Change Management May 3 2009 Change Management SIG

Change Management May 3, 2009 Change Management SIG Worst Project Ever Experienced aka Change Management is So Important May 3 rd, 2009 Douglas Volz davolz@comcast. net Douglas Volz Consulting, Inc. President / Managing Director OAUG Discrete MFG Cost Sub-Committee Lead Douglas Volz Consulting, Inc. ─ 1

Change Management May 3, 2009 Why Do Some Projects Look Like This? “Well, we all made it out in time, … ’Course now we’re all equally screwed. ” Douglas Volz Consulting, Inc. ─ 2

Change Management May 3, 2009 Introduction ¨ Reasons why projects fail ¨ Is making major changes a challenge? ¨ What is resistance to change? ¨ What strategies can you use for managing change? Douglas Volz Consulting, Inc. ─ 3

Change Management May 3, 2009 Some Key Reasons Why Projects Fail Inexperience in scope and complexity 17% Redesign of business processes and IT issues 14% Lack of communication 20% Failure to define objectives 17% Project Management Problems 32% Douglas Volz Consulting, Inc. ─ 4

Change Management May 3, 2009 Definitions Change management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state*. * Wikipedia, Change Management (People), March 15, 2009 Douglas Volz Consulting, Inc. ─ 5

Change Management May 3, 2009 Major Change has Always Been Recognized as Significant Challenge “ It should be borne in mind that there is nothing more difficult to arrange, more doubtful of success, and more dangerous to carry through than initiating changes in a state’s constitution. The innovator makes enemies of all those who prospered under the old order and only lukewarm support is forthcoming from those who would prosper under the new” Niccolo Machiavelli (1469 - 1527) Douglas Volz Consulting, Inc. ─ 6

Change Management May 3, 2009 Two Levels of Successful Change Mgmt Change Management Organizational change What we need to do to effectively design and integrate: People change What we need to do to get our people to: ¥ New work processes ¥ Understand accept the change ¥ New technology ¥ Commit themselves to preparing for it ¥ New application software ¥ ¥ New organization structure Be proactive in identifying & executing all actions necessary for success ¥ New performance standards Douglas Volz Consulting, Inc. ─ 7

Change Management May 3, 2009 Typical “Soft” Design Issues in System Implementation Projects ¥ Clear vision and goals ¥ Securing and retaining active sponsorship ¥ Effective communications ¥ Technical and legal barriers - habits vs requirements ¥ Cultural barriers ¥ HR/OD design to secure desired culture Douglas Volz Consulting, Inc. ─ 8

Change Management May 3, 2009 How to Use the Change Curve What’s in it for me: ¥ Where are you on the change curve? ¥ Where are other groups at your firm? Douglas Volz Consulting, Inc. ─ 9

Change Management May 3, 2009 Such strategies recognize the process that people go through when they experience change… deny commit resist explore Douglas Volz Consulting, Inc. ─ 10

Change Management May 3, 2009 To move people from the current to future state four key areas must be managed. . . Commitment Current State New State Case for Change Leadership Managing resistance WIIFM Time Douglas Volz Consulting, Inc. ─ 11

Change Management May 3, 2009 Resistance to Large Change Initiatives is Natural and must be Surfaced and Addressed Resistance to Change Dangerous Ideal Implement We need to surface resistance early so that people: n Fully understand the consequences of decisions n Learn to accept these consequences and become resolute Time If managers are not resolute at the time of implementation, it will fail Douglas Volz Consulting, Inc. ─ 12

Change Management May 3, 2009 Examples of Resistance. . . it needs to be acknowledged and positively managed. Confusion Deflection Immediate criticism Silence Denial Aggression Malicious compliance Avoidance Sabotage Leave Early agreement Douglas Volz Consulting, Inc. ─ 13

Change Management May 3, 2009 Managing implementation projects means addressing rational, political and emotional issues: Rational Political Emotional Douglas Volz Consulting, Inc. ─ 14

Change Management May 3, 2009 What Will Resistance Look Like? Don’t understand what I will do Don’t have the skills Rational Don’t know if it’s worth it Happy as I am Don’t think this will work Don’t have the time and resource Will I lose power Who’s sponsoring this How can I regain control I didn’t sign up for this Losing control of my destiny Political Risks are too high You are changing the rules Emotional Can I cope? Too much stress Why do this? Stupid consultants What’s in it for me Organization says project is failing Douglas Volz Consulting, Inc. ─ 15

Change Management May 3, 2009 The balance of where our effort goes should vary depending on what we are trying to achieve Technical solutions Rational Political Emotional Resolution is technical, clear and expert Emotional Effecting major change Rational Political Resolution is driven by behavior such as listening, coaching, encouraging and converting concerns into positive action Douglas Volz Consulting, Inc. ─ 16

Change Management May 3, 2009 We surface resistance and manage change by. . . Joint Teams Mobilization Sponsors Executive Alignment Communication Accelerated Training Douglas Volz Consulting, Inc. ─ 17

Change Management May 3, 2009 What makes a team. . . ¥ Shared goal ¥ Common behavior ¥ Extensive communication ¥ Division of tasks Success can only be achieved by mutually depending on each other If teamwork goes wrong. . . n Is there a common goal? n Is the team process understood and being followed? n Do team members understand their role? n Are all the right skills and resources available? Douglas Volz Consulting, Inc. ─ 18

Change Management May 3, 2009 The Motivation Cycle Mobilization events Motivation Involvement Action Recognition Progress success Involvement is the essential starting point for motivation Douglas Volz Consulting, Inc. ─ 19

Change Management May 3, 2009 Achieving mobilization Examples of mobilization events: Number of people involved Degree of participation Mass events Small events The more peoples role will change, the more mobilization they will need ¥ Email announcements ¥ Town hall meetings ¥ Clinics ¥ Open days ¥ Helpline ¥ Workshops ¥ Video ¥ Newsletter ¥ Cascade briefings Douglas Volz Consulting, Inc. ─ 20

Change Management May 3, 2009 Change cycle for mobilization “We can do this” “Something is being done” Positive feeling Engage “We can not go on as we are” Negative feeling Time Create new frame of reference Break current frame of reference “I’m outside my comfort zone” To really change, people must go down before they go up! Douglas Volz Consulting, Inc. ─ 21

Change Management May 3, 2009 More Examples of How to Manage Resistance Positive Attitude Involve customers Sponsorship Involve stakeholders Capture Concerns Involve users Recognize Problems Listen Build responses Proactiveness Douglas Volz Consulting, Inc. ─ 22

Change Management May 3, 2009 A Program Framework that … Integrates Program & Change Management Establish Program Foundation n Program Charter n Governance Model n Program Capability Assessment n Program Tool Set n Reporting and Administrative Processes n Team On-boarding and Training n Program Plan n Stakeholder Analysis n Organizational Risk Assessment n Start-up Communications Deploy Program Launch Projects n Benefit Measurement Plan n Leadership Strategy n Project Selection n Deployment Strategy n Mobilization and Alignment Plan n Promotional Campaign Plan n Communications Toolkit n Awareness Events n Workforce Impact Assessment n Knowledge Transfer Plan n Project Team Onboarding and Training n Project Charters n Project Plans n Risk Management n Priority Management n Project Management Toolkit n Monitoring and Control Build and Deploy Solutions Support Solutions n Validation Events n Deployment Team On -Boarding and Training n Deployment Toolkit n Future Organization Model n Workforce Transition Strategy n Training Strategy n Workforce Transition Plan n Training Plan n Job Design n Pre-Go Live Audit n Go-Live Prep Events n Lessons Learned n Post. Implementation Management Plan n Benefit Realization Report Douglas Volz Consulting, Inc. ─ 23

Change Management May 3, 2009 Summary On your next project, … consider the emotional, rational and political aspects of change Douglas Volz Consulting, Inc. ─ 24

Change Management May 3, 2009 Change management raises business performance by. . . Right People Culture Performance Strategy Right Things Right Way . . . ensuring that organizations have the right people, doing the right things in the right way Douglas Volz Consulting, Inc. ─ 25

Change Management May 3, 2009 Acknowledgements of assistance: For the following individuals named (and un-named – there are too many UK Oracle Consultants to list) during my 3 year international rotation at KPMG UK Consulting (now ATOS Consulting), I am indebted to what I learned from you and from our common projects about change management: • • • Tudor Aw Mike Greenwood Graham Harvey Peter Jones Anne Kelly Tim Payne Kaveh Pourteymour David Rennie Paul Rizos Meta Stewart Slide – 26 Cost Accounting As You Want It ─ EBS R 12 and SLA Douglas Volz Consulting, Inc. ─ 26

Change Management May 3, 2009 Professional Background for Douglas Volz Doug Volz has been working with the Oracle Applications since 1990. With a particular interest in Cost and Project Management, he has 30 years experience, including 11 years in industry for Cost and Accounting Management positions, 5 years in Oracle Development (co-designer for Oracle Cost Management), and 14 years in consulting with the Oracle Applications. His Manufacturing and Cost systems experience covers project management, business transformation, change management, software design/development, delivery and consulting services, for both Oracle Corporation and international consulting firms. Prior to his systems career, Mr. Volz also held numerous management accounting positions for telecommunications, defense, and electronics companies. Doug is considered to be a Subject Matter Specialist for Oracle Cost Management for distribution and manufacturing companies, as well as an excellent Project Manager/Advisor for Oracle ERP implementations. In addition, Doug leads the OAUG Cost Sub-Committee, for the Oracle Applications User Group (OAUG) for Discrete Manufacturing. He has written many papers about the Oracle Applications, ranging from leading project management practices for ERP implementations, to specific tips on the best use of Oracle Cost Management. Doug also advises to and participates on the Oracle Customer Advisory Board for Fusion Costing and the Fusion Strategic Supply Chain Strategy Council. Core Expertise Experience Multi-organization, Multi-currency ERP Projects Business Process Transformation Project Manager and Senior Project Advisor Core manufacturing processes 4 Cost Management 4 Inventory 4 Bills of Material/WIP ¥ Data Conversions Sample of clients served: ¥ Beckman Coulter (US) - Sr. IT Advisor/Finance) ¥ Onninen AS (Norway) - Sr. Project Advisor/Supply Chain ¥ NTL (now Virgin Media, UK) – Project Manager/All Areas ¥ Idec Izumi (Japan) - Sr. Project Advisor/Mgmt/Data Conv ¥ Motorola (UK, US) – Subject Matter Expert/Cost ¥ Logitech (US, Taiwan, P. R. C. ) – SME/Cost/Data Conv ¥ ¥ Douglas Volz Consulting, Inc. ─ 27

Change Management May 3, 2009 Thank You for Your Attendance and Participation Douglas Volz Consulting, Inc. ─ 28