ERP Change Management – Getting from Here to There

1. ERP Change Management – Getting from Here to There Pam Waters Change Management Team Leader Department of Technology & Information State of Delaware

2. 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

3. ERP Systems In Progress Implemented PeopleSoft HCM V 8.8 (HR/Benefits/Payroll) PHRST X eBenefits X Time & Labor V 8.8 X X PeopleSoft Financials V 8.9 X State of Delaware ERP Systems

4. Delaware PHRST Payroll Human Resources Statewide Technology

5. 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

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. 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 ERP is a Critical Success Factor

8. Department of Technology & Information Office of Major Projects Change Management Team

9. Technology Investment Council PMO

10. Project Management Project Initiation Project Planning Project Executing Reinforcing Changes Project Controlling Project Closing Process Integration Organizational Change Management Preparing for Change Managing Change-Planning Managing Change-Execute Closing/Monitoring Change

11. Organizational Change Management

12. 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

13. Organizational Change Management Objectives • Provide awareness • Ensure understanding • Facilitate acceptance • Care, listen, and respond • Manage people’s expectations • Ensure readiness • Champion the project

14. 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

15. Greatest Obstacles • Resistance from employees and managers • Inadequate senior management & sponsorship • Cultural barriers • Lack of change management expertise Source: Prosci Benchmarking Report

16. 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

17. 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

18. 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 Assessing the Organization Risk Determination Table 110 Medium Risk High Risk Organizational Attributes 44 Medium Risk Low Risk 22 12 24 60 Change Characteristics [1] Modified from Prosci.

19. Executive Sponsors . . . Project Director Change Management Coach Green Team . . . Yellow Team Change Management Coach Change Management Project Lead Project Team . . . Change Management Coach Blue Team Communications Coordinator Change Management Coach RedTeam . . . ERP Team Model

20. Manage the resources • Manages the CM project plan • Receives status from the Readiness Lead • Reports status to the Project Manager and Project Director ERP Change Management Team – Project Members

21. ERP Change Management Team – Project Members • 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

22. Communicate activities to the Readiness Coordinator • Track organizations’ progress • Report status to Change Management Lead • Help facilitate workshops & focus groups ERP Change Management Team – Project Members

23. Develops communication plan • Creates branding/logo • Tracks communications sent • Develops PPT presentations ERP Change Management Team – Project Members

24. 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 ERP Change Management Team – Organization

26. “Readiness” Preparing/Tracking/Reporting

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

28. Functional Impacts

29. Master Readiness Tracking Spreadsheet

30. Readiness Checklists

31. Executive Sponsor Reporting

32. Managing Change On-site Tracking Station

33. 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

34. { { 1st End-user Identification and Demographic Information 2ndSkills Inventory 3rd IT sppt. { End-user Inventory

35. “Readiness” Communication

36. Change Management as Communications Hub

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

38. 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

39. 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

40. Release Authority Status Comments Master Communication Plan Sample • Event • Scheduled date • Audience • Communicator

41. 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

42. Information Sheets Awareness Info Sheet Coaching Info Sheet

43. Training

44. Develop Training strategy Training Plan Training Design Materials Training

45. 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

46. Coaching

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

48. Develop Transition plan Train Organization resources Transition

50. 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