1. Evolution of Change Management in Delaware

2. Change Management Discussion In the Past In the Beginning Current State Lessons Learned Future of Change Management

3. 1999 –PeopleSoft Human Resource Version 6.02 implemented Benefits Administration & Payroll Unsuccessful –Rolled back to Mainframe Legacy System 2000 –Pulled plug on SAP Financials Implementation Various False Starts

4. Birth of Change Management with PeopleSoft HCM Successful HCM (V 7.51) – July 2001 Change Management Team formed –Strategy developed –Prepared (readied) State Organizations –End-User training (1300+) Successfully Upgraded through v. 8.8

5. Lessons Learned from False Starts High – level commitment Acquire Best of the Best state resources Avoid modifications – re-engineer 1 st Visionary Change Management Production support plan

6. 42% Leadership 27% Organizational & Cultural Issues 23% People Issues 4% Technology Issues 4% Other Organizational issues left unchecked often lead to project failure Why ERP Implementations Fail Source: Organization Dynamics, Jim Markowsky

7. Managing-Planning Process Review Existing Business Processes Existing Forms Existing Policies Existing Procedures Master Readiness Tracking Spreadsheet Functional Impacts Hardware/Software Requirements Comprehensive Change Management Plan is Developed Identify and Recruit Individuals to act as coordinators for project implementation Hold CM Team Kick-off Meeting Document Process Changes Functional Impacts Create Master Readiness Tracking Spreadsheet Change Management Project Plan Determine Sponsor Model Avenues for communication that will be used Timing, audience, method, topic for important communication

8. Change Management Tools Organizational & Project Attributes Assessment Project Readiness Assessment Stakeholder Analysis Sponsor Roadmap Readiness Methodology –Change Management Standards Communication Standards –Reporting/tracking standards –Control Book Measures of Success/Lessons Learned

9. Managing Organizational Change Tracking, Measuring, and Reporting –Functional Impacts Spreadsheet –Master Readiness Tracking Spreadsheet –Readiness Checklist –Checklist Summary –On-site Tracking Station –Project Status –Executive Sponsor Reporting

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

11. How to get it Done The Team Structure

12. Executive Sponsors Project Team Change Management Project Lead Communications Coordinator Change Management Coach Change Management Coach Change Management Coach Change Management Coach Green Team Yellow Team Blue Team Red Team... Project Director CM Team Structure

13. CM Team SponsorsPM TeamEnd-UsersMGRs Business Owners Partner Groups Supervisors Change Management as Communications Hub

14. Comfort UnawareDenial Anxiety Insight What is happening? Whats in it for me? What will I do differently tomorrow? How do I prepare? How do I stay motivated? Organizational Change Phases and Communication

15. Who/What? Why is this system necessary? Align the change with the mission/vision and strategic direction of the organization Offer a broad overview of how the organization will transition – what & when Present the benefits Identify business risks of not changing Make sure the organization knows this will happen – not an option Senior Executives The change and impact on the organization

16. Who/What? Provide the what's in it for me information – how will roles change? How will I get the training to do my new job (will I be able to do the job)? Ask for employees ideas/suggestions for implementing the change Provide timely & and accurate status The change and the impact on the individual Managers Supervisors

17. Readiness Preparing/Tracking/Reporting

18. Readiness Methodology All Project Teams INPUTINPUT Functional Impacts Successful System Implementation End Users Readiness Checklist Master Readiness Tracking Spreadsheet Functional Impacts Documentation

19. End-User Identification & Skills Inventory End-User Inventory –End-User Identification –Manager/Supervisor Identification –Skills Gap Analysis –Identify IT Support Personnel and Technical Specifications

20. End-user Inventory 1 st End-user Identification and Demographic Information 2nd Skills Inventory 3rd IT sppt.

21. Executive Sponsor Reporting

22. Customized Coaching Plan Prepare managers and supervisors to coach their employees through the change Coaching Plan

23. Transition Process Transition Develop Transition Plan Train Organization resources

25. Transition Ownership to Business Owner Knowledge Transfer Plan –Identify required skills by project team role –Assess current skills –Develop an agreed upon action plan and milestones –Re-assess semi-annually for life of project

26. Current State

27. Delawares Business Structure State of Delaware –73 Organizations 35 State Agencies 19 School Districts 17 Charter Schools 2 Higher Ed Institutions –342 Business Units 38,000 EEs 12 Unions Represented –37 Different Locals

28. Current State of Delawares ERP ERP SystemsIn ProgressImplemented PeopleSoft HCM V8.8 (HR/BA/PR/TL) X eBenefits X PeopleSoft HCM V8.9 X FMLA V8.9 X Components of Pay V8.9 X PeopleSoft FSF V 8.9 12 Modules X

29. Change Management Lessons Learned

30. Planning for Major Projects (ERP) is a Critical Success Factor is a Critical Success Factor Addressed Primarily by Organizational Change Management Type People Process Technology Addressed Primarily by Business Process Redesign Addressed Primarily by Package People and process issues are sometimes overlooked in planning for this type of project. They need to be addressed for the project to be a success.

31. Project Management Project Initiation Project Planning Project Executing Project Controlling Project Closing Change Management Managing Change-Planning Managing Change-Execute Preparing for Change Monitoring Change Transition Process Integration

32. Achieving Successful Organizational Change 1.Dedicate resources to Organizational Change Management 2.Secure visible executive sponsorship early in the project 3.Repeat key messages early and often 4.Involve State organizations in the change process 5.Create a transition strategy with achievable timeframes

33. Monitor Change Survey End Users Post implementation –Three months –Six months –One year Complete control book –Lessons learned tracking –Survey results –Training and meeting evaluations –Help desk call analysis –Checklist statistics

34. Celebration & Recognition!!! –Milestones/successes –Implementation success Reinforcement

35. Change Management In the Future… Focus of all Major Projects Statewide Utilize Change Management for Benchmarking Initiatives for ERP –Setting the Stage for Shared Services Centralized Fixed Assets Start Slow for Centralizing AP –Analyze Drivers For Process Change Use for ERP Production Support

36. ??????????? Please Contact Pam Waters, Delaware Change Management Coordinator pamela.waters@state.de.us Phone: 302-739-9815 Delaware Change Mgmt Standards http://dti.delaware.gov/majorproj/standards.shtml