Pam Waters Change Management Team Leader DTI – State of Delaware

ERP Change Management Getting from Here to There

Delaware’s ERP Background State of Delaware 67 Organizations 35 State Agencies 19 School Districts 13 Charter Schools 38,000 Employees 12 Unions Represented 37 Different Locals

State of Delaware ERP Systems ERP Systems In Progress Implemented PeopleSoft HCM V 8.8 (HR/Benefits/Payroll) X eBenefits eRecruit Time & Labor V 8.8 PeopleSoft Financials V?

1990’s G G G 1990’s — Various False Starts July 1999 PeopleSoft Human Resource Version 6.02 implemented Benefits Administration & Payroll — Unsuccessful Rolled back to Mainframe Legacy System

August 1999 – February 2000 Project managed by consultants Low team morale Multiple project plans to ‘fit’ budget Production support for Human Resources Chain of command – multiple reporting structure

March – December 2000 Became a ‘state – managed’ project Acquired additional state resources Rearranged project team Added full time Change Management team Single reporting structure

December 2000 – July 2001 Change Management Team formed Strategy developed Prepared (readied) State Organizations End-User training (1300) Successful HR (V6.02 to 7.51) Upgrade & Benefits/Payroll implementation

Why ERP Implementations Fail 42% Leadership 27% Organizational & Cultural Issues 23% People Issues 4% Technology Issues 4% Other Organizational issues left unchecked often lead to project failure Source: Organization Dynamics, Jim Markowsky

ERP Lessons Learned High – level commitment Acquire “Best of the Best” state resources Avoid modifications – re-engineer 1st Visionary Change Management Production support project plan

State Agency Transformation Senate Bill 215 established new agency The Department of Technology & Information Office of Major Projects Chief Program Officer Project Management Team Change Management Team

What is Change Management? Definition The organized, systematic application of knowledge, tools, and resources of change that provide organizations with a key process to achieve their business strategy Goal Provide the structure & guidance necessary to effectively prepare organizations for the successful acceptance of cultural change

Change Management Objectives Provide awareness Ensure understanding Facilitate acceptance Care, listen, and respond Manage people’s expectations Ensure readiness Champion the project

Source: Change Management Learning Center Risk and Flight Model Source: Change Management Learning Center

The Goal of Change Management Source: Change Management Learning Center

Greatest Success Factors Active and visible sponsorship Use of Change Management process & tools Effective communications Employee involvement Effective project leadership and planning Source: Prosci Benchmarking Report

Greatest Obstacles Resistance from employees and managers Inadequate senior management sponsorship Cultural barriers Lack of change management expertise Source: Prosci Benchmarking Report

From ©Prosc Change Management Learning Center Successful Change Post Implementation Implementation Concept & Design Business Need Desire Awareness Knowledge Ability Reinforcement BUY - IN INVOLVEMENT Successful Change From ©Prosc Change Management Learning Center

Change Management Standards Prepare with the project team Assess change/culture Develop/educate team Manage the strategy Develop and manage the plan Track/report readiness Develop training strategy Reinforce/Support Celebrate success Analyze feedback and prepare to manage resistance

Change Management Tools Scope of Change Assessment Organizational Readiness Assessment Stakeholder Analysis Sponsor Roadmap DTI Readiness Methodology Communication Standards Reporting/tracking standards Control Book Measures of Success/Lessons Learned

DTI Readiness Methodology All Project Teams INPUT Functional Impacts Master Readiness Tracking Spreadsheet Readiness Checklist Functional Impacts Documentation End Users Successful System Implementation

Tracking Station

Implementation Success Factors Source Understanding PeopleSoft 8 Lynn Anderson, Cap Gemini Ernst & Young

Continuous Improvement Change Competency Linked to project management processes Start at the beginning Required for all ERP projects Systematic Change Management processes Defined methodology Consistent tools Greater Capacity for Change

Q & A