Managing A Major Organizational Change

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Presentation at Academy of Management / MCD Conference in Amsterdam, The Netherlands.

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Managing A Major Organizational Change

  1. 1. Managing a major organizational change: Lessons learned about coping with homogeneous internal teams and globally diverse external partners. <br />Academy of Management<br />Management Consulting Division - 2011<br />5th International Conference<br />VU University, Amsterdam, the Netherlands<br />Dr. Joseph B. Baugh, PMP<br />Baugh Group LTD<br />Capella University<br />
  2. 2. Dr. Joseph B. Baugh, PMP<br />Program Manager/Project Manager<br />Consultant<br />Technical Trainer<br />Project Management [PMP]<br />Information Security [CISSP, CISM]<br />Faculty Member<br />Three learning institutions<br />Undergrad to doctoral courses<br />Multiple learning milieus<br />Brick-and-mortar<br />Online<br />Hybrid<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />2<br />
  3. 3. Agenda<br />Planning for the project<br />Key project constraints<br />Developing the study<br />Lessons learned <br />The survey<br />The interviews<br />Conclusion<br />What did it all mean?<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />3<br />© 2011 Joseph B. Baugh<br />
  4. 4. Project Rationale<br />Literally hundreds of applications<br />Legacy systems across multiple platforms<br />Spreadsheets<br />Databases<br />None were interconnected<br />Very inefficient<br />No one “trusted” the numbers<br />No real-time budget data<br />The time had come to change<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />4<br />
  5. 5. Project Planning<br />Examine business processes<br />Identify key internal resources [SMEs]<br />Develop Requests for Proposal [RFPs]<br />ERP system software evaluations<br />Implementation partners<br />Board Funding Approval<br />Project Implementation<br />Post-project activities<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />5<br />
  6. 6. Key Project Constraints<br />Time was the key constraint<br />Aggressive timeline was driven by:<br />Fall Overhaul Schedule<br />Delay in Board Approval<br />Resource Availability<br />Internal resources<br />External consultants<br />Scope was not defined as well as originally thought<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />6<br />
  7. 7. Project Issues<br />Schedule Driven Issues<br />Conflicting demands<br />Resource contention<br />Structural Issues<br />Planning & Training<br />Understanding Business Requirements<br />Geographical and Cultural Barriers<br />Diverse perceptions of results<br />Led to the study described in the paper<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />7<br />
  8. 8. Project Team Structure<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />8<br />
  9. 9. Understanding Business Requirements <br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />9<br />
  10. 10. Lessons Learned: The Survey<br />Qualitative survey of project stakeholders<br />QDAS analysis yielded eight primary themes<br />Pre-project preparation<br />Resource availability<br />Setting expectations<br />Organizing the project<br />Communications<br />Testing<br />Training<br />Post-project issues<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />10<br />
  11. 11. Pre-Project Preparations<br />Fully understand internal business processes before trying to explain them to contractors<br />Review & redefine business processes early on to flesh out RFP<br />Bring in consultants, if necessary, to develop a more complete RFP specification<br />Don’t assume that anything is included in scope unless it is explicitly identified in the RFP<br />Identify & send client team members to ERP training prior to project start<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />11<br />
  12. 12. Resource Availability<br />Identify internal team members early<br />Functional managers must support resource commitment to the project<br />Backfill for critical internal resources<br />Interview individual consultants to ensure appropriate experience levels<br />Check references & experience<br />Don’t let vendor “bait-&-switch” consultants<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />12<br />
  13. 13. Setting Expectations <br />Set a reasonable timeline, 8 months is very aggressive for a complex project<br />Don’t let salesmen dictate timelines<br />Manage senior management & user expectations from the start<br />Don’t start project immediately after funding approval, take time to interview & approve consultants<br />Have key business unit owners & employees sign off on their contributions, such as user acceptance testing<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />13<br />
  14. 14. Organizing the Project<br />Authorize one Project Manager to run the project <br />Better responsibility & accountability<br />Break up large modules into two or more teams<br />Don’t let consultants control the project plan, create one that works for the organization<br />Follow a sound software development methodology<br />Co-locate the project team<br />Ensure that project team members are dedicated to the project<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />14<br />
  15. 15. Communications<br />Go beyond status reports<br />Develop & implement a full communications plan<br />Ensure that the team leads and their Contractors are talking<br />Share information across teams via periodic meetings<br />Resolve conflicts & personnel issues early<br />Share information with all employees<br />Regular internal communications<br />Company intranet site<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />15<br />
  16. 16. Testing<br />Test, test, test, then test some more<br />Convert legacy data first<br />Enhances unit testing as new module configurations are finalized<br />Test valid data with appropriate roles & authorizations<br />Complete and approve integration testing BEFORE Go-Live<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />16<br />
  17. 17. Training<br />Establish a dedicated training team<br />Identify training needs early on<br />Input valid data & configurations into training environment as soon as possible<br />Train employees on the new system as soon as possible<br />Raise satisfaction levels<br />Raise user comfort levels<br />Manage user expectations<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />17<br />
  18. 18. Post-Project Issues<br />Include post-project support as part of implementation RFP<br />Identify post-project training needs as part of the project plan<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />18<br />
  19. 19. Lessons Learned: The Interviews<br />Purposeful sampling of key project personnel<br />The interview protocol<br />Looking behind<br />What worked well?<br />What didn’t work well?<br />Looking ahead <br />What to try on a future project?<br />QDAS analysis identified the top five tactics in each category<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />19<br />
  20. 20. What Worked Well?<br />Daily standup status reports by team leads<br />Central location for project team<br />Using collaborative software<br />Conference and video calls<br />Timely examination of scope<br />Plan revision<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />20<br />
  21. 21. What Didn’t Work Well? <br />Ill-defined business requirements<br />Attendance at project team meetings<br />Organizational structure of project staff<br />Reporting on deliverables<br />ERP specific training for project team members<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />21<br />
  22. 22. What to Try on Future Project?<br />Gain earlier full support from senior management<br />Make IT personnel part of the project team<br />Provide IT with user support training early<br />Require key stakeholders to attend major project team meetings<br />Manage the action items better in team meetings<br />Provide better training for all stakeholders including the users<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />© 2011 Joseph B. Baugh<br />22<br />
  23. 23. Conclusion<br />The project team overcame many concerns to meet an aggressive timeline and complete the project for the Fall Overhaul<br />Diverse perceptions of project success led to the study to find lessons learned related to planning, preparation, communications, and implementation<br />Lessons learned came from two primary sets of sources: Surveys & Interviews<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />23<br />© 2011 Joseph B. Baugh<br />
  24. 24. Conclusion<br />Management consultants can apply the lessons learned to assist their clients with: <br />Defining initial problems<br />Seeking effective solutions<br />Supporting development of RFPs<br />Influencing Senior Management & Boards of Directors<br />Educating clients on roles & responsibilities in successful organizational change initiatives<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />24<br />© 2011 Joseph B. Baugh<br />
  25. 25. Questions<br />Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam <br />25<br />© 2011 Joseph B. Baugh<br />drjoe(at)baughgroup.com<br />

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