1. Theresa Childress Clark Collins Jason Morgan

2.  Change management is defined as the practice of managing the human elements associated with project implementation  Implementation examples in the Controller’s department ◦ Implementation of a new financial system ◦ New chart of accounts ◦ New accounting related process

3.  Human elements are the largest reason for the failure of a project ◦ Transition is uncomfortable to workers  Learning new routines  Workers resistant to change ◦ The cost associated with training employees is high  Production time can be cut to 25% of regular level  This illustrates the importance of quick implementation  Also social gossip spreading through the company causes a huge time constraint and often a negative effect on company-wide moral

4.  Review Implementation history before starting -Identify effective an ineffective facets of implementation in previous projects  Helps pinpoint past weaknesses to avoid  Shows reasons for success that should be repeated -Patterns to look for -How realistic were the implementation budgets? -What support was given to employees who had to do work differently

5.  First step in reviewing implementation history is to categorize these projects ◦ Objectives were achieved on schedule and within budget ◦ Objectives were achieved, but somewhat off schedule or over budget ◦ Objectives achieved, but significantly off schedule or over budget ◦ Objectives were not achieved before installation

6.  After categorizing the projects, look for patterns to emerge in the way the implementation effort was managed ◦ Patterns to look for include  How realistic were the budgets and schedules  What support in addition to training was given  Were employees given adequate time to learn new activities while balancing regular responsibilities  How much communication was there, and which were the most effective  How were people rewarded  How were unexpected events handled

7.  Implementing an ERP system ◦ Objective is to integrate key processes of an organization such as order entry, manufacturing, and accounts payable so one system can serve all the company functions needs.  Improves communication channels throughout the company  Supplies management with real-time information to help with timely decisions to achieve competitive advantage.

8.  ERP systems change the way a company does business more so than changing the technology ◦ People at first will be resistant to learn the new system.  Training can be costly  Production will be less during implementation ◦ Must review past implementation history to see which approach to use

9.  Big-Bang ◦ Switches from the legacy system to the new system all at once.  Quick start so lower cost  Reduced production will be brief  More risk because if problems occur there is no turning back  Must look at previous history to judge how the company culture will conform to the change  Must have very good technical support staff to coach employees through the process quickly

10.  Phase in approach ◦ This approach starts with one or two processes at a time to gradually phase in the entire system  Less risky than Big-Bang because if problems arise the legacy system can still be used  Best for companies that are not as diversified, or if past history showed resistance to change  Could cause loss in production to gradually be reduced while the system is slowly put in

11.  How an organization decides which projects initiatives to go through with…

12.  “One of the main problems in business today is that there are too many ideas, not too few.” -George Tanewski, Monash University

13. 1. Does the project support the company’s long term goals?

14. 2. How well do projects relate or detract from each other?

15. 1. Does the project support the company’s long term goals? 2. How well do projects relate or detract from each other? 3. Which personnel will be affected by the changes?

16. 1. Does the project support the company’s long term goals? 2. How well do projects relate or detract from each other? 3. Which personnel will be affected by the changes? 4. Are there overlapping time frames that may need to be adjusted?

17. 1. Does the project support the company’s long term goals? 2. How well do projects relate or detract from each other? 3. Which personnel will be affected by the changes? 4. Are there overlapping time frames that may need to be adjusted? 5. Which employees will perceive themselves as winners and losers due to the change?

18.  Which projects have highest priority?  Which ones need to be delayed or scrapped?  What is a realistic time frame for each project?  How will overlapping be handled to reduce the burden on personnel?  How to communicate the changes through the organization?

19.  How much will the change affect he way personnel performs their work?  Will personnel be able to understand the changes and the effects of the changes?  Does the personnel affected need training?  How will their daily routines differ?  How have they embraced past changes?

20.  The Obvious ◦ Wasted Time ◦ Wasted Money ◦ Wasted Effort  The Not-so-Obvious ◦ Decreased Morale ◦ Doubts about Leadership Its important that all decision makers are on the same page when it comes to the cost of failure.

21.  Measure risk from a change management perspective to help achieve project objectives ◦ Adequacy of sponsorship ◦ Adequacy of the motivation ◦ Vision of clarity ◦ Degree of resistance  Understand the factors  Budget and increase chance of success

22.  The project will need support throughout the organization  Single most important factor in change management  Must have effective sponsors

23.  Characteristics of Effective sponsors ◦ Adequate time and attention to communications about the projects, its importance, its objectives and its status ◦ Ensure adequate resources and maintain them ◦ Spend time with individuals to help them understand the project  People listen to what sponsors say, do not say, and do  Make sure these are consistent to achieve the objectives of the project

24.  Transforming target groups into sponsors  Cascading sponsorship must be developed and maintained Harrington, p71

25.  Change Management Learning Center.  Prosci’s research data covers more than 1600 organizations from 59 countries, with 5 longitudinal studies in the past 9 years.  Over half of Fortune 100 companies are using Prosci's change management models and tools.  http://www.prosci.com/about-prosci.htm http://www.prosci.com/about-prosci.htm

26.  The bigger the transition the more motivation people need http://www.positive-thinking-for-you.com/images/motivation_research.gif

27.  Motivation is created by an understanding of problems that have to be addressed or opportunities that can be used advantageously  Problems can create motivation for change ◦ People want to change existing problems  Focus on the reasons for making the change ◦ Make them feel uncomfortable with their current situation ◦ Belief System theory

28.  Belief System theory ◦ Individuals value their beliefs and this influences their attitudes ◦ Look at change within the individual ◦ Focus on what the individual wants to achieve Cameron, 22

29.  Must have a vision to arrive at the desired end  Vision must be clear and actionable  Clarity requires time and sponsorship  Repetition is key  Stay clear of resistance because of fear of disruption … Do not confuse it with the vision.

30.  People do not resist change they resist disruption  Often means that people understand what they are being asked to do

31.  Causes of resistance ◦ Confusion about the projects vision ◦ Inadequate motivation ◦ Unclear or inconsistent messages from sponsors and other key individuals about the importance of the project ◦ Poor implementation history ◦ Lack of Adequate time to respond the and absorb the changes ◦ Organization’s history of failing to deal adequately with people who ignore project directives.

32.  Allow resistance to be expressed openly  Identify the source of resistance ◦ Lack of knowledge= educate ◦ Just in time education allows the people to use the skills soon after learning them  Make specific measures to assess project progress and individual achievement  Allowing people to resist a project invites failure.

33. Mr. Jerry Collins President and CEO of Memphis Light, Gas and Water

34.  http://www.prosci.com/about-prosci.htm http://www.prosci.com/about-prosci.htm  Change Management Excellence: The Art of Excelling in Change Management Volume 3 of Five pillars of organizational excellence, H. James HarringtonH. James Harrington  Creativity in Business, George Tanewski, Monash University. http://www.ceoonline.com/pages/2_29_533.asp x http://www.ceoonline.com/pages/2_29_533.asp x  Making sense of change management: a complete guide to the models, tools & techniques of organizational change The Change Series Authors Esther Cameron, Mike Green, 2004.Esther CameronMike Green