1. ERP – Getting from Here to There with Organizational Change Management
Session #25045
March 11, 2008
Alliance 2008 Conference
Las Vegas, Nevada

2. Overview Delaware’s ERP history
Organizational Change Management (OCM) – what is it?
Creation of the State’s OCM Team
Project Management processes integrate with OCM processes
OCM processes and tools for success

3. State of Delaware ERP Systems
In Progress
Implemented
PeopleSoft HCM V8.8 (HR/BA/PR/TL) X
eBenefits
PeopleSoft HCM
V8.9
Components of Pay V8.9
Time & Labor 8.8
PeopleSoft Financials V 8.9

4. Payroll Human Resources Statewide Technology
Delaware
PHRST
Payroll Human Resources Statewide Technology

5. Delaware’s ERP Background
State of Delaware
71 Organizations
35 State Agencies
19 School Districts
17 Charter Schools
36,000 Employees
12 Unions Represented
37 Different Locals
This illustrates the various organizations that make up the State of Delaware. All our school districts and 2 higher education organizations are included in the State make up.

6. 1990’s G G 1990’s — Various False Starts July 1999
PeopleSoft Human Resource Version 6.02 implemented
Benefits Administration & Payroll — Unsuccessful
Rolled back to Mainframe Legacy System

7. August 1999 – February 2000 Project managed by consultants
Low team morale
Multiple project plans to ‘fit’ budget
Production support for Human Resources
Chain of command – multiple reporting structure

8. March – December 2000 Became a ‘state – managed’ project
Acquired additional state resources
Rearranged project team
Added full time Change Management team
Single reporting structure

9. December 2000 – July 2001 Change Management Team formed
Strategy developed
Prepared (readied) State Organizations
End-User training (1300+)
Successful HR (V6.02 to 7.51) Upgrade & Benefits/Payroll implementation

10. ERP Lessons Learned High – level commitment
Acquire “Best of the Best” state resources
Avoid modifications – re-engineer 1st
Visionary Change Management
Production support project plan

11. PHRST Upgrade V7.51 to V8.8 Client Server to Web based
Not much functionality change
One year timeline
Planning began in April 03 before actual funding July 1
Tremendous change to look and feel!
Internet education
Go live was a non-event!

12. Why ERP Implementations Fail
42% Leadership
27% Organizational & Cultural Issues
23% People Issues
4% Technology Issues
4% Other
Organizational issues left unchecked often lead to project failure
Source: Organization Dynamics, Jim Markowsky

13. Department of Technology & Information
Office of Major Projects
Organizational Change Management Team

14. State Agency Transformation
Governor & General Assembly established new agency
The Department of Technology & Information
Office of Major Projects
Chief Program Officer
Project Management Team
Organizational Change Management Team

16. Process Integration Project Management Change Management
Project Initiation
Project Planning
Project Executing
Project Controlling
Project Closing
Change Management
Managing Change-Planning
Managing Change-Execute
Preparing for Change
Monitoring Change
Transition
Reinforcing Changes

17. Organizational Change Management

18. Change Management Team’s Mission
Provide the structure and guidance necessary to effectively prepare organizations for the successful acceptance of cultural change in order to achieve their business strategy.

19. What is Organizational Change Management?
Definition
The organized, systematic application of knowledge, tools, and resources of change that provide organizations with a key process to achieve their business strategy

20. Organizational Change Management Objectives
Provide awareness
Ensure understanding
Facilitate acceptance
Care, listen, and respond
Manage people’s expectations
Ensure readiness
Champion the project

21. Greatest Success Factors
Active and visible sponsorship
Use of organizational change management processes & tools
Effective communications
Employee involvement
Effective project leadership and planning

22. Greatest Obstacles Resistance from employees and managers
Inadequate senior management & sponsorship
Cultural barriers
Lack of change management expertise

23. Project Management & OCM in Delaware IT Projects

25. Preparing Process

26. Assessing the Organization
Project Assessment questionnaire
Organizational traits
Change traits
Plot the project on the Risk Determination Table
Stakeholder Analysis

27. Assessing the Organization
Risk Determination Table
110
Medium-High Risk
High Risk
Small incremental change to a change resistant organization
Large Disruptive Change to a Change Resistant Organization
Organizational Traits 44
Low Risk
Medium-Low Risk
Small incremental change to a change-able organization
Large Disruptive Change to a Change-able Organization 22 12 24 60
Change Traits
Modified from Prosci Change Management Toolkit

28. Stakeholder Analysis

29. OCM Tailoring Based on answers in the assessment
Determines which tools to use
Sponsor roadmap
Coaching plan
Readiness methodology
Training Strategy

30. Change Management Team Model
Sponsor
Project Team
Communications Coordinator
Change Management Specialist / Readiness Lead

31. Change Management Project Lead Communications Coordinator
Executive
Sponsors
ERP Team Model
State Orgs.
Project
Director
Change
Management
Coach
Green Team
Change
Management
Coach
Yellow Team
Change Management Project Lead
Project Team
Change
Management
Coach
Blue Team
Communications Coordinator
Change
Management
Coach
Red Team

32. Managing Planning Process

33. Comprehensive Organizational Change Management Plan
Uses existing project documentation
Project Charter
Scope or Statement of Work
Compiles information in one location to aid communication efforts
Provides
Project overview information
OCM strategy information

34. Comprehensive Organizational Change Management Plan
Provides
Recommended change management team structure
Sponsor Activities
Communication Plan
Readiness Methodology
Training and Coaching Plans
Resistance Management Plan

35. End-User Identification & Skills Inventory
End-User Inventory
End-User Identification
Manager/Supervisor Identification
Specify Key-End User
Skills Gap Analysis
Identify IT Support Personnel and Technical Specifications

36. Organizational Change Phases and Communication
What is happening?
How do I stay motivated?
Transition through Analysis
Celebrate Success!
through Awareness
Understanding
Comfort
Unaware
Denial
Insight
Ability with
coaching
Desire through
impacts
Anxiety
What’s in it for me?
How do I prepare?
Knowledge by
training
What will I do differently tomorrow?

37. Communication Plan

38. Who Should Deliver the Messages?
The majority of messages should come from the CEO and the direct supervisor
©2005 Prosci Best Practices in Change Management

39. Who Should Deliver the Messages?
The current situation and rationale for the change
Business issues or drivers that created the need for the change
Competitive issues or changes in the marketplace
What might happen if the change is not made
Vision of the organization after the change is made
Overall timeframe
Alignment of the change with business strategy
©2005 Prosci Best Practices in Change Management

40. Who Should Deliver the Messages?
The impact on daily activities
Why employees want to go along
Job security
Specific ways they are expected to aid the change
Resources for assistance and ways to provide feedback
©2005 Prosci Best Practices in Change Management

41. Information Sheets FACT sheets - awareness Impacts/Info sheets
Training information
Coaching information
Count-down to system implementation

42. Information Sheets
Awareness Info Sheet
Coaching Info Sheet

43. Communication Tracking Spreadsheet
Communication Title
Media
Date Sent
Sent from and to
Organization/Team
Phone
Address
Follow-up Needed
Yes No
Type of Follow-up Needed
Meeting
Phone call
Other
Comments

44. Managing Executing Process

45. Preparing/Tracking/Reporting
“Readiness”
Preparing/Tracking/Reporting

46. OCM Readiness Methodology
All Project Teams
INPUT
Functional Impacts
Successful System Implementation
End Users
Readiness Checklist
Master Readiness Tracking Spreadsheet
Functional Impacts Documentation

47. Readiness Tracking, Measuring, and Reporting
Functional Impacts Spreadsheet
Master Readiness Tracking Spreadsheet
Readiness Checklist
On-site Tracking Station
OCM Status
Executive Sponsor Readiness Reporting

48. Functional Impacts

49. Master Readiness Tracking Spreadsheet

50. Readiness Checklists

51. Executive Sponsor Reporting

52. Training

53. Training Assure training steps are in place Training strategy
Training Plan
Training Design
Materials

54. Coaching

55. Coaching Plan Customized Coaching Plan
Prepare managers and supervisors to coach their employees through the change

56. Transition & Monitoring Processes
Knowledge transfer
Collect & Analyze Feedback
Lessons Learned

57. Transition Develop Transition plan
Plan to train organization resources

59. Transition Ownership to Business Owner
Knowledge Transfer Plan
Identifies required skills by project team role
Assesses current skills
Develops an agreed upon action plan and milestones
Re-assesses semi-annually for life of project

60. Monitoring Change Survey End Users Post implementation
Three months
Six months
One year
Monitor Help Desk
Training

61. Reinforcing Process

62. Reinforcement Collecting, Reporting, and Analyzing Feedback
Work resistance plans
Celebrate!
Milestone successes
Implementation successes

63. Integration is Key

64. Achieving Successful Organizational Change for ERP Projects
Dedicate resources to Organizational Change Management
Secure visible executive sponsorship early in the project
Repeat key messages early and often
Involve employees in the change process
Work with the PM from the beginning and plan your change strategy together

65. Change Management Team
Tracks, measures, and reports readiness
Identifies critical roles and individuals to act in these roles
Plans for change and manages it as a process
Assesses organizational readiness

66. Change Management Team
Educates individuals about change
Communicates in a clear, honest, open manner
Demonstrates commitment through active involvement and role modeling
Solicits sponsor involvement when necessary

67. Organizational Change Management Team Leader
Q & A
State Of Delaware
William Penn Building
801 Silver Lake Boulevard
Dover, DE
Pamela M. Waters
Organizational Change Management Team Leader
Voice:
Fax:
SLC: D-410

68. This presentation and all Alliance 2008 presentations are available for download from the Conference Site
Presentations from previous meetings are also available

69. More Presentation Tips
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