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Change Management Making Things Better: A Primer and Case Study in Change Management Presented by Doug Howardell.

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Presentation on theme: "Change Management Making Things Better: A Primer and Case Study in Change Management Presented by Doug Howardell."— Presentation transcript:

1 Change Management Making Things Better: A Primer and Case Study in Change Management Presented by Doug Howardell

2 Copyright 2006 Doug Howardell Change Management Defined Change Management Concepts Strategies for Leadership Strategies for Users

3 Copyright 2006 Doug Howardell Definition of Change Mgt The fostering and support of people who champion new technologies, new operating practices, and new products and services that will transform the organization maintaining its viability and improving its competitive position in step with the change in the business environment in which it functions. APICS Dictionary An organized, systematic application of the knowledge, tools, and resources of change that provides organizations with a key process to achieve their business strategy Jeanenne LaMarsh LaMarsh & Associates Getting people to accept the what because they understand the why. Doug Howardell

4 Copyright 2006 Doug Howardell Examples of Change

5 Copyright 2006 Doug Howardell Change Management is important Top Ten Barriers to Success Source: DC CIO Survey Unrealistic Expectations Resistance to Change Inadequate Sponsorship Poor Project Management Case for Change Not Compelling Project Team Lacked Skills Scope Expansion/Uncertainty No Change Management Program No Horizontal Process View IT Perspective Not Integrated 30% 41% 43% 44% 46% 54% 65% 72% 82% 0%10%20%30%40%50%60%70%80%90%

6 Copyright 2006 Doug Howardell Change Management must provide the tools and approaches to lead people through this process: Take a critical mass of the leadership down to commitment as fast as possible to provide direction Lead the other Stakeholders along this path in a phased and targeted manner Entrench and embed the change in the organization to provide the context and support for individual change Commitment Commitment AcceptanceAcceptanceExplorationExploration Resistance Resistance DenialDenialUnawareUnaware Reactions to Change Individuals frequently react to change in a predictable manner

7 Copyright 2006 Doug Howardell Key Steps Identify stakeholders and how they feel about the change Raise the level of discontent – remind them of current problems –Document the current process and its problems, waste, redundancies and non-value added activities Identify what will be different or new Identify gaps and barriers Highlight the expected benefits Define the transition process Identify issues expected during transition Surprises

8 Copyright 2006 Doug Howardell Leadership must focus attention, build commitment, and create inspiration Users need to develop mindsets, skills and commitment to new ways and to develop qualities of change hardiness the ability to navigate through change. Real, sustainable change involves changing every level of the organization: Leadership Users Change Targets

9 Copyright 2006 Doug Howardell Strategy Strategy for Leadership The change leadership strategy focuses on establishing joint ownership by line management and the project team for the successful implementation of project Key Themes Leaders equipped to face the same issues together Joint ownership and accountability Focus on the most valuable asset, our employees/ users

10 Copyright 2006 Doug Howardell Tools for Leadership Organize to involve Process Reviews Stakeholder Analysis

11 Copyright 2006 Doug Howardell Change Management Organization Steering Committee (~10) Business Process Owners (~20) Business Readiness Groups (~300 ) End Users (~4000)

12 Copyright 2006 Doug Howardell BPO & BRG Responsibilities Definition Senior Stakeholder of particular process area (reports to a V.P.) Ensures needs of process area are met Focus on cross-functional responsibility for the solution Responsibilities Represent needs of process areas across the business Assist in resolving issues regarding business / technical issues Demonstrate visible support for the project within the organization Assign resources Chair the BRG meetings Definition Key stakeholders within particular process area (reports to the BPO) Have advisory role in process solutions Focus on specific functional responsibility for the solution Responsibilities Assist with project communications and provide feedback Validate/Align organization with PRISM solution Support data cleansing and preparation Assess impact of solution on organizational structure Identify impacted end users and help assess their training needs Ensure readiness of functional areas to deploy the proposed solution Business Process Owner Business Readiness Group

13 Copyright 2006 Doug Howardell BPO/BRG Structure Production Control Contracts Sales Order Activation / Entry Bills of Material / Engineering Changes Master Scheduling MRP Controller Shop Floor Order Release / expedite Procurement Purchasing Major Sub-contracts Hazardous Waste (EH&S) Make Mfg Eng (routings) Industrial Eng (standards) Quality, Shop Floor Inspection & Test Configuration Mgmt / As Built Logistics Goods, Receiving Goods, Material Stocking/Issue Freight, Pack & Ship Import/Export Material, inter/intra site movement Quality Quality, Incoming Inspection Quality, Supplier Quality / Source Inspection Quality, Shop Floor Inspection & Test Customer Plant Maintenance Repairs Preventative Maintenance Engineering Reliability Design (Electrical, Mechanical. Optical) System / Config Mgt Finance Finance, Operations (Labor) Finance, Operations (Material) Finance, Program Business Mgmt Proposals & Estimating Program Office Program Ops Program MPM Post Production Support & Performance Based Logistics

14 Copyright 2006 Doug Howardell Alignment Workshops

15 Copyright 2006 Doug Howardell Process Reviews Objectives –Review enterprise design with BPO/BRG –Gather their inputs –Identify change impacts BPO Role –Approves attendees –Assure attendance

16 Copyright 2006 Doug Howardell Process Reviews

17 Copyright 2006 Doug Howardell Stakeholder Analysis

18 Copyright 2006 Doug Howardell Strategy for Users Create and sustain awareness of strong change imperative (burning platform) Communicate what we know when we know (including the fact that we don’t have all the answers yet) Communicate widely and broadly the vision and strategy and implications Involve our strategic users early in their sphere of competency

19 Copyright 2006 Doug Howardell Tools for Users Raise level of discontent Alignment Workshops Communication Change Readiness Survey

20 Copyright 2006 Doug Howardell Raise Level of Discontent Issue Who Cares Duplicate efforts - How many times do we enter a part number in different systems from receipt of RFP to post production support? Mgt, Master Planners, Depot Problems with transition from engineering to production Mgt, Ops, Planners Separate procurementsMgt, buyers No configuration / rev control in our current systemsEngineers No product cost in current systemsFinance Annual cost of systems – reduces profit, depresses stock price All employee stock holders The competition is ahead of usAll employee stock holders

21 Copyright 2006 Doug Howardell Alignment Workshops

22 Copyright 2006 Doug Howardell Alignment Workshops

23 Copyright 2006 Doug Howardell Alignment Workshops

24 Copyright 2006 Doug Howardell Communication & Involvement Model Job Design Workflow Business Processes Overall Strategy and Direction Strategic Technology and infrastructure Communicate at this level Involve at this level

25 Copyright 2006 Doug Howardell Communication Flow Executive Sponsors Project Leaders Finance Process Expert SFC Process Expert MRP Process Expert Change Mgt Team Operational Communication Lead Process Owners End Users Not Full Time Full Time Project … Ops Lead PO & BRG P&IC Lead PO & BRG Quality Lead PO & BRG … Communication Flow 1.Steering Team Status & Escalation of Issues & One-One with ea. Business President & Gen. Mgrs. 2.Lateral with the teams (CM Team, the entire Project Team, special groups) 3.Up & down with user communities (included the OCLs)

26 Copyright 2006 Doug Howardell Change Readiness Survey Helps you determine the current state of change readiness –key disconnects, and major obstacles Develop questions that assess readiness in each stage of the project Survey a valid sample size Track results over time –Early: survey for awareness –Mid-range: survey for process knowledge –Late: survey for transition plan

27 Copyright 2006 Doug Howardell Definition-Getting people to accept the what because they understand the why Change Management is important Individuals frequently react to change in a predictable manner Key steps assure No Surprises Leadership Strategies –Organize to involve –Process Reviews –Stakeholder Analysis User Strategies –Raise level of discontent –Alignment Workshops –Communication –Change Readiness Suvrey

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