the cultural impacts of successful erp installations from command & control to a hybrid matrix...

The Cultural Impacts of Successful ERP Installations

From Command & Control to a Hybrid Matrix OrganizationBruce Maas - Interim CIODavid Stack – Deputy CIO

University of Wisconsin-Milwaukee3/21/2005

Copyright Notice

• Copyright The Board of Regents of the University of Wisconsin System 2005. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

Have your technical staff said…

I’m so frustrated, why are functional users so disorganized?

Have your functional staff said…

How do I get the technical staff to talk to me?


Why don’t functional users assume that I care as much as they do?


Stop sending me email! Pick up the #@!!! phone and call me!


Why are functional staff sticking their noses in my business?


Would you please tell us what’s happening in a timely manner?

The Paradigm Shift

• PeopleSoft was a Trojan horse

• Matrix organization imposed by enterprise relational database serving multiple functional offices and supported by multiple technical offices

PeopleSoft brought us…

• more than just a new software system• The need for a hybrid matrix organization

responding to the need for collaboration.• Hybrid because command & control

organization structure and perspective remained.

• and we were left to understand what was happening and adjust because the change was not announced!!!!

Matrix Organization

Project A

Line Responsibility

Project B…

Pat X X

Chris X X

Dale X X

Changing Roles and Responsibilities

• Executives expect employees to:

• adapt to change

• take initiative

• Employees expect:

• clarity from senior managers

Matrix Maturity – Overall Stages

• Early (Just leaving Command and Control)– Focus on one unit, function or process; difficult

coordination

• Intermediate– Functional project management layered on top

of traditional reporting structure

• Advanced– Multi dimensional project management and

reporting structures and multiple bosses-Responsibility and authority lines blurred and changing with projects

From: A.T. Kearney

Matrix Maturity – 7 Aspects

• Authority-From “Higher-ups” to Project to Team

• Communications-from vertical to multidirectional

• Decisions-From “Higher-ups” to Project to Team

• Objectives-From “Higher-ups” to Project to Team

From: A.T. Kearney

Matrix Maturity – 7 Aspects

• Roles-From precisely determined by “Higher-ups” to being defined by the team

• Relationships-From one on one with boss, stable to changing from assignment to assignment

• Activities-From single purpose to multifunctional

From: A.T. Kearney

UWM – Truth in Advertising

• Discussing these issues broadly

• Involving staff in strategic planning

• Formed “Core Service Teams”– Matrix structures– Creating collaborative technology solutions

• Still learning as we go-Some resistance-Mostly from those who worked their way up in command and control. Some frustration and some questioning.

UWM-Who is Not Thrilled?

• Traditional managers who do not do well with change

• Functional and technical leaders who navigated to positions of authority over a long career and now see their power eroding

• Individuals unsure of their social skills• Status conscious individuals• Staff who do not see their supervisors

adjusting and aligning (challenging!)

UWM-Who Likes This?

• End-user community

• Faculty who are engaging

• Newer employees

• Customer focused IT staff

• Middle management and staff in functional units

• Executives who fund projects

Change in Ownership

• IT does not own the ERP systems

• Functional offices own our PeopleSoft and similar systems

• Owners want to shape direction rather than be told

• These changes...

Lead to Other Changes….

• Changes in ownership result in:

– Changes in responsibility and

– Changes in relationships, which drive

Changes in culture

Examples of Culture Shifts

• From:– Command & Control– Authority– “Mine”– “Convince me”– Isolated– Doing things right

• To:– Matrix– Leadership– “Ours”– “Let’s try”– Collaborative– Doing the right thing

Managing vs. LeadingFrom: M.B. Wacker Associates

• Managing– Doing things right– Looks for problems– Providing answers– Authority through

position power– Predicts future from

the past

• Leading– Doing the right things– Looks to reward– Asks questions– Authority through

personal power– Envisions future from

past, present and future possibilities

Managing vs. LeadingFrom: M.B. Wacker Associates

• Managing (C&C)– Stays within

boundaries– Takes proven action– Sustains culture– Fixes problems– Assigns

responsibility– Views discomfort as

a sign to back off

• Leading (Matrix)– Goes outside of the

lines– Explores new risks– Shifts cultures– Changes structure– Lives with ambiguity

and failure– Views discomfort as

a sign of being on the right track

UWM Culture Shift

• Our Culture Shift Diagram shows the complexity of stakeholders in a public research institution…

UWM Culture Shift

UWM Culture Shift

• How do we get ready for this Culture Shift? We can learn from…

Best Practices for Matrix Orgs.

1. Define Expectations– Leaders outline the expectations and

behaviors of the new model

2. Conduct Training– Managers and workers develop skills in

negotiating, team building, issue selling, leadership, conflict management and problem solving

From: A.T. Kearney


3. Work Across Functions:– Experience helps employees grasp the matrix

concept more quickly and effectively– Distributed performance evaluation!

4. Build Relationships:– Need for employees to get to know each

other– Informal network of peers/supporters effective

From: A.T. Kearney


5. Communicate– One top matrix executive reports spending

from 40 - 70% of his time communicating and networking with employees

– Staff need to allocate more time (10%?) to dedicated ( in-person) communications

– Supervisors need to allocate more time (25%?) to dedicated ( in-person) communications

From: A.T. Kearney

Building the UWM Collaborative Environment

• Restructuring Governance. Formation of 4 IT committees initially.

Reviewing a more streamlined option.• Formation of the CIO Office.

Focuses both centralized and decentralized staff on campus priorities and campus mission.

So, What Steps are we Taking?

• New governance structures/engagement• Training and development• New Core Service Teams• Core Team Leaders Communication• New followership and leadership

models/staff involvement in decisions• Empowerment of the CIO Office• Behavior modeling by CIO Office

Building the Collaborative Environment

• Emphasis on training and development, relationships

• Emphasis on followership first (See The Courageous Follower by Ira Chaleff) as a form of leadership.

• Creation of Higher Education 101 for IT staff (thank you Northeastern University).


• Creation of Core Service Teams: – Led by individuals committed to campus

wide solutions– Both centralized and decentralized

staffing– Includes faculty and student

representation as appropriate

Core Service Teams at UWM

• Core Service Teams represent a fundamental shift in the ownership of UWM’s technology infrastructure. Core Teams are based on the hypothesis that diverse teams of individuals, led by individuals of integrity, energy and commitment to collaboration, can create the next generation of technology services for UWM in alignment with our mission and strategic goals, at the lowest reasonable cost to the campus.

Core Service Team Examples

• Data Warehouse Reporting

• Active Directory

• Desktop Computer Purchasing

• Content Management

• Desire2Learn Uses and Opportunities

• Enterprise E-Payment

• Collaboration Software (email, IM etc)

Core Service Team Examples

• Enterprise File Sharing (Xythos)

• MyUWM Portal (PeopleSoft)

• Print Sharing

• MacIntosh Support

• Desktop Security

• Server Security (in progress)


• Creation of Core Service Team Leaders Group: – Allows for communication and planning

across teams– Includes a representative from the faculty

technology governance committee


• Leading by example: – Directors from the central IT participate,

support and sometimes lead Core Service Teams

• Expanding the Core Services Team model to other groups:– E.g. Gramm-Leach-Bliley Compliance

(See Wednesday 9:45 Track 5 Session)


• CIO Office assisting schools/colleges/divisions with hiring of IT professionals– Review position descriptions (standard

collaborative language)– Offer advice on roles, skills, abilities,

knowledge and multiple reporting relationships

• CIO Office facilitating staff movement into other positions on campus


• CIO Office collaborating with other campus units:– Business & Financial Services– Legal Affairs– Internal Audit– Academic Affairs:

• Administration• Schools and Colleges


• CIO Office investing in the development and training for all IT professionals – For both central and distributed IT staff– Presentations from all who attend training– “Soft skills” for functioning in a matrix

organization. Leadership development.– Involvement in strategic planning activities

(inside and outside central IT)

Working as one Team!

Q&A/Speaker Background

• Questions and Answers

• Bruce Maas, Interim CIO, 414-750-4800– 2 years Assistant to the Controller– 4 years Campus Budget Manager– 17 years Assistant Dean-Business Affairs– 4 years PeopleSoft SA Project Manager– 1 year Deputy CIO-Projects– 1 year Interim CIO

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