Gaining competitive advantage through organisational restructuring and ERP implementation (BPCL)
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Transcript of Gaining competitive advantage through organisational restructuring and ERP implementation (BPCL)
Gaining competitive advantage through organisational restructuring and ERP implementation
– Key success factors
2nd HR Round Table
The Context of Transformation for BPCL
Impending deregulation of the hydrocarbon sector
Impending deregulation of the hydrocarbon sector
RestructuringRestructuringProgrammeProgramme
RestructuringRestructuringProgrammeProgramme
Need to satisfy multiple stakeholders
Need to satisfy multiple stakeholders
Potential benefits from performance
improvements
Potential benefits from performance
improvements
Key Success Factor for Transformation
Individual Structures
Business Structures
Organizational Structures
Interpersonal Structures
Visible Change in Customer’s Experience
The Heart of any Transformation in the organizationis the Individual
At BPCL we engaged our People in the Organisation to create Compelling Vision
Workshops conducted across the Regions of the Organisation
All Top and Mid Management were involved in the Co-creation
The Vision Building workshop happened in a cascade fashion
Inputs of Govt, Financial Inst., Customers, Unions etc.
The Need for ERP emerged from the Co-created Vision
Strong and dynamic systems
To be the Best
Make people a source of
our improvement
Make BPCL a great
place to work
Make BPCL a great
place to work
Effective boundary
management
Fulfill social responsibilitie
s
Fulfill social responsibilitie
s
Apply the best
technology
Apply the best
technology
Be an ethical
company
Develop a cohesive corporate strategy
Develop a cohesive corporate strategy
Establish first class brand and corporate image
Have excellent customer caring
and customer service
Sound business
performance and
operational efficiency
The Need for ERP
The need to improve our Business Processes
Improve the speed of response and make available real time information
The need to have a single integrated information handling system
Leveraging Technology
Need for enhanced and effective managerial controls
Need for removing reconciliation due to legacy interfaced systems
What is the Magnitude of Change in the Context of ERP?
Processes Manner of Documenting Transactions Roles of users and even non-users Accountability across levels Control Mechanisms Boundaries and structure Inter-Relationships The way of thinking
The change challenges the comfort zone of individuals, teams, business units and the organisation, built over a period of time The change challenges the comfort zone of individuals, teams, business units and the organisation, built over a period of time
How did we Manage it?
Generating Energy within the OrganisationGenerating Energy within the Organisation
Creating Ownership in the OrganisationCreating Ownership in the Organisation
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33
Managing Transformation is about :
Generating Energy within the TeamGenerating Energy within the Team22
Generating Energy within the OrganisationGenerating Energy within the Organisation
Creating Ownership in the OrganisationCreating Ownership in the Organisation
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33
Generating Energy within the TeamGenerating Energy within the Team22
Generating Energy in the Organisation
Using the Tools of a Learning Organisation– Internal Coaches worked with intact teams to enhance their
individual and collective aspirations and drive change– Using tools like Personal Mastery and Mental Models to enable
end-users examine their barriers to the system– Tools like the “Ladder of Inference” helped people get unstuck
in their mind-sets and change some unproductive “Mental Models”
Imparting tools through a series of intense 3 day workshops leading to creating compelling Purpose & Vision, Identifying High Leverage Results & taking Accountability
These were conducted for all levels of staff in the organisation
Generating Energy within the OrganisationGenerating Energy within the Organisation
Creating Ownership in the OrganisationCreating Ownership in the Organisation
11
33
Generating Energy within the TeamGenerating Energy within the Team22
Generating Energy in the Team
Top Management Support
Creating a Compelling Purpose– Workshop for Project Team members
Capability Building– Participation in National & International
Forums– Certification of internal resources– Knowledge Transfer within team
Generating Energy in the Team
Empowerment– Delegated with required authorities– Operational freedom to the team members
Team Operating Principles– All members were given equal status– Collective planning process– Knowledge based leadership
Changing Team Structures to Support Purpose
Generating Energy within the OrganisationGenerating Energy within the Organisation
Creating Ownership in the OrganisationCreating Ownership in the Organisation
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33
Generating Energy within the TeamGenerating Energy within the Team22
Creating Ownership in Organisation
Involvement
Enrolment
Engagement
Ownership
Communication was the key in driving involvement
Organisation was engaged through Communication at various levels
– Organisation Leadership– Process Leadership– Locations & Unit Leadership– Union Leadership– Leading Customers and Vendors
Project updates– Intranet– House Journal– Posters
Top management talks to employees at units
Involvement
Enrolment
Engagement
Ownership
Involvement
Enrolment
Engagement
Ownership
Participation in decision making drives Enrolment
Engaging Apex for the Top Level decisions and by connecting their business vision with the benefits expected from the implementation
Inviting Key stake holders of the process to workshops for deciding the to-be processes pertaining to their area of influence and control
Helping business/entity to see the connect between their Business Results and the tools provided by SAP
Constituting the Steering Committee with the Business Heads to make all the key decisions pertaining to the project
Involvement
Enrolment
Engagement
Ownership
Active engagement builds Commitment
Process Owners were relieved for 3 months to define and document the business procedures
Key stake holders were given basic SAP training to enable an understanding of the working of the system even before the product is configured
Task forces from locations and units were engaged for evolving some solutions to the process gaps
Testing of all processes by the end-user prior to its implementation in the pilot
Ownership stems for crating permanent structures post-implementation
Establish governing body constituting of Business Heads Process Forums made a permanent body for deciding on
any changes and improvement in the business processes Internal Audit has taken over the Internal Business Controls Finance Heads has taken charge of the financial processes
in SAP Infrastructure is owned by the IT set up Location Anchors are certified and trained to take charge of
SAP issues at the location Competency Centre established with core SAP expertise
Involvement
Enrolment
Engagement
Ownership
Results Achieved
On-time Project without cost-overrun Multi-Module Implementation in 6 Months Roll-out in 331 locations in a time span of 18 months Faster stabilisation of locations Implementation and ownership of Process Changes Redeployment of staff Recurring savings of Rs. 43 Crores per annum (est.) Redefined business procedures documented and in use Business Process Controls strengthened Process improvements in critical areas leading to benefits Resource of over 100 certified consultants Knowledge transferred to over 3000 users
Learnings
Do’s Change initiative has to be led from the Top
Look at it as a business process initiative not an IT initiative
Put the best people in the Organisation to do the job on full time engagement
Build Capabilities
Key stake holders to be enrolled in the Governing Body
Spend adequate time in thinking through the process
The Project has to be driven by the Organisation and not the Consultants
Learnings
Do’s Address the apprehensions of staff early in the implementation
Define clear and standardised roles
Find alternate roles for staff who are being rendered surplus as a result of the implementation/ have strategy to deal with surpluses
Identifying the Change enablers and Disablers early
Ensure that processes changes are understood and owned
Learnings
Don'ts
Take IT as the IT employees business
Implement IT without understanding the implications on the process change
Use ERP/ IT as the only tool to drive discipline/ substitute good management
Expect cheap, fast and painless implementations
Underestimate the securities and controls issues
What are the Signals of Resistance to the Transition?
Fault finding with the intended change in business process
Avoiding participating in the programmes and redesign processes
Not sponsoring resources to the project Finding constraints rather than looking for
solutions People getting stuck to their own view-points and
positions rather than the Purpose People not adhering to the commitments made
indicating lack of Sponsorship
Very often the perception of impact of change on self is much higher than what isVery often the perception of impact of change on self is much higher than what is
Stages in a Change Management Implementation
Communication Defining the new to-be processes Mapping of the change in roles Communication of the new roles to the user Training for the new roles Role based SAP training Post-training reviews Experience Sharing by locations that have gone live Retraining of users Location anchor training
We used the LO Methodology to Manage Change
Cornerstones of a Learning Organization
Aspiration:Individual
& Collective
UnderstandingComplexity &
Change
Collaboration
Personal Mastery
Shared Vision
Team LearningSystems ThinkingMental Models
Collective Aspirations are built by a Compelling Vision
Vision, Aspiration, Purpose, Meaning(What you want)
Current Reality(What you have)
Creative Tension
The Ladder of Inference
Theory:How We Think
The Ladderof Inference
Data(What people say and do)
BeliefsAssumptions
ValuesExperiences
BeliefsAssumptions
ValuesExperiences
Take Action
Draw Conclusions
Add Meaning
Select Data
Based on the work of Chris Argyris