Transcript the Power Point Presentation

Change Management
Making Things Better: A Primer and
Case Study in Change Management
Presented by Doug Howardell
Agenda
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Change Management Defined
Change Management Concepts
Strategies for Leadership
Strategies for Users
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Definition of Change Mgt
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The fostering and support of people who champion new
technologies, new operating practices, and new products
and services that will transform the organization
maintaining its viability and improving its competitive
position in step with the change in the business
environment in which it functions.
APICS Dictionary
An organized, systematic application of the knowledge,
tools, and resources of change that provides organizations
with a key process to achieve their business strategy
Jeanenne LaMarsh LaMarsh & Associates
Getting people to accept the what because
they understand the why.
Doug Howardell
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Examples of Change
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Change Management is important
Top Ten Barriers to Success
Resistance to Change
82%
Inadequate Sponsorship
72%
Unrealistic Expectations
65%
Poor Project Management
54%
Case for Change Not Compelling
46%
Project Team Lacked Skills
44%
Scope Expansion/Uncertainty
44%
No Change Management Program
43%
No Horizontal Process View
41%
IT Perspective Not Integrated
30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Source: DC CIO Survey
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Reactions to Change
Individuals frequently react to change in a predictable manner
Unaware
Denial
Resistance Exploration
Acceptance
Commitment
Change Management must provide the tools and approaches to lead
people through this process:
 Take a critical mass of the leadership down to commitment as fast as
possible to provide direction
 Lead the other Stakeholders along this path in a phased and targeted
manner
 Entrench and embed the change in the organization to provide the
context and support for individual change
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Key Steps
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Identify stakeholders and how they feel about the change
Raise the level of discontent – remind them of current problems
– Document the current process and its problems, waste,
redundancies and non-value added activities
Surprises
Identify what will be different or new
Identify gaps and barriers
Highlight the expected benefits
Define the transition process
Identify issues expected during transition
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Change Targets
Real, sustainable change involves
changing every level of the organization:
Leadership
Users
Leadership must focus attention,
build commitment, and create
inspiration
Users need to develop mindsets,
skills and commitment to new ways
and to develop qualities of change
hardiness the ability to navigate
through change.
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Strategy for Leadership
Strategy
The change leadership strategy focuses on
establishing joint ownership by line management and
the project team for the successful implementation of
project
Key Themes
•Leaders equipped to face the same issues
together
•Joint ownership and accountability
•Focus on the most valuable asset, our employees/
users
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Tools for Leadership
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Organize to involve
Process Reviews
Stakeholder Analysis
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Change Management Organization
Steering
Committee
(~10)
Business Process
Owners (~20)
Business Readiness Groups (~300)
End Users (~4000)
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
BPO & BRG Responsibilities
Business Process Owner
Business Readiness Group
Definition
Senior Stakeholder of particular process
area (reports to a V.P.)
• Ensures needs of process area are met
• Focus on cross-functional responsibility
for the solution
Definition
Key stakeholders within particular process
area (reports to the BPO)
 Have advisory role in process solutions
 Focus on specific functional responsibility
for the solution
Responsibilities
• Represent needs of process areas across
the business
• Assist in resolving issues regarding
business / technical issues
• Demonstrate visible support for the
project within the organization
• Assign resources
• Chair the BRG meetings
Responsibilities
 Assist with project communications and
provide feedback
 Validate/Align organization with PRISM
solution
 Support data cleansing and preparation
 Assess impact of solution on
organizational structure
 Identify impacted end users and help
assess their training needs
 Ensure readiness of functional areas to
deploy the proposed solution
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
BPO/BRG Structure
Production Control
Contracts
Sales Order Activation / Entry
Bills of Material / Engineering Changes
Master Scheduling
MRP Controller
Shop Floor Order Release / expedite
Procurement
Purchasing
Major Sub-contracts
Hazardous Waste (EH&S)
Make
Mfg Eng (routings)
Industrial Eng (standards)
Quality, Shop Floor Inspection & Test
Configuration Mgmt / As Built
Logistics
Goods, Receiving
Goods, Material Stocking/Issue
Freight, Pack & Ship
Import/Export
Material, inter/intra site movement
Quality
Quality, Incoming Inspection
Quality, Supplier Quality / Source Inspection
Quality, Shop Floor Inspection & Test
Customer
Customer
Plant Maintenance
Repairs
Preventative Maintenance
Engineering
Reliability
Design (Electrical, Mechanical. Optical)
System / Config Mgt
Finance
Finance, Operations (Labor)
Finance, Operations (Material)
Finance, Program Business Mgmt
Proposals & Estimating
Program Office
Program Ops
Program MPM
Post Production Support & Performance
Based Logistics
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Alignment Workshops
Pre-Workshop Deliverables
Deliverable: Sub Process Group Profile
Deliverable: Sub Process Group Flow
Deliverable: Simulation
Deliverable: Design Attributes
Post Workshop Deliverables
Deliverable: Workshop Notes
Deliverable: Disposition Workshop Notes
Deliverable: Update flows
Deliverable: Confirm Business Process Master List
Deliverable: Business Process Owner Review
Deliverable: Change Implications
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Process Reviews
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Objectives
– Review enterprise design with BPO/BRG
– Gather their inputs
– Identify change impacts
BPO Role
– Approves attendees
– Assure attendance
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Process Reviews
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Stakeholder Analysis
Stakeholder
Jon
Colin
George
Emanuel
Dick
Fred
Bob
Dina
Dan
Susan
Rick
Ed
Tom
Nick
Awareness Awareness
Actual
Influence Goal
Supportive Mgt Level Frequency
10
7
5
10
10 Monthly
10
7
5
10
10 Monthly
10
7
7
7
9 Bi-monthly
10
7
7
10
9 Bi-monthly
10
7
7
10
9 Bi-monthly
10
7
7
5
9 Bi-monthly
10
7
2
10
9 Bi-monthly
10
7
2
7
9 Bi-monthly
10
7
5
10
8 Bi-monthly
8
5
2
7
9 Bi-monthly
7
5
5
10
9 Bi-monthly
7
5
2
5
9 Bi-monthly
7
5
2
8
9 Monthly
7
5
0
2
9 Monthly
Meeting/
Communicator
Exec
Exec
Exec Steering
Exec Steering
exec Steering
Exec Steering
Exec Steering
Exec Steering
forest
Exec Steering
Exec Steering
Exec Steering
Exec
Exec
Current Action
Talk to Sheri Lanpher
Talk to Kelly & Linda about what she knows
Talk to Andy & Bill L.
Garey - to set up meeting with him
Meet with in Aug
Meet with in Aug
0 = No awarness, 2 = minimal awareness, 5 aware of the big picture, 7 = Aware of important
Awareness details, 10 aware of the details and their implications and ramafications
0 = strongly opposed, 2 = weakly opposed, 5 = indifferent or undecided, 7 = weakly in
Supportive favour, 10 = strongly in favour
0 = Can do nothing to influence outcomes or plans, 2 = Can do little to influence outcomes
or plans, 5 = Can make it easy or difficult to achieve outcomes or plans, 7 = Can directly
Copyright
2006 Doug
Howardell 626-390-6935
Influence influence those who can veto, 10 = can veto,
formally
or informally,
outcomes [email protected]
or plans
Strategy for Users
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Create and sustain awareness of strong change
imperative (burning platform)
 Communicate what we know when we know
(including the fact that we don’t have all the
answers yet)
 Communicate widely and broadly the vision and
strategy and implications
 Involve our strategic users early in their sphere of
competency
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Tools for Users
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Raise level of discontent
Alignment Workshops
Communication
Change Readiness Survey
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Raise Level of Discontent
Who Cares
Issue
Duplicate efforts - How many times do we enter a part
number in different systems from receipt of RFP to
post production support?
Mgt, Master
Planners,
Depot
Problems with transition from engineering to
production
Mgt, Ops,
Planners
Separate procurements
Mgt, buyers
No configuration / rev control in our current systems
Engineers
No product cost in current systems
Finance
Annual cost of systems – reduces profit, depresses
stock price
All employee
stock holders
The competition is ahead of us
All employee
stock holders
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Alignment Workshops
Pre-Workshop Deliverables
Deliverable: Sub Process Group Profile
Deliverable: Sub Process Group Flow
Deliverable: Simulation
Deliverable: Design Attributes
Post Workshop Deliverables
Deliverable: Workshop Notes
Deliverable: Disposition Workshop Notes
Deliverable: Update flows
Deliverable: Confirm Business Process Master List
Deliverable: Business Process Owner Review
Deliverable: Change Implications
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Alignment Workshops
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Alignment Workshops
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Communication & Involvement
Model
Communicate
at this level
Overall Strategy and Direction
Strategic Technology and infrastructure
Business Processes
Workflow
Job Design
Involve
at this level
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Communication Flow
Communication Flow
1. Steering Team Status &
Escalation of Issues &
One-One with ea.
Business President &
Gen. Mgrs.
2. Lateral with the teams
(CM Team, the entire
Project Team, special
groups)
3. Up & down with user
communities (included
the OCLs)
Executive
Sponsors
Not Full
Time
Project
Leaders
Full Time
Project
Finance
SFC
MRP
Process
Expert
Process
Expert
Process
Expert
…
Change Mgt Team
Operational
Communication Lead
Process Owners
Ops
P&IC
Quality
Lead PO
& BRG
Lead PO
& BRG
Lead PO
& BRG
…
End Users
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Change Readiness Survey
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Helps you determine the current state of change
readiness
– key disconnects, and major obstacles
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Develop questions that assess readiness in each
stage of the project
Survey a valid sample size
Track results over time
– Early: survey for awareness
– Mid-range: survey for process knowledge
– Late: survey for transition plan
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
Recap
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Definition-Getting people to accept the what because they
understand the why
Change Management is important

Individuals frequently react to change in a predictable manner
 Key steps assure No Surprises
 Leadership Strategies
– Organize to involve
– Process Reviews
– Stakeholder Analysis
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User Strategies
–
–
–
–
Raise level of discontent
Alignment Workshops
Communication
Change Readiness Suvrey
Copyright 2006 Doug Howardell 626-390-6935 [email protected]
For a copy of this presentation and for
more information on change
management, go to:
www.theacagroup.com