Types of Systems  Impact of systems implementation on organization change? Transaction Processing Systems (TPS) Management Information Systems (MIS) Decision Support Systems (DSS) Expert Systems (ES) Enterprise Resources Planning Systems (ERP) E-commerce or M-commerce systems Customer Relationship management systems (CRM) Supply chain management system

Large scale application systems Implementation  Cross functional boundaries  Force a number of changes simultaneously the information flows are changed roles are changed new responsibilities for the roles

Change from new enterprise systems  When the organization is undergoing change from new enterprise systems:  The two perspectives present  Theory and principles of change management  The processes, ADKAR and Organizational phases  Connecting change management and process improvement programs

Lessons from the past  In countless studies the one thought voiced over and over by those who tried to implement large scale changes is “more effort should have been spent on getting people to change their behaviors willingly” -or- "utilize an effective and planned change management program."

Change Management Definition  … is about managing people in a changing environment so that business changes are successful and the desired business results are realized  Hiatt & Creasey, p.10

Two Perspectives of Change  Organizational and Individual Priorities Motivations Knowledge sets

Organizational PerspectiveIndividual Perspective What is the required investment? How will this change impact our financial performance? What is the return of the investment? When can the change be completed? How much improvement will be realized? How will this change impact our customers? What will this change mean to me? Will I have a job? Do I have the needed skills and knowledge to succeed in the new environment

Theory and principles of change management change Principles Senders and Receivers Resistance and Comfort Authority for Change Value Systems Incremental Versus Radical Change The Right Answer Is Not Enough Change is a Process

Senders and Receivers  Each change is always viewed from the perspective of a sender and a receiver. What the sender says and the receiver hears are usually two different messages. Factors Influencing what is heard: career plans, home, past experience, friends, performance, trust Primary business impact sender -- Top Mgt Primary personal impact sender -- Immediate superior

Resistance and Comfort  Resistance is the Norm – Plan for it Expect it Assess how much change is already present Determine cause of resistance and Then remove cause

Authority for Change  #1 success factor -- VISIBLE, ACTIVE, CONSISTENT EXECUTIVE SPONSOR Who has power to legitimize and sanction  Executives  mid management  Professionals/employees

Value Systems  Old Value hierarchical, control oriented, predictability  New Value responsive to customer, flat, empowerment, accountability  MUST address both perspectives (Individual and Organizational)

A contrast in Value Systems Old ValueNew Value Command“Jump” Response“How high”“Why”

Incremental Versus Radical Change  Type and size of change determine the level of change management levels Order of magnitude of change Incremental needs less While Radical needs more

The Right Answer Is Not Enough  Give and take is essential for success Right answer to a business problem is not sufficient to overcome employee resistance Doing the "rational" best vs. Involving everyone and "buy-in" for success.

Change is a Process  Takes time  Stages Individual level and Organizational levels. Ideally both are going their stages at similar speeds.

Change is a Process Organizational Stages Individual Stages (ADKAR) Business Need Concept and Design Implementation Post-Implementation Awareness Desire Knowledge Ability Reinforcement

The Processes Stage Description Awareness of need for change -- reasons, and degree of comprehension Desire to participate and support -- motivating factors and consequences and level Knowledge about how to change -- skills and insights Ability to implement new skills and behaviors -- evaluate level and determine shortcomings Reinforcement to keep the change in place -- incentives and constraints to make it stick For Individual Change Management

PHASE 1 PREPARING FOR CHANGE Define your change management strategy based on scope, risk, readiness, resources, sponsorship Prepare your change management team (selected and trained) Prepare your sponsorship model PHASE 2 MANAGING CHANGE Develop change management plans Take action and implement plans communication plans, coaching plans, training plans, sponsor roadmaps, resistance management plans PHASE 3 REINFORCING CHANGE Collect and analyze feedback Diagnose gaps and manage resistance Implement corrective actions and celebrate successes The Organization Change Management

Integrating Change Management with process improvement Business Improvement Process Steps Change management component 1 = Problem or opportunity identification 2 = Project planning and team formation 3 = Data gathering and business solution design 4 = Process and system development 5 = Implementation and measurement a.organizational and change assessments b.team readiness and sponsor preparation c.awareness building, communications and training d.coaching, feedback and employee involvement e.resistance management.

Connecting change management and process improvement programs Which diagram shows a superior change management plan? Why?

Discussion Questions  How does the principle of senders and receivers make the project communications effort more complex? Give examples.  How important is ADKAR framework for directing the implementation of IS projects with end users? Give examples.  Why would a project run more smoothly when change management is emphasized from the beginning?