1. ERP Change Management – Getting from Here to There
Pam Waters
Change Management Team Leader
Department of Technology & Information
State of Delaware

2. Evolution of Organizational Change Management in Delaware

3. Delaware’s ERP Background
State of Delaware
67 Organizations
35 State Agencies
19 School Districts
20 Charter Schools
36,000 Employees
12 Unions Represented
37 Different Locals

4. State of Delaware ERP SystemsX
Time & Labor V 8.8
PeopleSoft Financials V 8.9 (Implementation)
eBenefits
PeopleSoft HCM V 8.8
(HR/Benefits/Payroll)
PHRST
ERP Systems In Progress Implemented
PeopleSoft Financials V 8.9 (Re-engineering)

5. Payroll Human Resources Statewide Technology
Delaware
PHRST
Payroll Human Resources Statewide Technology

6. 1990’s 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

7. 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

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

9. December 2000 – July 2001 PHRST Project
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

10. 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

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. Planning for ERP 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.

13. PHRST Upgrade 2004
V 7.5 to V 8.8

14. Project “French Vanilla”
Formed to eliminate/reduce system modifications
Led by Cabinet Secretary
Identify areas needing new legislation
Optimize current business processes
Communicate with state organizations

15. PHRST Upgrade V7.51 to V8.8 Client Server to Web based
Not much functionality change
Back out of some modifications due to re-engineering effort of project French Vanilla
One year timeline
Planning began in April 03 before actual funding July 1
Tremendous change to look and feel!
Internet education
Go live was a non-event!

16. Department of Technology & Information
Office of Major Projects
Change Management Team

17. State Agency Transformation
Governor & General Assembly established new agency
The Department of Technology & Information
Office of Major Projects
Chief Program Officer
Project Management Team
Organizational Change Management Team

18. Technology Investment
Council
PMO

19. Process Integration Project Management Change 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
Reinforcing Changes

20. Organizational Change Management

21. What is Organizational 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

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

23. Greatest Success Factors
Active and visible sponsorship
Use of organizational change management processes & tools
Effective communications
Employee involvement
Effective project leadership and planning

24. Greatest Obstacles Resistance from employees and managers
Inadequate senior management & sponsorship
Cultural barriers
Lack of change management expertise

25. 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

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

27. Assessing the Organization
Risk Determination Table
110
Small incremental change to a change resistant organization
Large Disruptive Change to a Change Resistant Organization
Small incremental change to a change-able organization
Large Disruptive Change to a Change-able Organization
Medium Risk
High Risk
Organizational Attributes 44
Low Risk
Medium Risk 22 12 24 60
Change Characteristics
[1] Modified from Prosci.

28. Change Management Project Lead Communications Coordinator
Executive
Sponsors
Project Team
Change Management Project Lead
Communications Coordinator
Change
Management
Coach
Green Team
Yellow Team
Blue Team
Red Team
. . .
Project
Director
ERP Team Model

29. ERP Change Management Team – Project Members
Manage the resources
Manages the CM project plan
Receives status from the Readiness Lead
Reports status to the Project Manager and Project Director

30. ERP Change Management Team – Project Members
Works with the coaches to compile checklist activities, communications, workshops etc.
Receives status of organizations from the coaches
Reports status to the DTI CM Team Leader

31. ERP Change Management Team – Project Members
Communicate activities to the Readiness Coordinator
Track organizations’ progress
Report status to Change Management Lead
Help facilitate workshops & focus groups

32. ERP Change Management Team – Project Members
Develops communication plan
Creates branding/logo
Tracks communications sent
Develops PPT presentations

33. ERP Change Management Team – Organization
Is empowered to delegate checklist tasks to the appropriate resource within their organization
Ensures timely completion of tasks
Signs off on monthly checklists and returns to their coach
Forwards communication to the appropriate individual
Usually a subject matter expert (SME)

35. Preparing/Tracking/Reporting
“Readiness”
Preparing/Tracking/Reporting

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

37. Functional Impacts

38. Master Readiness Tracking Spreadsheet

39. Readiness Checklists

40. Executive Sponsor Reporting

41. Managing Change
On-site Tracking Station

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

43. 1st End-user Identification and Demographic Information
End-user Inventory {
1st End-user Identification and Demographic Information
2nd Skills Inventory
3rd IT sppt.

44. “Readiness”
Communication

45. Change Management as Communications Hub

46. Organizational Change Phases and Communication
Knowledge by
training
Desire through
impacts
Ability with
coaching
Transition through Analysis
Celebrate Success!
Comfort
Unaware
Denial
through Awareness
Understanding
Anxiety
Insight
What is happening?
What’s in it for me?
What will I do differently tomorrow?
How do I prepare?
How do I stay motivated?

47. The change and impact on the organization
Who/What?
Senior Executives
The change and impact on the organization
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

48. The change and the impact on the individual
Who/What?
Managers
Supervisors
The change and the impact on the individual
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 employee’s ideas/suggestions for implementing the change
Provide timely & and accurate status

49. Master Communication Plan Sample
Event
Scheduled date
Audience
Communicator
Release Authority
Status
Comments

50. Communication Tracking Spreadsheet
Communication Title
Media
Date Sent
Sent from and to
Organization/Team
Phone
Address
Follow-up Needed
Yes No
Type of Follow-up Needed
Meeting
Phone call
Other
Comments

51. Information Sheets
Awareness Info Sheet
Coaching Info Sheet

52. Training

53. Training Develop Training strategy Training Plan Training Design
Materials

54. Training Plan Strategy
Identify different audiences who require training
Conduct training needs assessment and skill gap analysis
Document requirements for the training team
Training development schedule

55. Coaching

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

57. Transition
Develop
Transition plan
Train
Organization resources

59. Analyzing/Transitioning Change
Transition to the Business Owner
Knowledge Transfer Plan (Transfer ownership to Project Owner)
Communication
Focus Group Meetings
Key End-User Meetings
Manager/Supervisor Meetings
On-going Change Management responsibilities

60. Analyzing/Transitioning Change
Collecting, Reporting, and Analyzing Feedback
Compliance Audit
Post-Implementation Review Process
Celebrate!

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

62. Control Book System Testing Evaluation Parallel Testing Evaluation
Training Evaluation
Coaching Survey
Reinforcement/Resistance Survey
Project Evaluation Survey

63. Lessons Learned Board Describes knowledge gained from experience
Captures lessons learned throughout a project lifecycle
Process:
An onsite board is established and divided into the following categories:
What we did that we want to do again
What we did that we never want to do again
What we did not do and should have
What we did, worked okay, but could be improved in various ways.
Outputs: Lessons Learned Spreadsheet, Lessons Learned section in Control Book, Project Management updates as required.

64. Achieving Successful Organizational Change
Dedicate resources to Organizational Change Management
Secure visible executive sponsorship early in the project
Repeat key messages early and often
Involve employees in the change process
Create a transition strategy with achievable timeframes

65. Change Management = 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

66. DTI Strategic Goals & Enterprise Organizational Change Management
IT Availability & Reliability
Collaborative Solutions
Physical & Cyber Security
Enhanced Customer Service
Enhanced Project Management
Workforce Excellence
CM partners with or advises many major projects within the state
CM participating in the EA initiative
Change Management certified team
2 qualified MBTI
providers
2 qualified EI
Team member pursuing PMI certification
Team member pursuing BPR certification
CM participating in DTI security program
CM offers change management, and requirements gathering education
CM providing MBTI education to all teams in department
CM offers MBTI education to other organizations

67. Integration is Key

68. Change Management Team Leader
State Of Delaware
William Penn Building
801 Silver Lake Boulevard
Dover, DE
Pamela M. Waters
Change Management Team Leader
Voice:
Fax:
SLC: D-410 Q A
&