© 2011 IMA www.imaworldwide.com 800-752-9254. All Rights Reserved At the Intersection of Change Management and Project Management: How to improve execution success for business change projects The webinar will begin shortly. Judd Andres, Senior Consultant Paula Alsher, VP, Client Solutions July 21, 2011 IMA (Implementation Management Associates) www.imaworldwide.com © 2011 IMA www.imaworldwide.com 800-752-9254. All Rights Reserved

© 2011 IMA www.imaworldwide.com 800-752-9254. All Rights Reserved At the Intersection of Change Management and Project Management: How to improve execution success for business change projects Judd Andres, Senior Consultant Paula Alsher, VP, Client Solutions July 21, 2011 IMA (Implementation Management Associates) www.imaworldwide.com © 2011 IMA www.imaworldwide.com 800-752-9254. All Rights Reserved

Today’s Agenda What is the human side of project management? What are the competencies required for the human side? How do you blend both the technical side and the human side for full integration? What’s the role of the governance structure in defining the approach? What is a best practice model for getting to value realization? Questions and Discussion

AIM Principles CAST needs to have commonly held definition of both the Present State and Desired State. AIM Principles Assure that technical project plans and human side proejct plans are integrated. Must have competent agents in sufficient quantity, and in the right places. If your change conflicts directly with the culture, culture wins. Change occurs in a context of all those priorities competing for resources… stress and history. You either reinforce the change or you reinforce the status quo Committed sponsorship is the single-most important factor in ensuring fast and successful implementation. Leverage both formal and F2F, assuring that content and messages are in the FOR of the intended audience Hammer for compliance, Transition Management for commitment. Resistance is inevitable. It must be managed. it cannot be combated, solved or overcome.

Installation does not equal Implementation Value Realization is achieved when projects are implemented, not just installed Implementation Success Defined: Implementation Installation On Time On Budget Technical Objectives met Business Objectives met Human Objectives met Implementation success for any initiative is typically defined in terms of being “on time”, “on budget”, and having met certain technical objectives. Less often do we really define success in terms of the achievement of business objects, and most importantly, human objectives. Human Objectives = behaviors we seek to see as a result of the change Most often, implementations fail because we fail to define and manage the human aspects of change – we need a process to help us do this (which is where AIM fits in) Installation does not equal Implementation

©2011 IMA www.imaworldwide.com Project Types & Phases Types of Projects Phases Reengineering Frame Vision Redesign POC Implement Six ∂ Define Measure Analyze Install Control Analyze Design Develop Implement Evaluate Training Innovation Define Model Abstract Solve Implement Strategic Planning Scan SWOTS Vision Strategy Design Implement Team Development Storming Forming Norming & Performing ©2011 IMA www.imaworldwide.com 6

Project Management Cycle Close Monitor & Control Execute Plan Initiate

PMI Knowledge Areas Project Management Plan – INTEGRATION: Scope Management Time Management Cost Management Quality Management Human Resource Management Communications Management Risk Management Procurement Management

PM Activity Flow Chart Initiate Plan Execute Monitor & Control Close INTEGRATION  Scope Time Cost Quality Resource Communications Risk Procurement  = Inputs, Outputs, Process, Tools

Principles of the Accelerating Implementation Methodology (AIM) AIM Modules: Define the Change Build Agent Capacity Assess the Climate Generate Sponsorship Determine the Change Approach Develop Target Readiness Build Communication Plan Develop Reinforcement Strategy Create Culture Fit Prioritize Action Copyright 2011 Rev Date 24 Mar 11

PM – AIM Integration Areas Initiate Plan Execute Monitor & Control Close INTEGRATION  Scope Time Cost Quality Resource Communications Risk Procurement = AIM Processes and Tools

Implementation Management Cycle Close Monitor & Control Execute Plan Initiate AIM

Integration Options © 2011 IMA www.imaworldwide.com 800-752-9254

Wasted resources, project fails Probability Outcomes Strong Purposeful control, but frequent changes to scope, budget and/or schedule On Time, On Budget, To Spec VALUE Realized Wasted resources, project fails Key Stakeholder buy-in, but low efficiency, spotty results and many restarts Blended Technical Side of Project Management Strong Weak Human Side of Project Management ©2011 IMA www.imaworldwide.com 800-752-9254 HO205 14 14

Evolution of Governance Structures 5 4 ET 6 8 7 1 2 3 Core AIM Experts Team ROI PHASE 4 Enterprise/Program Level Strategy ET Higher Priority Initiatives AIM Agents PHASE 3 Project Level Strategy PHASE 2 Adhoc Application Executive Team LDT Dashboard Line Projects Operational Projects Global Projects Site Projects TIME © 2011 IMA www.imaworldwide.com 800-752-9254 15

Governance & Implementation Management Process INITIATE (Define the Change & Value) PLANNING & DESIGN (Decide/Design Change, Determine Investments & Measures of Success - MoS) DEVELOP, EXECUTE, MONITOR & CONTROL (Manage Project & Team Performance) CLOSURE (Business & Team Review, Sunset) ≤ 1 month 2 weeks - 2 months 3 – 12 months ≤ 1 month Define Decide Manage & Monitor Reinforce Form Mngmt Team Define Scope Define the Change Assess the Climate Comms Outline Outputs: Initial BCA & From-To Assumptions & SWOTs Socialize the BCA Launch Core Team PMI Knowledge Areas Stakeholder Analyses All Ten AIM Modules Define Sponsor Commitments & Agreements Finalize BCA Outputs: Change Design / Blueprint Charter Key Role Map Resource Management Plan Project Plan Outline Launch Implementation Team Develop Technical Project Plan Develop Target Readiness Develop Communication Plan Implementation Risk Management Plan: Change Definition Sponsorship Readiness Communication Reinforcement Outputs: Integrated Project Implementation Plan Periodic Business Reports Including Performance Dashboard Technical and Behavioral Deliverables Business Review by ET Project & Team Effectiveness After Action Review Reinforcement Activities Final Communication Campaigns Outputs: Project Closure Reports Sunset Celebration Event Performance Dashboard: Parameters: Overall Health with sub indicators of Value – Risk – Resource ($, FTE, Time) Indicators: Red – Yellow – Green = Governance Go / No Go Decision. Outputs in Red are Must Haves for Governance Decision

Recommended Best Practices Consider Organizational Maturity when developing the Governance structure Ensure critical AIM steps/deliverables are integrated with the PM Plan Develop a Fit for Purpose plan at each decision point and generate the required Sponsorship Develop the WBS/Activity Schedule and support with Communication Plan. Communication Plan ≠ Implementation Plan Develop the Communication campaign for each deliverable. Socialize the change before, during, and after each phase Drive to achieve desired impacts not accomplishment of deliverables Ensure Reinforcement Strategy is aligned to Measures of Success

What Questions Do You Have? © 2011 IMA www.imaworldwide.com 800-752-9254