Transcript Web Site Redesign Results & Phase I Plan

Organization Change Management
– the “Soft Stuff is the “Hard Stuff”
Chris Keller
Welch Allyn Inc
Learning Points
• Why is Organization Change Management (OCM)
first perceived as the “Soft Stuff” and why does it
always end up as the “Hard Stuff?”
• How an OCM initiative can improve your company’s
success levels with your implementation or upgrade
• What are common organization attitudes at the start
of your project and how you help change them before
and after Go Live
2
What is Organization Change Management?
• “OCM” - A series of initiatives to prepare your
organization and the individuals in it for changes
• The “What, Why, How, Who, When, Where” – for your
organization’s implementation or upgrade
• If you are focused on these questions for your
implementation or upgrade for your organization –
you are involved in Organization Change
3
What Does This Mean to You?
(We will come back to these questions)
• Why are you here and why are you interested in
ERP?
• Is your organization preparing for, or currently
implementing or upgrading ERP?
• If yes – then what is your role/ involvement?
• Has your ERP project team included any resources
dedicated to Organization Change?
• What do you need to do with Organization Change in
your project?
4
Company Overview
•
•
•
•
•
•
A family business founded in 1915
Diagnostic medical instruments
Patient monitoring systems Advancing frontline care
2300 employees world wide, seven manufacturing
facilities in US and Europe
Implemented SAP February 2004 in two plants
Trained 600 employees for first Go Live
TM
5
Vision – Medical Products
Caregivers in frontline
settings worldwide will look to
the
people of Welch Allyn first
for solutions to their patient
care challenges
6
Global Reach
Acrobat Document
7
The Integrated Diagnostic System
Virtually
• every hospital,
• every department,
• every office,
• every clinic
• is standardized on Welch
Allyn diagnostics
Advancing Frontline Care
TM
8
Overview of Our SAP Project
• Company Goal – Increase Sales Revenue Through
New Product Development and New Company
Acquisitions
• Old IT Platforms Would Not Support This Growth
• Users Became United on SAP During Selection
Process
• Welch Allyn – 23 Full Time Project Members
• Systems Integrators – Capgemini – 17 Full Time
Equivalent Consultants
• Forty Persons in a Large Team Room for Nearly Two
Years
9
Overview - SAP Modules at Welch Allyn
Logistics
Modules
Customer
/
Sales
Module
Financial
Accounting
Sales &
Distribution
MM
CO
Materials
Mgmt.
Controlling
PP
AM
Production
Planning
Fixed Assets
Mgmt.
SAP
R/3
CRM
Customer
Relationship
Mgmt
Financial
Modules
FI
SD
QM
Quality
Manage-ment
PLM
Product Life
Cycle Mgmt
IM
Investment
Management
PM
PS
Plant Maintenance
Logistics
Modules
Project
System
CS
Customer
Service
HR
Human
Resources
Business Warehouse
R&D
Module
Financial
Modules
HR
Module
10
SAP Project Steering Team
Corporate VPs & Sponsors
SAP Project Management Office - PMO
VP& CIO, Welch Allyn Project Manager,
Capgemini Project Manager
Human Resources
Sales Dist/ Customer
Service/ Product Repair
Mfg Operations,
Production Planning,
Materials Mgmt
Product Lifecycle
Mgmt, Project Systems
Finance
Organization Change
Management
Business Warehouse
Quality and Regulatory
11
OCM – What is the Soft Stuff vs. the Hard Stuff?
• We all know implementing or upgrading SAP is challenging
• The technical stuff; Blueprinting, configuring, client strategy,
transports, testing, code changes, more transports, more
testing, etc. All initiatives that involve changing technical
elements.
• The people stuff; Training, communications, security
authorization, super user organization, business process
procedures. These are all initiatives that involve changing
people behaviors.
• It’s harder to manage technical change, than to manage people
change, right?
• Then again… maybe not..
12
OCM – How Did We Get Started
SAP Project Steering Team
Corporate VPs & Sponsors
• Before the SAP project start,
Welch Allyn chose Capgemini as our systems
integrator
• Capgemini brought in
consultants to partner with
each of the functional team
leads – including OCM
• The Cap OCM consultant
was an organizational
change expert, who’s
mission was knowledge
transfer to Welch Allyn OCM
team
SAP Project Management Office - PMO
VP& CIO, Welch Allyn Project Manager,
Capgemini Project Manager
Human Resources
Sales Dist/ Customer
Service/ Product Repair
Mfg Operations,
Production Planning,
Materials Mgmt
Product Lifecycle
Mgmt, Project Systems
Finance
Organization Change
Management
Business Warehouse
Quality and Regulatory
13
ASAP
Project Methodology
and Organization Change Strategy
1. Project Prep
• Core Team Training
Schedule and Budget
Estimate
• Change Mgmt &
Comm Strategies
• Project
Measurement
Scorecard
• Project Branding
• Project Initiation
(Kickoff)
2. Biz Blueprint
• Communication
Deliverables
• Roles Strategy
• Training Needs
Analysis & End
User Training
Strategy
• Super User
Strategy
3. Realization
• Communication
Deliverables
• Develop Change
Management
Deliverables
• Super User
Training
•Job Role Profiles
• Assess Skills &
Job Match
4. Final Prep
• Communication
Deliverables
• End User Training
5. Go Live & Support
• Conduct
Implementation OCM
Activities
• Design Post
Implementation
Support Strategic &
Tactical Organization
Design
14
Organization Change Management - Five Initiatives
Training
Business Process
Procedures
Security/
Role Development
Organization
Change
Management
Super User
Development
Communications
–The intention is to empower organizations and individuals [to take]
responsibility for their own future. (Hemamalini Suresh, Ittoolbox)
15
Organization Change Management - Five Initiatives
Training
Business Process
Procedures
Security/
Role Development
Organization
Change
Management
Super User
Development
Communications
–The intention is to empower organizations and individuals [to take]
responsibility for their own future. (Hemamalini Suresh, Ittoolbox)
16
Culture Eats Strategy for Breakfast Every Day
What is Company Culture?
• 1values, behaviors, beliefs and
norms that permeate the group
• Expressed through the words
and behaviors of each
employee
• Company or department
leadership sets the overall tone
• Often influenced by the
customers you serve
• Most often revealed in the way
companies approach and solve
their problems
1 Assess
Examples:
•
•
•
•
•
•
•
•
•
Entrepreneurial vs. bureaucratic
Team focused vs. independent
initiatives
Risk taking vs. conservative
Structured vs. highly variable
Plan, plan, plan vs. “ready, fire,
aim”
Trust vs. fear in the workplace
Loyalty vs. “what have you done
here lately”
Accountability vs. “it’s WHO you
know”
Elegant vs. Spartan offices
Company Culture to Find the Best Fit by Michael Neece
17
Culture Eats Strategy for Breakfast Every Day
VIEWPOINTS
•
•
•
•
•
•
I’ve learned other systems
before, I’ll figure this out
I’ve received training, no need for
me to practice, I should be all set
CULTURE
•
Management under-estimates
complexity before Go Live –
“ready-fire-aim”
Just train me to perform the
transactions I need to perform that's all I want/ need.
Just tell me what data to enter
into each field; I don't care about
the purpose
•
Many competing priorities, or
under-resourced project; users
are too busy; NO free time
Give me the concepts so I can
see the big picture
What’s the purpose of this data
field?
•
Management has resourced the
project, and fostered inquisitive
culture
18
Organization Change Management - Training
Training
Organization
Change
Management
Training Has Several Elements
•
Core team training
•
Management “seminar”
•
End user training:
•
Training needs analysis
•
Develop course contents
•
Deliver training courses
•
After training - practice before go live
19
Organization Change Management - Training
Core Team Training
Management Seminar
Train Project Team Members
(off site or on site) where
course is delivered by SAP
Do whatever it takes to help
ensure management
understands what is really
going on
20
OCM – End User Training
•
Training Needs Assessment
– Survey end users; ask them questions
– What do they know now and what do
they need to know?
– What are the ways they learn best?
– Determine courses, cost estimates
•
Develop training contents
– What must be included in course
materials?
– Who will write the training courses?
– How will this be accomplished?
– What will be the content?
– Identify resources, funding, set time
schedules, review tests, etc.
– 30 courses; concept slides, demos,
hands on exercises, etc etc.
21
OCM – End User Training
•
Deliver training to end users;
– Identify and train instructors
– Locate training rooms
– Set schedule, manage invitations and
attendance processes
– At Welch Allyn; 30 different courses,
225 classes, 10 training rooms in four
US locations
•
After training – practice before Go Live
– Adhoc organized practice sessions,
prepare for proficiency tests
– Administer tests; score them, offer
retest opportunities, postpone security
access as required
22
End User Training Strategy
It Doesn’t All Happen in the Classroom
On-the-job-training
After Go Live
SAP On-Line Help
or help from Super Users
Practice end-to-end
business scenarios!
Classes held
not more than
4 weeks
before Go
Live
OJT
OJT accounts for approx 40%
of all SAP learning
Practice
sessions
before
Go-Live
Classroom
Hands-On Training –
Instructor Led
Proficiency Tests Required
Practice sessions account for
approx 30% of all SAP
learning
Class room accounts
for 30% of all SAP
learning
Introductory only
Self-Paced Independent
Basic Navigation Training
23
OCM – End User Training
We are going
live in two
weeks. Are
you all set with
your training?
What can we
do to help you
get your job
done using
SAP?
I have
learned all
my
transactions
– I can step
through the
exercises
and I know
what to do.
I’m ready!
24
OCM – End User Training
We have been
live for 2
weeks now.
How’s it
going?
I can’t believe
how long this
process
takes!
I didn’t
consider all
the real life
events that
happen and
how they
make this so
complex!
It’s easy to train end users, but it’s hard to get them to really learn before Go Live
25
OCM – Training Hard Stuff
• Getting employees to see SAP as a organization and
business process change; (it’s easier for participants
to see this as a software project.)
• When training is approached as a software project,
participants focus only on “how to perform their own
transactions”
• When training is approached as a business process
change, the focus is on “which organizations will
perform which tasks, and where are the handoffs?”
26
OCM – Communications
Elements of Communications Plan
•What is the content/ message
•Who is the audience
•How do we tell them
•What is frequency
•Who will deliver
•Where will it come from
•When are delivery dates
Communications
Organization
Change
Management
27
OCM – Communications Plan
28
OCM – Communications
The SAP Go
Live is
coming. Do
you know
how this new
system will
impact your
job?
Will you
have the
skills need to
be
successful?
I have other
priorities this
week. I’ll talk
with my
manager later
when I have
time.
29
OCM – Communications
We have been
live for 2
weeks now.
Have you been
able to sustain
your work
commitments?
I don’t know
why we have
this new
system?
Everything is
different and I
can’t get the
critical
information that
I need.
It’s hard for users to understand and embrace system changes before Go Live
30
OCM - Security/ Role Development
Security/
Role Development
Organization
Change
Management
Groups of users in each functional area
• New responsibilities after SAP?
• New jobs evolve?
• New SAP transactions to do their jobs?
31
OCM - Security/ Role Development Before Go Live
Have you checked your security access to the T
codes you will need when we Go Live?
I have been practicing
my transactions since
my training class. I am
able to perform all of
them so far. My
security looks OK.
32
OCM - Security/ Role Development After Go Live
Help! I need access to this
transaction code
immediately! I can’t do my
job without this.
I understand you don’t
have this security access,
but your job position didn’t
include access to this
transaction. What’s
changed?
It’s a challenge for end users to define their job needs and test their security access before Go Live
33
OCM - Security/ Role Development
• Determine what transactions an end user is
authorized to complete
• Determine what training courses an end user must
complete to be proficient in the user role they are
assigned
• Construct security authorization levels for each user
role
• Match end users to new security roles
34
OCM – Super User Development
Develop the Super
User Organization
• Determine
objectives
• Identify criteria
• Identify approx
10% of end users
as candidates
• Confirm, then train
as Super Users
• How and where to
get help – help
desk
communications
Organization
Change
Management
Super User
Development
35
OCM – Super User Development
• Develop the Super User organization
• Key participants in knowledge transfer
• Look for people who are natural leaders or change
agents – target for 10% of end users
• Ensure S/Us know where to get help
• S/Us learn over time, fewer calls to Helpdesk
• Organize Super User workshops – seek their help to
improve SAP
• Seek their help with benefits realization
36
Super Users
• What about Super
Users (see handout)
• What do they do?
• How can they help?
• Why did we need
them?
37
Project Team & Super Users – by Function & Location
38
OCM – Super User Development
We have requested you to become a
Super User. Thanks for saying “yes!”
Your job will be to help other users when
they have questions or problems.
Sure. I can try
to help other
users after Go
Live. I’ll be
able to help
them, while
doing my
regular job.
39
Organization Change Management
Special Consideration – Helpdesk Communications
• Develop tools for super users to capture and report SAP
problems. Break-fixes, security, inquiries, enhancement
requests etc..
40
OCM – Super User Development
It’s been a week since Go Live.
How is your Super User activity
going? Are you able to help end
users with SAP questions?
It’s hard to know the demands on the new Super Users
during the first few months
It’s been a real
challenge.
Issues like
security change
requests,
detailed
questions,
business
processes that
need revising; I
can’t keep up
with all the
changes that
SAP brought us.
41
OCM – Business Process Procedures
Business Process
Procedures
Organization
Change
Management
• Strategy and tactics to capture, document and control business
process procedures
• What docs to control & store, where and how to control & store
• Web site for easy access, to SAP On line Help
42
What is a Business Process Procedure?
BPP – a document to define steps – how each transaction is used
within SAP system as configured in your company
• Develop strategy and tactics
to capture and control all
business process procedures
associated with
implementation (Welch Allyn
is in a regulated
environment)
• What docs to control & store,
where and how to control &
store
• Web site for easy access, to
SAP On line Help
43
Organization Change Management – OCM
Initiatives Are Inter-related – Support and Enhance Each Other
Security will
determine training
courses.
Training
BPP output is
Training Doc
input.
Business Process
Procedures
BPPs on-line at
Company Intranet
SAP Help
Security/
Role Development
Organization
Change
Management
Communications
Super Users
key feedback on
security issues
Super User
Development
Super Users are
key communications
component
44
OCM – Key Learning Points
•
Why does OCM start out as the “Soft Stuff” and why does it always end
up as the “Hard Stuff?”
– Because changing individual behaviors and changing company
culture is first perceived as “soft stuff”
– It ends up as ‘hard stuff” when leaders must confront the people
problems associated with a system implementation or upgrade
•
How a series of OCM initiatives can improve your company’s success
levels with your implementation or upgrade?
– Identify the people initiatives that are important to your project; and
make them a priority!
•
What are common organization attitudes at the start of your project and
how you help change them before and after Go Live
– This is a software project, we don’t need to focus on our people,
because our business processes won’t change
– We can deal with the people problems, after all, if they don’t like the
changes they can look for a job elsewhere
45
What Does This Mean to You?
• Why are you here and why are you interested in
ERP?
• Is your organization preparing for, or currently
implementing or upgrading ERP?
• If yes – then what is your role/ involvement?
• Has your ERP project team included any resources
dedicated to Organization Change?
• What do you need to do with Organization Change in
your project?
46
Organization Change Management
– the “Soft Stuff is the “Hard Stuff”
Questions?