The Change Management Process Steps
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1 AGENDA ITEM NO: 4.M.1 To: Honorable Public Utilities Board Submitted by: /s/ Sherri Hong AGM Customer Resources From: Girish Balachandran General Manager Approved by: /s/ Girish Balachandran General Manager Subject: Status Update on 2012 Annual Planning Workshop Change Management Initiative RECOMMENDATION This report is for information only to provide the Public Utilities Board (Board) with an update on the status of the accomplishments on the Change Management initiative. BACKGROUND The Board undertook its Annual Strategic Planning Workshop and identified Change Management as one of the three main focus areas for The three focus areas are listed below.
2 AGENDA ITEM NO: 4.M.2 At the February 2012 Board meeting the following summary of Board comments and next steps was accepted. Summary of Board Comments Next Steps A) Change Management a) Communication: Understand and plan for cost, expected reactions and unintended consequences i) Unintended Consequences ii) Cost of preparing for change may be high iii) Evaluate short-term impact cost vs long-term benefit iv) How do we deal with inevitable resistance to workforce transition? v) Budget for the outcome vi) Distinguish upcoming changes from past changes that employees have experienced vii) Measure pre- and post-change progress; people like to see progress b) Develop Focused Change Management Plan ( don t go with a 1-size fits all approach ) i) Start with the end in mind ii) Team Development to front line iii) Tailor change efforts to individuals, groups and a limited number of high priority projects A) Change Management a) Research how other utilities who have implemented advanced technology have dealt with change management b) Develop a focused plan incorporating PUB comments c) Hire consultant who has experience in taking a utility through a focused change management process Staff has incorporated the Board s comments and recommendations in developing an approach and work plan for Change Management. DISCUSSION In the Annual Planning Workshop, staff presented to the Board a high level process to Change Management as illustrated below.
3 AGENDA ITEM NO: 4.M.3 Staff has accomplished the first two steps, in addition to the following tasks, in its efforts towards implementing a change management plan: Defined a Change Management strategy and acquired sponsorship A project definition document was developed by the General Manager and Assistant General Managers that identified the project purpose, goals, objectives, scope, key stakeholders, success criteria, assumptions, and constraints/risks. The document is used to provide a description of the project to promote a shared understanding before a more detailed plan, schedule, and budget is prepared. Employee Survey Staff acquired the services of SDS Research, a Hometown Connections partnersince 1999, to conduct an employee survey. The purpose of the survey was to assess the level of employee satisfaction and morale, learn the value employees attach to the different aspects of their jobs, and identify changes for improvement. The survey results will be utilized to identify areas which may hinder change efforts moving forward. The survey results were presented by the consultant to staff on October 17. The management team followed-up with a discussion on the approach and next steps in moving forward to address the areas needing improvement. Integration of Change Management with Current Projects Additionally, staff has included within AMP s Advanced Technology initiative an emphasis for incorporating change management and organizational development within the scope of work. Once the project work begins, the vendor will be sharing best practices and lessons learned from
4 AGENDA ITEM NO: 4.M.4 other agencies and including within the recommended approach change management and organizational development components. Consultant Resources Staff met with several change management consultants to share AMP s needs and gain insight into the potential services available to assist AMP in our change management efforts. During the meetings, staff also confirmed its approach and strategy in moving forward with the change management tasks. Based on the learning acquired, staff has examined its approach and identified where an initial plan developed and implemented in-house prior to a consultant being hired would be feasible and useful. Training A comprehensive 3-day change management certification course offered by a worldwide renowned change management leader and researcher has been identified. The AGMs attended the certification course and will be leading various aspects of the human and organizational components to change management. Training has been scheduled in December for about 25 staff interested in learning better time and organizational management skills. Training on project management best practices and tools is being planned for the first quarter of 2013 to provide the elements of effective project management skills for staff. Resources and Tools Staff has introduced and implemented the following resources and tools to assist in enhanced project management and communication: An online web-based application to share and track project information and communication. A project definition tool to better define, manage, and document project objectives and goals. A tool to identify and communicate staff roles and responsibilities. A style guide to assist staff in the preparation, development, and standardization of documents Staff has identified some high level categories for the approach moving forward: 1) Needs Assessment/Data 2) Training 3) Communication 4) Implementation and 5) Evaluation/Quality Assurance. This work includes developing a detailed change management plan and involves preparing the management team, conducting an additional needs assessment, training and continued evaluation and opportunities for staff feedback.
5 AGENDA ITEM NO: 4.M.5 NEXT STEPS Staff will keep the Board apprised of activity in this effort. FINANCIAL IMPACT There is no immediate impact in the development of the plan. Expenses for training in change management, time management and project management has been budgeted. More specific budgeting needs are included within the current budget or will be brought to the Board as necessary. LINK TO STRATEGIC PLAN AND METRICS This impacts all Strategies and Metrics as it affects overall organizational effectiveness and efficiency. EXHIBIT A. Change Management Next Steps Presentation
6 Change Management High Level Next Steps Prepare Train Communicate Implement Assess Identify needs, resources, schedule, and budget Integrate CM strategies for all complex initiatives Create gap analysis between present and future state Identify training needs Acquire training resources Schedule training Identify tools/resources Develop communication needs Determine guidelines and potential tools Pilot CM strategy on large change initiatives Assist in the deployment Assess effectiveness of strategy, tools Make modifications as necessary AGENDA ITEM NO.: 4.M. EXHIBIT A
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