management of change.ppt

8/14/2019 MANAGEMENT OF CHANGE.ppt

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Change Management

Making Things Better: A Primer and

Case Study in Change Management

Presented by Doug Howardell


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Copyright 2006 Doug Howardell 626-390-6935 [email protected]

Agenda

Change Management Defined

Change Management Concepts

Strategies for Leadership

Strategies for Users


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Definition of Change Mgt

The fostering and support of people who champion new

technologies, new operating practices, and new products

and services that will transform the organization

maintaining its viability and improving its competitive

position in step with the change in the business

environment in which it functions. APICS Dictionary

An organized, systematic application of the knowledge,

tools, and resources of change that provides organizations

with a key process to achieve their business strategy

Jeanenne LaMarsh LaMarsh & Associates

Getting people to accept the what becausethey understand the why.

Doug Howardell


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Examples of Change


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Change Management is important

Top Ten Barr iers to Success

Source: DC CIO Survey

Unrealistic Expectations

Resistance to Change

Inadequate Sponsorship

Poor Project Management

Case for Change Not Compelling

Project Team Lacked Skills

Scope Expansion/Uncertainty

No Change Management Program

No Horizontal Process View

IT Perspective Not Integrated 30%

41%

43%

44%

44%

46%

54%

65%

72%

82%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%


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Change Management must provide the tools and approaches to lead

people through this process:

Take a critical mass of the leadership down to commitment as fast as

possible to provide direction

Lead the other Stakeholders along this path in a phased and targeted

manner

Entrench and embed the change in the organization to provide the

context and support for individual change

CommitmentAcceptanceExploration

ResistanceDenialUnaware

Reactions to Change

Individuals frequentlyreact to change in a predictable manner


7/28Copyright 2006 Doug Howardell 626-390-6935 [email protected]

Key Steps

Identify stakeholders and how they feel about the change

Raise the level of discontentremind them of current problems

Document the current process and its problems, waste,

redundancies and non-value added activities

Identify what will be different or new

Identify gaps and barriers

Highlight the expected benefits

Define the transition process

Identify issues expected during transition

Surprises



Leadershipmust focus attention,build commitment, and createinspiration

Usersneed to develop mindsets,

skills and commitment to new waysand to develop qualities of changehardiness the ability to navigatethrough change.

Real, sustainable change involveschanging every level of the organization:

Leadership

Users

Change Targets



StrategyStrategy for Leadership

The change leadership strategy focuses onestablishingjoint ownershipby line management and

the project team for the successful implementation of

project

Key Themes

Leaders equipped to face the same issues

together

Joint ownership and accountabilityFocus on the most valuable asset, our employees/

users



Tools for Leadership

Organize to involve

Process Reviews

Stakeholder Analysis



Change Management Organization

Steering

Committee

(~10)

Business Process

Owners (~20)

Business Readiness Groups (~300)

End Users (~4000)



BPO & BRG Responsibilities

DefinitionSenior Stakeholder of particular process

area (reports to a V.P.)

Ensures needs of process area are met

Focus on cross-functional responsibility

for the solution

Responsibilities

Represent needs of process areas across

the business

Assist in resolving issues regarding

business / technical issues

Demonstrate visible supportfor the

project within the organization Assign resources

Chair the BRG meetings

DefinitionKey stakeholders within particular process

area (reports to the BPO)

Have advisory role in process solutions

Focus on specific functional responsibility

for the solution

ResponsibilitiesAssist with project communications and

provide feedback

Validate/Align organization with PRISM

solution

Support data cleansing and preparation

Assess impact of solution on

organizational structure

Identify impacted end users and help

assess their training needs

Ensure readiness of functional areas to

deploy the proposed solution

Business Process Owner Business Readiness Group



BPO/BRG StructureProduction Control

Contracts

Sales Order Activation / EntryBills of Material / Engineering Changes

Master Scheduling

MRP Controller

Shop Floor Order Release / expedite

Procurement

PurchasingMajor Sub-contracts

Hazardous Waste (EH&S)

MakeMfg Eng (routings)

Industrial Eng (standards)

Quality, Shop Floor Inspection & Test

Configuration Mgmt / As Built

LogisticsGoods, ReceivingGoods, Material Stocking/Issue

Freight, Pack & Ship

Import/Export

Material, inter/intra site movement

Quality

Quality, Incoming Inspection

Quality, Supplier Quality / Source Inspection

Quality, Shop Floor Inspection & Test

CustomerCustomer

Plant MaintenanceRepairs

Preventative Maintenance

EngineeringReliability

Design (Electrical, Mechanical. Optical)

System / Config Mgt

FinanceFinance, Operations (Labor)

Finance, Operations (Material)

Finance, Program Business MgmtProposals & Estimating

Program Office

Program Ops

Program MPM

Post Production Support & PerformanceBased Logistics



Alignment Workshops

Deliverable: Sub Process Group Profile

Deliverable: Design Attributes

Deliverable: Workshop Notes

Deliverable: Sub Process Group Flow

Deliverable: Simulation

Deliverable: Disposition Workshop Notes

Deliverable: Update flowsDeliverable: Confirm Business Process Master List

Deliverable: Business Process Owner Review

Pre-Workshop Deliverables

Post Workshop Deliverables

Deliverable: Change Implications



Process Reviews

Objectives

Review enterprise design with BPO/BRG

Gather their inputs

Identify change impacts

BPO Role

Approves attendees

Assure attendance


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Awareness

Supportive

Influence

0 = No awarness, 2 = minimal awareness, 5 aware of the big picture, 7 = Aware of important

details, 10 aware of the details and their implications and ramafications

0 = strongly opposed, 2 = weakly opposed, 5 = indifferent or undecided, 7 = weakly in

favour, 10 = strongly in favour

0 = Can do nothing to influence outcomes or plans, 2 = Can do little to influence outcomes

or plans, 5 = Can make it easy or difficult to achieve outcomes or plans, 7 = Can directlyinfluence those who can veto, 10 = can veto, formally or informally, outcomes or plans

Stakeholder Influence

Awareness

Goal

Awareness

Actual Supportive Mgt Level Frequency

Meeting/

CommunicatorCurrent Action

Jon 10 7 5 10 10 Monthly Exec

Colin 10 7 5 10 10 Monthly Exec

George 10 7 7 7 9 Bi-monthly Exec Steering

Emanuel 10 7 7 10 9 Bi-monthly Exec Steering

Dick 10 7 7 10 9 Bi-monthly exec Steering

Fred 10 7 7 5 9 Bi-monthly Exec Steering

Bob 10 7 2 10 9 Bi-monthly Exec Steering Talk to Sheri Lanpher

Dina 10 7 2 7 9 Bi-monthly Exec Steering Talk to Kelly & Linda about what she knowsDan 10 7 5 10 8 Bi-monthly forest

Susan 8 5 2 7 9 Bi-monthly Exec Steering Talk to Andy & Bill L.

Rick 7 5 5 10 9 Bi-monthly Exec Steering

Ed 7 5 2 5 9 Bi-monthly Exec Steering Garey - to set up meeting with him

Tom 7 5 2 8 9 Monthly Exec Meet with in Aug

Nick 7 5 0 2 9 Monthly Exec Meet with in Aug



Strategy for Users

Create and sustain awareness of strong changeimperative (burning platform)

Communicate what we know when we know

(including the fact that we dont have all the

answers yet) Communicate widely and broadly the vision and

strategy and implications

Involve our strategic users early in their sphere of

competency



Tools for Users

Raise level of discontent

Alignment Workshops

Communication

Change Readiness Survey



Raise Level of Discontent

Issue

Who Cares

Duplicate efforts - How many times do we enter a part

number in different systems from receipt of RFP to

post production support?

Mgt, Master

Planners,

Depot

Problems with transition from engineering toproduction

Mgt, Ops,Planners

Separate procurements Mgt, buyers

No configuration / rev control in our current systems Engineers

No product cost in current systems Finance

Annual cost of systemsreduces profit, depresses

stock price

All employee

stock holders

The competition is ahead of us All employee

stock holders



Alignment Workshops

Deliverable: Sub Process Group Profile

Deliverable: Design Attributes

Deliverable: Workshop Notes

Deliverable: Sub Process Group Flow

Deliverable: Simulation

Deliverable: Disposition Workshop Notes

Deliverable: Update flowsDeliverable: Confirm Business Process Master List

Deliverable: Business Process Owner Review

Pre-Workshop Deliverables

Post Workshop Deliverables

Deliverable: Change Implications



Alignment Workshops


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Alignment Workshops

C i ti & I l t


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Communication & InvolvementModel

Job Design

Workflow

Business Processes

Overall Strategy and Direction

Strategic Technology and infrastructure

Communicate

at this level

Involve

at this level


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Communication Flow

Executive

Sponsors

Project

Leaders

FinanceProcess

Expert

SFCProcess

Expert

MRPProcess

Expert

Change Mgt Team

Operational

Communication LeadProcess Owners

End Users

Not Full

Time

Full Time

Project

OpsLead PO

& BRG

P&ICLead PO

& BRG

QualityLead PO

& BRG

Communication Flow

1. Steering Team Status &

Escalation of Issues &

One-One with ea.

Business President &

Gen. Mgrs.

2. Lateral with the teams

(CM Team, the entire

Project Team, specialgroups)

3. Up & down with user

communities (included

the OCLs)


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Change Readiness Survey

Helps you determine the current state of changereadiness key disconnects, and major obstacles

Develop questions that assess readiness in eachstage of the project

Survey a valid sample size

Track results over time Early: survey for awareness

Mid-range: survey for process knowledge

Late: survey for transition plan


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Recap

Definition-Getting people to accept the what because theyunderstand the why

Change Management is important

Individuals frequently react to change in a predictable manner

Key steps assure No Surprises

Leadership Strategies Organize to involve

Process Reviews


User Strategies

Raise level of discontent Alignment Workshops

Communication

Change Readiness Suvrey


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www.theacagroup.com

For a copy of this presentation and for

more information on change

management, go to:

management of change.ppt

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