Gaining competitive advantage through organisational restructuring and ERP implementation (BPCL)


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Gaining competitive advantage through organisational restructuring and ERP implementation (BPCL)

  1. 1. Gaining competitive advantage through organisational restructuring and ERP implementation – Key success factors 2nd HR Round Table
  2. 2. The Context of Transformation for BPCL Impending deregulation of the hydrocarbon sector Restructuring Programme Need to satisfy multiple stakeholders Potential benefits from performance improvements
  3. 3. Key Success Factor for Transformation Individual Structures Business Structures Organizational Structures Interpersonal Structures Visible Change in Customer’s Experience The Heart of any Transformation in the organization is the Individual
  4. 4. At BPCL we engaged our People in the Organisation to create Compelling Vision <ul><li>Workshops conducted across the Regions of the Organisation </li></ul><ul><li>All Top and Mid Management were involved in the Co-creation </li></ul><ul><li>The Vision Building workshop happened in a cascade fashion </li></ul><ul><li>Inputs of Govt, Financial Inst., Customers, Unions etc. </li></ul>
  5. 5. The Need for ERP emerged from the Co-created Vision Strong and dynamic systems Make BPCL a great place to work Fulfill social responsibilities Apply the best technology Develop a cohesive corporate strategy Have excellent customer caring and customer service Sound business performance and operational efficiency To be the Best Make people a source of our improvement Effective boundary management Be an ethical company Establish first class brand and corporate image
  6. 6. The Need for ERP <ul><li>The need to improve our Business Processes </li></ul><ul><li>Improve the speed of response and make available real time information </li></ul><ul><li>The need to have a single integrated information handling system </li></ul><ul><li>Leveraging Technology </li></ul><ul><li>Need for enhanced and effective managerial controls </li></ul><ul><li>Need for removing reconciliation due to legacy interfaced systems </li></ul>
  7. 7. What is the Magnitude of Change in the Context of ERP? <ul><li>Processes </li></ul><ul><li>Manner of Documenting Transactions </li></ul><ul><li>Roles of users and even non-users </li></ul><ul><li>Accountability across levels </li></ul><ul><li>Control Mechanisms </li></ul><ul><li>Boundaries and structure </li></ul><ul><li>Inter-Relationships </li></ul><ul><li>The way of thinking </li></ul>The change challenges the comfort zone of individuals, teams, business units and the organisation, built over a period of time
  8. 8. How did we Manage it? Generating Energy within the Organisation Creating Ownership in the Organisation 1 3 Managing Transformation is about : Generating Energy within the Team 2
  9. 9. Generating Energy within the Organisation Creating Ownership in the Organisation 1 3 Generating Energy within the Team 2
  10. 10. Generating Energy in the Organisation <ul><li>Using the Tools of a Learning Organisation </li></ul><ul><ul><li>Internal Coaches worked with intact teams to enhance their individual and collective aspirations and drive change </li></ul></ul><ul><ul><li>Using tools like Personal Mastery and Mental Models to enable end-users examine their barriers to the system </li></ul></ul><ul><ul><li>Tools like the “Ladder of Inference” helped people get unstuck in their mind-sets and change some unproductive “Mental Models” </li></ul></ul><ul><li>Imparting tools through a series of intense 3 day workshops leading to creating compelling Purpose & Vision, Identifying High Leverage Results & taking Accountability </li></ul><ul><li>These were conducted for all levels of staff in the organisation </li></ul>
  11. 11. Generating Energy within the Organisation Creating Ownership in the Organisation 1 3 Generating Energy within the Team 2
  12. 12. Generating Energy in the Team <ul><li>Top Management Support </li></ul><ul><li>Creating a Compelling Purpose </li></ul><ul><ul><li>Workshop for Project Team members </li></ul></ul><ul><li>Capability Building </li></ul><ul><ul><li>Participation in National & International Forums </li></ul></ul><ul><ul><li>Certification of internal resources </li></ul></ul><ul><ul><li>Knowledge Transfer within team </li></ul></ul>
  13. 13. Generating Energy in the Team <ul><li>Empowerment </li></ul><ul><ul><li>Delegated with required authorities </li></ul></ul><ul><ul><li>Operational freedom to the team members </li></ul></ul><ul><li>Team Operating Principles </li></ul><ul><ul><li>All members were given equal status </li></ul></ul><ul><ul><li>Collective planning process </li></ul></ul><ul><ul><li>Knowledge based leadership </li></ul></ul><ul><li>Changing Team Structures to Support Purpose </li></ul>
  14. 14. Generating Energy within the Organisation Creating Ownership in the Organisation 1 3 Generating Energy within the Team 2
  15. 15. Creating Ownership in Organisation Involvement Enrolment Engagement Ownership
  16. 16. Communication was the key in driving involvement <ul><li>Organisation was engaged through Communication at various levels </li></ul><ul><ul><li>Organisation Leadership </li></ul></ul><ul><ul><li>Process Leadership </li></ul></ul><ul><ul><li>Locations & Unit Leadership </li></ul></ul><ul><ul><li>Union Leadership </li></ul></ul><ul><ul><li>Leading Customers and Vendors </li></ul></ul><ul><li>Project updates </li></ul><ul><ul><li>Intranet </li></ul></ul><ul><ul><li>House Journal </li></ul></ul><ul><ul><li>Posters </li></ul></ul><ul><li>Top management talks to employees at units </li></ul>Involvement Enrolment Engagement Ownership
  17. 17. Participation in decision making drives Enrolment <ul><li>Engaging Apex for the Top Level decisions and by connecting their business vision with the benefits expected from the implementation </li></ul><ul><li>Inviting Key stake holders of the process to workshops for deciding the to-be processes pertaining to their area of influence and control </li></ul><ul><li>Helping business/entity to see the connect between their Business Results and the tools provided by SAP </li></ul><ul><li>Constituting the Steering Committee with the Business Heads to make all the key decisions pertaining to the project </li></ul>Involvement Enrolment Engagement Ownership
  18. 18. Active engagement builds Commitment <ul><li>Process Owners were relieved for 3 months to define and document the business procedures </li></ul><ul><li>Key stake holders were given basic SAP training to enable an understanding of the working of the system even before the product is configured </li></ul><ul><li>Task forces from locations and units were engaged for evolving some solutions to the process gaps </li></ul><ul><li>Testing of all processes by the end-user prior to its implementation in the pilot </li></ul>Involvement Enrolment Engagement Ownership
  19. 19. Ownership stems for crating permanent structures post-implementation <ul><li>Establish governing body constituting of Business Heads </li></ul><ul><li>Process Forums made a permanent body for deciding on any changes and improvement in the business processes </li></ul><ul><li>Internal Audit has taken over the Internal Business Controls </li></ul><ul><li>Finance Heads has taken charge of the financial processes in SAP </li></ul><ul><li>Infrastructure is owned by the IT set up </li></ul><ul><li>Location Anchors are certified and trained to take charge of SAP issues at the location </li></ul><ul><li>Competency Centre established with core SAP expertise </li></ul>Involvement Enrolment Engagement Ownership
  20. 20. Results Achieved <ul><li>On-time Project without cost-overrun </li></ul><ul><li>Multi-Module Implementation in 6 Months </li></ul><ul><li>Roll-out in 331 locations in a time span of 18 months </li></ul><ul><li>Faster stabilisation of locations </li></ul><ul><li>Implementation and ownership of Process Changes </li></ul><ul><li>Redeployment of staff </li></ul><ul><li>Recurring savings of Rs. 43 Crores per annum (est.) </li></ul><ul><li>Redefined business procedures documented and in use </li></ul><ul><li>Business Process Controls strengthened </li></ul><ul><li>Process improvements in critical areas leading to benefits </li></ul><ul><li>Resource of over 100 certified consultants </li></ul><ul><li>Knowledge transferred to over 3000 users </li></ul>
  21. 21. Learnings <ul><li>Do’s </li></ul><ul><li>Change initiative has to be led from the Top </li></ul><ul><li>Look at it as a business process initiative not an IT initiative </li></ul><ul><li>Put the best people in the Organisation to do the job on full time engagement </li></ul><ul><li>Build Capabilities </li></ul><ul><li>Key stake holders to be enrolled in the Governing Body </li></ul><ul><li>Spend adequate time in thinking through the process </li></ul><ul><li>The Project has to be driven by the Organisation and not the Consultants </li></ul>
  22. 22. Learnings <ul><li>Do’s </li></ul><ul><li>Address the apprehensions of staff early in the implementation </li></ul><ul><li>Define clear and standardised roles </li></ul><ul><li>Find alternate roles for staff who are being rendered surplus as a result of the implementation/ have strategy to deal with surpluses </li></ul><ul><li>Identifying the Change enablers and Disablers early </li></ul><ul><li>Ensure that processes changes are understood and owned </li></ul>
  23. 23. Learnings <ul><li>Don'ts </li></ul><ul><li>Take IT as the IT employees business </li></ul><ul><li>Implement IT without understanding the implications on the process change </li></ul><ul><li>Use ERP/ IT as the only tool to drive discipline/ substitute good management </li></ul><ul><li>Expect cheap, fast and painless implementations </li></ul><ul><li>Underestimate the securities and controls issues </li></ul>
  24. 24. Thank You
  25. 25. What are the Signals of Resistance to the Transition? <ul><li>Fault finding with the intended change in business process </li></ul><ul><li>Avoiding participating in the programmes and redesign processes </li></ul><ul><li>Not sponsoring resources to the project </li></ul><ul><li>Finding constraints rather than looking for solutions </li></ul><ul><li>People getting stuck to their own view-points and positions rather than the Purpose </li></ul><ul><li>People not adhering to the commitments made indicating lack of Sponsorship </li></ul>Very often the perception of impact of change on self is much higher than what is
  26. 26. Stages in a Change Management Implementation <ul><li>Communication </li></ul><ul><li>Defining the new to-be processes </li></ul><ul><li>Mapping of the change in roles </li></ul><ul><li>Communication of the new roles to the user </li></ul><ul><li>Training for the new roles </li></ul><ul><li>Role based SAP training </li></ul><ul><li>Post-training reviews </li></ul><ul><li>Experience Sharing by locations that have gone live </li></ul><ul><li>Retraining of users </li></ul><ul><li>Location anchor training </li></ul>
  27. 27. We used the LO Methodology to Manage Change Cornerstones of a Learning Organization Aspiration: Individual & Collective Understanding Complexity & Change Collaboration Team Learning Systems Thinking Mental Models Personal Mastery Shared Vision
  28. 28. Collective Aspirations are built by a Compelling Vision Vision, Aspiration, Purpose, Meaning (What you want) Current Reality (What you have) Creative Tension
  29. 29. The Ladder of Inference Theory: How We Think The Ladder of Inference Data (What people say and do) Beliefs Assumptions Values Experiences Take Action Draw Conclusions Add Meaning Select Data Based on the work of Chris Argyris