Dupont Apr08

ERP Change Management – Getting from Here to There

Pam WatersChange Management Team Leader

Department of Technology & InformationState of Delaware

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Delaware’s ERP Background

• State of Delaware– 67 Organizations

• 35 State Agencies• 19 School Districts• 17 Charter Schools

• 36,000 Employees• 12 Unions Represented

– 37 Different Locals

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XX

XXXXTime & Labor V 8.8Time & Labor V 8.8

XXPeopleSoft Financials V PeopleSoft Financials V 8.98.9

XX

eBenefitseBenefits

PeopleSoft HCM V 8.8PeopleSoft HCM V 8.8

(HR/Benefits/Payroll)(HR/Benefits/Payroll)

PHRSTPHRST

ERP Systems In Progress ImplementedERP Systems In Progress Implemented

State of Delaware ERP Systems

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Payroll Human Resources Statewide Technology

PHRSTDelaware

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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

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• 42% Leadership• 27% Organizational & Cultural

Issues• 23% People Issues• 4% Technology Issues• 4% Other• Organizational issues left unchecked

often lead to project failure

Why ERP Implementations Fail

Source: Organization Dynamics, Jim Markowsky

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Planning for ERP is a Planning for ERP is a Critical Success FactorCritical Success Factor

Addressed Primarilyby OrganizationalChange Management

Type

TypeTypeType

Type

Type

People

Process Technology

Addressed Primarilyby BusinessProcess Redesign

AddressedPrimarily

by Package

People and process issues are sometimes overlooked in planning for this type of project. They need to be addressed for the project to be a success.

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Department of Technology & Information

Office of Major Projects

Change Management Team

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State CIO

Chief Program Officer

Project Management Team Leader

Change Management Team Leader

Technology InvestmentCouncil

PMO

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Process IntegrationProject Management

Project Initiation

Project Planning

Project Executing

Project Controlling

Project Closing

Organizational Change Management

Managing Change-Planning

Managing Change-Execute

Preparing for Change

Closing/Monitoring Change

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Organizational Change Management

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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

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Organizational Change Management Objectives

• Provide awareness• Ensure understanding• Facilitate acceptance• Care, listen, and respond• Manage people’s expectations• Ensure readiness • Champion the project

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Greatest Success Factors

• Active and visible sponsorship• Use of organizational change

management processes & tools• Effective communications• Employee involvement• Effective project leadership and

planning

Source: Prosci Benchmarking Report

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Greatest Obstacles

• Resistance from employees and managers• Inadequate senior management &

sponsorship• Cultural barriers• Lack of change management expertise

Source: Prosci Benchmarking Report

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Change Management Standards

• Prepare with the project team– Assess change/culture– Develop/educate team

• Manage the strategy– Develop and manage the plan– Track/report readiness– Develop training strategy

• Reinforce/Support– Celebrate success– Analyze feedback and prepare to manage

resistance

http://dti.delaware.gov/majorproj/standards.shtml

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Organizational Change Management Tools

• Organizational & Project Attributes Assessment• Project Readiness Assessment• Stakeholder Analysis• Sponsor Roadmap• DTI Readiness Methodology

– Communication Standards– Reporting/tracking standards– Control Book

• Measures of Success/Lessons Learned

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Medium Risk

Low Risk

High Risk

Medium Risk

Risk Determination Table

12 24 60

[1] Modified from Prosci.

Assessing the Organization

Change Characteristics

110

44

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Organizational Attributes

Small incremental change to a Change Resistant Organization

Large Disruptive Change to a Change Resistant Organization

Small incremental change to a Change-able Organization

Large Disruptive Change to a Change-able Organization

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ExecutiveSponsors

Project TeamChange

Management Project Lead

Communications Coordinator

Change Management

Coach

Change Management

Coach

Change Management

Coach

Change Management

Coach

Gre

en

Team

Yellow

Team

Blu

e

Blu

e

Team

Team

Red

Team

. . .

. . .

. . .

. . .Project

Director

ERP Team Model

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ERP Change Management Team – Project Members

•Manage the resources•Manages the CM project plan•Receives status from the Readiness Lead•Reports status to the Project Manager and Project Director

DTI CM Team Leader

DTI CM Project Lead

Readiness Coach

ReadinessCoach

ReadinessCoach

ReadinessCoach

CommunicationsCoordinator

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•Works with the coaches to compile checklist activities, communications, workshops etc.

•Receives status of organizations from the coaches

•Reports status to the DTI CM Team Leader

DTI CM Team Leader

DTI CM Project Lead

Readiness Coach

ReadinessCoach

ReadinessCoach

ReadinessCoach


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•Communicate activities to the Readiness Coordinator

•Track organizations’ progress

•Report status to Change Management Lead

•Help facilitate workshops & focus groups

DTI CM Team Leader

DTI CM Project Lead

Readiness Coach

ReadinessCoach

ReadinessCoach

ReadinessCoach


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•Develops communication plan•Creates branding/logo•Tracks communications sent•Develops PPT presentations

DTI CM Team Leader

DTI CM Project Lead

Readiness Coach

ReadinessCoach

ReadinessCoach

ReadinessCoach


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ERP Change Management Team – Organization

DTI CM Team Leader

DTI CM Project Lead

Readiness Coach

ReadinessCoach

ReadinessCoach

ReadinessCoach


Coordinator

Coordinator

Coordinator

Coordinator

Usually a subject matter expert (SME)

•Is empowered to delegate checklist tasks to the appropriate resource within their organization

•Ensures timely completion of tasks

•Signs off on monthly checklists and returns to their coach

•Forwards communication to the appropriate individual

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Chief Program OfficerDTI

CM Team

Leader

Change Management Project Lead

Coach Coach Coach

Coordinator

Coordinator

Coordinator

Coordinator

Coordinator

Coordinator

Help Desk Specialist

HD Agent

HD Agent

Training Project Plan Mgr.

Training Manager

Training Team Lead

Trainers/Designers

SME’s

Project Manager

Communications Developer

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“Readiness”

Preparing/Tracking/Reporting

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All Project Teams

INPUT

Functional Impacts

Successful System Implementation

End Users

Readiness Checklist

Master Readiness Tracking Spreadsheet

Functional Impacts Documentation

DTI Readiness Methodology

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Functional Impacts

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Master Readiness Tracking Spreadsheet

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Readiness Checklists

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Executive Sponsor Reporting

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Managing ChangeOn-site Tracking Station

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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

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End-user Inventory1st

End-user Identification and Demographic Information

2ndSkills

Inventory

3rd IT

sppt.

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“Readiness”

Communication

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Supervisors

PartnerGroups

Business Owners

MGRs

End-Users

PM Team

Sponsors

CM Team

Change Management as Communications Hub

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ComfortComfort

UnawareUnawareDenialDenial

AnxietyAnxiety

InsightInsight

What is

happening?

What’s in itfor me?

What will I do differently tomorrow?

How do

I prepare?

How do I Stay motivated?

Organizational Change Phasesand Communication

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Who/What?

• Why is this system necessary?

• Align the change with the mission/vision and strategic direction of the organization

• Offer a broad overview of how the organization will transition – what & when

• Present the benefits

• Identify business risks of not changing

• Make sure the organization knows this will happen – not an option

Senior Executives

The change and impact on the organization

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Who/What?

• Provide the ‘what's in it for me’ information – how will roles change?

• How will I get the training to do my new job (will I be able to do the job)?

• Ask for employee’s ideas/suggestions for implementing the change

• Provide timely & and accurate status

The change and the impact on the individual

ManagersSupervisors

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Master Communication Plan Sample

• Release Authority• Status• Comments

•Event•Scheduled date•Audience•Communicator

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Communication Tracking Spreadsheet

• Communication Title• Media• Date Sent• Sent from and to

– Organization/Team– Phone– Email Address

• Follow-up Needed– Yes– No

• Type of Follow-up Needed– Meeting– Phone call– Email– Other

• Comments

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Information SheetsAwareness Info Sheet Coaching Info Sheet

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Training

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Training

Develop• Training strategy• Training Plan• Training Design• Materials

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• Identify different audiences who require training

• Conduct training needs assessment and skill gap analysis

• Document requirements for the training team– Training development schedule

Training Plan Strategy

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Coaching

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• Customized Coaching Plan• Prepare managers and

supervisors to coach their employees through the change

Coaching Plan

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Transition

Develop• Transition plan

Train• Organization resources

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Analyzing/Transitioning Change

• Transition– Knowledge Transfer Plan

(Transfer ownership to Project Owner)• Communication• Focus Group Meetings• Key End-User Meetings• Manager/Supervisor Meetings• On-going Change Management responsibilities

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• Collecting, Reporting, and Analyzing Feedback– Compliance Audit– Post-Implementation Review Process

• Transitioning to the Business Owner

• Celebrate!– Milestones/successes– Implementation success

Analyzing/Transitioning Change

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Monitoring Change

Survey End Users• Post implementation

– Three months– Six months– One year

• Complete control book– Lessons learned– Survey results– Training and meeting evaluations– Help desk call analysis– Checklist statistics

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Lessons Learned Board

• Describes knowledge gained from experience

• Captures lessons learned throughout a project lifecycle

• Process: – An onsite board is established and divided into the following

categories: • What we did that we want to do again• What we did that we never want to do again• What we did not do and should have• What we did, worked okay, but could be improved in various

ways.

• Outputs: Lessons Learned Spreadsheet, Lessons Learned section in Control Book, Project Management updates as required.

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Integration is Key

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AchievingSuccessful Organizational Change

1. Dedicate resources to Organizational Change Management

2. Secure visible executive sponsorship early in the project

3. Repeat key messages early and often

4. Involve employees in the change process

5. Create a transition strategy with achievable timeframes

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• 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

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• Educates individuals about change

• Communicates in a clear, honest, open manner

• Demonstrates commitment through active involvement and role modeling

• Solicits sponsor involvement when necessary

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ChangeManagement

Processes

Organization isAssessed

Identify

• Change Characteristics

• Org Attributes• Project

Attributes• Sponsor• Stakeholders• Key End-Users• Place on Risk

Determination Table

Complete

• Organization & Project Assessment

• Stakeholder Analysis

Review

• Existing Business Processes

• Existing Forms• Existing Policies• Existing Procedures• Hardware/Software

Requirements

Change Management & Communication

Plans are Developed

Document

• Process Changes• Functional Impacts

Create

• Master Readiness Tracking Spreadsheet

• Change Management Project Schedule

• Understanding and Impacts Info Sheets

• Feedback Mechanism

Determine

• Sponsor Model• Avenues for

communication that will be used

• Timing, audience, method, topic for important communications

Review

• Organization andProject Assessment

• Stakeholder Analysis

CM Team isEstablished

Communicate

• Results of analyses to organization project team and sponsors

Gain Commitment

• Project Sponsors• Organization

Change Agents

Identify & Recruit

• Individuals to act as coordinators for project implementation

• Hold CM Team kickoff meeting

Tracking, Measuring &

Reporting

Review


• Functional Impacts• Hardware/Software

Requirements

Training and Coaching Plans are

Developed

Develop Monthly

• Checklists• Detailed instructions

for checklist items• Supplemental

checklist material

Collect and Track

• Requested checklist information from organizations on a monthly basis

Update

• Onsite readiness tracking station


• Monthly checklist summary document

Report

• Readiness statistics to Executive Steering Committee

Develop

• Training Strategy• Training Plan• Training Design

Material• Training and

Coaching Info sheets

Transition

Develop

• Transition Plan• Countdown to

System Implementation

Train

• Organization resources

Preparing Managing Planning Managing Executing Transition

Analyze

• Current and new job duties

• Determine need for job reclassification

• Inform sponsors or job reclass implications

Monitoring

Monitor progress

Survey End-users

• Post-implementation week, one month, three months, six months, one year

Complete Control Book

• Lessons Learned

• Survey results• Training and

meeting Evaluation results

• Help desk calls analysis

• Checklist statistics

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AQ&

State Of DelawareWilliam Penn Building801 Silver Lake BoulevardDover, DE 19904-2407

Pamela M. WatersChange Management Team Leader

Voice: 302-739-9815Fax: 302-677-7068

Email: [email protected] SLC: D-410

Dupont Apr08

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