Change Management. SAP Consulting & Thaibev IT Department

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1 Change Management SAP Consulting & Thaibev IT Department

2 The process of change and adjustment Source: based on Kubler-Ross (1969) Source: based on Satir et al (1991)

3 Critical Points in the Change Process Source: based on Weinberg (1997)

4 What are our Key Concerns?

5 For enabling and supporting Organization Change, we need to align the structures Change Process Interpersonal Personal

6 What are our Key Concerns? All modules of SAP are not implemented; hence may not be able to achieve maximum benefits Large Scale implementation in limited time frame may impact the success of the initiative Limited resources for the job New roles have yet to be defined Inability to track finished goods in the market Training facilities are inadequate The quality of the trainers may not be good enough Training manuals may not be aligned to the correct tobe processes Process Level

7 What are our Key Concerns? People may by-pass SAP and continue to input data in manual systems Process Level We may continue to have approvals in manual format Current training not enough for deciding on new processes How do we retain staff with knowledge of SAP? How do we get people to change their roles? How do we deal with job cuts? How do we re-deploy excess staff?

8 What are our Key Concerns? Integration of people and processes within a function and on an inter-departmental level Interpersonal Level People may not have the capability to use the system to do strategic thinking People may sabotage change Existing culture may sabotage change Staff may be hard-working but not responsive to change Boss may not have faith in the data and hence ask for manual verifications

9 What are our Key Concerns? Users may have different skills and hence resistance Ability of user to understand end to end processes Fixed mind-set leading to resistance to change Employees may feel insecure from the new processes How do we fit in staff who have high experience but low IT skills and integrate them with the staff who are low on experience but high on IT skills? Capability of IT Staff may not be to sustain SAP Personal Level

10 What are some strategies to manage the Change?

11 What are some strategies to manage the Change? Role of Top Management Top Management actively supporting the initiative Top Management provides the right people to do the right job Clear Company Policy Communicate the needs of the stock exchange Introduction of competition Success of the implementation to be assigned as a KPI of the staff HR must support with employee development master plan and career path for employees Create a challenging environment Good budget support

12 What are some strategies to manage the Change? Role of Project Team Effective communication with employees Project team provides continuous feedback to top management on the status, progress and areas of concern of the implementation Effective training on role and skill Providing detailed manuals to staff Train top management to do analysis in SAP Provide Top Management Knowledge on SAP to enable them to explain the benefit of the implementation to the user Conducting reviews post the implementation Employees and all stake holders to be convinced of the benefits Involvement of employees in the change process

13 The Scope of Change Management The SAP Change Management Approach is based on 6 SAP Change Management success factors. Creating Conviction Creating Orientation Ensuring ability Ensuring lastingness of change Making results felt Ensuring uniform perception

14 The Success Factors 1. Creating a common orientation Employees usually have different information about the project and have different interests and goals. Increasing their information and alignment to the objectives of the change facilitate common orientation. This phase is best addressed by an effective communication strategy 2. Creating conviction People believe in a system that they create and design therefore involving people in the design of the process facilitates their belief in the new process design. 3. Ensuring ability The SAP philosophy in the Change Management Process is that Change works best if it is drive internally. Therefore the Capability building workshops Change Agents who are trained in the Change Management Methodology. To ensure lasting change it is important to ensure ability for the users in terms of understanding the new processes and the revised roles and having the skills to run the new transactions proficiently. The Change Impact Analysis helps ensure that this is achieved

15 The Success Factors 4. Ensuring uniform perception Efficiency of the change process is driven by uniform perception of goals and objectives of the project. The integration workshops helps in creating the alignment to the common benefit and the effort needed to drive the benefit that is expected. Business benefit workshops help the business owners focus on the business results that they are seeking to achieve and the SAP tools they can leverage to achieve them 5. Making results felt One of the biggest individual apprehensions is the fear of failure. This leads them to reject new solutions/ processes offered. Therefore it is necessary that employees should be able visualize and feel the results as soon as possible. As a part of the Change Strategy the quick wins are identified and study missions to these internal site will need to be organized 6. Ensuring lastingness of change Change processes are only successful in the long term when the organizational situation also changes and the new way of thinking and acting are positively reinforced. Creating permanent structures and the right reward mechanisms will help ensure the lastingness of the Change. The Post-Go live issue resolution ensures that we factor in issues not envisaged during the implementation and undertake the root cause analysis

16 Aligning Change Management efforts to the project Focus of the Change Management efforts shift as the project evolves Project preparation Business Blueprint Realization Final preparation Go live Support 1.Q 2. Q 3. Q 4. Q 1. Q 2. Q 3. Q 4. Q 1. Q 2. Q SAP project change management 4 Ensuring uniform perception 5 Making results felt 6 Ensuring lastingness of change 2 Creating conviction 3 Ensuring ability 1 Creating common orientation

17 The Change Management Interventions Creating Orientation Creating Conviction Ensuring Ability Ensuring Uniform Perception Making Results Felt Ensuring Lastingness of Change Organization Diagnostic Developing Strategic Communication Plan Establishing Change Management Objectives Communication sessions Analyzing organizational impact Analyzing organizational readiness and stakeholder positions Appreciative Inquiry workshops Study Missions Vision workshops Enrolment workshops Workshop on As-Is process analysis Training of Change Agents Facilitation Skills Change Impact Analysis Change Plan for end users Performance Coaching Continuous Coaching and QA Workshop on Systems Thinking Large Group Facilitation by Change Agents Change Communicatio ns Strategy Process Engagement Workshops Benefit Assessment Workshops Internal Study Missions Identification and Implementati on of Quick wins Pilots Value Tracking Post implementati on Reviews Certification of Change Agents Linkage with HR Training and Development process Performance coaching Post Go-Live review Building Sustenance Structures Post Go Live issue Analysis and resolution

18 Change Management Project Schedule Project Phase Project Preparation Business Blueprint Realization Final Preparation Go Live Support P1: Diagnostic Q & A P1 P2: Vision Alignment & Report out P3: Skill Building P2 P3 P4 P4: CM Strategy Communication Plan P5: Facilitation Skills P6: Integration workshops (1 pilot) P5 P6 Integration Workshops P7: Change Impact & Comm. Session P7 Change Impact & Training P8: Pilot review and root cause analysis P8

19 Communication Plan

20 Purpose and Approach Communication Plan Approach Objectives Understand elements of a communication strategy, its key success factors and the overall process steps Design adequate messages and define appropriate channels for communicating changes to organization and to mobilize affected employees. Activities Design the Communication Plan: 1. Conduct a communication analysis 2. Identify target groups of communication 3. Develop communication objectives and key messages in order to inform, reduce resistance, initiate mobilization and ensure commitment 4. Define appropriate communication activities that can be used to reach the target group, its owner and timing 5. Define other activities, that can be conducted to improve mobilization/ support project 6. Document all activities in a communication plan. Access from here the Workshop Design Tool to get examples of Workshop agendas. Access the Communication Masterplan spreadsheet to document execution of planned communication activities Outcome Overall Communication strategy is defined to reach the project goals and is agreed upon Target groups, key messages and communication activities are identified and planned over all project phases. Additional tools See Implementation Plan for rollout strategy in the line and ways to enable managers See Managing Resistances for deeper understanding of emotional reactions to change. When to use? Design of the Communication Plan should happen in the Planning Phase. The implementation and nature of activities vary upon the stages of the commitment curve to be reached in each project phase.

21 Why and How Communication? Purpose is to timely inform and mobilize all affected employees to ensure commitment and thereby project success Employees understand the sense of urgency, vision, key benefits of the transformation and how this will be achieved They understand their contribution to the new organisation and know how and when their job/role will change They are supported in the transition phase, risks and resistances are addressed From a companies perspective, a comprehensive communication plan fosters faster and sustainable changes. Ways of communication Information (ongoing, from the start): All participants must be kept informed about the aims and strategies of a project and about the current results and decisions Mobilization (as kick-off, ongoing as required): To prompt to act and think differently in the changed environment, to alleviate fears and promote personal commitment Get Feedback: Feedback is to be sensitive for rumors, resistance, people s mood and get acceptance. It is essential to analyze feedback and communicate actions.

22 Goals of Communication: Move up the Commitment Curve High ACT Odds for Success CONVINCE INVOLVE CLARIFY INFORM Low Degree of Support High Knowledge in the eyes Understand in the head Accept in the heart Commitment in behavior Implement In action - Homepage - Mails - Info-Sessions - Info corner - Vision - Future state - Jour fix / meetings - Discussions - Workshops - Design future state - Examples - Offer support - Coaching - Training/ Pilot - Mobilization events - Discuss Chances & Risks/ Mourning - Team award and motivational events - New Goals, Role - New behaviors - Manager as a Coach - Recognition - Consequences - Align organization - Implementation fair - Monitoring of Changes - Consequences - Reviews - Celebrate success - Transfer of ownership by location

23 Strategies for executing communication A proven Rollout approach is a step by step one, with top down information and mobilization activities, management of key stakeholders, feedback opportunities and change agent network to ensure local communication. 1. Top Down, in the line Alignment and visible support Vision, Role Model, Walk the talk Inform, Motivate, Coaching 2. From the Project 3. Bottom Up, from the project or in the line Information, Mobilization, Motivation, Enablement Plan, Design, Implement and Monitor Enable and manage change champions/ agents network Project Monitoring Change Monitoring Channels Mobilization events

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