Change Management the missing link in electronic procurement implementations
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- Tobias Hodges
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1 Change Management the missing link in electronic procurement implementations Government Procurement in the Americas Conference October 28-29,
2 What is the main reason financial/procurement system implementations fail? 1. Project team not skilled 2. Lack of leadership commitment 3. Weak program planning 4. Institutional Resistance 5. Inappropriate technology 6. Inadequate Capacity to Sustain 2
3 What is the main reason financial/procurement system implementations fail? 1. Inadequate Capacity to Sustain - 30 projects 2. Institutional Resistance 23 projects 3. Weak program planning 22 projects 4. Lack of leadership commitment 17 projects 5. Project team not skilled 17 projects 6. Inappropriate technology 13 projects * Financial Management Information Systems, 25 Years Experience on what Works and What Doesn t. Cem Dener, Joanna Watkins, William Dorotinsky
4 What is change management? The process of helping people understand the need for change and motivating them to take actions which result in sustained changes in behavior. Organizational Change Management is NOT Training on software An IT service management discipline Periodic communication on status of implementation Taking the Sponsor to dinner Soft or Easy Successful change management helps organizations and their people perform better 4
5 Why is change management important? 5
6 P E R F O R M A N C E The reality of change - Performance CHANGE CHANGE INTRODUCED INTRODUCED EXPECTED REALIZED With Change Management Optimize results REALISTIC Faster change adoption ACTUAL No Change Management Less disruption T I M E 6
7 The reality of change - People Denial Commitment Preparation Acceptance Resistance Exploration 7
8 Change interventions Successful change requires: Opposing Forces Loss of Control Vested Interest Weak Integration Fear of Job Loss Limited Awareness Non Aligned Cultures 1. Change Readiness 2. Leadership Commitment 3. Stakeholder Management 4. Effective Communication 5. Monitoring Impacts 6. Portfolio Management Supporting Forces External Demand Fiscal Crises Change Champions Cross Departmental Communication Internal Efficiency Demands Technology Redundancy Clear Vision Time allows us to introduce only three of these 8
9 Leadership Commitment Requirements for Successful Change 1. Change Readiness 2. Leadership Commitment 3. Stakeholder Management 4. Effective Communication 5. Monitoring Impacts 6. Portfolio Management What leadership support exists? Is it at the right level? How are you building on it? 9
10 The top five mistakes top-level sponsors make during a major change 1. Failed to remain visible and actively demonstrate support 2. Failed to communicate messages about the need for the change 3. Failed to build a coalition of support 4. Assumed all employees were onboard regarding the change 5. Delegated or abdicated the sponsorship role Source: Best Practices in Change Management 2012 Edition. Prosci, Inc
11 Stakeholder Management - Addressing resistance Requirements for Successful Change 1. Change Readiness 2. Leadership Commitment 3. Stakeholder Management 4. Effective Communication 5. Monitoring Impacts 6. Portfolio Management Resistance to change is to be expected Resistance must be channeled constructively and addressed directly it cannot be ignored! 11
12 Meet the Stake Holders 12
13 Resistance - Starts with the individual Think Awareness of need for change Feel Understand and commit to change Do Translate thoughts and feelings into actions People don t resist change, they resist being changed 13
14 Which Group is the Most Resistant to Change? 1. Executives / Ministerial Levels 2. Senior-level Officials 3. Middle-level Managers 4. Front-line supervisors 5. Front-line employees 6. Other S14
15 Which Group is the Most Resistant to Change? 1. Executives / Ministerial Levels. 5% 2. Senior-level Officials % 3. Middle-level Managers % 4. Front-line supervisors... 16% 5. Front-line employees... 24% 6. Other % Source: A global survey of private and public sector from Best Practices in Change Management 2012 Edition. Prosci, Inc
16 Addressing resistance Leaders POLITICAL APPOINTEES Civil Service Executives Middle Management Managerial Supervisory Managerial Supervisory Middle Management must become agents for change Front-Line Staff Technical Administrative Change must be led and managed by staff within the impacted organizations Slide 16 of 15 16
17 Communications Requirements for Successful Change 1. Change Readiness 2. Leadership Commitment 3. Stakeholder Management 4. Effective Communication 5. Monitoring Impacts 6. Portfolio Management Sources of Poor Communications: Inconsistent messages Not addressing why Difficulty engaging with everyone Long gaps between communications Poor timeliness with regards to what is actually happening 17
18 Degree of Support for the change Change Communications Checking in or out? Commitment VI. Institutionalize V. Adopt Acceptance III. Understand IV. Install Lack of Support Change Abandoned Preparation II. Awareness I. Contact Confusion Unaware Negative Perception Time 18
19 From whom do employees prefer to hear communications about the organizational need for change? 1. CEO/Minister 2. Executive/ Senior Official 3. Department Head 4. The Employee s Supervisor 5. Human Resources Representative 6. Project Team Lead 7. Change Management Team 19
20 From whom do employees prefer to hear communications about the organizational need for change? 1. CEO/Minister... 47% 2. Executive/ Senior Official. 31% 3. Department Head... 7% 4. The Employee s Supervisor 4% 5. Human Resources Representative 3% 6. Project Team Lead. 2% 7. Change Management Team. 0% Source: Best Practices in Change Management 2012 Edition. Prosci, Inc Slide 20 of 15 20
21 From whom do employees prefer to hear communications about how a change affects them personally? 1. CEO/Minister 2. Executive/ Senior Official 3. Department Head 4. The Employee s Supervisor 5. Human Resources Representative 6. Project Team Lead 7. Change Management Team 21
22 From whom do employees prefer to hear communications about how a change affects them personally? 1. CEO/Minister.. 4% 2. Executive/ Senior Official... 6% 3. Department Head % 4. The Employee s Supervisor 69% 5. Human Resources Representative.. 3% 6. Project Team Lead.... 2% 7. Change Management Team... 3% Source: Best Practices in Change Management 2012 Edition. Prosci, Inc
23 Impact of development approach on change management Custom More Familiar (if automate current) Easier to Sustain COTS Proven Solutions User Groups But the lines between Custom & COTS are blurring Major Critical Success Factors are: - Leadership commitment - Engaged stakeholders - Effective communications - Readiness for change 23
24 Change Management - Common Pitfalls Start late Planning Program design fails to include change Create too much fanfare No sense of urgency Not involving all stakeholders Not creating a coalition of leaders Ignoring culture Forcing through too much change Execution Only focus on the rational Not dealing proactively with resistance Fail to understand information network Over rely on structure and systems to change behavior Fail to target communications and provide feedback mechanisms Over rely on consultants Fail to consider organizational capacity Declare victory too soon 24
25 Thank You!! 3110 Fairview Park Drive Suite 1100 Falls Church, VA T: F: Director T: F:
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