Change Management 1

SAP AG

CSU Chico

Change ManagementFinal Stages of Implementation

ERP Configuration and Use

Fall 1998

Dr. Gail Corbitt

Change Management 2

SAP AG

CSU Chico

Overview of Topics

Review of Implementation Process

Identify Critical Success Factors

Define Change Management (big picture)

Define Role of Corporate Politics and Other Pitfalls

Discuss the Changing Roles in Technology Transfer Situations

Overview of “Go Live” Issues and Concerns

Change Management 3

SAP AG

CSU Chico

Review of Implementation Process

Launch the Project

Project Planning

Define Standards and Procedures

Technical Requirements Planning/Initiation

Kick-off

Define the “As Is”

Business Blueprint -- what is the business

Identify areas of needed change (re-engineering)

Learn what SAP can and can not do

Change Management 4

SAP AG

CSU Chico

Review of Implementation Process cont.

Design the “To Be”

Re-engineer the processes that need changing

Develop Detailed Design of how ERP will be configured to support the “To Be” business

Configuration of system

Design of Reports

Design all interfaces

Design and test all conversions

Develop Implementation (Go Live) Plan

Function and Integration Test

Change Management 5

SAP AG

CSU Chico

Review of Implementation Process cont

Implement or Go Live

Install the Tested Configured System on the Production System

Set up and Test the support system for users

Train the users

Populate the Database (bring in legacy data)

Cut Over to New system

Change Management 6

SAP AG

CSU Chico

Critical Success Factors

Continuous Visual Behavioral Support from Top Management

Understand the Corporate Culture Surrounding Change: Ready the Organization for Change

Make Changes to Organizational Structure Well in Advance of Go Live (before you start project is ideal)

Document and Communicate Project Status Continuously

Project Manager must be able to Stick to the Task/Deliverable Schedule

Change Management 7

SAP AG

CSU Chico

Critical Success Factors Cont.

Project Team must be best at understanding the business and SAP

Commitment to the Change (need to ride out the problems)

Have a Team that Can Make Decisions

Use a Good Project Management Methodology -- Commit to Use It

Change Management 8

SAP AG

CSU Chico

Components to the Project

Business Process (includes Data and Organizational components)

Conversions and Interfaces (External systems that need to work with SAP)

Development of custom Programs, Reports and Screens (internal SAP interface)

Change Management (Site Readiness and Go Live Plan)

Integration and Project Management to Coordinate all of the above

Change Management 9

SAP AG

CSU Chico

Change Management (Big Picture) Change Management: Strategies for awareness, acceptance &

incorporation of change into the organization’s environment

Systems Administration of hardware and software components

Version and Change Request Control

Conducting business differently

Verblen’s Principle (Weinberg and Gause 1989)

“There’s no change, no matter how awful, that won’t benefit some people, and no change, no matter how good, that won’t hurt some.”

Plan or Manage the Change so that users and System are ready at the same time and expectations on both sides are matched

Change Management 10

SAP AG

CSU Chico

Change Management (Big Picture)

ChangeManager

DevelopmentProjectTeam

Prepare Users Prepare System

Convergence

Change Management 11

SAP AG

CSU Chico

Goals of Change Management

Convergence of User and System Readiness

Optimize Organization’s Social (Cultural) and Technical Infrastructures

Create a Learning Organization

Continuous Improvement

Customer Focus

Adaptable to changes in the environment (external and internal)

Change Management 12

SAP AG

CSU Chico

Key Principles of Change Management

Steering Committee Must Have Product and Process Champions or Stakeholders

Communication needs to multi-channeled (up is as valued as down)

Conflict resolution and knowledge acquisition are collaborative (information sharing not hoarding)

Implementation Team (change management team) has a structure and roles of individuals are defined

Resistance to Change is always there but may be hard to detect until after Go Live (Be Proactive)

Change Management 13

SAP AG

CSU Chico

Challenges and Pitfalls

Change process must be planned and managed

Magnitude of change is ALWAYS greater than imagined

Resistance to change appears in different forms -- must be addressed

In global organizations cultural factors need special consideration

Change in organizations occurs in stages -- need strategies for EACH stage

Change Management 14

SAP AG

CSU Chico

Stages of Change

Boston consulting Group 5 Stage Model:

Stagnation (building desire to change)

Anticipation (acceptance of change is highest here)

Implementation (critical time for commitment -- most pain occurs here)

Determination (expectations get real -- people begin to incorporate change into daily routine)

Fruition (acceptance begins to climb back up)

Lewins’ 3 Stage Model: Unfreeze, Move and Re-freeze

Change Management 15

SAP AG

CSU Chico

Strategies for Stages

Unfreezing:

Develop awareness of change

Users see or have a need to change (internal felt need)

Driving forces for change outweigh the Restraining Forces

Moving:

Involve users in project team (as is --> to be processes)

Train the users

Develop in-house gurus -- change agents that can help resisters

Change Management 16

SAP AG

CSU Chico

Strategies for Stages

Re-freeze or Institutionalize Change:

Support organization is in place and working

Resistance to change has been addressed

Development Team moves on to a new project

At all Stages

Communication must be Open

Trust within the organization must be high

Knowledge must be Shared

Change Management 17

SAP AG

CSU Chico

Force Field Analysis

Technique to identify positive or driving forces and negative or restraining forces in the environment that contribute to the impending change

Can be personal or environmental

Identify the item as well as the strength of each item

Uses:

Determine readiness at the beginning of the process

Measure progress and surface new issues as we move through process

Build strategies and tactics that reinforce the positive and address the negative (at all stages)

Change Management 18

SAP AG

CSU Chico

Force Field Example

Change: Change to Word from Spellbinder

Driving Forces Restraining Forces

Department Standard

Free Secretarial Support

Updates to software are free

Long learning curve

Dissertation files may have to be re-entered

Printer control is difficult

Mail merge is harder to use

5.257.5

Change Management 19

SAP AG

CSU Chico

Force Field Example:

Pick something in your life you’d like to change

List the forces (Driving and Restraining)

Draw the lines for strength

Interpret Results

Change Management 20

SAP AG

CSU Chico

Changing Roles in Technology Transfer Situations

Knowledge Needed to Implement Change is not Available

Change Agents are Consultants

Roles include Scouting for New Work and Executing Existing Work

Consultant will exit organization (need Knowledge Transfer)

Trust of consultant must be high

Action in organization must be unique to organization but most consultants use boiler plate solutions

Outsourcing can be Viable

Change Management 21

SAP AG

CSU Chico

Latest Challenges/Changes in IT

Reduced Need for Programmers

Reliance on Complex Technology

Higher User Involvement

User’s Own Systems -- IT more of Servant Role

How do these issues affect you?How do you feel about these?How are you prepared to work in an environment where these things occur?