ERP Change Management

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ERP Change Management Getting from Here to There

• Pam Waters
• Change Management Team Leader
• Department of Technology Information
• State of Delaware

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Evolution ofOrganizational Change Management in
Delaware
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Delawares ERP Background

• State of Delaware
• 67 Organizations
• 35 State Agencies
• 19 School Districts
• 20 Charter Schools
• 36,000 Employees
• 12 Unions Represented
• 37 Different Locals

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State of Delaware ERP Systems
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Payroll Human Resources Statewide Technology
Delaware

• PHRST

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1990s

• 1990s Various False Starts
• July 1999
• PeopleSoft Human Resource Version 6.02
  implemented
• Benefits Administration Payroll Unsuccessful
• Rolled back to Mainframe Legacy System

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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

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March December 2000PHRST Project

• Became a state managed project
• Acquired additional state resources
• Rearranged project team
• Added full time Change Management team
• Single reporting structure

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December 2000 July 2001PHRST Project

• 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

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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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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
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Planning for ERP is a Critical Success Factor
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PHRST Upgrade 2004

• V 7.5 to V 8.8

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Project French Vanilla

• Formed to eliminate/reduce system modifications
• Led by Cabinet Secretary
• Identify areas needing new legislation
• Optimize current business processes
• Communicate with state organizations

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PHRST Upgrade V7.51 to V8.8

• Client Server to Web based
• Not much functionality change
• Back out of some modifications due to
  re-engineering effort of project French Vanilla
• 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!

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Department of Technology Information

• Office of Major Projects
• Change Management Team

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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

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Process Integration
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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
• Goal
• Provide the structure guidance necessary to
  effectively prepare organizations for the
  successful acceptance of cultural change

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Organizational Change Management Objectives

• Provide awareness
• Ensure understanding
• Facilitate acceptance
• Care, listen, and respond
• Manage peoples 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

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Greatest Obstacles

• Resistance from employees and managers
• Inadequate senior management sponsorship
• Cultural barriers
• Lack of change management expertise

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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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Assessing the Organization
Risk Determination Table
110
Medium Risk
High Risk
Organizational Attributes
44
Medium Risk
Low Risk
22
12
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60
Change Characteristics
1 Modified from Prosci.
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ERP Team Model
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ERP Change Management Team Project Members
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ERP Change Management Team Project Members
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ERP Change Management Team Project Members
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ERP Change Management Team Project Members
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ERP Change Management Team Organization
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Readiness

• Preparing/Tracking/Reporting

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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 Change
On-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 Inventory
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Readiness

• Communication

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Change Management as Communications Hub
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Organizational Change Phasesand Communication
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Who/What?
Senior Executives
The change and impact on the organization

• 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

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Who/What?
Managers Supervisors
The change and the impact on the individual

• 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 employees ideas/suggestions for
  implementing the change
• Provide timely and accurate status

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Master Communication Plan Sample

• Event
• Scheduled date
• Audience
• Communicator

• Release Authority
• Status
• Comments

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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 Sheets
Awareness 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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Training Plan Strategy

• Identify different audiences who require training
• Conduct training needs assessment and skill gap
  analysis
• Document requirements for the training team
• Training development schedule

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Coaching
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Coaching Plan

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

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Transition

• Develop
• Transition plan
• Train
• Organization resources

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Analyzing/Transitioning Change

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

60
Analyzing/Transitioning Change

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

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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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Control Book

• System Testing Evaluation
• Parallel Testing Evaluation
• Training Evaluation
• Coaching Survey
• Reinforcement/Resistance Survey
• Project Evaluation Survey

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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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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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Change Management Continuous Improvement

• Change Competency
• Linked to project management processes
• Start at the beginning
• Required for all ERP projects
• Systematic Change Management processes
• Defined methodology
• Consistent tools
• Greater Capacity for Change

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DTI Strategic Goals Enterprise Organizational
Change Management

• CM partners with or advises many major
  projects within the state
• CM participating in the EA initiative

• Change Management certified team
• 2 qualified MBTI
• providers
• 2 qualified EI
• providers
• Team memberpursuing PMIcertification
• Team member pursuing BPR certification

• CM participating in DTI security program

• CM providing MBTI education to all teams in
  department
• CM offers MBTI education to other organizations

• CM offers change management, and requirements
  gathering education

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Integration is Key
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