State of Louisiana Office of Information Technology. Change Management Plan

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1 State of Louisiana Office of Information Technology Change Management Plan

2 Table of Contents Change Management Overview Change Management Plan Key Consierations Organizational Transition Stages Change Management Process Detaile Planning Assessments Service Group Design Training an Retooling Appenix Change Management Process Details 1

3 Change Management Plan

4 Change Management Overview With the implementation of IT Consoliation, the State is facing unpreceente external challenges requiring transformation of the way the State currently runs IT. During transformations, effective change management strategies maximize aoption by minimizing isruption to the agencies. Many transformation efforts fail because they o not effectively aress the people aspects of change. In fact, organizations that lea their people through change with an effective change management strategy are more likely to achieve their transformation objectives than those that lack an effective approach to change management. Effective change management rives results because it: Reuces the prouctivity gap that will occur as a result of changing how people o their jobs an leas to a less isruptive change winow Reuces the risk of the transformation failing an requiring significant aitional costs to fix it after the fact Reuces the risk of employee turnover ue to stress/anxiety aroun the change Increases employee commitment to the change, resulting in increase engagement through making the initiative a success Increases organizational effectiveness Reuces the likelihoo of a isruption to the customer experience or ba press Implementing an effective change management plan will enable the State to move to a new operating moel but will also clarify an aress the key challenges along the way. 3

5 Key Consierations Change management for a transformation as large as the one planne by the State of Louisiana IT Consoliation can be unerstoo in terms of three imensions an nine elements. Elements with stars are etaile in this eliverable, the remaining are covere in the Human Capital Management Plan an Communications Plan eliverables. Dimension Element Key Consieration Culture Moving from a isperse operating environment to a consoliate service oriente organization will require significant culture change. Culture change must be aresse uring implementation. Change Leaership Stakeholer an Customer Engagement Throughout the process, the communications plan shoul be use to engage stakeholers an the customer engagement plan shoul be use to engage customers. External support is essential. Change Reainess Throughout the process, it will be important to know how reay the organization is for change. This can help leaers preempt challenges an aress concerns before they become problems. Organization Structure The new organization shoul strike a balance between aing new capabilities an rawing from current strengths. The right balance will help both effectiveness an change reainess. Organization / HR Workforce Transition Supporting HR Programs an Processes The new moel is only as strong as the workforce. Effective transition of the workforce requires effort but can spee up stabilization an reuce risks to the future state organization. As escribe in the Human Capital Management plan, a unifie IT organization will require a unifie HR program an Human Capital Management processes. Talent Mgmt Programs an Processes As escribe in the Human Capital Management plan, a consoliate IT organization will require a comprehensive talent management program an associate Human Capital processes. Capabilities Training an Learning Develop Capability Transfer Process / Plan An effective change management approach inclues a strategy for training an learning that aresses both short term nees an long term employee evelopment. Staff moving into the consoliate organization will leave tasks behin an take knowlege with them. An effective change management plan will support capability transfer to limit knowlege gaps. 4

6 Organizational Transition Stages Deloitte recommens staff to be transitione using a stage an moular approach. The three stages below will help support the smooth transition of staff. Stage 1: Aministrative Consoliation This stage will result in the aministrative consoliation of staff. This is a tactical process to change T.O.s an reporting relationships of all agency IT staff to OIT. It will enable ientification of staff for consoliation as well as the HR supports require for transition. Stage 2: Detaile Design This stage serves as a etaile planning perio. It will involve iniviual level analysis of existing IT employees an result in etaile future esigns for the new organization along with waves for transitioning staff. It will also help ientify the organizational reainess for change an help cultural elements that shoul be built into the new organization. In support of changes in staffing an organization, training an transition plans will be ientifie. Stage 3: Implementation This stage is the implementation of the new organizational an operating moel. It inclues realignment of staff an buil out of services. Use of consistent an repeatable process for transitioning waves staff to the new organizational moel will allow for iterative learning an reuce organizational an service impacts uring the transition. 5

7 u V u u g gy u V u u g gy u V u u g gy Change Management Process The iagram below provies the step by step etail of the Change Management Process. The process is linear in Stages 1 an 2, an iterative in Stage 3. This is meant to inicate that Stage 3 is repetitive, an happens each time a service group or staff wave is transitione. Details of each step can be foun in the appenix. Stage 1: Aministrative Consoliation Stage 2: Detaile Design Stage 3: Implementation Step 1: Select staff Output: Staff selection Step 2: Conuct agency iscussions Step 3: Confirm HR supports Step 4: Conuct transfer Step 5: Analyze staff an organization Output: Output: Output: Output: Ajuste staff HR supports Staff Staff selection efine consoliation Functional Inventory Organizational Reainess Assessment Inicates connection to Service Group Buil Out activities Formal communication point Template provie Step 6: Moel future state Output: IT staffing moel; Service Group Detaile Design Training program Output: Staff transition plans Recruiting plans an activities (if applicable) Wave transition plans Step 7: Ientify potential training/retraining opportunities for staff Step 8: Develop staffing plans an wave transitions Step 14: Document lessons learne an review nees for next wave Ongoing communication between IT management, HR, an IT staff Step 9: Communicate with agency leaership, HR an Civil Service Output: Notification of staff changes Lessons learne Improvements implemente in next wave Step 11: Upate staffing plans as neee Step 10: Communicate changes to employees Step 12: Plan staff transitions Output: Complete staff transition plans Output: Upate staffing plan (if applicable) Iniviual conversations with affecte employees Town hall meetings with staff Plan for transition of uties that impacte employee will no longer perform Step 13: Implement staff transitions an roll out service groups Roll-out of new service groups Reassignment or transfer of FTEs Completion of onboaring activities an necessary training for new uties Completion of retraining program Transition of uties that impacte employee will no longer perform Onboaring of external caniates (if applicable) 6

8 Detaile Planning Assessments Capability an Organizational Assessment Once the Stage 1 Aministrative Consoliation complete, it will be easier to conuct the steps neee to reay the organization for realignment in the new moel. Two key elements must be consiere as part of Detaile Planning in Stage 2 functional assessment an organizational reainess. Functional The Functional Assessment will help the State unerstan what work is actually performe, how many staff perform many ifferent types of functions an the State s functional gaps. Aligns how time to inustry stanar job families an functions for ease of unerstaning Helps the organization unerstan the staffing levels necessary to support the future state organization as well as the ivision of labor an nees for staff transition planning The functional analysis t is not a skills assessment Organizational Reainess The organizational reainess assessment will help ientify the strengths an opportunities of the organization efine by Stage 1: Initial Centralization, an elements that nee to be aresse in Stage 3: Implementation An effective organizational reainess assessment will evaluate the current state of employees an the organization along five imensions: Organization Value an Value Proposition, Organizational Infrastructure, Personal Relevance an Engagement, Leaership Support, Communication The State can use the results of this assessment to make key corrections an implement culture changes as part of the organizational esign 7

9 Service Group Design Capability an Organizational Assessment As part of the change management process in (Steps 6 an 13), services an supporting structures shoul be esigne an rolle out. As with staff, services shoul be built out base on a repeatable process to minimize service isruptions an allow for stabilization to occur before launching into the next buil out. Once esigne, services can be rolle out in parallel with staff training an wave transitions. 1. Define Charter an Vision 2. Detail roles, relationships an hanoffs 3. Define processes, proceures an tools Ientify servcie group esign leaers/owners Create a specific charter an vision to rive each service incluing goals, expectations an irection Define relationship of the service to other services Define specific/iniviual roles an responsibilities of staff in each service Define hanoffs an epenencies between iniviuals an functions within services an between them Ientify existing processes an proceures that nee to be upate or efine Inventory technologies an tool(s) an relate ocumentation currently in use Define the tool(s) for use in the future state incluing opportunities to consoliate existing tools Reesign processes, as necessary, to support each service 8

10 Consierations for Training an Retooling Re alignment The most essential element in a successful organizational transformation is having staff that are well prepare for transition an fully traine to be a part of the new organization. To foster this, State leaers nee to unerstan the training nees of staff along two imensions: Training for Transition an Training for Effectiveness. Training For Transition To prepare staff for their new roles an a new organization all staff nee to be traine on: Their new roles an responsibilities New processes an proceures within their service How their new service works How their service fits within the broaer IT organization For some staff taking on new roles, they may nee to be retoole an traine on new skills require for their new responsibilities Staff transition training nees can be ientifie as part of the overall staff transition process outline on preceing slies Training for Effectiveness At present, agency level IT staff use ifferent processes, tools an approaches for elivering services. As iscusse in the Human Capital Management (HCM) plan, investing in training by builing consistency an stanarization of skills across staff, will be important to long term organizational success. As suggeste in the HCM plan, the State shoul consier builing a comprehensive staff training program to continually evelop staff. A first step in this program woul be to train all staff on ITIL, which woul help foster a common language for proviing service, a stanar set of processes an common unerstaning across the entire organization The ITIL Founations program is a two ay course that coul be complete by all staff A long term training program woul aress the skill gaps prevalent among staff an help foster evelopment for all staff over the course of their careers 9

11 Appenix

12 Staff Transition Processes: Detail Step 1 Step 2 Step 3 Staff Selection Define the criteria for selecting staff for consoliation to help avoi borerline or grey areas for which staff will be inclue in the future state organization. Use the efine criteria to ientify staff for consoliation. Conuct agency iscussions Communicate to agency an Agency IT leaers about plans for staff consoliation Gain agreement on staff to be move Communicate with staff about transitions Make ajustments to plans base on transition communications, if necessary Confirm HR Supports Confirm funing mechanisms an associate spen on staff incluing: T.O., salary, benefits, training, an aministrative supports. Define an implement funing transfer mechanisms, as necessary. Staff selection Ajuste staff selection HR supports efine 11

13 y g A y g A Staff Transition Processes: Detail Centralization Step 4 Step 5 Step 6 Conuct transfer Confirm interim reporting relationships, if changes are expecte Communicate interim service realignments, shoul they exist Define an convey communication channels for staff Communicate expectations of staff uring interim perio Analyze current staff an organization Survey staff regaring how they spen their time accoring to inustry stanar functions. Develop an unerstaning of the level of effort require to support the future state organization base on existing allocations. In parallel, conuct an organizational reainess assessment to unerstan how reay the organization is for change an the areas it will nee to buil out from a cultural perspective to support the organization. Moel future staffing nees Using the Survey results, moel the future IT nees of the IT organization over time. Apply inustry benchmarks for ratio of IT to users, future staffing levels, transition over time.* Meet with Agency leaers to valiate ata, incorporate organization-specific exceptions an epenencies, an explain moel conclusions. The moel is a living ocument that can be upate to reflect changes or exceptions to staffing requirements or timing. In parallel, buil out service groups per recommenation on Service Group Design slie. Staff consoliate Staff functional inventory* Organizational reainess assessment Future state staffing moels Service group etaile esign * Using a framework like Computer Economics Government Inustry benchmarks 12

14 y g A y g A g Staff Transition Processes: Detail Step 7 Step 8 Step 9 Ientify potential training/retraining opportunities Develop training nees for transition an long term effectiveness (See Consierations Training an Retooling slie). Ientify skills gaps in staff. Review/ ientify surplus functions (job functions that will have more available staff than positions in the future), functional gaps (job functions that will have fewer available staff than positions in the future), opportunities where surpluses an gaps exist within the same job family. Use this analysis to ientify potential training/retraining opportunities for staff. Training program Develop staffing plans an wave transitions Analyze current state, staffing moel, an real-life scenarios to etermine staffing plans. Hol career conversations with employees to better unerstan their capabilities an esire career paths. Develop wave transition plans to move certain groups of staff at certain times an minimize organizational isruption. Staffing plans Recruiting plans an activities (if applicable) Wave transition plans Communicate with agency leaership, HR an Civil Service Notify agency leaership HR an Civil Service as staffing plans are evelope. For wave staff transitions, reach agreement on the process for ecisions an transitions. Notification of staff changes at agencies an Civil Service 13

15 g g g Staff Transition Processes: Detail Step 10 Step 11 Step 12 Communicate changes to employees Conuct iniviual conversations with impacte employees who will experience a change in supervisor, uties, geography/work location, or shift. Hol career conversations with staff who may nee to be retraine an reeploye as a result of IT consoliation. For other employees who might not be experiencing change in their own jobs, communication is still an integral part of supporting their work experience. It is suggeste that the Agency leaer an HR leaership hol in-person town hall meetings with all staff prior to staff moves. Iniviual conversations with affecte employees Town hall meetings with staff Transition of uties that impacte employee is not taking with them Upate staffing plans (as neee) Upate staffing plan or process if neee as a result of conversations with HR an Civil Service. Upate staffing plan (if applicable) Plan staff transitions Plan for logistics of staff moves, incluing the following: Work transitioning with employee an that work that will remain in the agency an associate knowlege transfer HR paperwork Physical move (if applicable) Set up of esk, phone, computer, etc. (if applicable) Complete logistics planning for staff transitions 14

16 g g Staff Transition Processes: Detail Re alignment Step 13 Step 14 Implement staff transitions an roll out service groups Transition staff accoring to the staff transition plan evelope in Step 12. Document lessons learne, an review nees for next iteration In preparation for the next set of staff moves, etermine what went well in the current iteration an what coul have gone better. Begin to review the IT Consoliation Plan an staffing moel for the next iteration. Roll-out of new service groups Reassignment or transfer of FTEs Completion of on-boaring activities an necessary training for new uties Completion of retraining program Transition of uties that impacte employee will no longer perform Onboaring of external caniates (if applicable) Lessons learne Improvements implemente in next wave 15

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