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

1. Managing a major organizational change: Lessons learned about coping with homogeneous internal teams and globally diverse external partners. Academy of Management Management Consulting Division - 2011 5th International Conference VU University, Amsterdam, the Netherlands Dr. Joseph B. Baugh, PMP Baugh Group LTD Capella University

2. Dr. Joseph B. Baugh, PMP Program Manager/Project Manager Consultant Technical Trainer Project Management [PMP] Information Security [CISSP, CISM] Faculty Member Three learning institutions Undergrad to doctoral courses Multiple learning milieus Brick-and-mortar Online Hybrid Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 2

3. Agenda Planning for the project Key project constraints Developing the study Lessons learned The survey The interviews Conclusion What did it all mean? Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam 3 © 2011 Joseph B. Baugh

4. Project Rationale Literally hundreds of applications Legacy systems across multiple platforms Spreadsheets Databases None were interconnected Very inefficient No one “trusted” the numbers No real-time budget data The time had come to change Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 4

5. Project Planning Examine business processes Identify key internal resources [SMEs] Develop Requests for Proposal [RFPs] ERP system software evaluations Implementation partners Board Funding Approval Project Implementation Post-project activities Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 5

6. Key Project Constraints Time was the key constraint Aggressive timeline was driven by: Fall Overhaul Schedule Delay in Board Approval Resource Availability Internal resources External consultants Scope was not defined as well as originally thought Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 6

7. Project Issues Schedule Driven Issues Conflicting demands Resource contention Structural Issues Planning & Training Understanding Business Requirements Geographical and Cultural Barriers Diverse perceptions of results Led to the study described in the paper Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 7

8. Project Team Structure Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 8

9. Understanding Business Requirements Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 9

10. Lessons Learned: The Survey Qualitative survey of project stakeholders QDAS analysis yielded eight primary themes Pre-project preparation Resource availability Setting expectations Organizing the project Communications Testing Training Post-project issues Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 10

11. Pre-Project Preparations Fully understand internal business processes before trying to explain them to contractors Review & redefine business processes early on to flesh out RFP Bring in consultants, if necessary, to develop a more complete RFP specification Don’t assume that anything is included in scope unless it is explicitly identified in the RFP Identify & send client team members to ERP training prior to project start Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 11

12. Resource Availability Identify internal team members early Functional managers must support resource commitment to the project Backfill for critical internal resources Interview individual consultants to ensure appropriate experience levels Check references & experience Don’t let vendor “bait-&-switch” consultants Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 12

13. Setting Expectations Set a reasonable timeline, 8 months is very aggressive for a complex project Don’t let salesmen dictate timelines Manage senior management & user expectations from the start Don’t start project immediately after funding approval, take time to interview & approve consultants Have key business unit owners & employees sign off on their contributions, such as user acceptance testing Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 13

14. Organizing the Project Authorize one Project Manager to run the project Better responsibility & accountability Break up large modules into two or more teams Don’t let consultants control the project plan, create one that works for the organization Follow a sound software development methodology Co-locate the project team Ensure that project team members are dedicated to the project Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 14

15. Communications Go beyond status reports Develop & implement a full communications plan Ensure that the team leads and their Contractors are talking Share information across teams via periodic meetings Resolve conflicts & personnel issues early Share information with all employees Regular internal communications Company intranet site Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 15

16. Testing Test, test, test, then test some more Convert legacy data first Enhances unit testing as new module configurations are finalized Test valid data with appropriate roles & authorizations Complete and approve integration testing BEFORE Go-Live Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 16

17. Training Establish a dedicated training team Identify training needs early on Input valid data & configurations into training environment as soon as possible Train employees on the new system as soon as possible Raise satisfaction levels Raise user comfort levels Manage user expectations Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 17

18. Post-Project Issues Include post-project support as part of implementation RFP Identify post-project training needs as part of the project plan Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 18

19. Lessons Learned: The Interviews Purposeful sampling of key project personnel The interview protocol Looking behind What worked well? What didn’t work well? Looking ahead What to try on a future project? QDAS analysis identified the top five tactics in each category Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 19

20. What Worked Well? Daily standup status reports by team leads Central location for project team Using collaborative software Conference and video calls Timely examination of scope Plan revision Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 20

21. What Didn’t Work Well? Ill-defined business requirements Attendance at project team meetings Organizational structure of project staff Reporting on deliverables ERP specific training for project team members Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 21

22. What to Try on Future Project? Gain earlier full support from senior management Make IT personnel part of the project team Provide IT with user support training early Require key stakeholders to attend major project team meetings Manage the action items better in team meetings Provide better training for all stakeholders including the users Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 22

23. Conclusion The project team overcame many concerns to meet an aggressive timeline and complete the project for the Fall Overhaul Diverse perceptions of project success led to the study to find lessons learned related to planning, preparation, communications, and implementation Lessons learned came from two primary sets of sources: Surveys & Interviews Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam 23 © 2011 Joseph B. Baugh

24. Conclusion Management consultants can apply the lessons learned to assist their clients with: Defining initial problems Seeking effective solutions Supporting development of RFPs Influencing Senior Management & Boards of Directors Educating clients on roles & responsibilities in successful organizational change initiatives Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam 24 © 2011 Joseph B. Baugh

25. Questions Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam 25 © 2011 Joseph B. Baugh drjoe(at)baughgroup.com