Making Things Better: A Primer and Case Study in Change Management

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

Copyright 2006 Doug Howardell 626-390-6935 Dh@theacagroup.com
Agenda Change Management Defined Change Management Concepts Strategies for Leadership Strategies for Users Objectives: to get consultant-ese into tangible things that people can do to better handle change management. 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 First one is APICS dictionary, 2nd is one I liked better. Doug likes his best of all! Getting people to accept the what because they understand the why. Doug Howardell Copyright 2006 Doug Howardell

Examples of Change Audience participation What big things have you experienced as changes – system implementation, lean, personal things, but presentation geared towards work environment. 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% 40% 50% 60% 70% 80% 90% DCSource= Deloitte Consulting of their CIO clients Top one was resistance to change Note: No case for change and No change Mgmt program 3 of top 10 are specifically addressing issues related to change management. Copyright 2006 Doug Howardell

Reactions to Change Individuals frequently react to change in a predictable manner Commitment Acceptance Exploration Resistance Denial Unaware 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 How people react to change. Goal is to get them from “Unaware” to “Committed”. Copyright 2006 Doug Howardell 4

Surprises 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 Future As-Is Transistion In show mode: first image is key steps involved and how to inform and INVOLVE others in the change process so the ultimate goal is “NO Surprises”. Copyright 2006 Doug Howardell

Change Targets Real, sustainable change involves changing every level of the organization: Leadership Leadership must focus attention, build commitment, and create inspiration Users Users need to develop mindsets, skills and commitment to new ways and to develop qualities of change hardiness the ability to navigate through change. 2 key groups: Leadership and Users group and different tools and strategies to deal with each of these groups. Balance of this presentation will talk about tools and strategies to deal with each of these groups. Copyright 2006 Doug Howardell 5

Strategy for Leadership Strategy 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 Outline of Strategy of Leadership Keyword is “JOINT Ownership”. Key resistors is Middle managers who got where they are and are experts on the old ways and you’re taking them to a new direction where they won’t be the experts. “Everything you know is wrong and every tool you use to do your job today is going away”. Goal is to get their attention and get them involved before the change occurs. Remember “No Surprises” Copyright 2006 Doug Howardell 7

Change Management Organization
Steering Committee (~10) Business Process Owners (~20) Business Readiness Groups (~300) Numbers are relative – reflects a very large project. Can also be related to a smaller company (EK’s experience). Steering Committee (minimum = president & vice Presidents) BPO are directors BRG=managers/supervisors End Users = everyone else End Users (~4000) Copyright 2006 Doug Howardell

BPO & BRG Responsibilities
Business Process Owner Business Readiness Group 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 Definitions of what each of those 2 middle groups do: BPO (dealing with “Cross Functional” responsibilities) BRG – more focused on the functional users Both are involved in communication and translation of needs Same work needs to be whether large or small projects of change. 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 This is an example of the processes and the organizations that is being work on now. Implementing SAP at a very large company (2 years, $100 Million dollars). Stress that this is function not organization. BPO: meets with peers who are heads of each of these areas, and then also meets with his own lower level management folks for a specific function (I.e, Production Control) BRG are middle managers. Managers as BPO, Supervisors as BRG. Copyright 2006 Doug Howardell

Alignment Workshops 1st tool was Organize. Now for next tool (Process review) Have workshops with subject matter experts (probably key users) – show users what new processes will be like, they provide feedback that gets incoroporated into the processes and the (next side) Important: Subject Matter Experts (key user) will review current/future process. 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 These process reviews are done with BPO and BRG after the changes/thoughts have been incorporated. Getting their buy-off on what the details will be. This is the “To Be” Process. Done with the managers/directors/supervisors to buy it off. Copyright 2006 Doug Howardell

Stakeholder Analysis Stakeholder Analysis This is key people. Each person is rated. Project team does the analysis of the key stakeholders. This is purely subjective and something NOT shared in public. Used to define strategy on who to talk to, how to talk to them, and what is needed to keep project going forward. Project team review this every week and identify action items. Impt: Identify who the right people ae in the organize to make the project a success. Usually executives and maybe key subject matter expert who might be against the project. 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 Strategy for Users Pt 1: (burning platform (oil rig in the middle of the ocean that is on fire). Where is their pain point so that they are willing to do something different. (Why is it in their benefit to change) Pt 2: be really honest and open with users because they will know when you are lying. Point 4: no surprises. “Involvement, involvement, involvement to avoid problems. Copyright 2006 Doug Howardell

Tools for Users Raise level of discontent Alignment Workshops Communication Change Readiness Survey Tools 1: reminde them of all the things that they hate. 2. Alignment Workshops – way to involve them along the way (subject matter experts) to get their input early 3. 2 way communication – lots of opportunities for them to ask questions (web sites, anonymous s, etc.) 4. Change readiness survey – Early on: Have you even heard of this project? Key role of BRG is to commuinicate so this is a way to measure their communication. As project goes by, big changes are communicated and surveys are used to see if word is getting out. Large co: done formally, once a month and plans are adjusted to improve communication before the next survey. True for multi-plant, location roll-out of a big project. 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 procurements Mgt, buyers No configuration / rev control in our current systems Engineers No product cost in current systems Finance Annual cost of systems – reduces profit, depresses stock price All employee stock holders The competition is ahead of us Examples of Raising the Level of Discontent Best way is to get a cross-functional group of users to talk about the issues with eachother (especially customer-supplier orgs) like buyers/planners/production folks. Copyright 2006 Doug Howardell

Alignment Workshops Alignment Workshops: same as before – but there was the end result. This is the group that actually does the aligment of the workflow and examine actual mockups of screens, reports, process flows. Get input from these users Copyright 2006 Doug Howardell

Communication & Involvement Model
Communicate at this level Overall Strategy and Direction Strategic Technology and infrastructure Business Processes Workflow Red circles are the keys: Communicating to the users by higher level with strategy, and involving users at these lower levels. Involve at this level Job Design Copyright 2006 Doug Howardell 11

Communication Flow Executive Sponsors Communication Flow Steering Team Status & Escalation of Issues & One-One with ea. Business President & Gen. Mgrs. Lateral with the teams (CM Team, the entire Project Team, special groups) Up & down with user communities (included the OCLs) Not Full Time Project Leaders Full Time Project Finance Process Expert SFC Process Expert MRP Process Expert … Change Mgt Team Operational Communication Lead Process Owners Summary of how communication flows. (could be removed) Don’t rely only on BPO and BRG to do communication (they may not know all details, but there are a variety of ways to communicate). Ops Lead PO & BRG P&IC Lead PO & BRG Quality Lead PO & BRG … End Users 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 More explanation of Change Readiness Survey (using electronic survey format). Sample Size (valid = 100 of 4000). Don’t want to burden all each month but need enough to make it valid. Survey questions change as you get closer to end of project. Copyright 2006 Doug Howardell

Recap 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 Copyright 2006 Doug Howardell

For a copy of this presentation and for more information on change management, go to:

Making Things Better: A Primer and Case Study in Change Management

Similar presentations

Presentation on theme: "Making Things Better: A Primer and Case Study in Change Management"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Making Things Better: A Primer and Case Study in Change Management

Similar presentations

Presentation on theme: "Making Things Better: A Primer and Case Study in Change Management"— Presentation transcript:

Similar presentations

About project

Feedback