1. Project LEAP! - Did we LEAP far enough? A case study of Stockland Retail implementing new Leasing Processes & Systems June 2011
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3. Stockland Stockland Stockland is a large, diversified property company. It is listed on the ASX (top 30). It has approximately 1350 employees, geographically spread over QLD, NSW, VIC and WA. Vision: Become a world class property group 12,000 Volunteer
6. Stockland Project LEAP! Project LEAP! was established in January 2010. LEAP! aimed to standardize key leasing processes and supporting roles across Retail through implementing a Siebel CRM system. Project Vision : Simpler for our Employees, Better for our Customers, Smarter for Stockland Change Management Challenge
7. Project LEAP! – Change Management Solution Map Planning: impact assessments & stakeholder updates Training planning, design, development, delivery Communication planning, development, delivery Business readiness : process workshops, policies Role definition & reward structures Project Leadership and Sponsorship Project Phase Business Case Detailed Design Build Test Implement Adopt
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14. Project LEAP! Success Stockland Retail October 2010: Retail went live with Project LEAP!
3 R Strategy: Retail Residential Communities Retirement Living Key factor = building better communities Financial Results: First Half FY10 Our underlying profit for the six months ended 31 December 2010 was $380.3 million, up 14 per cent on the prior corresponding period. Earnings per security were up 14 per cent to 16.0 cents and our distribution rose 9 per cent to 11.8 cents per security. Our statutory profit was $425.1 million. Our business has maintained a strong financial position with a conservative balance sheet, good cash flows and long-dated debt. This means that we can fund our growth and development pipeline without the need to raise equity capital for the foreseeable future. Sustainable: This included being listed in Corporate Knights’ Global 100 Most Sustainable Corporations in the World, scoring third in the newly established Global Environmental Real E state Index for listed property groups and being awarded Ethical Investor’s Sustainable Company of the Year. 12,000 hours in paid volunteer
Retail Background: Goal is to upgrade & manage Retail Centres of approx 35,000sqm each Approximately 300 employees. Main job families: Centre & Admin Management Tenancy Design & Delivery Finance Leasing Executives Lease Admin Development Management Casual Mall Leasing
Improve Customer Experience / Reputation Defining and delivering a consistent customer experience Increase Sales Potential Gaining greater transparency of the leasing pipeline Improving negotiation & deal approval processes to minimize cancellations / delays impacting cash flow Increase Efficiency Simplifying and standardising the leasing processes, roles and responsibilities required to deliver the desired customer experience Improved automation of these processes Reduce Risk / Improve Management Capability Gaining visibility & control of non standard commercial terms in leases Improving our management reporting capabiliti
Change Management Challenge: 1.Ensuring all leasing staff understand the customer experience Stockland would like to provide to its customers/ tenants 2. 43 New Leasing processes and sub-processes 3. Changes to roles and responsibilities across 7 job families 4. New systems – Siebel with interfaces to JDE, Intelli-docs and Objective DMS 5. Locking in behaviour – short and long term adoption 6. Accountability, openness, “ how you got there matters more than you got there” 7. Tight time frames
Impact Assessments: Normally the heart of the change analysis, however, in this case it was less so. As the team used RAD (rapid application development) methodologies it made more sense to wait until we had entered the 3 rd round of the sessions before we had a fairly stable platform (process, task and system) to work with. Project Roles: Agreement that in this case, due to the relatively small size of the project and internal capability, that we would use our SME’s as project Champions. In effect, this meant they needed to be able to push back on their “normal work” to take on this expanded role Detailed Change Plan: Incorporated for the first time recognition of a “post go live” component to projects. Something that Stockland has not really wanted to address in previous projects. This post go live or adoption phase of work centred upon: Usage, process metrics and carrot/ stick measures to encourage adoption Short term KPI’s for adoption Ongoing process understanding and system coaching Definition of a “business owner” role as the key liason between IT and business units to further drive efficiencies and create/ manage CRM to bring Stockland closer to its customers Setting up of a formalised champions network – primarily as a coaching tool
Communications: Our culture is a mix of “engage me face-face” and “Im too busy – send me a link”. So our communication approach consisted of a strong series of : team meetings which eventually became our role based process workshops online updates in the team site. With people being sent a slightly cheeky “newsletter” – urging them to click on the links within the team site use of MS Live Meeting as a method of communication with our people in remote or hard to get to sites. Overall – this was positive for one way communication. Communications well received by business teams – lively, captured interest and just the right number.
Business readiness: Key activities included: Readiness Surveys and correcting actions Third survey we asked some rather blunt questions – do you know exactly what the new processes are and how they will impact your role? As a leasing executive did you know that your EOI will now include ….. From this we received some feedback that said – we think we know…but actually…could you tell us please where the roles interplay and who is responsible for what in the new processes. Oh, and could you take us through the processes again please. So much for our communications!!! Process Workshops : process and job family based New leasing processes and where the roles interplayed within the process showing automated (system) and manual steps within a defined and realistic leasing scenario delivered by champions/ SMEs Highlighting key changes in process, documentation etc Q&A session where the Sponsor and SME’s had to answer the questions. Strong debate. Good debate. Most pretty happy with the result. Also gave me an insight into where people were unsure about something or identifying a level of resistance. Resistance – relatively little as so much pain at present. However, hard for these guys to use a system and to understand it – so a large degree of natural reservation Readiness tracking Identifying all the documents, process maps, policies, procedures etc that are required to support the new leasing solution and ensure that they have been developed, written, signed off and published. And communicated that this is the case. This is a first for Stockland – we have never really undertaken this piece of work and it has always come back to bite us. We were now much better prepared to go live
Org Structure Workstream: Key activities included: Short Term KPI – never been achieved before in Stockland Job family based Ranged from 10-20% of their total at risk pay Required a large amount of time to sell the concept and gain agreement from the GMs and Steering Comm. Then required selling and coaching of Snr Mgr to understand, implement Linked to the Sponsors individual KPIs – cascade down Provided “Lock in” in terms of influencing behaviours. Post go live Support measures – adoption phase Define adoption criteria and how these would be measured Log on reports Completed leases Non compliant and compliant term report etc End user acceptance surveys Ongoing coaching and a level of retraining Development of a new role – business owner role – to drive further adoption, create the overall CRM strategy for the Commercial Property and link this project into that strategy, drive the linkage between customer and Stockland
Training / Learning Workstream: (team totaling 6 individuals) Key activities included: Training Needs Analysis leading to Curriculum Design around key job families and roles Development of relevant training materials – classroom based instructor and participant manuals, QRC, UPK task simulations etc Training logistics Training delivery – team of 4 – delivering approx 30 odd courses over a 4 week period (most prior to go live, some after) Process drill down to task drill down to role Training evaluations positives. Critical issue that we knew about at the time was Christmas – (busy period and holidays= people forget) – therefore people needed a level of retraining again in Feb and March.
Project Leadership Key activities included: Involvement of the Sponsor / Leader in Workshops Team meetings story telling through examples and internal stories he emphasised the reasons why we were undertaking the project, benefits, and the fact that implementing would not be easy Steering Committee – strong voice Coaching of SME in influencing their teams and peers There was also a level of coaching of the Sponsor so that he knew what the project expected of him, the key messages we needed him to give and a reminder that his behaviour was what was critical
June 2011: Retail is continuing to use the processes, systems and role based tasks associated with LEAP! It has also just implemented a “mini release” of system functionality to make it easier for our people to use. Information derived from the system is being used in our customer interactions and our customers are providing positive feedback
Lessons Learned: Positive Planning Strong leadership involvement Business readiness activities Role definition and activities to support & lock in behaviours Knowledge transfer Lessons Learned: Negative – improve Post go Live – Adoption Phase Understood integration points better and be more equipped to managed them Provide deeper coaching to our BAU support teams on the solution More deeply embedded the SME’s into a champion network Use the visual power of integrated you-tube type technology New Technology: You –tube video capability wiki’s interactive online classroom tools not: Blogs, twitters or facebook type tools Something to Ponder: We are implementing and managing change relatively well on large, complex business systems. The world is moving to more mobile, adaptive and intuitive technologies and systems (eg web or mobile apps) How will our business functions and systems adapt to these? How will we manage change under these environments? Will we need to?
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