4 Organizational change: and the beat goes on... "We trained hard-but it seemed thatevery time we were beginning toform into teams, we would bereorganized. I was to learn laterin life that we tend to meet any newsituation by reorganizing; and whata wonderful method it can be forcreating the illusion of progresswhile producing confusion, inefficiency anddemoralization."PETRONIOUS(1st Century Roman and advisor to Nero)
5 Some myths or Why we don’t need change management People will always adapt to change.Change happens, you don’t have to manage it.That’s what we pay our managers to do.The project will get done with or without change management.If you change the process, everything will change.ERP makes change happen.
6 Failure is Possible FAILURE No Plan for Implementation Fuzzy Definition of Desired StateFailure to Integrate all Changes
7 Critical Success Factors User InvolvementExecutive Management SupportClear Statement of RequirementsProper PlanningRealistic ExpectationsSmaller Project MilestonesCompetent StaffOwnershipClear Vision and ObjectivesHard Working Focused Staff
8 Change is about...OrganizationsIndividualsResults
15 Why?“There are many ways to achieve it, but managing change is no longer a competitive discriminator – it is just part of the ante to get into the game. Competitive advantage goes to the company that can manage change and embrace innovation, proactively, while minimizing perturbation of existing operations.”Based on Next Generation Manufacturing Project, The Agility Forum
17 What is it?Change management is the methodology that integrates change and the ability of the organization and people to adopt it.It is an organized, systematic application of the knowledge, tools and resources of change that provides organizations with a key process to achieve their business strategy.It is a real tool to mitigate the risk and increase both the ownership and sustainability of change.
18 What you needA consistent and scalable model of change that matches the change processA disciplined methodology to implement the model that can be integrated into the way work is doneA learning system that embeds a change capability into the workforce
19 External Change Drivers Internal Change Drivers Managed Change™ ModelExternal Change DriversInternal Change DriversPrepare to ChangeResistanceSponsorTargetChange AgentCultureHistoryIdentify the ChangeDeltaCurrentDesiredPlan the ChangeRewardCommunicationLearningImplement the ChangeSustain the Change
21 Company Process Structure Culture People Apply a change model to the ERP implementationIntroduce a change methodologyUse the change methodology as a part of all aspects and levels of the ERP implementationLink ERP to business strategySupport an ERP Process Change Center of ExcellenceDefine internal connections to build sponsorship cascadeDefine executive sponsor rolesCulturePeopleBuild organizational change learning capabilityProcess OrientationCreate sponsor level LearningIntegrated Enterprise ThinkingSeeks changeFocused, disciplined and patient
22 Departmental Process Structure People Culture Apply a scalable change modelApply a change methodology to implement the modelEmbed the change methodology into other ERP methodologiesBuild Departmental Sponsor CascadeDefine ERP roles and responsibilitiesCreate key role chartersDefine ERP performance measuresPeopleCultureChange resilientKnowledge basedValue drivenCross-functional PartnersProcess-drivenCustomer focusedDevelop knowledge of ERP and organizational changeKnow enterprise role of the departmentDevelop change agent skillsDevelop ability to use the change methodology
23 Individual Structure Process People Culture Design jobs to include change managementBuild in ERP role and measuresBuild change agent measures into performance evaluationDesign work flow and methodologies to include change management tasks.Change management is a work habitPeopleCultureProvide general change process knowledgeProcess thinking capabilityApply change agent skillsDevelop target skillsCreate tolerance for changeKnowledge drivenValue centeredPeople centeredCustomer centered
24 ERP Managed Change™Integration Governance&IdentifytheChangeGo LivePreparetoChangePlantheChangeImplementtheChangeSustaintheChangePlanAssessDevelopDeployPost-AuditResultsBuild ProjectInfrastructureDefine goals andSet expectationsDesign andFinalizeCommunicationsLearning (Training)AndRewardsLaunch and ExecuteSystem Events:CommunicationLearningRewardsEvent designsTurnoverResponsibilityIdentifyNext Steps:KnowledgeTransferData Gathering and AnalysisIdentify Risk/Identify issues / responseEstablish SponsorshipBuild Team strengthChange CommunicationsSpecific communications, learning and rewards eventsExecutiveKick-offBusiness AssessmentAnalysisImplement System/Processes / PoliciesOwn ItConfiguration
25 Elements of successful change Commit to making change management a key competency and part of the ERP strategy.Explain why the Current State is no longer viable.Clearly define the Desired State that will result from the ERP implementation.Build a systematic change-management methodology to implement your change during the ERP Delta State.Integrate that methodology into the heart of the ERP project and the organization.
26 DisciplineThe ERP Desired State as requires the continuous, conscious process of applying a systematic change methodology to implement ERP and build a sustainable future that is owned by the greatest majority of people in the enterprise.
27 Why is this Important? BENEFIT RELATIONSHIPS Process technologyProcess automationInformation SystemTechnical / task based skillsInformation and business systems capabilitiesEnterprise understandingInter-personal and collaborative behaviorsOwnership/Innovative ApplicationBENEFIT RELATIONSHIPS60%20%
28 It makes a differenceIt impacts 90% of project critical success factorsIt impacts 100% of the factors reported to cause projects to fail or be cancelledBenefits are obtained earlierFailure risks are reduced
29 Critical Success Factors MCUser InvolvementExecutive Management SupportClear Statement of RequirementsProper PlanningRealistic ExpectationsSmaller Project MilestonesCompetent StaffOwnershipClear Vision and ObjectivesHard Working Focused StaffMCMCMCMCMCMCMCMC
30 Your Turn Questions Comments Concerns Ideas Herman A. Zwirn CIRM