The Human Factor of Technology DeploymentDriving Value through Partnership and Organizational

Change Management

Introductions

• Joe Couto– Sr. Vice President and General Manager with Accellos Inc,

• Blake Barthelmess– Chief Information Officer for Columbia Colstor, Inc.

• With thanks to Toby Lucich– Managing Director for Return Consulting

The principles and values of Partnership and Organizational Change Management (OCM) will be discussed and evaluated as regards to the impact they have on value delivery and realization from a technology investment. The presentation will draw from the success of Columbia Colstor’s recent implementations utilizing these principles under Colstor’s new IT/BPM leadership following on the heels of previously unsuccessful attempts to deploy software. For any company contemplating a sizeable technology investment the stakes are high and the risks are real. The concepts of OCM and vendor/customer partnership are aligned with the theme of continuous improvement in the often overlooked human side of technology. It is our goal to discuss the challenges as vendor and customer when it comes to technology deployment in an open and transparent way in the hope that others can learn from our experience.

Why the Next 45 Minutes Matters?

1. Change is hard…2. We react to that knowledge … instead of proactively engaging.3. Bottom line.. Too expensive to play it any other way…

Realities on the Dock– Walking the dock… sitting in the office… what’s your story?

• Have you ever heard things like …. “We have the slowest guys on the dock… they cannot think for themselves!”• Or said things like … “Our people can’t learn a new system.”• Has your IT guy ever said “Trust me… the ROI on this will be huge?”

– Have you ever started down the change path (system, process, culture, etc.) only to have it come up short of expectations? • Did you start with unrealistic expectations and aspirations?• People assume they can do their day job and still implement a system• Hire someone in who doesn’t know the business• Backfill for the wrong job

– Hmmmmmmm…• Passive aggressive resistance.• Poor project execution.

Why Projects Fail

– Number 1 Reason for Failure – “Lack of Management Buy-in” … the solution? T@tT [Tone at the top and alignment!]

– Number 2 Reason for Failure – “Resistance to Change” … the solution? OCM [Approach change with intention!]

– Number 3 Reason for Failure – “Choosing the Wrong Solution” … the answer? Due diligence!

– A WMS system selection and implementation (just like ANY change initiative) will ONLY be as successful as our commitment to execute the project…

– Sounds obvious? It is, yet research is clear… this doesn’t happen.

The Point!

To maximize value and ensure success realize four things:

– A partnership with your vendor is critical to success.– Organizational Change Management and Communication are Key– Executive Tone at the Top helps to drive adoption.– Value = ROI and Adoption (deep and wide)

• If you pick your supplier that you like to work with the most (the guy you respect/most like working with) do you see them as a supplier or a partner

• Often we like to point fingers at the vendor… but this is ALWAYS a dance for two. Do you trust them? • What transforms a vendor relationship into a partnership? Cultural fit, knowledge of industry, personality. Skin in the game

for both parties. • Sometimes we think that keeping that distance gives us a way out. These projects fail so often that we create an artificial

barrier as a means to point fingers. • Deep and wide = adoption… example: we use 10% of the features on our phone…

Change is Hard– It is always harder than it sounds…

– Personal changes impact people’s emotions, ability to cope and react

– Organizational changes do the same thing

– So… navigating is all about Organizational Change Management (OCM)

OCM | Why Does it Matter

Change is …

• TOO EXPENSIVE…

• TOO DIFFICULT…

• TOO DISRUPTIVE ….

… not to take it seriously.

OCM | Practical Steps– Establish trust– Set expectations early/revisit often– Paint the picture– Consistent communications: Talk straight– Repeat, repeat, repeat… and repeat

Establish Trust• Almost like saying if you don’t have a good relationship with your boy or girlfriend don’t go to the next level. Trust goes beyond the vendor and

includes the organization, the leadership, the operation.Vendor Expectations• Setting expectations between you and your vendor… more than just a contract… more than just success criteria. Cultural fit and team dynamics

matter. Remember the Vendor is partner not scapegoat • People will make up the facts they don’t have – this is human nature. To effectively drive a change, we need to be sharing the details that we

know, and be transparent about decisions that have yet to be made. Don’t sugar-coat the message, and don’t try to “spin” the value. Be honest, be clear, and work to set realistic expectations than what you believe will be delivered.

Paint the Picture• People (CEO, COO, really everybody), need(s) to understand the big picture before they move on to the details. Talk Straight• Keep your messages simple and consistent: If you cannot tell what something will be, tell how or when it will be determined.Repeat• During times of change, people need to hear a message at least 6 times before they “get” it. (Blake)

OCM | Practical Steps– Expect questions– Be the change– Link the change to reality– Manage the Wall and the Trough – Repeat, repeat, repeat… and repeat

• It is a natural human reaction to uncertainty to ask questions and express concerns. • Questions = Interest in the change, and are an opportunity to get coworkers engaged in the effort.• Model the attitude and behaviors you want to see. Just like a parent… do what I do not just do what I say…• The change process must be linked to business and performance goals … but remember the business case provides a guide… but the value

is driven by the Operation. This is important… GIVE OPERATIONS THE WIN. And you cannot do “a part of change.” The change process involves both organizational and personal transitions. (Blake)

• The trough of despair… what is it and how do you get out of it? (Blake)• Project fatigue? Change fatigue?• Resistance is a natural part of any change process that needs to be expected and not viewed as a negative reaction.

This isn’t rocket science• Change is hard… but not impossible. So manage it!• Tone at the top matters!• Vendor partnership matters!• Remember, a system or process maybe changing… but it’s the people who must

deal with the impact.

If you would like further information re: Organizational Change Management feel free to contact Blake: bbarthelmess@colstor.com or Toby: toby@returncorp.com

AppendixFollowing is a narrative… to help you navigate change

OCM | Practical StepsAlways Be Listening (ABL). An Able change leader is constantly listening and observing how people are reacting to the project and the coming change (and how they are navigating it during the change cutover). Even with the most active communication strategies, mis-information will circulate, and will need to be proactively addressed.

Ok Execution trumps Brilliant Planning Every Time. The goal is to get to a working version of that envisioned “better” future state, but this all relies on the team’s ability to execute the work. You are far better served to let the team alter and adjust the plan to make it theirs than to try driving a “not invented here” delivery schedule that lacks internal ownership.

Learning is about Immersion and Practice. Leading organizations get stakeholders into the “new world” as fast as possible, using a variety of techniques (including simulations, “sandbox” system environments, or paper-process walk-throughs). The more exposure that people have to the change before the official “go-live” event, the more comfortable and familiar they will be with the new way of work.

OCM | Practical StepsCommunications is about Repetition. The best communicators know that a message must be shared 5 -7 times before it is internalized by everyone in the audience. Once you are very clear on your core messaging, you need to repeat it (and repeat it, and repeat it) in all your conversations. Common core messaging includes:

– What is the problem we are trying to solve?– Why does the organization need to do this now? – What is that better future state (or “destination postcard” or “To Be” process) that we are working

toward? How is this better than today?– Who is impacted by this project, and how will this affect these individuals or teams (WIIFM)? What

do we collectively gain for what we collectively lose?– And repeat it...

Sponsorship requires Visibility & Accessibility. Visibility and accessibility should be correlated to the magnitude of the change (or in other words, the scarier it is, the more comfort and reassurance people need from leadership). “Behind closed door” sponsorship is not sponsorship at all, instead it is passive aggressive and sets the wrong tone.

OCM | Practical StepsNothing builds Engagement like Progress. Think about your project plan in a way that chunks out smaller successes and milestones along the way to the big “go-live” event. When team members have the opportunity to contribute to the milestones, they take an increased measure of ownership in the adoption and use of the solution.

“Culture eats strategy for breakfast.” Understand how the organizational culture drives behavior. The best strategies and tactics for driving change will fall flat when they collide with cultural barriers. Leverage culture by:

– Establishing a clear understanding of the company’s “north star,” or guiding philosophy and align the project story to this

– Identifying the key influencers within the organization, and work to bring them on board– Discover and acknowledge the organization’s history, and leverage internal story-lines of past

successes to drive delivery of the vision– Seek insights on how people are motivated in their work – autonomy, compensation, power, respect,

flexibility, status

OCM | Practical StepsCelebrate each little Success. Projects aren’t the delivery of one big thing – they are the culmination of a thousand little things done right. Remember that most people on a project team are probably working outside their comfort zone, and are learning as they go. Also be mindful of the many personal sacrifices that people make in project work – often working extra evenings, weekends, and around holidays which impacts them and families (and often without overtime pay). Acknowledgement and a simple “thank you” or “well-done” can go a long way.

Projects are Talent Incubators and Runways. Skilled leaders recognize that high-profile projects give “high potential” workers the opportunity to demonstrate their ability, and step outside their normal roles. Change Leaders (internal and external) do well to remind their executive sponsors and clients that projects provide an ideal mix of

– new learning and development as a subject matter expert, – deeper familiarity with the business, – expansion of personal relationships across the organization, and – opportunity for situational leadership both during and after the project, as the organizations seeks to

maximize organizational adoption and utilization of the new tools or business practices.