Change Management Strategy

Transcription

1 Change Strategy

2 Introduction This document is the North Carolina HR/Payroll Phase I Change Strategy The Change Strategy is intended to define an overall change management approach that project sponsors, management, and team members should follow, including: A blueprint for change management activities required for the North Carolina HR/Payroll A guide to project leadership, the implementation team, the change management team, and the broader change network of regional and agency project contacts Guidance on specific change management activities The Change Strategy is a living document that should be: Updated and expanded as the project progresses Followed by development of more detailed change management plans, approaches, work plans, activity descriptions, and staffing details 1

3 Contents The Importance of Change Scope of Change in North Carolina The Importance of Change on the HR/Payroll What is Change? Change Lessons Learned Change Strategy Vision, Objectives, and Success Measures Focus Areas of Change Change Roadmap Change Team Change Focus Areas Alignment Transition Team Effectiveness End User Next Steps for NC Phase I Change Activities Potential Phase II Change management Activities Change Roadmap Next Steps Appendix 2

4 The Scope of Change in North Carolina The impact of the HR/Payroll on North Carolina government (its agencies, managers, employees, business processes, etc.) will be significant, and the challenges it presents should not be underestimated. HR/ Payroll Transformation Major Impact ~5,000 HR, Payroll, 12 HR business and support staff jobs will change in some form 8 payroll runs will be affected Over 10,000 new hires will follow a new application and on-boarding process Significant Impact processes (e.g. transfers, new hire) will change 8 payroll business processes (e.g. pay change, time entry) will change More than 65,000 employees will be affected via Employee Self Service All mid-level and high-level managers will be affected via Manager Self Service A new state-wide HR/Payroll system for every state agency Over 30 State agencies will be affected via: Potential restructure of HR organization Shared applicant pool, etc. 3

5 Importance of Change on the HR/Payroll The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina The HR/Payroll will transform both the business processes and the technology by which North Carolina agencies manage the human resources and payroll functions of their organizations. The project will affect virtually every state agency worker in some form or fashion. Business process redesign will result in state personnel experiencing changes to their daily tasks and procedures, such as: Create a single employee record where data is entered into one system, one time Develop new procedures to transfer employees seamlessly between agencies Provide employees with the ability to change selected information via Employee Self Service (ESS) Expand manager duties to include Manager Self Service (MSS) Transition Employee Benefits data ownership to Human Resources Standardization and streamlining of payroll processes, transactions procedures, and payroll governance changes are also expected to result from the HR/Payroll project: Changed Roles and Responsibilities In many cases, some staff may be asked to take on entirely new roles New positions will also likely be created and need to be filled In some cases, the project may require relatively significant organizational structure changes Process, Technology, and Data Ownership Changes Transitioning from a decentralized HR/Payroll environment to a more centralized and standardized structure will require changes to process and data ownership Some data standards will be defined at the state (rather than individual agency) level Some agency specific processes and systems may be forced to go away or change 4

6 What is Change? The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina Change is a set of principles and activities designed to prepare people for and support them through a significant organizational or technological change, such as the HR/Payroll. Change is Intended to maximize achievement of desired business objectives while minimizing loss in productivity Structured to align with and support the broader technology and business process transformation Designed to support and promote the people aspects of the project Metaphorically, Change is The grease that makes the project (and the resulting new business processes) run more smoothly, and The glue that gives the project a sustainable, valuable impact 5

7 Change Helps s Succeed The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina Over half of major initiatives fail to meet anticipated results due to inadequate attention to people-related issues. The change management focus of this HR/Payroll Change Strategy aligns with and addresses the typical barriers to success. Resistance to Change Inadequate Sponsorship Unrealistic Expectations Poor Case for Change not Compelling Team Lacked Skills Scope Expansion / Uncertainty No Change Program No Horizontal Process View IT Perspective not Integrated Top 10 Barriers to Success 36% 44% 44% 43% 41% 46% 54% 65% 72% 82% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Percent of Organizations Responding in Each Category (multiple responses were allowed) Source: Deloitte & Touche s annual CIO survey Key: People-related Issues Associated Change Components Transition & End User Alignment Alignment & Alignment & & Team Effectiveness Team Effectiveness 6

8 Specific Change Challenges Identified The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina Throughout Phase I, a number of change management challenges have been identified for the HR/Payroll project as an important step in developing this Change Strategy. This strategy identifies HR/Payroll change management challenges from the following sources: Joint Application Design Sessions (JADS) Change management and organizational issues and barriers identified by state staff during the process JADS sessions Interviews and Focus groups Interviews and focus groups of past IT project team leaders to identify cultural and organizational change issues Lessons Learned Documentation Lessons learned documentation from past projects and ITS 7

9 Specific Change Challenges Identified The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina A number of potential change challenges were identified during Phase I, including the following: Change Challenges Identified Transition from decentralization to standardization Moving to single system Potential change of payroll period/cycles Fear of external visibility to critical data Business process reengineering may be significant and difficult divide between HR and Payroll Employee fears about new processes and job security Change Activity to Address Challenges alignment of HR Directors and agency leadership Impact Assessments to identify job/role changes alignment at the agency level End-User system training to all stakeholders alignment of Payroll managers on controls process alignment on data ownership Detailed impact assessments to identify change Communicate changes to impacted staff Train affected staff on new business processes Alignment Plan Communicate project vision and guiding principles Communicate project impacts to stakeholders Communicate state s long-term employment strategy 8

10 The Change Curve change is difficult, but it can be managed The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina Performance Commitment This was the right thing to do. Uncertainty What does this mean for me? Resistance I can t work with all of this uncertainty and turmoil. Bail Out? This is not something I want to be a part of. Adaptation This is hard, but we can do it. Withdrawal I ll do what is necessary to survive. Key to Success: Reduce the duration of the trough, and accelerate the upslope via a well-planned and executed change management program. Baseline Time 9

11 Change Strategy

12 Change Strategy The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina The Change Strategy for the HR/Payroll project should be focused on four primary pillars: The Why: the strategy should be driven by a defined vision, principles, and goals The What: activities should address all of the focus areas of a successful Change program The When and How: change management roadmap and activities should be planned and integrated into the overall project workplan The Who: activities should be led by a structured, dedicated team and a broader change network HR/Payroll Change Strategy WHY Vision, Principles, & Goals WHAT Focus Areas of Change WHEN & HOW Change Roadmap WHO Change Team and Network 11

13 Change Vision and Objectives Change Strategy Vision and Goals The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina The change management effort should define its own vision and goals, and they should align with the overall HR/Payroll vision and goals. Below are proposed Change vision and goals: NORTH CAROLINA HR/PAYROLL PROJECT VISION A strategic business partnership supporting the human resource and payroll needs of State government, enabled by utilizing leading business practices and current technology CHANGE MANAGEMENT VISION To fully prepare North Carolina state agencies and employees for the transition to the new HR/Payroll business processes and technology To support the state by driving initiative adoption across the HR and payroll community To engage and gain support from state, agency, and local leaders, through one-onone communications, workshops and action plans CHANGE MANAGEMENT GOALS To identify and address barriers to change, as well as identify and leverage enablers to change To address agency specific complexities and needs across the state-wide initiatives To proactively address the training, communication and change issues that have undermined state projects and initiatives in the past 12

14 Change Guiding Principles Change Strategy Vision and Goals The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina The following principles should guide change management and related activities and decisions throughout the project: The HR/Payroll project will seek to engage agency leaders and staff to earn their support for the project The project will be actively promoted throughout state agencies by project leadership, project team members, subject matter experts, and project committees State employees will be provided with the information and skills necessary to transition to roles changed due to business process reengineering and technology replacement There will be an open line of communication to and from the project team with multiple feedback channels in place to invite comments, concerns, and ideas will be clear, concise, and delivered through the proper medium at the proper time Key project-related messages will be consistent across the entire team The project team will promote knowledge and capability transfer among consultants, software vendors, and state staff team members will have the skills required to complete their project tasks The project work environment will promote collaboration between project teams The training team will provide end user training to the right people, at the right time, with the right information 13

15 Change Success Measures Change Strategy Vision and Goals The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina At project completion, the success of the change management effort should be evaluated against a set of key success measures, including the following: Success Measures Employees clearly understand their roles and responsibilities and how the change specifically affects them Retain top performers and limit increase in unplanned employee turnover as a result of the system and process implementation Clear project governance and decision-making structures have been followed roadblocks have been removed The full impact of the change has been well-understood and well-planned-for agrees to changes required to sustain the new environment A more efficient organization structure exists Employees embrace the new system and business processes Employees know where to get additional project information and system support Risks have been proactively identified and addressed Employees know how to use the system Employees understand and follow the new business processes Employees are prepared to do their new job on day one The state maintains internal capabilities to sustain the change 14

16 Focus Areas of Change Change Strategy Focus Areas The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina The central component of the HR/Payroll Change strategy are the specific focus areas around which the project s change management activities should be organized. A summary of the project s change management focus areas is presented below, with additional details presented in the Change Focus Areas section of this document HR/Payroll Change Focus Areas 8Enable employees to perform their jobs at go-live End User Alignment 8 Align State and agency leaders to the project vision and enable them to champion the effort 8Provide support to project management and improve team efficiency, performance, and morale Team Effectiveness Transition 8Design new employee roles, jobs, and organization structures to support the new processes and technology 8Enable state personnel to sustain and support the project with minimal external assistance 8Fully inform employees and stakeholders of coming changes and provide ample opportunity for feedback and input 15

17 Roadmap of Change Activities Change Strategy Roadmap The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina A successful change management strategy must focus on both planning and execution of change management activities, each of which requires an exponential increase in effort as the project progresses. Planning Change Strategy and Plan Development Plan Team and On-boarding Plan Action Plans Implementation Phase Time Implementation Communication Plan Change Plan Updated Communication Plan Impact and Readiness Assessment and Strategy Governance Plan Change Strategy Current Phase Limited Change Activity Key Possible Deliverables Plan Workforce Transition Plan Pre-Implementation Phase Increased Activity Interview leadership Disseminate additional project communications Assess project impact Assess change readiness Etc Sample Change Activities Intensified Activity Conduct leadership briefings Assess workforce impact Conduct workforce transition Continuously assess change readiness Build and deploy change network Launch communication campaign Develop and deliver training Develop and execute on capability transfer plans Etc. Execution Change Activity and Execution 16

18 Roadmap of Activities Change Strategy Roadmap Stakeholder The Importance of Change Change Strategy Change Components Next Steps for North Carolina As the project transitions from the pre-implementation planning stage through implementation and into post implementation support, the number of stakeholder and level of detail of communication messages increases. OSP OSC ITS Legislature OSP OSC ITS Legislature OSP OSC ITS Legislature Agency Leaders Subject Matter Pre-Implementation Experts Phase Change Champions Current Phase Involvement of Stakeholders Agency Leaders Subject Matter Experts Change Champions Communication Liaisons Power Users Key messages Business Requirements Business Case Trainers Agency Managers HR End-Users Payroll End-Users Media Key messages Business Requirements Business Case Staffing Requirements ed Timeline Implementation Phase Key messages Business Process Redesign Status Updates Implementation Timeline High Level Impacts Change Impacts Detailed End-User Impacts Workforce Transition System and Logistics Support Contacts and Details Stakeholders Same as Implementation Post - Implementation Phase Key messages Detailed Support System Updates Success Messages Next Phase Details Time Communication Messages Level Of Detail 17

19 How Change Fits into the Change Strategy Change Team The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina The HR/Payroll efforts will most likely be divided into project threads (and associated teams) that focus on a specific group of activities The Change effort is a critical project thread that focuses on reducing the risks associated with change and increasing the efficiency of the project Change must work with all of the project thread teams Works with to help create an effective team through internal communications, team building, and governance Works with Business Process Design Teams to identify impacts, process changes, and role changes Works with Information Technology teams to identify technical changes that affect the organization and prepare a technical training infrastructure Works with Process & System Integrity Teams to validate end users and perform job-role mapping Likely Threads Business Process Design Change (and training) Information Technology Process & Systems Integrity (security) 18

20 Change Team Pre-Implementation Phase Change Strategy Change Team The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina The HR/Payroll should soon create a formal Change Team that should grow incrementally as the project prepares for implementation. The Pre-Implementation Change Team should be comprised of both state and vendor resources, according to the following model: HR/Payroll Change Team Pre-Implementation Change Team Change Network Change Leads (1 NC, 1 Vendor) Change Network Subject Matter Experts (Process & Agency Specific Staff) Change Champions (Agency Leaders) Transition Leads (1 NC, 1 Vendor) Lead (1 NC or Vendor) 19

21 Change Team Implementation Phase Change Strategy Change Team The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina The Implementation Change Team should be comprised of both state and vendor resources, according to the following model (which should be revisited after an actual implementation timeline has been established): Note: The resource model is dependant on the implementation timeline and deployment strategy HR/Payroll Change Team Implementation Change Team Change Network Change Leads (1 NC, 1 Vendor) Change Network Subject Matter Experts (Process & Agency Specific Staff) Change Champions (Agency Leaders) Power Users (TBD) Leads (1 NC, 1 Vendor) Developers (TBD) Trainers (TBD) Administrator (1 NC) Transition Leads (1 NC, 1 Vendor) Team Member (1NC) Team Member (1 Vendor) Lead (1 NC, 1 Vendor) Team Member (1NC) Team Member (1Vendor) Liaisons (Agency & Regional Staff) 20

22 Change Team Staffing Recommendations Change Strategy Change Team The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina The HR/Payroll should maintain a full time, dedicated Change team Specific requirements for the training team should be defined during the creation of the training strategy during pre-implementation Role Key Responsibilities Pre-Implementation Phase Implementation Phase Change Team Lead Direct overall team activities Provide team with change management expertise Manage Team Effectiveness,, & Alignment activities 1 NC 1 Vendor 1 NC 1 Vendor Transition Lead Transition Team Member Lead Team Member Lead Developers Administrator Manage Transition activities Drive change readiness, impact, and culture assessments Lead workforce transition activities Support Transition activities Prepare change assessments, plans, and deliverables Stakeholder management planning Manage project communications Direct communications activities and QA deliverables Develop project communications and PMO presentations Maintain and track library of change deliverables Perform stakeholder analysis and plans Manage and develop project website Manage End User development and delivery Develop training strategy and plans Work with process teams and SME s to develop training materials and exercises Create, load, and test training data Support scheduling, logistics planning, and tracking of training delivery Coordinate printing and distribution of materials 1 NC 1 Vendor 1 NC or Vendor 1 NC 1 Vendor 1 NC 1 Vendor 1 NC 1 Vendor 1 NC 1 Vendor 1 NC 1 Vendor Trainers Deliver training to state personnel TBD TOTAL 5 13 (plus training) 21 TBD 1 NC

23 The Broader Change Network Change Strategy Change Team The Importance of Change Change Strategy Change Focus Areas Next Steps for North Carolina In addition to the project s change management team, the project should develop a broad Change Network of individuals to support the change management effort, including: Change Champions Leaders from each agency that help drive change and champion the project Communication Liaisons Representatives from each agency to assist the change management team with assessments and communications at an agency level Regional communications liaisons may be required to assist in reaching stakeholders in key locations outside of Raleigh Power Users Agency and regional staff that will serve as the first level of post go-live support May also participate in training delivery to state staff May assist process teams in User Acceptance Testing Subject Matter Experts (SMEs) Provide support for identifying changes and reviewing solutions Provide input to training materials Work with process teams to develop system requirements and redesign processes Change Champions Subject Matter Experts Change Team Liaisons Power Users 22

24 Change Focus Areas

25 Change Focus Areas The Importance of Change Change Strategy Change Focus Areas Next Steps This section presents details around each of the six focus areas of change management activities for the HR/Payroll, including: Focus area definition Specific importance of each focus area to the HR/Payroll Key activities associated with each focus area Key issues facing the HR/Payroll were gathered from: Lessons Learned documentation from previous NC IT projects Identification of barriers during the process JADS Focus group of past state IT project leaders Key leadership interviews End User Alignment Detailed lessons learned observations are presented in the Appendix. Team Effectiveness Transition 24

26 Alignment - Overview End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition Definition: A set of activities aimed at assessing and increasing the knowledge and support of the project among key state and agency leaders Provides leaders with communication messages and other tools that support their role as champions of the project Specific Importance to the HR/Payroll : Shared project sponsorship (between OSC, OSP, and ITS) will require increased focus on alignment Large project scope and footprint (over 30 state agencies) increases need for leadership alignment alignment will help to mitigate the risk of project failure Key Deliverables: Pre-Implementation Phase Alignment Interviews High Level Action Plans Implementation Phase Briefing Sessions Updated Action Plans (regional and local agency leaders) Communication Toolkit (e.g. Summary, Talking Points, Brochure) Coaching 25

27 Alignment - Objectives End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition The objectives of leadership alignment on the HR/Payroll project include: Clearly define project leadership and their roles, including project management, project sponsors, project governance committees, etc. Identify project risks and issues early, raise them to leadership for review, and ensure that the leadership team is aligned Ensure that project leadership clearly understands its roles, responsibilities, and overall accountability for the successful outcome of the project Generate excitement and agreement about business process reengineering and technology replacement among members of the leadership team Facilitate agreement on how the project meets agency and state needs Empower leaders to champion the project vision through a persuasive story that can be readily and visibly communicated to the organization Promote dialogue among the leadership team, as deemed appropriate, to achieve alignment Obtain buy-in and support from local agency/institution leaders and ensure upward and downward communication, positive reinforcement and enthusiasm at the local level Set expectations with agency leaders on anticipated resource requirements and support personnel needed from their agency 26

28 Alignment - Issues Facing the HR/Payroll The Importance of Change Change Strategy Change Focus Areas Next Steps End User Team Effectiveness Alignment Transition Issue and Agency Scope Shared Sharing a common vision of Process/Data Control Agency Involvement Description The scale of the project and large number of state agencies affected by the changes will require the HR/Payroll to develop a strategic approach to Alignment. Gaining the support of state, regional, and local agency leadership for the project is a critical success factor. Key activities include Interview, Toolkit, and Action Plan. Detailed communications plan for state, regional, and local leaders that includes town meetings, face to face communications, and timely project updates. Past projects with dual leadership/sponsorship have often had issues with misalignment. This project will be lead by the SBIP Steering Committee with sponsorship by OSP and OSC. Key Activities - Clear governance, role, responsibilities must be documented. Activities to monitor alignment and support from key project sponsors must be put into place. State, agency, and project leaders need to be aligned and share a common vision for what the project can deliver to the North Carolina. The business transformation will require several changes to roles and responsibilities within the agencies. Agency, regional, and local leaders should be used to deliver some key messages to their staff and help guide the transition to new processes and new process owners. Key Activities - Toolkit, Detailed Stakeholder Analysis and Plan Leaders will have to be willing to relinquish control of some business processes and access to data. Senior agency leaders, HR Directors, agency CIOs, and local and regional leaders need support the change. Key Activities - Alignment, Detailed Communication Plan and Stakeholder Analysis s need to be driven by leaders from the agencies not from IT. Past projects lead by IT have been short in identifying a need for the implementation and had leaders from the business and IT misaligned. Key Activities - Governance, Stakeholder Analysis 27

29 Alignment - Issues Facing the HR/Payroll (continued) The Importance of Change Change Strategy Change Focus Areas Next Steps End User Team Effectiveness Alignment Transition Issue Inexperience in leading change Ability to sustain leadership alignment Political Environment Support from University System Legislative Awareness Description Leaders are often experienced in day-to-day operations but inexperienced in leading change and taking an organization in radically new directions. Leaders need to understand the difference between leading and managing, and that leading change demands a different role and style of leadership. Key Activities - Clear leadership action plans supported via training/ workshops to spread knowledge, increase skills and equip leaders with needed tools and resources; leadership coaching alignment is not a one-off event. It is ongoing throughout the course of the engagement. New political appointments and changes in North Carolina's state needs require continued support from leadership to maintain project momentum. Key Activities - Action plan that details how to keep leaders engaged throughout the project The political environment needs to be monitored in order to be proactive. Changes in the political focus due to leadership changes associated with elected officials and political appointments require the project to deploy a leadership approach that can sustain and adjust for new leaders as they come into power. Key Activities - Periodic Check-ins, Updating Action Plans Gaining project support from the state s university leadership would increase the scope of the project and present the state with a more homogeneous HR/Payroll solution. Key Activities - Interview and Alignment Activities Gaining and maintaining legislative support is key for future funding activities. The issues and benefits of the new HR/Payroll system need to be communicated to the legislature throughout the lifecycle of the project. Key Activities Include legislature in stakeholder analysis; communications strategy must include key legislature messages and timing 28

30 Alignment - Activities End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition North Carolina HR/Payroll Alignment Activities Pre-Implementation Phase Implementation Phase Overall Objectives Set the vision and strategy for the change effort, determine leadership readiness, responsibilities and alignment required to facilitate change. Major Activities Build consensus and develop leadership change and communication plans to launch and sustain efforts and set the pace for change. Launch and sustain leadership visibility and endorsement in change efforts. Major Activities Establish strategic objectives and set the direction for change Conduct leadership interviews to determine alignment, gaps, and needs Prepare leadership alignment action plans Build agreement among leaders Assign individual accountabilities to leaders to support the vision and change effort Executive leadership alignment workshops Develop leadership feedback process Develop leadership action plans to drive the change effort Determine specific roles of leaders in change process Deliver Workshops and one-on-one coaching Develop and deliver leadership communication toolkits Continuous engagement of key leaders in the change Build consensus and resolve conflicts as they arise Prepare leadership for their role in the implementation Develop Change Roadmap Assess overall effectiveness of the effort and implement supplemental leadership strategies as needed Conduct pre-go-live briefings 29

31 Transition - Overview End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition Definition: A set of activities aimed at: Assessing the impact of the project on state agencies and employees Appropriately planning for organizational and workforce changes due to the project Transitioning the organization and affected employees to new roles, responsibilities, and structures Specific Importance to this : Sheer number of employees and organizations affected (both HR and non-hr staff) requires specific attention be paid to organizational impact Because it is an HR project, employees will expect the project team to adequately address the project s HR-related impact on them and their job Key Deliverables: Pre-Implementation Phase High Level Change Impact Assessment Change Readiness Assessment Implementation Phase Detailed Change Impact Assessment Restructuring Plan (if needed) Workforce Transition Plan 30

32 Transition - Objectives End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition transition objectives focus on managing the changes that affect state personnel due to changes in organizational structure, processes and procedures, and job roles. Objectives include: Adequate employee readiness for process and system changes New, more efficient job roles and organization structures to support the HR/Payroll project Correctly identified changes to roles and responsibilities of employees affected by the business process and system changes A culture that embraces the HR/Payroll changes Clarity around job role changes and reporting line changes Action plans that to ease employee transition to new roles 31

33 Transition - Issues Facing this End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition Issue ESS/MSS Process Changes Fear and resistance to process and system changes Inability for some staff to change Standardization Difficulty Description Transition to Employee/Manager Self Service will present major process changes for state staff (HR and non-hr staff). Fear and resistance should be expected with employees and managers taking a more active part in HR functions. Key Activities Detailed Impact Assessment to identify changes, Communicate advantages of ESS/MSS to all stakeholders, Train end user how to use the new system Many state workers have been in their current position for an extended period of time without any previous process or system changes. Employees will face the following fears associated with the business process and system changes: Fear because they lack the skills required to use the new technology Fear that new controls will nullify their processes work around Fear that new processes and controls will highlight their lack of understanding of how to perform their job Fear of job loss Key Activities Detailed Impact Assessment to identify changes, Communicate advantages of new processes/system to stakeholders, Communicate that training will be delivered to provide employees with the necessary skills to perform their jobs, Deliver role based training on new processes and technology Expect the changes in system and processes to cause an increase in retirement. Some employees will choose to leave their roles rather than learn new process, procedures, and technology. Key Activities Communicate the training plan to employees to detail how they will be supported during the change In the current culture every agency/organization feels that the requirements to run their business are different making it difficult to standardized processes. Implementation resistance is likely to appear when the new standardization requires their common procedures, policies, and reports to change. should seek to understand true business needs and discern where uniqueness is really needed and where it is not (i.e. solve the right business problem). Key Activities Alignment to drive change, communicate marketing messages for buy-in, Train on entire process to highlight new efficiencies and streamlined processes, Identify a strong and respected Change Champion that will act as a spokesperson for the project at each agency, Face-to-Face interviews to identify right business problems 32

34 Transition - Activities End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition North Carolina HR/Payroll Transition Activities Pre-Implementation Phase Implementation Phase Overall Objectives Assess the impact of coming changes on the workforce and organization. Understand the current organization, including its culture, leadership and decision making processes. Major Activities Assess change readiness and define desired culture and behaviors. Implement work plan activities and measure success through assessments and surveys. Conduct activities to ease employee transition to new business process and/or roles. Major Activities Conduct change readiness and impact assessments Assess as-is culture Identify implications for change, including enablers and barriers Identify high level impacts of process and system change Develop culture change action plan Define and document current organizational structure Define desired organizational structure Develop workforce transition plans Develop detailed impact assessment down to the role level Document roles and responsibilities for changed and new positions Document competency list and definitions Implement new organizational structure Implement reward and recognition program for desired behaviors Implement workforce transition Job Impact communication and training Conduct post-implementation assessments to measure the effect of the change and make adjustments as needed 33

35 - Overview End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Transition Definition: A set of activities for developing and disseminating information about the project so that employees and other stakeholders understand the project, are prepared for the changes it will bring, and are more inclined to embrace and buy in to the change Relies upon structured, two-way communication that not only pushes out information but also helps project leadership identify and address resistance and other risks Consists primarily of increasingly broader and more detailed stakeholder analysis, communication plans, and actual communications (newsletters, briefings, s, websites, press releases, face to face contact, etc.) Specific Importance to this : The diverse nature of stakeholders interested in and affected by the project highlights the need for sophisticated stakeholder analysis and associated plans for communicating effectively with those stakeholders The relative dispersion of agencies and staff affected by the project will require an intensive, wellchoreographed communication effort Key Deliverables: Pre-Implementation Phase Change network identification and launch Updated Stakeholder Analysis Communication Plan Implementation Phase Updated Stakeholder Analysis and Communication Plan Significant project communications 34

36 - Objectives End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Transition The scope of the HR/Payroll and large number of stakeholders requires a wellplanned communications strategy. Objectives include: Stakeholders (state/agency leaders, state personnel, public, media, etc.) are adequately informed about the project and understand the project vision communications have minimal disruptive impact on day-to-day operations of state leaders and staff Stakeholders have access to and use two-way feedback channels to raise issues and concerns Language is clear, concise, consistent and easy to understand Targeted audiences receive customized communications activities are strategic and support desired project outcomes 35

37 - Issues Facing this End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Transition Issue Full Time Change Commitment Methods Marketing the project Local Buy-In Communicate to set expectation Proactive Not Reactive Description is a full time commitment that requires dedicated resources. Most past projects have not had a dedicated change and communications team. Key Activities Identify qualified state staff Use all of the communications methods available to you. Get the word out about the project and its benefits throughout the lifecycle of the project. Website, Kiosks, Webcasts, and s Brochures and bulletin board materials Roadshows and Participation in organizational/agency conferences and meetings Key Activities Detailed communication plan that links preferred media type and frequency to stakeholder and message Marketing the project will be crucial to reduce change resistance and increase buy-in. To End-Users Communicating the advantages of the project and the why will help reduce resistance To Marketing to leadership will help gain support and buy-in to drive change down into the organization To Legislature/Media Communicating the status, quick wins, and long term benefits to gain funding and public support Key Activities Stakeholder analysis and Detailed communication plan Past projects have often been seen as Raleigh initiatives and lacked local/regional buy-in and support. Key Activities Develop local change and communication liaisons and champions to provide increased visibility and support to the project. Assign local liaisons/champions by user group. Find champions at all levels (e.g. president, managers, users). Expectation setting is key to the project success. Agencies may have specific needs/requirements that are more important to them. Key Activities - Provide a picture of success early in the project to set expectations accordingly. Publishing change control board decisions to entire user group to update expectations and reduce resistance. communications needs to be proactive in identifying the change resistors and addressing key stakeholder concerns. Proper communications will address these issues prior to the issues becoming critical implementation roadblocks. Key Activities Stakeholder analysis to identify key messages to each group, Plan that provides a roadmap of key messages, with timing and audience 36

38 - Activities End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Transition North Carolina HR/Payroll Communication Activities Pre-Implementation Phase Implementation Phase Overall Objectives Fully understand stakeholders and their communication needs. Identify Change Network. Assess current communication environment to identify gaps/needs, and develop initial project communications. Major Activities Develop a change communication strategy/plan that integrates objectives, target audiences, specific key messages, and appropriate delivery tools/media. Deliver communications to actively involve stakeholders and assess communication plan effectiveness. Major Activities Assess communication objectives, identify barriers and challenges Conduct stakeholder assessment and analysis Develop theme and brand for transformation Determine key organizational messages Develop preliminary project communications (e.g., announcement) Identify and build communication network Create detailed communication strategy/plan Design and implement feedback mechanisms/tools Establish communication infrastructure and Change Network Develop communication materials and tools Update and implement communication plan Communicate progress and celebrate successes Assess communication effectiveness and adjust accordingly 37

39 - Overview End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition Definition: A set of activities for methodically transferring critical project and system knowledge from implementation consultants (or others involved in the project) to state project team members and system support staff Specific Importance to this : The state s relative lack of ERP system management and support knowledge, and the relative lack of staff skill-sets required to maintain such a system, will require a robust set of capability transfer plans and activities Early identification of key capabilities and required skills may be used to secure existing state resources with ERP experience (e.g. resources from DOT) Key Deliverables: Pre-Implementation Phase Team Strategy Implementation Phase Team Plan Plans for each team member Completion of capability transfer activities 38

40 - Objectives End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition HR/Payroll activities should be designed to help the state to assume ownership of all project activities from the implementation vendor. Objectives include: Appropriate knowledge and skills are transferred to state and agency staff at the right time The overall level of expertise of the state team is enhanced by the implementation vendors commitment to share technical, change management, and business process expertise, best practices, benchmark data, and project management capabilities team training provides state project team members with skills required to perform their project roles OSP (and other agencies as appropriate) is prepared to support the new HR processes and needs of state agencies OSC (and other agencies as appropriate) is prepared to support the new payroll processes and needs of the state agencies ITS (and other agencies as appropriate) is prepared to support the HR/Payroll IT needs due to the technology replacement 39

41 - Issues Facing this End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition Issue State Resource Skills is Usually an Afterthought Lack of Well Defined Requirements & Quality Documentation Description State staff often do not have the specialized skills required to perform project activities. Often positions are filled with the best available resource instead of most qualified resource. A capability transfer plan must be put in place to make sure that the resources have the required skills to support the project long term. Key Activities transfer plan Most state projects do not have a capability transfer plan at the project start. transfer has usually been an afterthought and not started until well into the project or after implementation. The result has been added costs associated with keeping vendor resources onsite to transfer knowledge and document processes and procedures. Key Activities Early development of transfer plan; plan delivery integrated with performance reviews In past NC projects, documentation of project activities, assessments, processes, and procedures has not been detailed. Some projects have required post-implementation mini-projects to document project work. Key Activities QA plan that will include project documentation standards and guidelines; an easily navigated project library; Define project activities to develop detailed documentation requirements 40

42 - Activities End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition North Carolina HR/Payroll Activities Pre- Implementation Phase Implementation Phase Overall Objectives team training needs are identified and planned-for Ensure that the appropriate knowledge and skills are transferred to state and agency associates at the right time Major Activities Major Activities Develop project team training strategy Identify subject matter experts for training development Conduct project team training needs assessments Develop project team training plans Deliver project team training Develop approach Assess current capabilities and gaps Develop an overall Plan to eliminate gaps Track implementation of capability transfer plan 41

43 Team Effectiveness - Overview End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition Definition: A set of activities aimed at maximizing the cohesiveness, productivity, and efficiency of the project team (including both state and consulting staff) Focused on activities related to project governance, issue management and resolution, team member on-boarding and training, teambuilding, etc. Specific Importance to this : This project will likely require a relatively large number of state and consulting team members to be successful, which in turn will necessitate a robust, structured approach to building and maintaining project team effectiveness The high likelihood that project team members will come from a diverse set of state agencies, each with diverse cultures and management styles, will increase the need for a strong project team operating model and clearly defined governance Key Deliverables: Pre-Implementation Phase Governance Structure Role & Responsibility Assignment Matrix Implementation Phase Team Plan Team On-boarding Plan Teambuilding Activities Team Handbook Team Resource Histogram & Staffing Transition Plan 42

44 Team Effectiveness - Objectives End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition The HR/Payroll project will most likely have a large team of state and vendor resources that will require a coordinated approach to on-boarding, team building, and internal communications. Objectives should include: A well-functioning, high-performing, collaborative project team A structured project on-boarding process for state and consulting project staff A formal project structure with clearly identified roles and responsibilities, chain of command, and approval procedures A project governance structure to include recommended support and oversight committees performance metrics for state project team member reviews A transition plan that addresses how state project team members will transition from agency roles, to project team roles, back to agency roles 43

45 Team Effectiveness - Issues Facing this End User Alignment The Importance of Change Change Strategy Change Focus Areas Next Steps Team Effectiveness Transition Issue Skills Building a Quality Team Org. Structure and Governance Motivating Staff Description Skilled project managers are hard to find and it takes a lot of resources to lure them. The state does not have a large pool of employees with the skills necessary to manage a large scale system and process implementation. Key Activities Identify skills required to manage the project early. If no candidate is available consider contracting externally or providing additional training to best suited internal candidates. The skills required for project team members are often not known when staffing a projected resulting in improper staffing. s are usually staffed according to who s available instead of who s most qualified. Building a project team is a difficult and time consuming process. s often accused of raping and pillaging the business of its resources and often have to use force to get the desired resource. Key Activities buy-in at the agency level; Identify the roles, responsibilities, and skills for each project role prior to staffing; Develop the staffing model early and identify and screen resources well in advance of implementation; Leverage existing DOT/SAP job descriptions and utilize excess capacity of DOT/SAP support staff where possible, Identify SMEs and Champions from agencies that pose increased risk structure and governance should be developed to support the project and provide for an efficient work model. Governance should be developed to touch all levels of the organization (e.g. state/agency, local/facility) Key Activities Develop governance structure that will provide shelter and support to the project; Publish governance model and organizational structure; Publish roles and responsibilities for project team and governance; Eliminate/avoid any excess tiers that do not add significant value. Each additional tier/group creates additional effort and increases project complexity. Balance this against increased risk of not including all of the key individuals and groups in the governance structure. Since financial incentives are not allowed, motivate the team by giving lots of credit. State projects are restricted from pay & financial incentives. Use creative means to motivate project staff (e.g. praise, recognition, reduce meeting time) Key Activities Need to identify motivation techniques that are allowed by state (e.g. special parking space for best performer, recognition at all hands events, certificates of appreciation) 44