Ch, Ch, Ch ChangesManaging Change in the

LDO Environment

ILTA WebinarMay 10, 2012

Lynn Simpson – DuPontJulie Richer – AEP

Kim Townsan - UTC Jim Michalowicz – Michalowicz Consulting LLC

What is Change Management?

“The process of building the capacity, capability, and will of an organization to move from a current state, through a transition state to a future state, and then leading them through that change…” or

Managing the People Side of Change

Change Management:When Something is not Working

DuPont Legal Perspective

Lynn Simpson, Knowledge Manager and Six Sigma Master Black Belt

ILTA Webinar – May 10, 2012

The Vision of DuPont

• Our vision is to be the world’s most dynamic science company,

creating sustainable solutions essential to a better, safer, healthier life for people everywhere.

4

MARKET-DRIVEN SCIENCE

© National Geographic image

70,000 DuPont employees in

more than 90 countries are

working to find solutions through

MARKET-DRIVEN SCIENCE

5

Our Market-Driven Science

DuPont Legal

• Lawyers report to the General Counsel through VP’s and AGC’s

• Offices in approximately 15 countries• Approximately 600 people in Legal• Approximately 300 lawyers• 12 practice areas• Approximately 11 IT resources devoted to Legal • Culture of choice• Flat organization in terms of management layers

Legal Project Management Implementation

• Budget overruns • Top down pressure• Increased focus on process, program and project management

throughout the Company• DuPont Legal’s desire to be on the cutting edge of the legal industry

WHY the need for change?

• People will be required to utilize project management principles, techniques and tools to manage their work

• People will be required to more effectively manage their budgets and will need to demonstrate the use of project management principles to do so

• People will be required to update management on project activities in a clear, concise way

• People will be required to develop effective teams and lead them in a way that optimizes the use of time (no wasteful meetings, results not activity)

WHAT was going to change?

Timeline of Activity

“It sounds as if the project is supposed to change the way we manage our business and daily work”

“The new System should allow me to improve the way I make business decisions, such as...”

“I believe this project is integral to sustaining our growth strategy in this competitive environment”

“I know the value the project delivers and it is a regular part of how I do business”

Awareness

Understanding

Acceptance

Commitment

 The goal of Organizational Change Management is to move through the

change curve and build commitment within the organization. Sponsors are required to

move through these stages, as well as assist in leading the users through the

change.

Change Curve

What are the barriers to commitment?

Change Management Strategy

• Top down messaging• Multi-dimensional approach• Consistent, positive messaging

• Develop a Communication Plan• Target your audience

• Change Agents: people who facilitate change within their area• Windmills: people who are doing the right things already and create

positive energy for the change• Focus Groups (include positive and negative people; creative thinkers)• Respond to the “What’s In It For Me” question• Begin to coach people with specific needs• Splash screens• Bite-size educational sessions• Pilots• Proof of concept• Surveys

Awareness Understanding Acceptance Commitment

Communication Plan Sample Overview w/ Leadership Message from Leadership Kickoff Meeting Notification of Registration Lunch & Learn #1Stakeholders/Target Audience - Who is the primary recipient of the message? Examples: Process Manager, Program Manager, Sponsor, Team members

Legal Leadership & ASLT All Legal Employees All Legal Employees All Legal Employees All Legal Employees

Message - What does the stakeholder need to know? What are the key messages you want to deliver?

Review of basic functionality, benefits, review of issues resolved at corporate level.

Awareness of upcoming communications and kickoff meeting.

Kickoff for Move to Microsoft. High level overview of project and timeline. Collaboration Imperative.

Notification of Registration Why is registration required? Instructions on how to register.

Preparing for migration to the new environment.

Dependencies - What event must happen before you can deliver the message?

N/A Overview w/ Leadership Meeting N/A Kickoff Meeting Kickoff

Secondary Audience - Who else needs to know? Examples: Sending copy of presentation after the fact vs. attending the meeting, or sending the primary message to ITSLT and CIOs before the actual release.

N/A N/A (NA Leader for M2M) (NA Leader for M2M) (NA Leader for M2M)

Deliverable - if any: form, report, etc. Slides, Demo/Screenshots E-Mail Message Slides, Information on the EDGE E-Mail Message E-Mail Message & Slides

Medium - How will the info be delivered? Examples: email, website, database, kick off meeting, email announcement followed by conference call, weekly conference calls.

Face to Face meeting with Optional Webmeeting

E-Mail Message Face to Face meeting with Optional Webmeeting

E-Mail Message E-Mail Message & Lunch & Learn Session with Optional Webmeeting

Frequency - How often and when does this communication need to be made? Examples: weekly, monthly, as needed.

Once Once Once for each group Once Monthly Lunch & Learn

Author - Who will create the content of the communication?

LCM Team LCM Team LCM Team Project Team & Joanna LCM Team

Reviewer/Approver - Who should review and/or approve the communication?

Sponsor Sponsor Sponsor LCM Team, relevent leadership, sponsor Sponsor

Distributer - Who will deliver the communication?

LCM Team Martha Hinton

LCM Team Joanna LCM Team

Timeframe Early January 2012 Early January 2012 January 2012 Late January/Early February 2012 January 2012

Response - What response or feedback do you expect?

Positive feedback Questions/concerns via email & phone Attendance at kickoff to ask questions and get more information.

Questions via email & phone.Each employee will follow instructions & register.

Questions & Feedback

Storage - Where will you store a copy of the communication for future reference?

Resource Center Resource Center Resource Center Resource Center Resource Center

Lessons Learned

• Patience is required. Real change does not happen overnight and cannot be forced.

• Training sessions: One size does not fit all.• Better to begin to work with windmills and let them sell the

change rather than try to bring everyone on board at once. • Be careful when you ask people their opinion. You need to be

prepared to act on the information. • Continue to repeat the same message over and over.• Keep the messaging simple.

Change Management:Existing System, Dramatic Change

Julie RicherLegal Technology Program Manager

AEP

ILTA Webinar - May 10, 2012

• AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.

• Approximately 18,700 employees with an additional 1,000 contractors across 11 states

• 90 legal employees• 45 Attorneys

What needed to ChangeBAIL (Business Applications In Legal)

• 8 year old document management system• 10 year old matter management system• 10 year old internally built invoice routing system that

included reporting capabilities• 8 year old subpoena tracking website

Why Change?

• All systems were running on old technology which needed to be updated and we had no vendor support.

• High risk for server crashes- concerns of data recoverability

What is Most Important?

• The first step, before any technology is reviewed, should be a review of critical business processes. It is not as easy as just upgrading or replacing current systems. If done internally, this process can be inexpensive and will save a lot of $ in the long run.

1. All levels of employees should be involved- you get the real story by talking to & observing a significant sampling of the department

2. Processes should be documented and reviewed by the Subject Matter Experts (SME’s)

3. Processes should be questioned- Ask “why” a lot!– Processes are old. People may be following steps and they have

no idea why they are doing it. In big companies policies and systems change but many times business process are left stagnant.

(Its not about the technology)

Department InvolvementNone of us have a crystal ball so participation is essentialPeople are going to tell you they are too busy to participate but if

each practice area does not provide input it will come back to haunt the project.

Each practice area is independent and special but they are all integrated into one legal department.

All levels need to be actively involved in:– Process discussions & changes, design reviews– Testing– Training

Lessons Learned1. Not everyone will be happy- no matter what2. Even if the new tools are easier to use. Some people hate

change so they will hate the tools. 3. Focus on the positive and be patient4. Train, train, train5. Provide quick guides6. Walk the halls and check in on people- many times they

have questions but don’t have time to ask.7. Include objectives in employee job performance reviews

about using the systems. Run scans for document creation and matter creation to see who is using and who is not.

CHANGE MANAGEMENT: Introducing a Brand New Program/Application

Kimberly TownsanSenior Manager, Legal Administration

ILTA Webinar - May 10, 2012

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Aircraft and space systems and engineered industrial products

272 Attorneys Countries / 75 Offices

Supporting operations in 180+ countries

Helicopters

Gas turbine aircraft and industrial engines, and space propulsion

Elevators, escalators, moving walkways and

other horizontal transportation systems

CHALLENGES OF CHANGE• Systems

• Processes

• Behavior

• Relationships

UTC OUTSIDE COUNSEL MANAGEMENT

• Consolidation• Concentration of spend• Alternative fee arrangements• Collaboration via technology • Early case assessment / strategy /

budgeting• Significant matter management• Unbundling

COUNSEL MANAGEMENT PROGRAMHow we started

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COUNSEL MANAGEMENT

Worldwide Law Firm Management

Policy / Process Education

9 Step Procurement

Supplier Database

Exception Requests Compliance MonitoringPreferred Firms - Value Add Services

Customer Input

Preferred Firms Performance

ALL WE ARE SAYING Is effective collaboration is the key

Step 1Response to

Request“Virtual” team nominations

Step 2Team Call

Review process, data, service needs

Step 3Data Exchange

Team – candidates Administrator – RFP

Step 4Team Call

Finalize candidates, Statement of work

Step 5RFP Issuance

Administrator sends/receives

Step 6Data Exchange

RFPs and analysis to team

Step 7Team Call

Selection of finalists

Step 8Interviews

Scheduled centrallyHeld locally

Step 9Team Call

Participant recommendations,

sign off

GET THE RIGHT PLAYERS ON THE FIELD

Managers and coaches may need to stay on the bench

The folks who hit and catch should weigh in on the bats and

gloves

ALL FOR ONE – AGREE ON THE GOAL

DATA WILL SET YOU FREE

MANAGE, MAINTAIN AND MONITORCommunicate program and changes

All new UTC attorneys receive communication regarding Counsel Management program.

MANAGE, MAINTAIN AND MONITORCompliance

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UTC CAR CORP F&S HSC OTS PWA PWR RES SAC

Not Approved

No new matters

Recommended

Preferred

LESSONS LEARNED

• One size does not fit all

• Engage those who engage

• Senior management involvement

• Keep everyone’s eye on the ball – TARGETS!