1. Change Management: Getting User Buy-In Karen Coffman Katie Lutes

2. Change occurs in two dimensions, people & technology. Change Management A structured approach to helping an organization and its people smoothly transition from a current state to a sustainable desired state. Key Messages Change can be led and managed.

3.  2005 – Gartner  45% of failed projects reported deficiencies in organizational change management, second only in frequency of occurrence to actual deficiencies in system delivery. “Build it and they will come?”  1995 – Standish Group  U.S. government and businesses spent approximately $81 billion on canceled software projects, and another $59 billion for budget overruns.  Causes of failure included: poor user input and vague requirements, stakeholder conflicts, failure to plan, and communications breakdowns.

4. Cross Talk, The Journal of Defense Software Engineering, August 2004 Impact to Actual Projects

5. 84% of respondents agree that CM has improved the performance of their organization. Holger Nauheimer Survey 2005 Impact to Productivity Normal Productivity Level Performance Level Change Initiated Severity of Impact Benefits Realization Productivity drop Back to normal Timeline The time horizon it takes to move from one stage to the other depends on the change size. Without Change Management Change Management Applied 1 2 3 1 2 3 Productivity loss reduced. Faster adoption: the longer a project drag the more at risk it is to vanish. Expected level of performance achieved.

6. Organizational change management (OCM) Managing change from the leadership perspective; top looking down into the organization. Focus on the vision of the change, business value, and business opportunities. Individual change management Managing change from the individual/employee perspective. The people who ultimately have to adapt to the change. Focus on personal impact, employee roles in the change, and individual benefits (WIIFM). Approach: Balance People Perspectives

7. Approach: Three-Phase Process Creating conditions for change Phase 1: Prepare Establish a vision for change Integrate change management activities into the project plan Assess communication landscape Determine champions and strategic partners Develop performance metrics  Collect data  Assess change readiness  Engage Stakeholders Phase 2: Implement Making change happen Visible leadership guidance Celebrate quick wins and innovation Monitor progress Develop corrective actions to resistance Leverage lessons learned Re-adjust plan  Implement communications plan  Design and develop change materials  Conduct training Phase 3: Institutionalize Making change stick Utilize the performance structure Ensure organizational alignment of policies, procedures, training and development, hiring …etc. Maintain active project structure  Ensure stakeholders stay engaged  Recognize and communicate successes and wins  Maintain momentum  Keep communicating

8. Exercise Instructions At your table, discuss the given scenario and identify two critical change problems and corresponding actions to manage change relative to your phase of the change life-cycle. After 15 minutes of discussion, each table will report out on one critical change problem and the corresponding action. Red = PrepareBlue = ImplementGreen = Institutionalize

9. The Director of Agency X has mandated that the organization’s financial systems be migrated to a shared service center. With the migration, senior leadership has mandated that Agency X must achieve a cost/budget reduction of 20% across the organization. Red = PrepareBlue = ImplementGreen = Institutionalize Characteristics of Agency X: 40% of the workforce is over the age of 55. This is the third Director in the past 5 years. There was a recent highly publicized failure of a transition to a shared service provider by another Agency. Agency X is located in Virginia, the shared service center is located in Idaho. Characteristics of Agency X: 40% of the workforce is over the age of 55. This is the third Director in the past 5 years. There was a recent highly publicized failure of a transition to a shared service provider by another Agency. Agency X is located in Virginia, the shared service center is located in Idaho. Exercise

10. Contact Information Karen Coffman SAIC Senior Management Consultant P: 703-676-5122 Coffmank@SAIC.com Katie Lutes SAIC Management Consultant P: 703-676-2439 Lutesk@SAIC.com