1. How to Manage the Organizational Change LaMarsh & Associates, Inc.
Surviving
ERP
How to Manage the Organizational Change
Herman A. Zwirn CIRM
LaMarsh & Associates, Inc.
K. Judge

2. participants will ... Learn a working model of Change Management
Determine how to use Change Management strategies and tactics in your ERP implementation

3. The Nature of Change
Mythology and Fact

4. Organizational change: and the beat goes on...
"We trained hard-but it seemed that
every time we were beginning to
form into teams, we would be
reorganized. I was to learn later
in life that we tend to meet any new
situation by reorganizing; and what
a wonderful method it can be for
creating the illusion of progress
while producing confusion, inefficiency and
demoralization."
PETRONIOUS
(1st Century Roman and advisor to Nero)

5. Some myths or Why we don’t need change management
People will always adapt to change.
Change happens, you don’t have to manage it.
That’s what we pay our managers to do.
The project will get done with or without change management.
If you change the process, everything will change.
ERP makes change happen.

6. Failure is Possible FAILURE No Plan for Implementation
Fuzzy Definition of Desired State
Failure to Integrate all Changes

7. Critical Success Factors
User Involvement
Executive Management Support
Clear Statement of Requirements
Proper Planning
Realistic Expectations
Smaller Project Milestones
Competent Staff
Ownership
Clear Vision and Objectives
Hard Working Focused Staff

8. Change is about...
Organizations
Individuals
Results

9. Change is about...
Structure
Process
Culture
People

10. Stages of Change WHY? HOW? WHAT? Current State Delta State
K. Judge
Current State
Delta State
Desired State
WHY?
HOW?
WHAT?

11. Layers of Desired State
Company’s Desired State
Department’s Desired State
Target’s Desired State

12. Desired State
Structure
Process
Culture
People

13. Dip in the Delta
Productivity
K. Judge

14. Dip in the Delta
Productivity
K. Judge

15. Why?
“There are many ways to achieve it, but managing change is no longer a competitive discriminator – it is just part of the ante to get into the game. Competitive advantage goes to the company that can manage change and embrace innovation, proactively, while minimizing perturbation of existing operations.”
Based on Next Generation Manufacturing Project, The Agility Forum

16. The Methodology of Change

17. What is it?
Change management is the methodology that integrates change and the ability of the organization and people to adopt it.
It is an organized, systematic application of the knowledge, tools and resources of change that provides organizations with a key process to achieve their business strategy.
It is a real tool to mitigate the risk and increase both the ownership and sustainability of change.

18. What you need
A consistent and scalable model of change that matches the change process
A disciplined methodology to implement the model that can be integrated into the way work is done
A learning system that embeds a change capability into the workforce

19. External Change Drivers Internal Change Drivers
Managed Change™ Model
External Change Drivers
Internal Change Drivers
Prepare to Change
Resistance
Sponsor
Target
Change Agent
Culture
History
Identify the Change
Delta
Current
Desired
Plan the Change
Reward
Communication
Learning
Implement the Change
Sustain the Change

20. How?
Methodology

21. Company Process Structure Culture People
Apply a change model to the ERP implementation
Introduce a change methodology
Use the change methodology as a part of all aspects and levels of the ERP implementation
Link ERP to business strategy
Support an ERP Process Change Center of Excellence
Define internal connections to build sponsorship cascade
Define executive sponsor roles
Culture
People
Build organizational change learning capability
Process Orientation
Create sponsor level Learning
Integrated Enterprise Thinking
Seeks change
Focused, disciplined and patient

22. Departmental Process Structure People Culture
Apply a scalable change model
Apply a change methodology to implement the model
Embed the change methodology into other ERP methodologies
Build Departmental Sponsor Cascade
Define ERP roles and responsibilities
Create key role charters
Define ERP performance measures
People
Culture
Change resilient
Knowledge based
Value driven
Cross-functional Partners
Process-driven
Customer focused
Develop knowledge of ERP and organizational change
Know enterprise role of the department
Develop change agent skills
Develop ability to use the change methodology

23. Individual Structure Process People Culture
Design jobs to include change management
Build in ERP role and measures
Build change agent measures into performance evaluation
Design work flow and methodologies to include change management tasks.
Change management is a work habit
People
Culture
Provide general change process knowledge
Process thinking capability
Apply change agent skills
Develop target skills
Create tolerance for change
Knowledge driven
Value centered
People centered
Customer centered

24. ERP Managed Change™Integration
Governance
&
Identify
the
Change
Go Live
Prepare to
Change
Plan
the
Change
Implement
the
Change
Sustain
the
Change
Plan
Assess
Develop
Deploy
Post-Audit
Results
Build Project
Infrastructure
Define goals and
Set expectations
Design and
Finalize
Communications
Learning (Training)
And
Rewards
Launch and Execute
System Events:
Communication
Learning
Rewards
Event designs
Turnover
Responsibility
Identify
Next Steps:
Knowledge
Transfer
Data Gathering and Analysis
Identify Risk/
Identify issues / response
Establish Sponsorship
Build Team strength
Change Communications
Specific communications, learning and rewards events
Executive
Kick-off
Business Assessment
Analysis
Implement System/
Processes / Policies
Own It
Configuration

25. Elements of successful change
Commit to making change management a key competency and part of the ERP strategy.
Explain why the Current State is no longer viable.
Clearly define the Desired State that will result from the ERP implementation.
Build a systematic change-management methodology to implement your change during the ERP Delta State.
Integrate that methodology into the heart of the ERP project and the organization.

26. Discipline
The ERP Desired State as requires the continuous, conscious process of applying a systematic change methodology to implement ERP and build a sustainable future that is owned by the greatest majority of people in the enterprise.

27. Why is this Important? BENEFIT RELATIONSHIPS
Process technology
Process automation
Information System
Technical / task based skills
Information and business systems capabilities
Enterprise understanding
Inter-personal and collaborative behaviors
Ownership/Innovative Application
BENEFIT RELATIONSHIPS
60%
20%

28. It makes a difference
It impacts 90% of project critical success factors
It impacts 100% of the factors reported to cause projects to fail or be cancelled
Benefits are obtained earlier
Failure risks are reduced

29. Critical Success FactorsMC
User Involvement
Executive Management Support
Clear Statement of Requirements
Proper Planning
Realistic Expectations
Smaller Project Milestones
Competent Staff
Ownership
Clear Vision and Objectives
Hard Working Focused Staff MC MC MC MC MC MC MC MC

30. Your Turn Questions Comments Concerns Ideas Herman A. Zwirn CIRM