“ORGANIZATION/PEOPLE READINESS ASSESSMENT & CHANGE MANAGEMENT (OCM) PLATFORM”

Presented by:

Eduardo J. Muñiz

MURPHY’S LAW

“IF SOMETHING MIGHT GO WRONG, IT WILL”

Business Facts

Competition is fiercer than ever Almost every company is convinced that it MUST Refocus their business to increase its

Throughput & Competitive edge in the Market place . *Corporations estimate yearly investment of 1 Trillion Dollar implementing IT & HR/

Business Transformation initiatives such as:- Strategic Plan/Organization Restructuring/Design/Alignment- Business Process High Value Improvement (BPI/BPR/BPM/TQM/LEAN/Six Sigma/

Operational Excellence, etc.)- Knowledge Management- Enterprise Application Integration (EAI)- Business Intelligence- ERP/HCM/CRM/SCM 80-90% IT & Business Transformation Projects are unsuccessfully implemented (don’t

meet Project Performance and Financial Requirements). Based on Juran Institute Research. Only 40% of IT & Business Transformation Projects address training needs. Only 25% of these Projects give Integrated Technology & Business Goals Almost every company is disappointed with the slow rate of initiatives

implementation and low impact in bottom line results. Low Utilization & ROI & High TCO. New Business Model utilization is less than

40% & High Total Cost of Ownership (TCO)

The Question is:

WHY?• IT Platforms & New Business Model’s Functionality didn’t FIT Organization

Processes,Culture and Structures

• Lack of Readiness (Bandwidth):

• Outside Consultants ( New Business Model/IT Provider/Systems Integrator)

• Client

How to ensure that Strategic Business Transformation

initiatives are effectively implemented?

The Answer:

ORGAIZATION/PEOPLE READINESS ASSESSMENT & CHANGE MANGEMENT (OCM)PLATFORM

STRATEGIC INPUTS

OCM PLATFORMSTRATEGY DESIGN

OCM PLATFORMSTRATEGY IMPLEMENTATION

OCM PLATFORMSTRATEGY DESIGN

IMPLEMENTATION BRIDGES

•Business Readiness Assessment•Structure•Culture•Business Processes

•Implementation Plan

ORGANIZATIONAL CHANGE MANGEMENT (OCM) PLATFORM

Environment• Opportunities• Threats

Organization• Strengths• Vulnerabilities

•Strategic Business Priorities/KPIS•Parameterization

•Technological•Organizational

•Processes•Structure•Culture

•Change Impact Analysis•Structure Support/Governance•Communication Strategy

BUSINESS READINESS ASSESSMENTKey Requirements

Accuracy Quick Cost Effective Value Added

BUSINESS READINESS ASSESSMENTStrategic Areas

Core Processes

Management Approach

Culture

Teamwork (Synergy)

Change Resistance

Strategic Decisions MERGERS ACQUISITIONS ORGANIZATION RESTRUCTURING/ DESIGN/ALIGNMENT STRATEGIC PLANNING MARKETING STRATEGIES

Information Technology

PROCESS AUTOMATION SYSTEMS UPGRADING ABC SYSTEM IT PLATFORM (SAP, MS, ORACLE, IBM, SUN, etc.) ANY OTHER IT TRANSFORMATION INITIATIVE

Business Process

BUSINESS PROCESSES VALUE ADDED COST REDUCTION CONTINUOUS HIGH VALUE IMPROVEMENT ISO/QS CERTIFICATION BPR, TQM, SIX SIGMA, LEAN MANUFACTURING, ETC. HUMAN RESOURCES MANAGEMENT SYSTEM HCM/TALENT MANAGEMENT

Business Readiness AssessmentWHEN TO DO IT

The Tool:

ORGANIZATIONREADINESSASSESSMENTSYSTEM

Organization Readiness Assessment System

A highly practical Top Management Strategic Assessment tool designed to Diagnose Organization/People Preparedness to

identify Capability Gaps (Skills, Processes & Systems) to make sure that New Business Model’s functionality Fits Organization’s

Structure, Processes and Culture and defining Change Governance and Communications Strategy to engage

Stakeholders/Sponsors,

ORGANIZATION READINESS ASSESSMENT SYSTEMAssessment Areas

Organizational Processes

Management Structure

Organizational Culture

Cluster Factor ( Synergy )

Change Resistance

Organization Readiness Assessment SystemAssessment Areas

ORAS

Business FocusLeadership

Decision MakingCommunication

Performance

Appraisal

InvolvementCommunication

RewardsStatus Quo

Past ExperienceLeadership

LeadershipTeamwork

Diversity of Perspective

People Involved

Mission/GoalsPlanning

Decision MakingPerformance Management

Communication

LeadershipManagement

PracticesValues/Attitudes

COREPROCESSES

CULTURE CHANGERESISTANCE

MANAGEMENTSTRUCTURE

SYNERGISM

O.R.A.S. Characteristics

A pragmatic tool designed to systematically, timely, & cost effectively collect real and valid data about organization/people’s change preparedness.

Customizable Anonymity of respondents Objective Very user friendly Interpretation and diagnosis results Action Plan (Change Governance/Engage Stakeholders/Sponsors,

Communications Strategy)

ORGANIZATION READINESS ASSESSMENT SYSTEM

THE DATA COLLECTOR.- The instrument is composed of several statements of Organizational difficulties. Respondents are asked to indicate how frequently

each difficulty occurs on scale from 1 (never) to 9 (all the time).

THE SCALE.- For each of the items, the respondents are asked to choose a number from 1 to 9 indicating how frequently they perceive the difficulty.

1 2 3 4 5 6 7 8 9___________________________________________________________

Never Rarely Sometimes Frequently All the time

ORGANIZATION READINESS ASSESSMENT SYSTEM

Interpretation of Results

Low Risk Moderate Risk High RiskOPPORTUNITY CAUTION DANGER

_________________________________________________________________________1 2 3 4 5 6 7 8 9

BUSINESS READINESS FACTOR

Category I Low Risk - OPPORTUNITY RANGE (1.0-3.0).- Any area within this range, indicates a positive prognosis, so a proactive approach is required in order to ensure Implementation

success.Category II Moderate Risk - CAUTION RANGE (3.01-6.0).- Any area within this range, indicates

a guarded prognosis, so immediate actions are required to achieve successful implementation.

Category III High Risk - DANGER RANGE (6.01-9.0).- Any area within this range, indicates a negative prognosis, so, it is mandatory to take corrective actions to Strengthen

Organization Vulnerabilities prior to implementation stage.

ORGANIZATIONAL PROCESSES ASSESSMENTProcess Areas

MISSION AND GOALS PLANNING DECISION MAKING PERFORMANCE MANAGEMENT LEADERSHIP TEAMWORK COMMUNICATION SITUATION APPRAISAL PROBLEM SOLVING POTENTIAL PROBLEM ASSESSMENT MEETINGS TRAINING

ORGANIZATIONAL PROCESSES ASSESSMENTSample

In my organization, people assume they know the cause of a problem - only to find out later they were wrong.

Select an answer ranging from 1 to 9, where 1 is NEVER and 9 is ALWAYS

1 2 3 4 5 6 7 8 9__________________________________________________________

Never Rarely Sometimes Frequently All the time

ORGANIZATIONAL PROCESSES ASSESSMENTSample

Readiness Factor by Process Area

Process Area Readiness Factor- PLANNING 6.56- TEAMWORK 6.56- DECISION MAKING 6.21- SITUATION APPRAISAL 6.20- PERFORMANCE MANAGEMENT 6.00- PROBLEM SOLVING 5.96- LEADERSHIP 5.83- POTENTIAL PROBLEMS ASSESSMENT 5.83- MISSION AND GOALS 5.78- COMMUNICATION 5.42- MEETINGS 5.28- TRAINING 4.14

ORGANIZATIONAL PROCESSES ASSESSMENT...detailed explanation

DECISION MAKING - (6.21)The difficulty in this area indicates a need for refinement of the way: criteria

are set for decisions, alternatives are generated and compared and, risks are assessed and final choices are made.

OF MOST CONCERN IN THIS AREA WAS:- In my organization, people take too long to make a decision. (7.50)

OF LEAST CONCERN IN THIS AREA WAS:- In my organization people lose sight of the purpose of their decisions. (5.50)

MANAGEMENT STRUCTURE ASSESSMENTKey Attributes Assessment

Leadership Directing Coaching Supporting Delegating

Management Practices Planning

Building Teamwork Receives Feed-Back Gives Feed-Back Decision Making

Promotes Innovation

Attitudes/Values Self

People Internal Client External Client

Results The Organization Continuous

Improvement

ORGANIZATIONAL CULTURE ASSESSMENTAssessment Areas

Business Focus Performance Appraisal Structure Leadership Communication Teamwork Decision Making & Problem Solving Implementation Consequence Management

CLUSTER FACTOR (SYNERGY) ASSESSMENT Assessment Areas

LEADERSHIP TEAMWORK DIVERSITY OF PERSPECTIVE INTERDEPENDENCE PEOPLE INVOLVED

CHANGE RESISTANCE ASSESSMENTAssessment Areas

PURPOSE INVOLVEMENT COMMUNICATION REWARD CONSEQUENCE MANAGEMENT SUPPORT JOB CHARACTERISTICS LEADERSHIP PERSONAL GOALS STATUS QUO PAST PERFORMANCE

Business Readiness AssessmentResults to be expected

Objective Assessment of Organization/People’s Readiness to implement a New Business Model, Strategic Plan/Organization Restructuring/Human Capital/IT/Business Transformation Strategy

Sharp diagnosis of Organization/People’s Preparedness to anticipate any potential constraints when implementing Strategic Initiatives.

Action Plan that includes Change Governance, Engage Stakeholders/Sponsors, & Communications Strategy, etc. making sure that New Business functionality fitsOrganization’s Structures, Processes and Culture

Clear Picture of key Organization’s Strengths & Vulnerabilities before engaging in a major HR/IT/Business Transformation Strategy.

A sound mechanism to timely & objectively identify current and future key capabilities(Processes, Systems, Skills) requirements/KPIS to be addressed before, during and after any IT/ Business Transformation Strategy Implamentation.

Pragmatic evaluation of Talent Management Strategies.

Objective mechanism to assess progress of Strategy Implementation

Organization’s profile to be used for benchmarking purposes.

O.R.A.S. DESIGNER

Eduardo J. Muñiz

After many years leading the design & delivery of HR/Business Transformation Stratgies directly performing Business Readiness Assessments for the Manufacturing, Service and

Government industry, he started the idea of developing O.R.A.S.

He is GM & Strategic Change Practice Lead of The Advantage Group, Inc., a US based Strategic Business Transformation Consulting firm. With more than fifteen years of experience in

Strategic Planning, Organization Restructuring , Business Readiness/Change Management and Human Capital/Business Process High Value Improvement working with companies

within the USA, Latin America, APAC, ME.

Formerly performed leadership positions working for leading international Strategic consulting firms in APAC, USA & LATAM.

His educational background includes BSC Industrial Chemical Engineering and Business Process Architecture Studies.

OCM PLATFORMApproach & Scope

OCM PLATFORM is designed to objectively, consistently, accurately, and timely diagnose Organization/People Preparedness to identify Key Capabilties (Skills, Processes, Systems) to be developed and make sure that New Business Model’s functionality fits Organization Process, Culture and Structure before implementation.

OCM PLATFORM will make sure that IT/Business Transformation Strategies are successfully implemented maximizing utilization and ROI.

Our overall objective is to help ensure Organization realizes business benefits that more than justify their investment in this New Business Model

OCM PLATFORM will be implemented within 12 month period. This Approach is focused in two dimensions:

STRATEGIC: To do the right thing. Defining “WHAT” is the Strategic profile of the OCMPLATFORM is the starting point

OPERATIONAL: To do things right. Defining “HOW” to do it is also critical

Therefore we will be pursuing the following objectives:

OCM PLATFORMApproach & Scope

OCM PLATFORM will make sure that Organization increases its Throughput while reducing Business Process Cyce Time, Work in Process Inventory, Operating Expenses and Customer Complaints as well as its Competitive Advantage in the market place..

This strategic framework is designed to establish a Business Readiness Platform to objectively, consistently, accurately, and timely diagnose Organization/People Preparedness to identify Key Capabilties (Skills, Processes, Systems) to be developed and make sure that New Business Model’s functionality fits Organization Process, Culture and Structure before implementation.

Our overall objective is to help ensure Organization realizes business benefits that more than justify their investment in this New Business Model

OCM PLATFORM will be implemented within 12 month period. This Approach is focused in two dimensions:

STRATEGIC: To do the right thing. Defining “WHAT” is the Strategic profile of the OCMPLATFORM is the starting point

OPERATIONAL: To do things right. Defining “HOW” to do it is also critical

Therefore we will be pursuing the following objectives:

OCM PLATFORM

STAKE HOLDER & COMMUNICATION. OCM PLATFORM STRATEGIC FRAMEWORK. START UP WORK. Linking Strategic Business Priorities/KPIS Definition. Parameterization Technological/ Organizational/Develop Stake Holders/ Sponsors Global Assessment/Governance /Roles/ Communication Plan

CHANGE IMPACT & ACTIONS. Business Process Design Audit/Review/BIA. Execute Change Actions

BUSINESS READINESS. Diagnose Organization/People Preparedness to identify Key Capabilities (Skills, Processes, Systems) to be developed and make sure New Business Model’s functionality fits Organization Process/Culture/Structure. Impact Review. Execute Change Actions

KEY CAPABILTIES DEVELOPMENT. Customized Job Models/ OCM Training/ Systems/ Processes Designand Logistics/Consequence Management/Progress Monitoring

BENEFITS REALIZATION. Business Process Alignment/ Results Measurement/ KPIS Evaluation/ Perform Post BIA/Readiness Assessment. People’s Total Commitment.

OCM PLATFORMADMINISTRATOR

PROJECT MANAGERS

MEASUREMENTS & READINESS

FUNCTIONAL AREAS

TECHNOLOGY INFRASTRUCTURE

CAPABILITIES DEVELOPMENT

FINANCIAL SUPPORT

LOGISTIC SERVICES

BUSINESS PROCESSES

TECHNOLOGY

STRUCTURE

OTHER

OCM’S IN HOUSE CONSULTANT

OCM PLATFORMFunctional Structure (Core Functions)

Top Management

OUTSIDE CONSULTANTS

BUSINESS READINESS ASSESSMENT CENTER

TRAINING & DEVELOPMENT

BUSINESS UNITS MANAGERS

OCM PLATFORMImplementation Schedule

1 2 3 4 5 6 7 8 9 10 11 12

STAKE HOLDER & COMMUNICATION

OCMCE STRATEGICFRAMEWORK

CHANGE IMPACT & ACTIONS

BUSINESSREADINESS ASSESSMENT

KEY CAPABILITIES DEVELOPMENT

BENEFITS REALIZATION