Organizational Change Management Strategies

Transcription

1 Organizational Change Management Strategies Rebecca Potts OCM Engagement Principal

2 Organizational Landscape What are the organizational changes you are facing currently? Expansion? Restructuring? M&A? Regulatory Compliance/SOX Technology roll out Others? How do you manage change today? Challenges and opportunities? Do you integrate change management and training? What are the organizational challenges and changes you are expecting?

3 Challenges all Companies Understand Organizations want to improve their business and maximize their success by Measuring performance Changing Business Models Extracting value through process improvement Lowering costs through standardizing processes Further reducing cost and complexity of Total Cost of Ownership Accurate / accessible data to make better business decisions Leveraging best practices to avoid mistakes of the past Companies around the globe set goals and create strategic initiatives to address and mitigate risk. The fact is, three out of four corporate initiatives fail to fulfill their objectives* *Source: PwC Mori Survey, % of 500 companies

4 Change & Risk Mgmt Imperatives Top Issues Organizations Face During [Initiatives] Change Management 16% Internal Staff Adequacy 8% Project Team 7% Training 7% Issues/Obstacles Until Now Prioritization/Resource Allocation Top Management Support Consultants Ownership (of benefits to others) Discipline Program Management Process Reengineering Stage/Transition Benefit Realization 1% 2% 2% 4% 4% 6% 5% 6% 8% PEOPLE 62% PROCESS 16% Software Functionality 4% Application Portfolio Management 3% TECHNOLOGY 9% Enhancements/Upgrades 2% Data Reporting 2% 1% KNOWLEDGE ASSETS 3% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Source: Deloitte Consulting and Benchmarking Partners (Based on a study of 62 companies that have gone live with an ERP system) Note: Rounded percentages; not all categories are shown as bars Directly related to Orgn Change Mgmt & Training

5 Value Realization: Change Management Impacts

6 Leadership & Change Management Influence Success % of respondents selection of influential value factors Strong executive sponsorship Strong project leadership Strong business process ownership Alignment and agreement with the business case across organization Organization s willingness to adopt change Effective training

7 The Adoption Curve Our activities focus on enabling individuals and the organization to adopt change Adapted from.lewin, Organizational Change

8 Scale of change Minor changes Small change to role Large change to Role Complex new job processes New role Scale of Change Communications Leadership and Sponsorship Alignment Job/Organization Alignment People Transition Planning Skills & Competencies Alignment Perf Mgmt/Incentives & Rewards Alignment or Briefing Documents Quick Reference Cards Computer Based Training Virtual Classroom/VideoConferencing Instructor Led Training Assessment/Monitoring/Measurement Project Team Training

9 Levers for Change Organizational change management has the capacity to leverage positive change All of the following levers are active in an organization at all times, influencing each lever provides momentum to shift culture Leadership and Sponsorship Develop a culture of change leadership that aims at building commitment through accountability, role clarity and executive development. Skills and Competencies Incorporate competency assessment and tracking into professional development for all employees. Learning, training, and succession planning are all incorporated. Organizational Design and Structure Align business and process metrics with process roles and management structures. Communications Enable change through frequent and factual information flow, clear roles and responsibilities, benefits, and rewards. Governance and Compliance Clearly assigns roles and responsibilities and creates a culture of compliance based on consequences for a small, defined set of standards. Performance Management System Establish and then measure individual performance ensuring alignment with enterprise strategies, goals and objectives. Incentives and Rewards Provide bonuses, promotions and compensation that is in concert with good performance and client successes. Hiring and Selection Placement (such as retrain or hire; grow organically or acquire) that ensures individuals possess the right Skills and Competencies at the right time resulting in program success.

10 Upgrades: Change Management Impacts

11 Scenario: Technical Upgrade Example: Technical upgrade from 4.7 to SAP ERP no new functionality included Minor changes Small change to role Large change to Role Scale of Change Complex new job processes New role Communications Leadership and Sponsorship Alignment Job/Organization Alignment People Transition Planning Skills & Competencies Alignment Perf Mgmt/Incentives and Rewards Alignment or Briefing Documents Quick Reference Cards Computer Based Training Virtual Classroom/VideoConferencing Instructor Led Training Assessment/Monitoring/Measurement Project Team Training

12 Scenario: Technical Upgrade Example: Technical upgrade from 4.0b to SAP ERP new user interface and requires some process redefinition Minor changes Small change to role Large change to Role Scale of Change Complex new job processes New role Communications Leadership and Sponsorship Alignment Job/Organization Alignment People Transition Planning Skills & Competencies Alignment Perf Mgmt/Incentives and Rewards Alignment or Briefing Documents Quick Reference Cards Computer Based Training Virtual Classroom/VideoConferencing Instructor Led Training Assessment/Monitoring/Measurement Project Team Training

13 Scenario: SAP Module Implementation Example: Syndications implementation Minor changes Small change to role Large change to Role Scale of Change Complex new job processes New role Communications Leadership and Sponsorship Alignment Job/Organization Alignment People Transition Planning Skills & Competencies Alignment Perf Mgmt/Incentives and Rewards Alignment or Briefing Documents Quick Reference Cards Computer Based Training Virtual Classroom/VideoConferencing Instructor Led Training Assessment/Monitoring/Measurement Project Team Training

14 Stakeholder Engagement Influences Success % of projects that met financial expectations Without business owner involvement 37%, 18 Companies With business owner involvement 63%, 30 Companies

15 Common Services: Change Management Impacts

16 User Engagement & Upskilling Influences Success % of companies with Key/Power User programs in place % of companies aligned by business process

17 Change Management Summary Best Practice evaluations are a tool to gauge and assess your organization s level of process maturity compared to other organizations Value Realization: Leadership and change management are critical enablers for attaining value of projects CoE: COE models that are formed with greater business participation (IT and business alignment) address continuous improvement activities as identified in the business case; Key/Power user programs drive to better system acceptance Upgrades: 82% of participants view lack of education around functional deltas between releases was cited as a key challenge in an upgrade Shared Services: Top performers follow invest more in implementation plan, change management and securing executive commitment, acknowledging key risks of a Shared Services implementation

18 Risk Management Business Drivers Corporate Strategies Lead Change Strategic Organizational Alignment Leadership and Sponsorship Skills and Competencies Organizational Design & Structure Governance and Compliance Performance Management Incentives and Rewards Hiring and Selection Communication Recognize Prioritize Mobilize Monitor & Improve Communications Leadership & Stakeholder Alignment Business Readiness Organization/Work Design Training & Support Project-Level Organizational Change Improvement Focus OCM Mitigates Risk and Advances Success People Process Technology

19 Q&A Kerry Brown National Practice Lead Organizational Change Management O M kerry.brown@sap.com

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