repeat key messages early and often Involve employees in the change process Work with the PM from the beginning and
plan your change strategy together
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Change Management Team
Tracks, measures, and reports readiness
Identifies critical roles and individuals to act in these roles
Plans for change and manages it as a process
Assesses organizational readiness
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Change Management Team
Educates individuals about change Communicates in a clear, honest,
open manner Demonstrates commitment through
active involvement and role modeling
Solicits sponsor involvement when necessary
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State Of DelawareWilliam Penn Building801 Silver Lake BoulevardDover, DE 19904-2407
Pamela M. WatersOrganizational Change Management Team
Leader Voice: 302-739-9815Fax: 302-677-7073
Email: [email protected] SLC: D-410
Q & A
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This presentation and all Alliance 2008 presentations are available for download from the Conference Site
Presentations from previous meetings are also availablePresentations from previous meetings are also available
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More Presentation Tips
The Alliance 2008 Program Board has compiled some very useful PowerPoint and Presentation tips and techniques for you. You can download a copy from the conference website under:
Speaker Information