Conquering the Challenge of Change

Transcription

1 Conquering the Challenge of Change Elizabeth Dodge, Equity Plan Solutions, LLC Jennifer Kirk, Google Carrie Kovac, E*TRADE Financial Corporate Services, Inc. Larry Reynolds, Fidelity Stock Plan Services

2 There is nothing permanent except change. Heraclitus Philosopher of the 4th century BC

3 Stories of Change Operational Change Carrie Career Change Jen Options to RSUs Larry Client Automation Elizabeth

4 Types of Change Internal Process changes New job, new employee Mergers, spins, etc. Organizational changes IPO New product features More automation Streamlined processes External Regulatory System changes Grant practices Options to RSUs New ESPP Performance type

5 It depends When is Change Needed?

6 Regulatory Change Some allow adoption at different times ASU (simplification) ASU (modifications) Non-employee accounting (coming soon?) Some flip the switch 2-day settlement Tax rates 162(m) changes

7 Process Change Something is broken Late terms mean expense/plan roll forward are moving targets Employees complain Processes are time-consuming and error-prone Material weakness found by audit firm Reports don t tie Process is inefficient/expensive How do you know? Networking, comparing notes, conferences, consultants Sometimes automation is NOT better (ECD example) Limited tech skills Best process for YOU, not best process

8 System Change Value lacking System inflexible/slow Technology outdated/no longer supported Needed functionality lacking/needs changing too fast Integration lacking Service levels insufficient Participant complaints

9 Stock Plan Design Change Reasons to Change Options underwater Turnover rates too high Employee confusion Expense too high compared to value perceived Peers are hiring your people away Changes to Consider Implement an ESPP Move away from Options to RSUs Move away from RSUs to Options Implement performance awards Change vesting schedule Change communication tactics

10 Job Change You lack passion about your job (job vs. career?) Company is sinking/you don t believe in the company/ direction/culture No upward mobility/lack of growth Duties increase/pay not so much You long for fewer hours/more flexibility? Ability to work from home? Your boss doesn t respect you You dread going to work Set goals for your new role and discuss DURING the interview process If you re not going to get what you want, it s better for everyone to discover that early!

11 Process Change Understand the current process first! Understand WHY the process is in it s current state how did it come to be? Must understand to avoid past mistakes Get input and buy-in from ALL impacted stakeholders

12 Cross-Functional Team Finance Broker IT HR Payroll Provider Transfer Agent Investor Relations Stock Plans Payroll S/H Advisory Firms Treasury Legal Audit Firm Internal Audit

13 Plan the Work and Work the Plan! Plan out the project, then execute, execute, execute! More planning up front = Smoother project Better results More likely to meet deadlines If implementing a new feature, TEST! ALL the way through! Consider downstream impacts!

14 First Steps Corporate sponsor (champion for change) Someone who can pull strings when/if needed Cross-functional brainstorm Get everyone at the table Include vendor, if appropriate Define goals Determine roles and responsibilities Discuss definition of success How will you measure success? SMART Goals? Specific, measurable Attainable/agreed upon Realistic, timely/time-framed Needs vs. wants

15 Project Plan Create a project plan/checklist Reports required/tasks to complete Due dates and owners Status and notes/comments Constantly update project plan Put important dates on your calendar AND on others calendars! Add market close dates, holidays, etc. as well Review project plan weekly to make sure project still on track Obtain sign-off on project plan from all players Send out in advance of kick-off meeting and review at meeting

16 Kick It Off Hold a cross-functional kick-off meeting Schedule well in advance Review DRAFT of project definition Review DRAFT of project plan Include owners for EACH task Review expectations for deliverables Are goals realistic? Who else can help?

17 Project Meetings Hold monthly, then weekly, then perhaps daily status meetings as you get closer to end of project and your deadlines are imminent They can be brief, they should be well-run, they need an agenda If you start to waste people s time, they will stop attending and meetings will no longer be effective As due dates approach, ask for and give status updates Open-issues discussion issues log (with owners!) Update project plan (can be in Word or Excel) and send out updates regularly

18 Manage Scope Goals are defined Things will change, but Try not to allow feature creep If scope increases, timelines will get pushed out or quality will suffer Requirements were signed off on at the start must be a strong rationale for changes in the project Document your decisions!

19 Identify risk items early Failure to meet deadlines Manage Risk Owner provided incorrect deliverable Assigned deliverable was incorrect for the project Plan for risk Contingency plans

20 Follow Up, Follow Up, Follow Up Professional project managers are paid to nag But nag NICELY! Even if deadlines are not being met Build and leverage your relationships Document failures to meet deadlines Push out target dates, when possible, so the end of the project doesn t get the short end of the stick

21 Failure to Communicate Common failures Differences in expectations People are surprised by results, deadlines missed, etc. No one knows state of project People are impacted by the project at last-minute Team members don t know what is expected of them Solutions

22 Status reports Communication! Delivered to management and all team members Report right away when deadlines are at risk Reports should be brief so that people will read them Call out important items at the top of the report Status summaries If you re not getting status updates from participants Follow up ( , voic ) Manager as last resort

23 Vendors Meet with your vendor(s) Outsource providers, brokers, TA, etc. Discuss schedule for project Can vendor attend status meetings? Often VERY useful Is your usual contact the right person for the project? Or will they need to bring in others?

24 Lessons Learned After it s over, hold a lessons learned cross-functional review What went well What didn t go well What shall we change for next time Update your checklist/project plans/audit list Any issues reported should be spot checked next year Do this NOW, while the project (and its challenges) are fresh in your mind! Especially important for repeated projects, but good for all projects

25 Things to Remember Real, lasting change is a process, not a switch to flip Don t expect instant results Change is hard, people will resist it That s not the way we roll We ve never done that before Why fix what ain t broke?

26 Contact Info Elizabeth Dodge, Equity Plan Solutions, LLC Jennifer Kirk, Google Carrie Kovac, E*TRADE Financial Corporate Services, Inc. Larry Reynolds, Fidelity Stock Plan Services FOR CEPI SYMPOSIUM ATTENDEES ONLY. CEPI, Equity Plan Solutions, LLC, Google, E*TRADE, and Fidelity Investments are not affiliated

27 APPENDIX

28 Project Definition Item Project Overview Objectives Scope Assumptions and Risks Organization Approvals Initial Effort, Cost, & Duration Estimates Description Why? What are the business drivers? What are the business benefits? What will be accomplished by the project? What do you hope to achieve? What deliverables? Which groups involved? What is out of scope? What are you taking for granted and might go wrong? What will you do to manage the risks to the project? Show the significant roles on the project. Sponsor? Project team? Are all stakeholders represented? Ask sponsor and key stakeholders to approve, signifying that they are in agreement with what is planned. Start as best estimates, and then revise as project progresses.

29 Sample Project Plan

30 Sample Project Memo

31 Create a contact list Other Details Include cell phone and home phone #s Include vendors Know vacation schedules for anyone with deliverables Lots of people take time off during the summer and around the holidays Identify backups at start of project