3. Pam Waters Change Management Team Leader
DTI – State of Delaware

4. ERP Change Management
Getting from Here to There

5. 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

6. 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?

7. 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

8. 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

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

10. 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

11. 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

12. 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

13. 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

14. 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

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

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

17. The Goal of Change Management
Source: Change Management Learning Center

18. 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

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

20. 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

21. 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

22. 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

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

24. Tracking Station

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

26. 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

27. Q
& A