“Change Management has let down its supporters…outcomes–driven end user adoption must succeed”

Paul Kell4. Adoption Communi

cation Program

1. Deep Analysis Transformation Business Case

3. End User Adoption Training 2. Profit

Driver/KPI Tree Build

100% End User

Adoption

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Issue: Change Management has not lived up to expectations• BCG has recently published an extensive study on

the success or otherwise of change programs – and the result is that most programs fail badly.

• What is more, the clients and consultants seem to be averse to looking back over past performances – preferring to move on somewhat optimistically, hoping for a better outcome.

• The change industry seems to be more interested in thinking up more and newer slogans, whilst missing the point that they are simply not often delivering real outcomes and realised benefits for the clients.

• And yet, once a transformation is defined and the solution purchased (as with ERP) – this is the time for a drive to the required outcome.

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Complication: Too often the defense is that change is very “hard” – and thus change programs more often fail

• This point always seems like a doctor blaming the patient for not getting well – and transformation being difficult is no excuse for failure on a regular scale.

• Also, when we look at social media, the web, Google, Book Depository, LinkedIn, ERP advances, on-line everything – it seems that change is relatively easy and people grab it with both hands when it is done well and is meaningful.

• By contrast, people do not like it when they are expected to NOT change – just look at the demise of the Ford brand in Australia where customers have voted for change

• So when change is linked to a meaningful outcome – and the process is seen to have a purpose - then we make change occur and outcomes happen

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Perhaps there is a real difference between non-systems change programs and ones that are linked into ERP (although where do you find non – systems changes anymore?)

But where there are major systems as the basis for the change – then the approach is usually clear. So I ask myself why do I go through the huge laundry list of change initiatives – when many of them are really over-kill. And where we seem to be encouraging end-user opinions when the actual solution is pretty clear

Furthermore, with this laundry list – there is definitely change fatigue. And as the project gets to the really important stuff – training in capability & confidence and user adoption of the new behaviours/processes/KPI - driven results………that project seems to run out of steam.

There seems to be a strong case for defining the must-do’s versus the nice-to-do’s……..assessing the project cost impacts ……..and only driving towards results linked to the business case.

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• Major transformations – especially ERP, CRM and the like – follow this roadmap. The act of purchasing a solution essentially confirms both the business case and the required outcomes

• Traditional change management focuses intensively on the Design, Build and Test elements, with effort on:

VisionReadinessStakeholder engagementTeam empowermentChange impactCulture developmentCommunicationsTrainingGo-live support

• Most of the above may not really contribute to a successful transformation outcome – and often promotes needless stakeholder/end-user involvement

Business Case Design Build Test Deploy

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Resolution: Drive end user adoption and forego most of the traditional change program

Only 4 elements to effective end user adoption

Element Work Undertaken

1. Deep Dive - Business Case

•Full discovery of the business case – from both the client and vendor perspectives•Objective is to fully grasp the impact on the organization at all levels – and the delta from “as-is” to “to-be”•Understand at this stage – the likely impact by role – and include the likely org. structure changes and related impacts on KPI’s•Scope and present high-level draft of the profit- driver tree for approval to move forward

2. KPI/Profit Driver Tree Development

•Build an integrated set of profit driver/KPI Trees for all the roles and processes impacted by the overall business case. This involves multiple iterations to ensure workability and accuracy - such that the KPI trees can effectively roll up and roll down whilst maintaining reporting integrity•Establish the detailed delta from “as-is” in order to define the core of the end user training to be built and delivered•Undertake sensitivity analysis to identify the relative impact of changes in given KPI’s•Develop the benchmarking approach to promote internal benchmarking across departments/within like roles etc

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Resolution: Drive end user adoption and forego most of the traditional change program

Only 4 elements to effective end user adoption

Element Work Undertaken

3. User Adoption Training

•Develop training using the model to build both key-stroke skills and end-to-end process ability•Establish training to build both end user confidence and competence•Create eLearning capability to enable rapid and trackable training + single point control over content and delivery•Use the training to enable KPI – driven case studies so that competence can be self-assessed and improved

4. Communications Program

•Build communications as an intensive program leading up to the deploy stage and the post roll-out period•Communications is very focused on building “ownership” of the solution and individual KPI’s•It is also focused on maintaining momentum through the first 3 months of the deployment – i.e. messages of the success of the overall program: resolution of issues impacting end user adoption; metrics on end user adoption

In an ERP solution environment, the transformation outcome should be embodied in the business case – the goal is to get this outcome, 100% into action…cost effectively.

Project Phases

Project Timing(wks)

Traditional Change Approach

FTE weeks

End User Adoption Approach

FTE weeks

Business Req’s

8 Full time team – assume 3 people

24 Assume full team of 2 people

16

Design 28 Full time team – assume 3 people

84 No need for involvement

0

Build 28 Full time team – assume 3 people

84 No need for involvement

0

Test 8 Full time team – assume 3 people

24 Assume full team of 2 people

16

Deploy 8 Team disbanded 0 Assume full team of 2 people

16

TOTAL

80 216 48

Illustrative example – change management may not link to embedding 100% end user outcomes and yet cost much more in overall FTE (up to 300% more cost)

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The good bit…..the less relevant bit …..and the hard bit of transforming work

• So the development of the business case and setting the direction for adoption at the coal-face is key in the transformation. After all the client has bought the solution – so there is no doubt that it needs to happen

• The less relevant work (in an ERP world) is much of the work on culture, team empowerment, engagement and readiness. This is the focus on changing attitudes in order to change behavior – but it is a “soft” approach and the concern is not delivering results

• And the hard bit (which the McKinsey, BCG, Bain etc will not do) is the work to transform the business case into detailed, bankable changes in behaviour and results (for example, the work of individual bankers to offer wealth products to customers ; the actions between call centre and the customer to reduce churn)

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We want to do the hard bit……the end user adoption

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Our approach has 4 precise elements

4. Adoption Communi

cation Program

1. Deep Analysis Transformation Business Case

3. End User Adoption Training

2. Profit Driver/KP

I Tree Build

100% End

User Adoption

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Business Case Deep Dive

The best way for me to have more money at the end of the month is to spend less through comparison shopping

Why? Why? Why? Which?

Comparisonshopping is an interesting opportunity

Changing my lifestyle is not an option

Additional investments do not wipe out savings

Savings are feasible

To compensate for demanding workload, I need to invest in weekly visits to the spa and the opera

My profession does not allow me to wear lower quality clothes

To balance the junk food I eat during the week, I need at least one three-course meal on the weekend

Savings in $

Opportunity cost of additional time taken up by comparison shopping

New formats offer same quality at lower price

Key spending categories have competition in new formats

Hypermarkets

Price Club

Home Depot

Auto mall

The Business Case

End User actions to be adopted

Example O

nly

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End user adoption works when there is a rigorous focus on changing what staff do

Example O

nly

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End user adoption works when there is a rigorous focus on changing what staff do

Example O

nly

Case1: An Asian bank SME division where change failed

Business

Case

•SME bank division where the business case was to lift the level of referred business

•Key here was more effective needs based selling

Change Work

•Envisioning of the challenge

•Leadership development

•Sales team planning

•Referral incentives

User

Adoption

•Failed to ever get underway

•No systems in place to support input and output sales KPI’s

•No systems – based tools for needs-based selling (so never a defined approach

•Head space competition from other SME division projects

•No ramp plans to support actions through the post-implementation phase

Case2: Logistics company that drove adoption for success

Business

Case

•CEO was annoyed that there were transformation programs without reference to KPI changes. He often wondered “whether the Tooth Fairy” was going to deliver a miracle.

•He demanded that the business case for a new ERP was related to a detailed DuPont profit tree disaggregated down to frontline KPI’s

Change Work

•Communicated the charts known as “plumbing charts” - down through all levels

•Workshopped so that all staff knew their individual new KPI’s and the relationships to those of their managers – co-workers – staff

•Set up the process for internal benchmarking of performance within roles and across regions

•Developed limited focused up-skilling

User

Adoption

•From the go-live the new plumbing charts were embedded in the systems

•The new KPI’s were in place from day 1

•The management/leadership approach was 100% focused on the effective user adoption

Case3: Asian Telco goes for user adoption for CRM

Business

Case

•The Telco bought a new CRM solution with the clear intention of developing a single view of customers across a number of convergent lines of business.

•The business case was very clear and the company decided that the key to overall success related to the 100% end user adoption of the solution – and a very rapid adoption

Change Work

•Mainstream change work was not deemed to be necessary

•However an intensive program of adoption related KPI development + communications +training was put in place

•This approach reduced the overall “change expenditure by more than 70% and enable the overall project to reach effective end user adoption in only several months into the full rollout

User

Adoption

•Detailed work on the “to-be” KPI’s and the tight time frame to reach 100% user adoption

•Intensive communications program related to the new KPI’s and operator behaviour

•Detailed training programs linked directly to the KPI’s and to building measurable tracking of staff success in using the training.

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Why Adoption is key – better results, faster and lower cost

Low

High

Benefits

Performance Improvement Time (Months)

6 12 18 24

Technology Alone

Technology + Process

Technology + Process + Training and Adoption Management

Technology +Bad Process

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4. Adoption Communi

cation Program

1. Deep Analysis Transformation Business Case

3. End User Adoption Training

2. Profit Driver/KP

I Tree Build

100% End User

Adoption