Ch Ch Changes Managing Change in the LDO

Ch, Ch Changes Managing Change in the LDO Environment ILTA Webinar May 10, 2012 Lynn Simpson – Du. Pont Julie Richer – AEP Kim Townsan - UTC Jim Michalowicz – Michalowicz Consulting LLC

What is Change Management? “The process of building the capacity, capability, and will of an organization to move from a current state, through a transition state to a future state, and then leading them through that change…” or Managing the People Side of Change

Change Management: When Something is not Working Du. Pont Legal Perspective Lynn Simpson, Knowledge Manager and Six Sigma Master Black Belt ILTA Webinar – May 10, 2012

The Vision of Du. Pont MARKET-DRIVEN SCIENCE • Our vision is to be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere. 4 © National Geographic image

Our Market-Driven Science 70, 000 Du. Pont employees in more than 90 countries are working to find solutions through MARKET-DRIVEN SCIENCE 5

Du. Pont Legal • Lawyers report to the General Counsel through VP’s and AGC’s • Offices in approximately 15 countries • Approximately 600 people in Legal • Approximately 300 lawyers • 12 practice areas • Approximately 11 IT resources devoted to Legal • Culture of choice • Flat organization in terms of management layers

Legal Project Management Implementation WHY the need for change? • Budget overruns • Top down pressure • Increased focus on process, program and project management throughout the Company • Du. Pont Legal’s desire to be on the cutting edge of the legal industry WHAT was going to change? • People will be required to utilize project management principles, techniques and tools to manage their work • People will be required to more effectively manage their budgets and will need to demonstrate the use of project management principles to do so • People will be required to update management on project activities in a clear, concise way • People will be required to develop effective teams and lead them in a way that optimizes the use of time (no wasteful meetings, results not activity)

Timeline of Activity

Change Curve The goal of Organizational Change Management is to move through the change curve and build commitment within the organization. Sponsors are required to move through these stages, as well as assist in leading the users through the change. Commitment Acceptance Understanding Awareness “I know the value the project delivers and it is a regular part of how I do business” “I believe this project is integral to sustaining our growth strategy in this competitive environment” “The new System should allow me to improve the way I make business decisions, such as. . . ” “It sounds as if the project is supposed to change the way we manage our business and daily work” What are the barriers to commitment?

Change Management Strategy Awareness Understanding Acceptance Commitment • Top down messaging • Multi-dimensional approach • Consistent, positive messaging • Develop a Communication Plan • Target your audience • Change Agents: people who facilitate change within their area • Windmills: people who are doing the right things already and create positive energy for the change • Focus Groups (include positive and negative people; creative thinkers) • Respond to the “What’s In It For Me” question • Begin to coach people with specific needs • Splash screens • Bite-size educational sessions • Pilots • Proof of concept • Surveys

Communication Plan Sample Overview w/ Leadership Message from Leadership Kickoff Meeting All Legal Employees Notification of Registration All Legal Employees Lunch & Learn #1 All Legal Employees Message - What does the stakeholder need Review of basic functionality, benefits, Awareness of upcoming communications to know? What are the key messages you review of issues resolved at corporate level. and kickoff meeting. want to deliver? Kickoff for Move to Microsoft. High level overview of project and timeline. Collaboration Imperative. Notification of Registration Why is registration required? Instructions on how to register. Preparing for migration to the new environment. Dependencies - What event must happen before you can deliver the message? Overview w/ Leadership Meeting N/A Kickoff Meeting Kickoff Secondary Audience - Who else needs to N/A know? Examples: Sending copy of presentation after the fact vs. attending the meeting, or sending the primary message to ITSLT and CIOs before the actual release. N/A (NA Leader for M 2 M) Deliverable - if any: form, report, etc. E-Mail Message Slides, Information on the EDGE E-Mail Message & Slides Medium - How will the info be delivered? Face to Face meeting with Optional Examples: email, website, database, kick off Webmeeting, email announcement followed by conference call, weekly conference calls. E-Mail Message Face to Face meeting with Optional Webmeeting E-Mail Message & Lunch & Learn Session with Optional Webmeeting Frequency - How often and when does this Once communication need to be made? Examples: weekly, monthly, as needed. Once for each group Once Monthly Lunch & Learn Author - Who will create the content of the LCM Team communication? LCM Team Project Team & Joanna LCM Team Reviewer/Approver - Who should review and/or approve the communication? Sponsor LCM Team, relevent leadership, sponsor Sponsor Distributer - Who will deliver the communication? LCM Team Martha Hinton LCM Team Joanna LCM Team Timeframe Early January 2012 Late January/Early February 2012 January 2012 Response - What response or feedback do you expect? Positive feedback Questions/concerns via email & phone Attendance at kickoff to ask questions and get more information. Questions via email & phone. Each employee will follow instructions & register. Questions & Feedback Resource Center Stakeholders/Target Audience - Who is the Legal Leadership & ASLT primary recipient of the message? Examples: Process Manager, Program Manager, Sponsor, Team members N/A Slides, Demo/Screenshots Storage - Where will you store a copy of the Resource Center communication for future reference? All Legal Employees

Lessons Learned • Patience is required. Real change does not happen overnight and cannot be forced. • Training sessions: One size does not fit all. • Better to begin to work with windmills and let them sell the change rather than try to bring everyone on board at once. • Be careful when you ask people their opinion. You need to be prepared to act on the information. • Continue to repeat the same message over and over. • Keep the messaging simple.

Change Management: Existing System, Dramatic Change Julie Richer Legal Technology Program Manager AEP ILTA Webinar - May 10, 2012

• AEP ranks among the nation's largest generators of electricity, owning nearly 38, 000 megawatts of generating capacity in the U. S. AEP also owns the nation's largest electricity transmission system, a nearly 39, 000 -mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U. S. transmission systems combined. • Approximately 18, 700 employees with an additional 1, 000 contractors across 11 states • 90 legal employees • 45 Attorneys

What needed to Change BAIL (Business Applications In Legal) • 8 year old document management system • 10 year old matter management system • 10 year old internally built invoice routing system that included reporting capabilities • 8 year old subpoena tracking website Why Change? • All systems were running on old technology which needed to be updated and we had no vendor support. • High risk for server crashes- concerns of data recoverability

What is Most Important? (Its not about the technology) • The first step, before any technology is reviewed, should be a review of critical business processes. It is not as easy as just upgrading or replacing current systems. If done internally, this process can be inexpensive and will save a lot of $ in the long run. 1. All levels of employees should be involved- you get the real story by talking to & observing a significant sampling of the department 2. Processes should be documented and reviewed by the Subject Matter Experts (SME’s) 3. Processes should be questioned- Ask “why” a lot! – Processes are old. People may be following steps and they have no idea why they are doing it. In big companies policies and systems change but many times business process are left stagnant.

Department Involvement None of us have a crystal ball so participation is essential People are going to tell you they are too busy to participate but if each practice area does not provide input it will come back to haunt the project. Each practice area is independent and special but they are all integrated into one legal department. All levels need to be actively involved in: – Process discussions & changes, design reviews – Testing – Training

Lessons Learned 1. 2. 3. 4. 5. 6. 7. Not everyone will be happy- no matter what Even if the new tools are easier to use. Some people hate change so they will hate the tools. Focus on the positive and be patient Train, train Provide quick guides Walk the halls and check in on people- many times they have questions but don’t have time to ask. Include objectives in employee job performance reviews about using the systems. Run scans for document creation and matter creation to see who is using and who is not.

CHANGE MANAGEMENT: Introducing a Brand New Program/Application Kimberly Townsan Senior Manager, Legal Administration ILTA Webinar - May 10, 2012

Elevators, escalators, moving walkways and other horizontal transportation systems 272 Attorneys Countries / 75 Offices Supporting operations in 180+ countries Helicopters Aircraft and space systems and engineered industrial products Gas turbine aircraft and industrial engines, and space propulsion 20

CHALLENGES OF CHANGE • Systems • Processes • Behavior • Relationships

UTC OUTSIDE COUNSEL MANAGEMENT Consolidation Concentration of spend Alternative fee arrangements Collaboration via technology Early case assessment / strategy / budgeting • Significant matter management • Unbundling • • •

COUNSEL MANAGEMENT PROGRAM How we started

COUNSEL MANAGEMENT Preferred Firms Performance Customer Input Preferred Firms - Value Add Services 9 Step Procurement Worldwide Law Firm Management Compliance Monitoring Policy / Process Education Supplier Database Exception Requests 24

ALL WE ARE SAYING Is effective collaboration is the key Step 1 Response to Request “Virtual” team nominations Step 2 Team Call Review process, data, service needs Step 3 Data Exchange Team – candidates Administrator – RFP Step 4 Team Call Finalize candidates, Statement of work Step 5 RFP Issuance Administrator sends/receives Step 6 Data Exchange RFPs and analysis to team Step 7 Team Call Selection of finalists Step 8 Interviews Scheduled centrally Held locally Step 9 Team Call Participant recommendations, sign off

GET THE RIGHT PLAYERS ON THE FIELD Managers and coaches may need to stay on the bench The folks who hit and catch should weigh in on the bats and gloves

ALL FOR ONE – AGREE ON THE GOAL

DATA WILL SET YOU FREE

MANAGE, MAINTAIN AND MONITOR Communicate program and changes All new UTC attorneys receive communication regarding Counsel Management program.

MANAGE, MAINTAIN AND MONITOR Compliance

LESSONS LEARNED • One size does not fit all • Engage those who engage • Senior management involvement • Keep everyone’s eye on the ball – TARGETS!