Successfully Leading Change During an SAP Upgrade Session 2707

Session Outline Objectives Project Profiles and Contrasts Successful Outcomes Business Case Alignment Risk Management Project Management Integrated Performance Change and Communications Learning Environment Knowledge Sharing Success Factors

Presenters Mary Sloan, Baylor College of Medicine Role: Director, SAP Services Project Focus: Change management, communication, and training Michael Peterman, Lyondell Chemical Company Role: Manager, IT Change Support Project Focus: Ensuring employees are informed, involved, and prepared to participate in project lifecycle Mark Norton, RWD Technologies Role: Project Director Project Focus: Change management, end user learning, training, and performance improvement solutions

Objectives Name major activities and processes to be addressed in leading an organization and business units in a “global” upgrade. List key success and risk factors in planning an upgrade to SAP 4.6 or Enterprise. Explain importance of blending change leadership and learning. Describe how the benefits of lessons learned are realized.

Profile: Baylor College of Medicine Original implementation: 1999 Upgrade implementation: February 2003 Over 1,200 users SAP Modules FI, HR, MM, PM, SD Type of Implementation ASAP methodology Single event rollout (SAP functionality) Phased SAP GUI rollout with O/S migration Support Environment (Central End Users) Training Environment New course materials with blended training/CM approach Standard training database (minimal footprint), simulations Tools Microsoft products, Visio, RWD Info Pak, SAP Tutor, HRCS Clone and Test

Profile: Lyondell Chemical Original implementation United States (1995), Europe/Asia (2001) Upgrade implementation: January 2005 (planned) Over 6,500 global users 8 countries, 20 plants, 20 3rd-party vendors accessing systems SAP Modules AA, BW, CATS, CRM, FICO, HR, HSE, IMD, MI, MM, OF, PM, PS, QM Type of Implementation Custom methodology Phased by region Support Environment (Super Users) Training Environment Instructor-led training with CM integrated only for business leaders Complete training database (large footprint) Tools Motive AnswerWeb, Mercury WinRunner/TestDirector, Microsoft products, Visio

Upgrade Contrasts Baylor College of Medicine Lyondell Chemical 4.6c Upgrade Upgrade complete Attributes Domestic, geographically centralized audience Upgrade to 4.6c No business process change (technical upgrade) O/S migration & upgrade Drivers Functionality Maintenance Lyondell Chemical Enterprise Upgrade Upgrade planned Attributes Global audience Upgrade to SAP Enterprise (4.7) Anticipated business process changes Drivers Functionality Maintenance

Successful Outcomes

Business Case Organizational direction Needs assessment Drivers Maintenance / Support Functionality / Enhancements Web-enablement Development Administrators or business owners provide training estimates Development efforts/contributions

Alignment Refine business case and vision Business leader ownership Cross-functional end user representation User base (challenges with each key group) Communication meetings Training and Change Management Integration leaders

Risk Management Governance structure Cost containment Timeline - potential delays managed proactively Clear direction to team members Defined project roles and responsibilities Change leadership involvement Training development and delivery

Project Management Defined project methodology Structured Project Office with CM representation Thorough planning Extensive testing with end user acceptance Sign-off on materials by end users Communication across the team Scope definition and control Logistics Online registration Change management database Evaluations

Integrated Performance Alignment Leadership Organization Project Team Structure Communications and Branding Human Performance Change Leadership Learning, Training, Performance Support Site Readiness

Change and Communications Cultural challenges Openly address concerns of the organization Communicate frequently on areas of concern Explain impact of changes to departments/Business units Communications Targeted, audience-specific Timeline sensitive frequency Ownership Business (process team/group) owns decision-making Support of project team/leadership Subtle CM approach – provide support / buy-in early on Middle management informed/involved in decision-making Managing perception – past and current implementation

Learning Environment - BCM Learning materials Focused on deltas from 4.0 to 4.6 Based on frequency and complexity of transactions Users expected to having working knowledge of 4.0 system Training expectations Minimal changes to system Phased GUI rollout Auditorium based with one hands-on classroom course New on-line help tools (RWD Info Pak and SAP Tutor) Delivery BCM Instructors (CEURs) Navigation training required Six weeks prior to go-live Six auditorium courses, one classroom course

Learning Environment - Lyondell Developing an upgrade learning strategy for global environment Working to establish a model that will help business units more effectively plan change management requirements Reviewing technology requirements to meet user needs Learning management systems Development and delivery tools Collaborative learning opportunities Investigating user testing and certification

Knowledge Sharing Create environment based on team incentives for team knowledge Ensure continuous knowledge transfer from consultants to employees Create environment for repeatable and improved performance Information and deliverables must be documented and maintained by the employees

Success Factors - BCM BCM led project with strategic use of consultants Priority IT project Minimized support tasks Maintained focus on technical upgrade BCM instructor led training CM/Training organizationally focused Knowledge transfer throughout the project End user involvement and acceptance Post go-live support model

Success Factors - Lyondell Change management steers project plan Sound business case Develop a clear vision of the future Align around business case and vision Develop a strategy for leading change Adequate project staffing and defined roles Assemble the proper skills, knowledge, and abilities Monitor and manage motivation within the project team Timely, audience-focused communications Do not let “Change Management” start out or become a separate deliverable

Contact Information Mary Sloan – Baylor College of Medicine Telephone: 713.798.1055 Email: msloan@bcm.tmc.edu Michael Peterman – Lyondell Chemical Telephone: 713.309.4746 Email: michael.peterman@lyondell.com Mark Norton – RWD Technologies Telephone: 713.284.1822 Email: mnorton@rwd.com

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