Change Management for ERP implementations - 101
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Organiza(onal Change & ERP A CRASH COURSE
Antwerp University Management Informa(on Systems
08-‐Nov-‐2013
@lucgaloppin Antwerp University -‐ Management
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PART 1: STUFF YOU
SHOULD KNOW ABOUT CHANGE
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Think about a personal change
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Ra(onal
Emo(onal
Somewhat predictable: Knowledge and Skills
Below the surface: Mo/va/on
McKinsey Global Survey (2006) • You will be confronted with
anxiety and resistance, regardless of whether the change is posi6ve or nega6ve.
• You can channel these emo6ons to the benefit of your change in order to obtain more clarity and less confusion.
• THE REAL QUESTION: How do we channel these emo(ons so they can fuel your project instead of blocking it?
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Ground Zero of Change Management
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The change cycle from a developmental point of view
The change cycle from a pallia6ve care point of view
New Ability
Stress
Relaxed state Denial
Depression
Acceptance
Performan
ce
Self Esteem
Anger
Bargaining
Time Time
The one mistake we all make
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Current State
Future State
The natural cycle of change
Time
Performan
ce
Three ingredients
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Three illusions
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Two choices
1. Accept the nature of change and integrate it in your approach (“pay now”)
2. Deny the human side of change (“pay later”)
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TRANSITION STATE
PRESENT STATE
FUTURE STATE
TRANSITION STATE
PRESENT STATE
FUTURE STATE
Burning Placorm
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Transi6on Approaches
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Example: ERP projects… What you will be paying anyhow
Approach 1: “Investment”
Approach 2: “Damage Control”
Same amount, Different label
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Resistance
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The emotion that occurs when our expectations of “the way things are today” are interrupted.
Predic6ng Resistance
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Resistan
ce
Time
Incompetent Competent
Unconscious Conscious Unconscious
UNCONSCIOUS INCOMPETENCE
CONSCIOUS INCOMPETENCE
CONSCIOUS COMPETENCE
UNCONSCIOUS COMPETENCE
PART 2: STUFF YOU CAN
DO WITH CHANGE
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What users and consumers have in common
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Selling the project
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Project staffing like military deployment
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UN Peace keeping Troops
Site 9
Site 8
Site 7
Site 6
Site 5
Site 4
Site 3
Site 2
Site 1
Local Responsible
SAP Coach
One face to the customer
One plan One team
Structured and facilitated status meeting each Friday
Transition Teams
Direct access to local responsible for each domain
SAP Coach site 1
SAP Coach site 2
SAP Coach site 3
One
cha
nnel
SAP Coach site 4
SAP Coach site 5
SAP Coach site 6
SAP Coach site 7
SAP Coach site 8
SAP Coach site 9
Project central
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The Organizational Change Portfolio
According to Luc Galoppin
4 ’workstreams’ with a distinct return on investment:
• Communication Stream: Managing expectations and supporting the program during its complete lifecycle in staying in touch with the organization.
• Learning Stream: Upgrading the skills and knowledge of the organization in terms of context (why), content (what) and actions (how).
• Organization Stream: define and implement a new organization structure and define and realize new responsibilities for working.
• Performance stream: Translate the principles of the business case into concrete new ways of working.
COMMUNICATION LEARNING
ORGANIZATION PERFORMANCE
What’s in it for me?
Why should I care?
What should I do?
How do I do that?
Who does what?
What will this come down to in prac(ce?
PART 3:
CASE STUDY
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These slides will be shown during the session. However, no permission is granted for further distribu6on.
PART 4:
STUFF
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Propriety Content
Organisa6on Stream
Learning Stream
Communica6ons Stream
Performance Stream
Program Ini6a6ons
Program Setup
Business Case
Feasibility Study
Strategy Formula6on
Program Charter
Learning Strategy
Communica6on Strategy
Strategy Map
UNFREEZING
1
2
4
Propriety Content
Process Maps
Organisa6on Stream
Learning Stream
Communica6ons Stream
Performance Stream
Design
Event Driven Process Chains
Swim Lane Diagrams
KPIs
Security Profiles
Learning Plan
Communica6on Plan
Branding
Changing
Stakeholder Database
Roles
Reports
1 1
2 2
3
4 4
Propriety Content
Design Documents
Organisa6on Stream
Learning Stream
Communica6ons Stream
Performance Stream
Build
Func6onal Designs
Organisa6onal Structures
SMART KPIs
Mo6va6onal Learning Plan
Knowledge Portal
Changing
Refine Value Proposi6on
Learning Curriculum
Workflows
Par6cipant Administra6on
1 1
2 2
3 3 3
4
Propriety Content
Test Scenarios
Organisa6on Stream
Learning Stream
Communica6ons Stream
Performance Stream
Test
System Process
KPI’s Star6ng Values
Trainer Materials
RWA Assessments
Changing
Par6cipant Materials
Report
Course Transla6ons
1 1
2 2
3 3
4
Propriety Content
Training Evalua6on
Organisa6on Stream
Learning Stream
Communica6ons Stream
Performance Stream
Deploy
Reac6ons Learning
Locally Refined KPI’s
Integrated Learning Materials
Emergency Comms Plan
Changing
Deployment Plan
Behaviour
Go-‐Live Comms Plan
1 1
2 2
3 3
4 4
5
6
Propriety Content
Organisa6on Stream
Learning Stream
Communica6ons Stream
Performance Stream
Post Implementa6on
Revised Roles
Revised Learning Blend
Benefits Mapping
Post Implementa6on Audit
Standard Opera6ng Procedures (SOPs)
Re-‐Freezing
Open Issues
Support Materials
Opera6onal Service Level Agreement
Ready – Willing – Able Assessment
Structured Communica6on
Learning Sta6s6cs
1
3
4
5
6
Organiza6onal Change 101 Glossary (par6ally based on Daryl Conner’s Glossary)
• Advocate: Individual (or group) wan6ng a change but without sufficient power to sanc6on it. • Agent: Individual (or group) facilita6ng the development and execu6on of implementa6on plans. • Black hole: Situa6ons that disrupt cascading sponsorship, leading to a lack of sustaining sponsorship, and therefore
a lack of behavioral change at local levels. The term is borrowed from the astrophysics label for “spots” in the universe that have gravita6onal pulls so strong that everything, including light, is pulled in, and lille or nothing emerges.
• Change management: The orchestra6on of change in a way that iden6fies and addresses the human risks involved in implemen6ng change, strengthening the individual and organiza6onal ability to handle change well. This increases the chances that the change will be put successfully into prac6ce.
• Resistance: the emo6on that occurs when our expecta6ons of ‘the way things are’ are interrupted. Two words are important in this defini6on:
– Emo(on: the essence of resistance is that it creates an emo6on. That means: not logical, not ra6onal and most of all: not predictable.
– Expecta(on: resistance does not only occur when things change, but when our expecta6ons are interrupted, regardless of whether that makes ra6onal sense.
• Sponsor: Individual (or group) having the power to sanc6on the change. – Sustaining sponsorship: The individuals or groups legi6mizing the change at local levels of the organiza6on. Sustaining sponsors
cascade legi6miza6on, support for, and commitment to a change ini6a6ve throughout the organiza6on. – Ini(a(ng sponsor: The individual or group that has the sanc6oning power to drive the change process through to realiza6on;
those who have ul6mate control of the resources—including human, economic, poli6cal, and logis6cal—required for implementa6on of the ini6a6ve. This individual or group does not have to gain permission to ini6ate the change; however, they oqen choose to keep superiors informed of the project and its implementa6on.
– Local Sustaining Sponsor: The individual or group orchestra6ng the communica6ons and consequences within the relevant tac6cal areas of responsibility necessary, to ensure successful change implementa6on.
– Primary Sustaining Sponsor: The individual or group formally sanc6oning the change within relevant areas of responsibility, providing a “united front” of leadership support for the endeavor and coordina6ng implementa6on ac6vi6es (across func6onal or geographical lines as necessary).
• Target: Individual (or group) who is to actually change
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About
• Luc Galoppin Mob: +32 497 399 880 Email: luc.galoppin@reply-‐mc.com Blog: hlp://www.reply-‐mc.com Twiler: hlp://twiler.com/lucgaloppin YouTube channel: hlp://www.youtube.com/replymc Slideshare: hlp://www.slideshare.net/lucgaloppin
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