Elise Barho Tim Danielson Cathy Lloyd. The Power of Networks in Organizational Change

Transcription

1 Elise Barho Tim Danielson Cathy Lloyd The Power of Networks in Organizational Change

2 Agenda Introductions Complexities of the 21 st Century The Value of Networks The Role of Change Management University of California Berkeley University of Wisconsin - Oshkosh 2

3 21 st Century Complexities

4 Pressured to Change Higher Education is a mature industry impacted by countless disruptive technologies and product innovations, making it ripe for change. College Scorecard Increased Competition for Students and Faculty Declining in Research Funding Mergers Declining State Funding IT Infrastructure Maintenance and Cost MOOCs & Competencybased Education Struggling Universities & Colleges Declining Enrollment 4

5 Complexity is Increasing LARGER PROJECTS WITH GREATER IMPACT ON THE ORGANIZATION Implementing a New System Transitioning to a New Enrollment Management Strategy Facilitating a Shared Services Center Recommending New University Strategic Priorities Introducing a New Budget Process and Chart of Accounts 5

6 Impact on the Organization THE ORGANIZATION IS AT RISK Most projects today involve some degree of technology On average large IT projects: Run 45% over budget Run 7% over time Deliver 56% less value than predicted 17% of IT projects go so bad that they can threaten the very existence of the organization Source: MicKinsey & Company 2012 Delivering large-scale IT projects on time, on budget, and on value 6

7 Managing The Risk McKinsey & Company Focus on managing strategy and stakeholders Secure critical internal and external talent Build effective teams Excel at core project management practices Source: McKinsey & Company 2012 Delivering large-scale IT projects on time, on budget, and on value. The Standish Group User involvement Executive management support Clear business objectives Emotional Maturity Source: The Standish Group Chaos Report. Note: The Standish Group has been producing this report since 1994 and the success factors have remained largely the same except for the recent introduction of Emotional Maturity. The Importance and Role of the Individual in Organizational Change 7

8 The Value of Networks

9 Networks at Work OFFICIAL, INFORMAL, AND FORMAL The Org Chart, the Official structure, defines how information flows, decisions are made, and power is distributed in an organization. Chancellor President VP HR Academic Affairs OR DOES IT Research and studies (including our own) indicate that the Informal (Formal) Network is the true source of knowledge, information, power, and influence. 9

10 The Network Approach to Change Organizational change is actualized and institutionalized through individual organizational members. Identify the Informal Networks Locate the brokers and the boundary spanner Create Formal Networks for the planned organizational change, examples: By business process across the organization (horizontal view) By location/division/ department (vertical view) By group type e.g. Academic Staff (matrix view) Utilize the Official Structure 10

11 The Role of Change Management

12 The Huron Change Management Approach FOCUS ON THE INDIVIDUAL Organizational change is implemented through the individual members of the organization Emphasis on the continuous engagement of individuals impacted by the change through formal and informal networks Phased approach ensures a successful transition between current and future business processes from readiness through adoption and institutionalization Dedicated to the Higher Education industry and focused on ensuring that the right resources and appropriate knowledge base are brought to the project 12

13 Huron Experience CHANGE MANAGEMENT DIFFERENTIATORS The Huron approach recognizes that readiness for organization change is the cognitive precursor to resistance to, or support for, the intended change Understands and adjusts to the organization s experience with past change initiatives to ensure a successful current change initiative Engages the organization in the change through formal, informal and official networks Through active engagement with individuals facilitates their movement from readiness, to adoption, to institutionalization With a comprehensive understanding of the new business processes identifies gaps in individual skill sets and opportunities for organizational effectiveness. Utilizing metrics and measurement throughout the change initiative, stays focused on the attainment of goals and value Recognizes that change is enacted through individuals and that individual change is a transition 13

14 Change Management Methodology Framework PHASES & PERSPECTIVES Huron s Change Management Methodology is comprised of 5 phases, and throughout each phase, we address 6 inherent perspectives. Phase 1 Identify Phase 2 Assess Phase 3 Design Phase 4 Engage Phase 5 Support Communication Change Readiness Business Process Impact Organizational Context Assessment Value Attainment Training Recognizing that organizational change is actualized and institutionalized through the individual organizational members. 14

15 Perspectives: A Deeper Understanding PERSPECTIVES & OBJECTIVES These six perspectives are inherent in each phase of our change management methodology. Communication Change Readiness Business Process Impact Organizational Context Assessment Value Attainment Training Proactively plan and execute project communications (purpose, schedule, impact, status, decisions, etc.) through multiple channels, to all stakeholder groups, both internal and external to the organization Assess the momentum for change, the movement from current state to planned future state, at various points along the journey from readiness to adoption to institutionalizatio n of the planned change Understand the scope and impact of the project, a large-scale planned organizational change, and prepare the impacted stakeholders for adoption and institutionalizatio n of the change Understand the impact of the project on the organization (at the individual level) and prepare the organization for the change utilizing both formal and informal networks Articulate the sufficiency criteria upon which the organization will assess the success of the project and longterm, sustainable attainment of value from the investment. Support the overall OCM effort by educating the project team on functionality and tools (as needed) and the recipient of the change on the new processes, policies, systems, tools and technology. 15

16 Polling Question #2 When considering the perception of change management processes at your organization, how would you describe user satisfaction? A. Very Satisfied B. Satisfied C. Indifferent D. Not Satisfied E. Very Unsatisfied 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. 16

17 The University of California Berkeley

18 Berkeley and the Case for Change About Berkeley Established ,774 undergraduates 10,253 graduate students 1,582 fulltime and 500 part-time faculty members 14 colleges and schools $2 billion budget (FY2014) The Project Reinvent the campus budget process, shifting from a focus on incremental central funds, to a more strategic process that presents a full view of all funding sources. Allow UC Berkeley leaders to prioritize efforts more strategically and better weigh trade-offs between competing priorities Publish Berkeley s first comprehensive all-funds, all-units operating Budget Plan Implement a Hyperion Planning solution and accompanying change management efforts to realize the vision 18

19 Finance Management Change Complexity FY11-12 FY12-13 FY

20 Impacted Stakeholders Senior Leadership (Chancellor, Provost, VCAF) Divisions (Academic Schools, Provost, Admin, Auxiliaries) Deans, Vice Chancellors Chief Admin Officers Divisional Budget Directors and/or CFOs Department Management Services Officers Desktop Support Techs Central IT (Apps, Warehouse, Infrastructure Teams) Campus CFO (Controller, Budget Office) Campus HR (Learning+Org Devel, Compensation) Campus Shared Services (HR, Research, IT) Operational Excellence Project Portfolio Leadership 20

21 The Change Management Challenge We asked our Local Implementation Managers in October 2011, How much change do you expect will be required in order to successfully implement and realize the benefits of the CalPlanning? Largest Areas of Need Low Med High People Process Technology Org Mindset 21

22 Change Management Toolkit Employed Instructor-Led Classroom Training Working Sessions, Office Hours, Coaching Concepts Work Instructions Demos Hands-on Exercises Reference Guide Glossary & FAQs User Questions Consulting Concepts Demos Guided Practice e-learning Modules Documentation Additional Help Concepts Demos Reference Guide Glossary & FAQs Job Aids Technical Documentation Help Desk Central or Local Coaches Local Implement Mgrs (LIMs) Unit Portfolio Managers (UPMs) Other CalPlanning Analysts The dedicated relationship between the Unit Portfolio managers on the project team and their portfolio of local implementation managers, built personal connections and broke down the us vs them mentality that had existed at the outset 22

23 Use and Benefits of Networks Deans/VCs Outreach Team Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Budget Office Central HR Controllers 23

24 Use and Benefits of Networks CFO Deans/VCs Outreach Team Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Budget Office Central HR Controllers 24

25 Use and Benefits of Networks CFO Reports to Deans/VCs Outreach Team VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Budget Office Central HR Controllers 25

26 Use and Benefits of Networks CFO Reports to Deans/VCs OE Chair Outreach Team VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Budget Office Central HR Controllers 26

27 Use and Benefits of Networks Project Exec Steering CFO Reports to Deans/VCs OE Chair Outreach Team VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Budget Office Central HR Controllers 27

28 Use and Benefits of Networks Project Exec Steering CFO Reports to Deans/VCs OE Chair Outreach Team VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Hired as Director Budget Office Central HR Controllers 28

29 Use and Benefits of Networks Project Exec Steering CFO Reports to Deans/VCs OE Chair Outreach Team VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Hired as Director Budget Office Central HR Controllers 29

30 Use and Benefits of Networks Project Exec Steering CFO Reports to Deans/VCs OE Chair Outreach Team VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Hired as Director Budget Office Central HR Controllers 30

31 Use and Benefits of Networks Project Exec Steering CFO Reports to Deans/VCs OE Chair Outreach Team VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Hired as Director Budget Office Central HR Controllers 31

32 Use and Benefits of Networks Project Exec Steering CFO Reports to Deans/VCs Work on OE Chair Outreach Team VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Hired as Director Budget Office Central HR Controllers 32

33 Use and Benefits of Networks Project Exec Steering CFO Reports to Report to Deans/VCs Work on OE Chair Outreach Team VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Hired as Director Budget Office Central HR Controllers 33

34 Use and Benefits of Networks Project Exec Steering CFO Reports to Report to Deans/VCs Work on OE Chair Outreach Team Former Colleagues VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Hired as Director Budget Office Central HR Controllers 34

35 Use and Benefits of Networks Project Exec Steering CFO Reports to Report to Deans/VCs Work on OE Chair Outreach Team Former Colleagues VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Hired as Director Budget Office Former Colleagues Central HR Controllers 35

36 Use and Benefits of Networks Project Exec Steering CFO Reports to Report to Deans/VCs Work on OE Chair Outreach Team Former Colleagues VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Departmental Management Services Officers Hired as Director Budget Office Former Colleagues Central HR Controllers 36

37 Use and Benefits of Networks Project Exec Steering CFO Reports to Report to Deans/VCs Work on OE Chair Outreach Team Former Colleagues VCAF Senior Leadership (Chancellor, Provost, VCAF) Divisional BD/CFOs Project Team Central IT Promoted to Departmental Management Services Officers Hired as Director Budget Office Former Colleagues Central HR Controllers 37

38 Polling Question #2 What is the primary network used in change management at your organization? A. Official Structure B. Formal Networks C. Informal Networks D. Social Networks 2013 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. 38

39 The University of Wisconsin Oshkosh

40 Introduction to UW Oshkosh Mid-sized comprehensive university of approximately 14,000 students Academic colleges of Business, Education, Letters & Science and Nursing Approximately 1730 employees plus an additional 1800 student employees Non-exempt employees are paid bi-weekly and exempt employees are paid monthly 40

41 Change Management to HRS In April of 2011, a new Human Resources Information System (HRS) went live. 41

42 Change Management to HRS In April of 2011, a new Human Resources Information System (HRS) went live. The system replaced a legacy system that had been in effect for at least 30 years. 42

43 Change Management to HRS In April of 2011, a new Human Resources Information System (HRS) went live. The system replaced a legacy system that had been in effect for at least 30 years. The change dramatically altered every base business practice in HR. 43

44 Change Management to HRS In April of 2011, a new Human Resources Information System (HRS) went live. The system replaced a legacy system that had been in effect for at least 30 years. The change dramatically altered every base business practice in HR. The use of social networks to help control messaging, attitudes and relative success of the change proved vital. 44

45 Social Networks in Change 45

46 Steps Taken with Networks 46

47 How Social Networks Were Beneficial Faculty member had benefits improperly deducted two consecutive pay periods How handled by HR Staff How handled by department chair How handled by college Dean How handled by Vice Chancellor 47

48 Value of Social Networks Social networks enabled UW Oshkosh to get through the change to a new HRS successfully. Can t imagine how difficult the change would have been if social networks had not been utilized. This does not mean people are always happy about change or how it goes, but if relationships have been created via communication, realistic expectations explained, and proper messaging relayed, change can be managed. Social networks allow individual organizational members to institutionalize change.

49 Contact Elise Barho PhD, PMP Manager Huron Consulting Group Cathy Lloyd, PMP Executive Director Strategic Program Management Office of the AVC-CFO University of California - Berkeley clloyd@berkeley.edu Tim Danielson Director of Human Resources University of Wisconsin Oshkosh Danielso@uwosh.edu 49

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