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Organization Transformation + Change Management

Organizational Transformation and Change Management Case Studies

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Organizational Transformation and Change Management Case Studies

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Page 1: Organizational Transformation and Change Management Case Studies

Organization Transformation + Change Management

Page 2: Organizational Transformation and Change Management Case Studies

Organization Transformation + Change Management 1

We specialize in helping complex organizations better share information, manage capital assets, and use information

technology to optimize performance.

Organization Transformation& Change Management

Page 3: Organizational Transformation and Change Management Case Studies

The need to effect organizational change may be stimulated by many factors, including a desire to increase agility, consistency, predictability, effectiveness, and efficiency. Major change can expand organization performance capability and capacity, reduce re-work, improve time to market and increase productivity.

Making Change Happen

Computech appreciates the human component in rolling out transformative technology and solutions. We take a holistic approach from planning to delivery, and problem solve with our clients and users to ensure a successful deployment. We offer coaching and mentoring, and change management expertise, to maximize adoption and reduce resistance to change. For decades, key members of our staff have enabled positive change in organizations of all sizes, improved their performance, and helped them meet their objectives. In addition to building mission-critical software, Computech offers transformation expertise to help our customers increase their agility and performance. Our transformation programs typically follow a lifecycle, and we employ a set of practices to frame our execution. We focus on customer value, support people as they learn new skills to be successful and identify quick wins while preparing for the marathon. We use the Goal-Problem-Solution approach to target change, and set up metrics to influence, communicate, and track progress.

For sustainable change, we:

‣Make the new easier than the old;‣Focus on practices and skills to achieve success, not artifacts;‣Embed knowledge experts in key activities for knowledge transfer;‣Provide one-on-one coaching and mentoring; and‣Deliver staff development and targeted training.

We anchor all activity in customer value, leverage the knowledge within an organization and energize existing leadership and staff. The following six case studies showcase our change management and transformation expertise.

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Organization Transformation + Change Management

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Large Regulator of Financial Industry Background:A Large Regulator of the Financial Industry (LFRI), headquartered near the financial institutions it regulates in New York City and policy makers in Washington, D.C., oversees nearly 4,700 brokerage firms, about 167,000 branch offices, and approximately 635,000 registered securities representatives, and virtually all of the securities trading activity in the United States. LFRI touches almost every aspect of the securities business and employs approximately 2,800 employees and a very large contingent workforce. While LFRI's regulatory authority stops at U.S. borders, it is active internationally through the International Organization of Securities Commissions (IOSCO) and the World Federation of Exchanges (WFE), and has shaped regulatory environments in over 15 countries on four continents.

Challenge:In the late 1990s LFRI faced increasing business pressures to deliver greater value as it responded to ever more complexity and crises in the global economy. On the heels of a highly critical SEC review (the "21A Report"), and having recently effected a separation from the NASDAQ market, LFRI set out to improve its regulatory performance, expand its regulatory reach, and respond to unforeseen growth in volume and complexity of the financial markets. However, its roughly 1,000 person IT organization had been constructed for a different time and purpose. At a time when technology's support of the business mission was critical, LFRI's IT organization could not keep pace with business demands. In two years, costs escalated at 30% per annum, operational Service Level Agreements (SLAs) had plummeted to substandard (e.g., availability was only 90% during business hours for key systems), and delivery of new functionality had ground to a halt (e.g., failure rate approached 100% for the largest projects).

Solution:LFRI commissioned a multi-month assessment and roadmap project to help jump-start its own IT transformation. After strengthening its IT leadership, the first major activity aimed to correct operational deficits. Starting in 2001, a three-year effort began to stabilize the operation by renegotiating contracts, and installing and managing to operational Key Performance Indicators (KPIs) (e.g., reliability, availability, and serviceability) supported by dozens of underlying metrics. Managing to the metrics involved rigorous reporting, monitoring, and process improvements that had a direct impact on the KPIs.

The improvement of operations was followed by a torrent of pent-up demand for new capability. From 2005 – 2009, the number of staff dedicated to new development activity blossomed over five-fold to over 500 people and the number of non-maintenance projects exploded 10-fold. This presented a second great challenge. The “old” way of delivering functionality could not be sustained. We had to change the artifact-heavy waterfall System Development Life Cycle (SDLC), exacerbated by highly variable and error-prone manual processes, and a staff that had not kept pace with current skills and practices.

Notable Results:Over the six years of this transformation, LFRI significantly expanded its business lines, executed a substantial merger, and handled increased business volume, in large part due to support by a high-throughput IT organization. During this period, dozens of systems were delivered or significantly enhanced. In spite of hundreds of projects and thousands of releases, production performance came to be viewed as a reliable utility – not cause for concern or risk mitigation.

Case Study Overview

Organization Transformation + Change Management

Sector: Private non-profit

Key Challenges: Costs escalated at 30% per annum; operational service level agreements plummeted to substandard; delivery of new software functionality halted; and 100% failure rate for largest software projects

Scope of change: Expand regulatory reach and financial services, improve performance of IT operations & software development

Size of transformation: 1,000 IT professionals

Duration of change process: 2001 ‒ 2009

Outcome: consistent, predictable & reliable IT performance, frequent delivery of new functionality & business value

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Background:A Large Health Care Insurer (LCHI) in the Mid-Atlantic region, serves nearly 3.4 million members. It employs more than 5,000 associates, and includes more than 80 percent of all providers in Maryland and National Capital Area participating in one or more of its provider networks. Affiliated with 165 hospitals, the company serves more than 500,000 members in the Federal Employees Health Program – the largest FEP enrollment in the nation.

Challenges:IT departments at LCHI were experiencing tension with internal customers. Post-production defect rates were unacceptable to these customers, creating a climate of distrust and lack of respect at all levels. Customer and employee satisfaction was low.

Deep skepticism and cynicism ran rampant, and many believed that positive change could not happen. Multiple quality programs had come and gone. Good faith attempts to change the software development organization’s performance had been abandoned, and were almost universally perceived as failed initiatives. There was a lack of enthusiasm and low energy for another major transformation effort. LCHI wanted its software development and internal customer departments to work more effectively together to fulfill its mission.

Solution:LCHI engaged our staff to serve as senior project advisors on two mission-critical software projects, providing best practices mentoring, facilitation, and consulting to teams that totaled over 200 software practitioners and managers:

• We then led process and practice maturity assessments, developed finding and recommendations, and led action planning; • We championed best practices knowledge transfer programs and provided “lunch & learns” as part of the culture change.

Over the course of two years, we assisted LCHI in all aspects of organization transformation including process engineering, establishing process improvement infrastructure and measurement programs, managing risks, and managing the culture change.

Notable Results:The most complex and mission-critical software project was delivered to production on time with no major defects found after the go-live date meeting client requirements. An instituted peer review process caught defects early in the software life cycle and optimized integration testing. The software development group reclaimed professional credibility and was part of the success story. Internal customers and senior management satisfaction was high. This set the stage for continuous improvement. The Federal Employees Operations Center (FEPOC) division successfully adopted best practices after an 18-month practice improvement effort and was independently assessed at the Repeatable capability maturity level using an industry recognized yardstick.

Large Health Care Insurer

Organization Transformation + Change Management

Case Study Overview

Sector: Private non-profit

Key Challenges: Tension between business and IT departments; low customer and employee satisfaction and morale; and software management’s best practices not applied

Scope of change: Eliminate schedule delays, dramatically reduce defect rate, improve processes and practices

Size of transformation: 400+ software professionals

Duration of change process: 1998 - 2000

Outcome: Reclaimed credibility for IT department, satisfied customers, improved employee morale, successful software projects

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Background:A Leading ERP Provider to Higher Education (LEPHE) throughout North America, employs more than 200 software professionals. More than 5,000,000 traditional, lifelong, and distance learners touch LEPHE products daily as they consider and manage their educational options.

Challenges:The software development organizations at LEPHE, a provider of Enterprise Resource Planning (ERP) technology products for higher education, were frequently crisis-driven. Their practices were often ad hoc. They frequently missed deadlines, had high defect rates, and missed dependencies. Staff recruiting and retention were troubled, and there were often accountability issues. While staffed with capable practitioners and managers, LEPHE’s software development organizations needed to transform their performance and adopt industry best practices. Their goal was to successfully compete with other ERP providers, and increase their client and employee satisfaction and profit. LEPHE wanted to improve processes, systems, and culture to become a more effective, efficient, and productive organization.

Solution:We mentored IT executives and project managers, and trained over 200 software and business professionals in effective peer reviews and all aspects of software project planning and tracking. We conducted an assessment of the organization’s process capability and provided findings and recommendations. Over the next five years, we led practice improvement and organization transformation with full accountability:

• We worked to institutionalize best practices in software engineering and project management throughout the company; • We developed IT policies and a reward system consistent with the culture change; • We created dashboards to drive consistency of practices and predictability of outcomes, and to provide project transparency for

all stakeholders; and • We worked on organization and infrastructure restructuring.

The KPIs used to drive transformation included percent defects found prior to beta test, on-time key deliverables, quality index, client satisfaction, employee satisfaction, and profit. Concurrently we led strategic and tactical planning and implementation, training and talent development, coordination, and communication across multiple divisions.

Notable Results:LEPHE’s ERP product was positioned for the future. LEPHE realized improved client satisfaction, increased the division’s productivity, and leveraged individual capabilities. LEPHE’s profit has continued to increase in the last five years despite the economic crisis. Defect rates have been dramatically reduced requiring less rework. The maturity of the software development practices has provided practitioners and management stability instead of crises. Client satisfaction and employee satisfaction have remained high in the last 5 years, above 90%, an important performance indicator for an ERP product company.

Leading ERP Provider to Higher Education

Organization Transformation + Change Management

Case Study Overview

Sector: Private

Key Challenges: Crisis-driven software development organization; ad hoc software development lifecycle practices; frequent missed deadlines & dependencies, budget overruns, and excessive defects

Scope of change: Adopt industry best practices for software engineering and project management

Size of transformation: 200+ software professionals

Duration of change process: 2000 ‒ 2005

Outcome: Institutionalized best practices, high customer and employee satisfaction, increased profit

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Background:The World’ Most Connected IT Network’s (WIPN) clients include the world's largest organizations — including 96% of the Fortune 1000 — and government agencies. Its mission is to enable organizations to meet the challenges of their increasingly extended enterprises by providing IT, security, and communications solutions portfolios.

Challenges:The software development units at WIPN were headed by five Vice Presidents reporting to a CIO. These organizations had ad hoc practices with low productivity, long time-to-market, frequently missed deadlines, high defect rates, ineffective project management, and poor risk, issue, and dependency management.

There were often accountability issues. Software project failures throughout WIPN often resulted from:

• Unrealistic goals;• Unmanaged scope creep;• Vague or ambiguous requirements or specifications;• Poor estimation and inadequate project planning;• Unclear roles and responsibilities;• Poor communications; and wrong skill sets.

Frequent senior management shifts with resulting priority changes had created a climate of skepticism. Organization transformation initiatives demanded by the CIO encountered covert and overt resistance and low buy-in. WIPN wanted to be more efficient, effective, and productive.

Solution:Over the course of 12 months, we developed a process that reflected its IT environment and policies, its culture, business objectives, and design strategies. Over the next three years, we:

• Coached WIPN personnel at all levels in the effective use of the developed process;• Mentored leaders in project management and quality assurance, and guided practitioners in the development of process and data

models and other system life cycle deliverables;• Conducted practice maturity assessments, action planning, and best practices mentoring across multiple IT departments; and• Assisted practitioners and managers in all phases of software practice improvement (SPI), including process engineering and

establishing SPI infrastructure and metrics programs.

Notable Results:Two of the five Vice Presidents demonstrated visible leadership and were actively involved in the IT transformation efforts. Their software organizations successfully adopted best practices and were independently assessed at the Repeatable maturity level, using an industry recognized yardstick.

World’s Most Connected IT Network

Organization Transformation + Change Management

Case Study Overview

Sector: Private

Key Challenges: IT departments had low productivity, long time-to-market, many missed deadlines, high defect rates, ineffective project management, poor risk, and dependency mitigation; climate of low accountability and skepticism towards major change.

Scope of change: Eliminate preventable reasons for software and IT project failure, adopt industry best practices

Size of transformation: 2,000+ software professionals

Duration of change process: 1990 ‒ 1996

Outcome: Instituted best practices for software engineering and project management in two departments

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Background:A Golf Course Management (GCM) company operates nearly 120 golf courses and clubs in 26 states. GCM provides full-service management of daily-fee, public, private and resort courses for private owners, public agencies, boards, developers, and investors. Additionally, GCM provides consulting and development services to golf course owners nationwide. GCM’s best-of-class systems and programs help course owners realize favorable returns on investment. With GCM, owners make and save money while their golfers receive the ultimate in a personal touch from a team of more than 5,000 guest-centric employees.

Solution:GCM contacted Computech initially for a short engagement to evaluate and select a more robust and flexible financial management application. However, this engagement revealed a number of more fundamental issues related to inefficient business processes. Following the installation of the new financial management system, our team:

• Designed and implemented a scalable enterprise architecture to address fundamental integration issues;• Developed custom solutions to modernize GCM’s business processes; and• Created a dashboard and analytic platform that presented an integrated view of key GCM data to all stakeholders.

With the support of GCM, we acquired detailed knowledge of GCM’s business environment through interviews with key personnel in the company’s operating units, identifying areas where IT could significantly improve performance. We focused on the Finance and Accounting departments to seek productivity gains. In-depth analysis identified the accounting unit as the vital culprit in stunting GCM’s overall growth, and disproportionally increasing GCM’s overhead costs. We created a dashboard in which traditional one-dimensional reports were transformed into interactive data-driven dashboards with drill down capability.

Based on this work, GCM data became highly navigable, presentable, and understandable with various levels of granularity during data inspection. This resulted in the unveiling of exceptionally useful information - normally very hard to glean. We then extended the dashboard to 120 course-level general managers to give them heretofore non-existent access to corporate data. The new process gave independent golf course general managers and GCM’s operational team access to course-level information through a consolidated single data repository and on-site access to dashboard reports based on up-to-date financial transactions.

Notable Results:GCM's modernized business process eliminated multiple stovepipes, improved workflows, removed redundancy, and reduced errors. GCM business units now share, use, and access common information in a secure collaborative environment. GCM's capacity to process Accounts Payable increased by 94%. Corporate invoice review time was reduced 20-fold, and the company no longer needed to add accounting staff with every golf course acquisition. GCM now uses its dashboards to “slice and dice” data for forecasting, trending analysis, and near real-time decision making. The dashboard offers real-time access to critical business performance indicators to improve the speed and effectiveness of business operations.

Despite the depressed economy in 2008 and 2009, GCM was able to find new revenue streams. GCM now has agility in pursuing its growth strategy and can spend time focusing on what it does best – serving its customers.

Golf Course Management Company

Organization Transformation + Change Management

Case Study Overview

Sector: Private

Key Challenges: Business facing growth and agility complexity; inability to share processes or aggregate information; and high-cost mergers and acquisition business model

Scope of change: Provide BI and integrated view of up-to-date data from 120+ independent golf course operations and 6 GCM departments, eliminate stovepipes, improve workflow, reduce errors

Size of transformation: 120+ golf courses and 6 GCM departments

Duration of change process: 2008 ‒ 2009

Outcome: Growth, agility, satisfied customers, more revenue streams and higher profit

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Background:A Regulator of Interstate & International Communications (RIIC) is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable. As the RIIC's jurisdiction covers the 50 states, the District of Columbia, and U.S. possessions, it faced a complex and time sensitive challenge in January of 2009: educating and informing the public about the transition from analog to digital broadcasting. Complicating this, the RIIC had to manage demands from Congress, the telecommunications industry, and grassroots support organizations. While the RIIC maintained a website to support broadcasters during the transition, the site lacked sufficient information to educate the public or other stakeholders of the impending switch or to aggregate data to assist with future policy decisions. The scope of the problem was massive: nearly 80% of the nation lacked the equipment to receive digital transmissions.

Solution:Recognizing the limitations and expense of conventional call center-based or paper and broadcast media campaigns, the RIIC committed to leverage the reach, interactivity, and personalization potential of Internet technology. The RIIC engaged Computech’s Transformation & Dashboard practice to develop a data-driven dashboard with interactive videos, map mash-ups, and media toolkits to increase citizen engagement. This highly visible dashboard supported over 3 million homes and integrated numerous capabilities, from complicated data integration and analysis to rich user experience with mapping. The system included:

• Multi-lingual delivery to serve minority constituencies;• Metrics highlighting overall channels transitioned to-date and other statistics to all stakeholders;• Optimization (by our operations research team) to determine the most effective KPIs;• Interactive Reception Maps to allow a user to check for the DTV signals available in their location; and• GIS-based personalized help to locate availability of channels, new channel numbers, Support Centers, Important Contacts, full-

power stations, converter boxes, and coupons.

For RIIC staff, the dashboard provided money-saving features to optimize over 12,000 call-takers at call centers across the US. The weblog-driven regression and time series analysis allowed staff to forecast call volumes for all DTV “soft tests”, local transitions, and the nationwide transition. Our optimization models enabled the RIIC to efficiently allocate call center staff based on projections. And the discrete-event simulation model we built for RIIC call centers permitted the RIIC to experiment with staffing levels and, in turn, observe their effects on various performance metrics.

Notable Results:This dashboard resulted in four key areas of transformation for the RIIC. First, the dashboard showcased the government’s ability to engage its stakeholders, making available real-time transition data, from public facing tracking statistics to internal executive-level decision making. Second, the dashboard transformed previously uninformed and unequipped members of the public into self-servicing citizens, using help centers available to them. Third, the TV stations also transitioned to a self-servicing model with 1,800 stations 100% digital by the deadline. Lastly, the dashboard was instrumental in guiding the buildup and wind-down of the RIIC’s nearly 15,000 person support organization needed to handle the transition. The impact of the dashboard was monumental – on June 12, 2009, the transition date, 11,744,906 DTV.gov website page views were recorded, a record in one day for the RIIC.

Regulator of Interstate & International Communications

Organization Transformation + Change Management

Case Study Overview

Sector: Public

Key Challenges: 80% of U.S. households lacked know-how to transition from analog to digital TV; and security and public safety concern.

Scope of change: Engage American public in transitioning to DTV by cut-off date

Size of transformation: 100M United States Households

Duration of change process: 2008 ‒ 2009

Outcome: Successful on-time transition to DTV nationwide

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Leadership Team in Change Management 9

Lawrence Fitzpatrick301.656.4030

[email protected] linkedin.com/in/lfitzpatrick

Larry Fitzpatrick brings the following expertise to Computech’s organization transformation practice:

• Strategy development and executive communication• Leadership for multi-year successful business & IT transformation• Leadership development & executive coaching• IT assessments & roadmap implementation• Systemic problem identification and solutions• Sourcing and talent development• 30+ years in successful technology delivery and management

Rita Hadden301.656.4030

[email protected]/in/ritahadden

Leadership Team In Change Management

Rita Hadden brings the following expertise to Computech’s organization transformation practice:

• Leadership for over a dozen major IT transformations• Industry proven methodologies, models, and techniques• How to overcome barriers to major change• How to tailor & apply best practices effectively• KPI and measurement program development and implementation• Mentoring and coaching at all levels; staff development• Software Engineering Institute (SEI) certified Lead Assessor• 20+ years in process & practice improvement• 35+ years in successful technology delivery & management• Mentor on 150+ complex software projects

Page 11: Organizational Transformation and Change Management Case Studies

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United States of America

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