Enterprise Software Business Transition


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Presentation describing effective change management strategy and methodologies specific to organizations which have or are planning to implement enterprise management software.

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Enterprise Software Business Transition

  1. 1. Enterprise Software Business Transition AST Change Management Robert E. Henry Director of Marketing & Communications AST Corporation APPLICATIONS SOFTWARE TECHNOLOGY CORPORATION Copyright © 2008 AST Corporation. All rights reserved.
  2. 2. THIS MATERIAL IS PROPRIETARY OF APPLICATIONS SOFTWARE TECHNOLOGY (AST) CORPORATION EFFECTIVE THIS 17TH DAY OF NOVEMBER 2008 AST CORPORATION 1755 PARK STREET SUITE 100 NAPERVILLE, IL 60563 1755 Park Street, Suite 100 Naperville, Illinois 60563 Phone: (630) 778-1180 Fax: (630) 778-1179 Email: info@astcorporation.com www.astcorporation.com 2
  3. 3. Overview Change is an emotional process that is different for each individual, regardless of the person’s position or intelligence. Our change process ideally provides space for each of your employees to go through their own personal process to get to acceptance. Understanding the concerns of each person allows us to position our Change Management strategy in a way that is relevant and meaningful. We cannot “logic” people through the change process, but we can and will listen to, document, and respond to every question and concern in an authentic manner. MAKE THE CASE FOR CHANGE Manage opposition and resistance CHANGE COMMITMENT & EVALUATION TRANSITION Formal education and training End of project feedback Policy and Procedure The primary purpose of AST’s Change Management strategy is to facilitate a smooth transition to your new system by informing user and project stakeholders of the changes that will occur as a result of the new system, and by communicating the project status on a regular basis. Given the indeterminate nature of change, there is no single best approach. However, a structured approach does allow an evaluation of the potential consequences of the change. The resulting strategy and adaptation of methods and communication patterns will guide the people impacted in a well-planned and meaningful change approach. 3 1
  4. 4. Executive Governance & Support Change of established business practices, tools, and beliefs is almost always resisted, and to be effectively implemented needs a champion. The more powerful and visible the champion, the more likely the change will be successful. The project Steering Committee, along with your and AST’s project management – the “Project Leadership” – will be the most powerful communicators of the importance and necessity of this pro- ject and the associated changes that are brought to your user community. Therefore, it will be the responsibility of the Project Leadership to govern the change management efforts and establish an overarching communication and control model where three main elements of effective change management governance are defined and enacted. Events, Literature & Media Roles & Communication Structure These are the tools that aid in the crafting of change management policy an in its execution. The selection of personnel and how they Our Change Management Communications participate in delivering change managemet Plan details the tools used to communicate with procdures is a critical component in the project stakeholders. successful delivery of each change manage- ment component. Your project will need to communicate with a diverse end user commu- nity. End users will need to understand how they will be involved in and affected by the implementation, and what they can expect. Creating that understanding and managing expectations requires both well-planned and excuted change management policies and procedures, and well-defined roles in communicating project information. See details on Roles and Communication Structure. EXECUTIVE GOVERNANCE & SUPPORT Policy and Procedure Policy & Procedure Change management policies will reflect the rules governing how change management events, literature and other forms of communication are implemented in conjunction with the Oracle E-Business Suite project-related imple- mentation processes. Change management procedures are the execution of such policies and will evolve during the project as change management strategy responds to stakeholder feedback on the acceptance and effectiveness of change management tools. 4 2
  5. 5. Change Management Approach Three distinct phases that comprise the AST Project Team’s Change Management approach include: Make the Case for Change, Commitment and Transition, and Change Evaluation. Detailed planning and execution of all three of these phases are the most important and effective methods to minimize the disruptive effects of change and facilitate Change Management during an Oracle E-Business Suite Implementation project. Make the Case for Change Change involves moving from the known to the unknown. An uncertain future may affect people’s competencies, worth, and confidence about their role and duties, so compel- ling reasons must be delivered in order to gain the support of members of an organization from the start. Organizations, especially when it comes to enterprise technology and the business processes surrounding it, are heavily invested in the status quo and resistance can be heavy in relation to uncer- tain future benefits. The task at hand, with these points in mind, is to make the case for change and motivate people in an organization toward continued interest and acceptance. Explain the Need for Change It is very difficult for Project Management to be able to ensure successful completion of a project and then proceed to make successful project changes happen. A major aspect of the change process often involves overcoming obstacles. Most obstacles are quot;ownedquot; by different people or departments associated with the change. The need for collaboration is essential to make the change happen. People adapt to change more readily when they have “bought into” it — that is, when they think the change is a good idea and want the change to occur. When getting buy-in is an after-thought or a weak effort at best, the outcome of the change initiative can be disappointing. The willingness of people in an organization to buy in is parallel to the need they feel for change. Generally, the organizations’ management-level decision makers that seek to update or completely change parts of or an entire enterprise system have already experienced enough dissatisfaction that they have bought into the need for change and are motivated to seek new technologies and business processes. However, the widespread effects of change to existing enterprise technology and business processes touch nearly every person within the organization, and a clear need for change may not be as apparent to those who have not participated in discovering new technologies or analyzing those proposed to the organization. A significant discrepancy between actual and ideal states must therefore be shared with organization members in order to positively orient every person who will be affected by the change. One main goal of this phase in change management is to provide organization members with statistics or analysis of the current organizational functioning so that this information can be compared with the organization’s goals and intended business and technology state. 5 3
  6. 6. Motivate Toward Commitment Expectations play a crucial role in creating and sustaining a motivation about change, and organization members will invest themselves in projects they expect will succeed. Such positive expectations, in turn, are likely to develop in people a greater commitment to the change process, and direct more of their energy toward constructive actions that are needed to make it happen. The key to motivate people in this direction is to communicate realistic expectations about the project, including expectations regarding project schedule, individual and group participation, and identification of project leadership personnel from both the organization and AST sides. Manage Opposition & Resistance Even with the prior two steps, there can still be considerable anxiety and therefore resistance in an organization. Such resistance can be technical, where the habit of following common procedures and the status quo is being changed, and cultural, where conformity to existing values and assumptions about how business is done are being changed. Throughout a project, AST seeks to engage in joint problem solving with a client in developing the solution to its technical and business process issues. Managing organizational resistance is no different. We seek an open relationship with our client, to actively listen and constantly view the project from the client’s perspective. Commitment & Transition In this second stage of change management, the Project Leadership, project team and all users and stakeholders move from the existing technical and business process envi- ronment to the new environment. Since an implementation of Oracle E-Business Suite will involve a substantial shift in how you transacts your business, special structures and ac- tivities are required to facilitate the transition. Identify Key Stakeholders & Users Critical in the earliest stage of the project will be to identify the key stakeholders and groups with an interest in the changes: staff groups, departmental managers, and executives. These key stakeholders can slow an effective change process if their broad-based support and is not gained. Once these stakeholders and groups are identified, creating a map showing who will experience the most or least change will be useful for the project leadership to determine how much change management assistance will be required for each group and/or person. It is important for the project leadership to note that identifying stakeholders is not limited to the above-identified groups. Stakeholders are found in a variety of functions and levels, ranging from your executive level to department heads to Subject Matter Experts and specially-created teams. Each is responsible for ensuring that the message for change is communicated to the community within their sphere of influence, and therefore it is the responsibility of the project leadership to correctly identify all the groups and people who will be targeted during the entire change management process. 6 4
  7. 7. Activity Planning Activity planning involves making a road map for change, identifying specific activities and events that will occur to make the transition successful. These activities can occur before and during the formal training classes, and are designed to promote continual buy-in from your stakeholders and user community. These activities should gain top-management approval, be cost effective, and remain adaptable as feedback is received during the project. By ensuring that top-management is comfortable with the change, the project leadership can ensure that the members of the top-management act as leaders of change. These leaders will then encourage the buy-in from their immediate circle of influence, eventually ensuring and expanding an across the board buy-in to the Change Management process. In order to effectively communicate to the end user community and manage their expectations, the Project Team can select from the following activities and customize them to the project: • Communication Campaigns • Implementation Survey • Focus group meetings • Conference Room Pilots (Solutions Demonstrations) • Production Readiness Review Formal Education & Training A key component of implementing change is training users on the new business processes and application func- tions. Projects may successfully finish their implementation tasks and yet fail to meet user objectives – many change management issues arise because improperly trained users cannot execute their new business tasks. Most users characterize this failure to be an IT system problem while it is possible that the failure is actually a training issue. Therefore, our change leadership and the project team work closely together to identify the training and de- ployment plans to facilitate a smooth transition to the new Oracle system. Change Evaluation ion Ev tat The third and final phase of change management activities alu en involves assessing the core and selected activities to deter- ati lem mine whether they have been implemented as on intended and if they have delivered the desired results. mp po AST incorporates two types of live implementation gi st- change management evaluations into its overall change rin im management strategy: evaluation of change management du ple interventions during project implementation, and post- n m project evaluation to assess overall impact. A final tio en evaluation element, end of project feedback, is reserved a alu tat for a short period time after the new system for is live. ion Ev Evaluation During Implementation Most change management evaluations are done after implementation; however such a practice is only partially useful since it assumes that change activities have been implemented as intended and that the key purpose of evaluation is to assess their effects. Effective change management activity evaluations during implementation can- not be taken for granted since most activities seek to change people’s behaviors and the way they think about their job and organization. Implementing new business technology and processes requires considerable learning and 7 5
  8. 8. experimentation as employees and managers discover how to translate new business concepts and tasks into sustainable behaviors. This learning process involves much trial and error and needs to be guided by information about whether behaviors and procedures are being changed as intended. Your project’s plan will be a critical tool in monitoring task performance, and it is an equally valuable tool in evaluating the effectiveness of communication. As with monitoring task performance, change management evaluation will lead to adjustments in the overall strategy and chosen communication methodologies. Gathering and assessing evaluation will be the responsibility of AST which will report its findings and confer with the Project Leadership. Implementation evaluations can be sought in a number of ways, and will result in a formal change management status report that will be delivered according to the change management deliverables defined in the project plan. Evaluations can be gathered through a number of tools, including: • Formal sign-off processes or surveys after workshops and key events. • Requests for feedback on all mass communications. • Questionnaires. • Agenda items in formal meetings, such as Department Sponsors Meetings and Steering Committee meetings. • Random contact with representatives from all groups to follow up specific issues or key events. • A dedicated comments area on a Web page. • Dedicated e-mail address. • Informal day-to-day discussions with end users. Evaluation Post-Implementation Post-implementation evaluation of change management activities are designed to discover the immediate outcome of the project implementation. As data about change management is collected during the project implementation repeatedly at designated intervals, the summary of this data can provide, first, a clearer understanding of the project’s success and, second, a change management plan for the next implementation phase. This evaluation cycle can proceed for several rounds, with each round providing the Project Leadership knowledge about the project and ideas for its following stage or phase. End of Project Change Management Feedback Post-project evaluation of change management is concerned with the overall impact of the project and whether resources should continue to be allocated to it or other change management activities. Feedback at this point takes longer to gather and interpret than that during the project, since it will include a broad array of business performance and project outcome measures: • Knowledge of new technology • Ease of use of technology within job tasks • Sustainability of business processes surrounding job tasks • Departmental performance 8 6
  9. 9. Change Management Communications Plan Communications is the key to a successful project. Our Project Team will work with the Project Leadership and your Project Team members to develop a comprehensive Change Management Communication Plan. It is absolutely critical that your organization, AST, and key stakeholders are kept apprised and knowledgeable of change management activities during the project. The Communication Plan will include regular planning and status meetings with the Project Leadership, the AST and your team members, as well as regular communica- tions with your stakeholders (department personnel, end-users, etc.). The purpose of the Communications Plan is to define and document: • The communication methodologies – events, literature and media – and structures used to disseminate information throughout the change management effort. • The roles and communication structure that will be used to exchange relevant change management infor- mation between the Project Leadership and AST/your Project Teams. • The regular meetings, reporting, and other communications that take place during the project, and identify the type of information, the medium for communicating, and the audience to whom information is di- rected. Methods for Disseminating Information A combination of direct and indirect communication mechanisms can be employed during the change manage- ment effort. Indirect methods generate awareness and interest, while direct methods will be used to generate desire and action. No one method is suitable for all users from your organization or for all purposes, and each has its advantages and disadvantages, so a combination should be used to reach all end users and managers. Some types of communications will be more effective than others during the three stages in the change man- agement process. Indirect or one-way communication in the form of e-mails, notices, and intranet are effective in generating awareness. Direct or two-way communication in the form of interactive workshop sessions, road shows/presentations, or interviews are generally more effective in generating interest or motivation and getting end users to participate. Stage Objective Type Mechanism Make the Case for Change Create the need or the want to Direct Seminars, site visits, demon- try strations, high-level training sessions Create interest or information Indirect Newsletters, seeking behavior brochures Gain attention Indirect E-mails, notices, announce- ments Commitment & Transition Motivate usage Direct Seminars, training, change advocates Reinforce usage Direct/Indirect Web sites, Help desk, E-mail contacts Change Gather change management Direct One-on-one or group meet- Evaluation implementation feedback ings with users; meetings with Project Leadership Indirect Surveys, website, E-mail 9 7
  10. 10. Staff Roles In Communications The Change Management methodologies will need to communicate with diverse end user community. End users will need to understand how they will be involved in and affected by the implementation, and what they can expect. Creating this understanding, and managing expectations, requires both a well-planned and exe- cuted communication strategy, and in particular well-defined roles in communicating change management information. The table below defines the roles that will be distributed among your and the AST Project Team members in disseminating relevant and engaging change management communications. Communication Audience Frequency Primary Providing Mechanism Responsibility Assistance Oracle E-Business End Users Monthly Project Assistant Project Managers, Suite Implementation Project Team Leads Newsletter Official Memos, Department Sponsors, As Needed Project Managers Project Assistant Letters, and other Department Directors, Correspondence and Vendors E-Mails Department Sponsors/ As Needed Project Managers Project Assistant Subject Matter Experts and Team Leads Workshop Sessions Department Sponsors/ As Needed Team Leads Team Members Subject Matter Experts Roadshows / Department End Users As Needed Project Managers Team Leads and Presentations Project Assistant Training Sessions End Users Per Training Training Lead Team Leads and Schedule Project Assistant Functional & Technical Team Members and Weekly Team Leads Team Members Team Status Reports Team Leads Project Manager Status Team Leads and Steer- Weekly Project Managers Team Leads Reports ing Committee Chairs Team Meetings Functional & Technical Weekly Team Leads Team Members Team Members Team Leader Meetings Team Leaders Weekly Project Managers Team Leads Department Sponsor Department Sponsors Monthly Project Managers Team Leads Meetings Steering Committee Steering Committee Monthly Project Managers Steering Committee Meetings Chairs Steering Committee Steering Committee Monthly Project Managers Team Leads Status Reports All Project Team Project Team Members Monthly Project Managers Team Leads Meetings (including Consultants) 10 8
  11. 11. Sample Change Management Plan Project Action Resources Milestones Deliverables Activity Project Kick-off Users will be briefed on the imple- Client Project Delivery of Change mentation process and methodology Team, AST Change Management Meeting to be adopted. The focus would be to Team Management Strategy emphasize continuity and preserva- Strategy tion of all the system functions from the existing applications, in the new modules. Project phases and the participation of the user community in each of the phases will be discussed. Finally the communication and feed- back mechanisms available to the users will be reviewed. Focus Group Interviews to gather requirements Client Project Completion of Organizational give the project team an excellent Team, AST Meetings Change Impact interviews opportunity to interact with the end Team Document users and document their issues. The project team will encourage Focus Group wider participation of the user com- members se- munity in these meetings. All proc- lected by the ess and system related changes client, with rep- would be reviewed in detail. The new resentation from features and enhancements available every depart- in the new release will be discussed. ment and All user concerns and request for agency enhancements will be documented as part this process. Collaborative The Subject Matter Experts (SMEs) Client Project Completion of Organizational approach to De- and the full time project team will Team, AST Implementation Change liverables jointly prepare all the deliverables. Team, Other Deliverables Impact This would ensure active user partici- SMEs, if neces- Document pation and ownership of the process. sary (Updated) During the Design phase, the project Client Project Completion of Overview Demo script team is scheduled to conduct demos/ Team, AST overview/demos overview of the new release of the Team SMEs, Oracle applications with the client representative data. This will give an opportunity for applications the users to identify any potential users from all system issues with the new release. departments and agencies (Table continued on following page.) 11 9
  12. 12. The new Oracle applications mod- Client Project Making the User Labs Organizational ules with the client data will be avail- Team, AST system available Change Impact able for users to browse and self- Team, SMEs, to users Document train after initial testing. This will en- representative (Updated) able the early adapters to get used to applications the new user interface and system users from all features. The project team will be departments available for support as needed. and agencies SMEs will be encouraged to actively participate in the testing of standard Oracle functions. Comprehensive testing of the client Client Project Completion of Organizational Testing business processes is planned for Team, AST Change testing the test phase of the project. User Team SMEs, Impact participation will include unit testing representative Document of individual modules, integration applications (Updated) testing and acceptance testing. The users from other project team will encourage wide departments as participation of users in all the testing needed activities. The system test results will be documented and any issues will be added to the issue log and re- viewed. Training is a key component of the Client Project Scheduling and Training Docu- Training change management process. There Team, AST completing training ments, User is a major emphasis on end user Team SMEs, all of all end users Procedure training as part of the implementation end users Documents project. The training sessions will be used to introduce the users to the Support and new system. The training material will Maintenance include process details, job-aids and (Technical) user documentation. The training Document process will include feedback on the effectiveness of training. 1755 Park Street, Suite 100 Naperville, Illinois 60563 Phone: (630) 778-1180 Fax: (630) 778-1179 Email: info@astcorporation.com www.astcorporation.com 12 10