Evolution of Change Management in Delaware

1. Evolution ofChange Management in Delaware

2. Change Management Discussion • In the Past • In the Beginning • Current State • Lessons Learned • Future of Change Management

3. G G Various False Starts • 1999 • PeopleSoft Human Resource Version 6.02 implemented • Benefits Administration & Payroll — Unsuccessful • Rolled back to Mainframe Legacy System • 2000 • Pulled plug on SAP Financials Implementation

4. Birth of Change Managementwith PeopleSoft HCM • Successful HCM (V 7.51) – July 2001 • Change Management Team formed • Strategy developed • Prepared (readied) State Organizations • End-User training (1300+) • Successfully Upgraded through v. 8.8

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

6. 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

7. Comprehensive Change Management Plan is Developed   • Create • Master Readiness Tracking Spreadsheet • Change Management Project Plan • Review • Existing Business Processes • Existing Forms • Existing Policies • Existing Procedures • Master Readiness Tracking Spreadsheet • Functional Impacts • Hardware/Software Requirements • Determine • Sponsor Model • Avenues for communication that will be used • Timing, audience, method, topic for important communication • Document • Process Changes • Functional Impacts • Identify and Recruit • Individuals to act as coordinators for project implementation • Hold CM Team Kick-off Meeting Managing-Planning Process

8. Change Management Tools • Organizational & Project Attributes Assessment • Project Readiness Assessment • Stakeholder Analysis • Sponsor Roadmap • Readiness Methodology • Change Management Standards Communication Standards • Reporting/tracking standards • Control Book • Measures of Success/Lessons Learned

9. Managing Organizational Change • Tracking, Measuring, and Reporting • Functional Impacts Spreadsheet • Master Readiness Tracking Spreadsheet • Readiness Checklist • Checklist Summary • On-site Tracking Station • Project Status • Executive Sponsor Reporting

10. Change Management Processes • Prepare with the project team • Assess change/culture • Develop/educate team • Manage the strategy • Develop and manage the plan • Track/report readiness • Develop the training strategy • Reinforce/Support • Celebrate success • Analyze feedback and prepare to manage resistance

11. How to get it Done The Team Structure

12. Executive Sponsors 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 RedTeam . . . CM Team Structure

13. Change Management as Communications Hub

14. Organizational Change Phasesand Communication What is happening? How do I staymotivated? Transition through Analysis Celebrate Success! Understanding through Awareness Comfort Unaware Denial Insight Ability with coaching Desire through impacts Anxiety What’s in itfor me? How do I prepare? Knowledge by training What will I do differently tomorrow?

15. 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 Who/What? Senior Executives The change and impact on the organization

16. 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 employee’s ideas/suggestions for implementing the change • Provide timely & and accurate status

17. “Readiness” Preparing/Tracking/Reporting

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

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

20. { { 1st End-user Identification and Demographic Information 2ndSkills Inventory 3rd IT sppt. { End-user Inventory

21. Executive Sponsor Reporting

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

23. Transition Process  Transition  • Develop • Transition Plan • Train • Organization resources

25. Transition Ownership to Business Owner • Knowledge Transfer Plan • Identify required skills by project team role • Assess current skills • Develop an agreed upon action plan and milestones • Re-assess semi-annually for life of project

26. Current State

27. Delaware’s Business Structure • State of Delaware • 73 Organizations • 35 State Agencies • 19 School Districts • 17 Charter Schools • 2 Higher Ed Institutions • 342 Business Units • 38,000 EEs • 12 Unions Represented • 37 Different Locals

28. Current State of Delaware’sERP

29. Change Management Lessons Learned

30. Addressed Primarilyby OrganizationalChange Management People Addressed Primarilyby Package Addressed Primarilyby BusinessProcess Redesign Technology Type Process Type Type Type Type Type 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. Planning for Major Projects (ERP) is a Critical Success Factor

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

32. AchievingSuccessful Organizational Change • Dedicate resources to Organizational Change Management • Secure visible executive sponsorship early in the project • Repeat key messages early and often • Involve State organizations in the change process • Create a transition strategy with achievable timeframes

33. Survey End Users Post implementation Three months Six months One year Complete control book Lessons learned tracking Survey results Training and meeting evaluations Help desk call analysis Checklist statistics Monitor Change

34. Reinforcement • Celebration & Recognition!!! • Milestones/successes • Implementation success

35. Change ManagementIn the Future… • Focus of all Major Projects Statewide • Utilize Change Management for Benchmarking Initiatives for ERP • Setting the Stage for Shared Services • Centralized Fixed Assets • Start Slow for Centralizing AP • Analyze Drivers For Process Change • Use for ERP Production Support

36. ??????????? Please Contact Pam Waters, Delaware Change Management Coordinator pamela.waters@state.de.us Phone: 302-739-9815 Delaware Change Mgmt Standards http://dti.delaware.gov/majorproj/standards.shtml