Conducting Effective Change Management for Your Oracle E-Business Suite Implementation Robert E. Henry AST Corporation
TOPICS The necessity of change management Change management methodology Successful change management for EBS client
Conducting Effective Change Management for Your Oracle E-Business Suite Implementation THE NECESSITY OF CHANGE MANAGEMENT
CHANGE MANAGEMENT IS ACCEPTANCE E-Business Suite project is: 1. Strategic, long-term business project 2. IT project The focus needs to be on your: Business Processes Roles Why EBS helps them succeed
CHANGE MANAGEMENT IS ACCEPTANCE WIIFM What s In It For Me? All politics is local Voters care about personal issues Politicians appeal to the simple, mundane, everyday concerns People are focused on their local issues All change is individual
Emotional Instinctive Pain & Pleasure Seeks the Now Rational Deliberate Analytical Future-Oriented
RIDER Logical Long-term path ELEPHANT Overpowering Instinctive Over-analytical Spins wheels Emotion, want Gets things done Get the rider and elephant to work together
Prosci 2011 Best Practices in Change Management Benchmark Study 650 organizations participating 62 countries represented Conducted every 2 years Forms one of the largest bodies of knowledge on change management and the people side of change
Prosci 2011 Best Practices in Change Management Benchmark Study Objective: Uncover lessons learned from practitioners and consultants for future benefit Find out what is working and what is not
CORRELATION 1: ROI AND CHANGE MANAGEMENT Analysis performed correlating change management effectiveness with three ROI factors: Speed of adoption Utilization of services, tools, or technology Proficiency (how employees performed as required by the change)
In line or better than expected speed of adoption 100% 90% 80% 82% 94% 70% 60% 61% 50% 40% 30% 20% 25% 10% 0% Poor (n=134) Fair (n=318) Good (n=394) Excellent (n=72) Overall effectiveness of change management program Prosci 2012 Best Practices in Change Management
In line or better than expected utilization of services, tools or tech. 100% 90% 92% 80% 70% 72% 80% 60% 50% 40% 41% 30% 20% 10% 0% Poor (n=134) Fair (n=318) Good (n=394) Excellent (n=72) Overall effectiveness of change management program Prosci 2012 Best Practices in Change Management
In line or better than expected proficiency 100% 90% 80% 91% 98% 70% 71% 60% 50% 51% 40% 30% 20% 10% 0% Poor (n=134) Fair (n=318) Good (n=394) Excellent (n=72) Overall effectiveness of change management program Prosci 2012 Best Practices in Change Management
Overall ROI 100% 90% 80% 70% CM-Adoption CM-Utilization CM-Proficiency 72% 71% 92% 91% 82% 98% 94% 80% 60% 61% 50% 40% 30% 20% 51% 41% 25% 10% 0% Poor (n=134) Fair (n=318) Good (n=394) Excellent (n=72) Overall effectiveness of change management program Prosci 2012 Best Practices in Change Management
CORRELATION 1: ROI AND CHANGE MANAGEMENT Excellent change management resulted in: A faster speed of adoption Greater utilization of tools, services or technology Higher levels of proficiency
CORRELATION 2: PROJECT SUCCESS AND CHANGE MANAGEMENT Analysis performed correlating change management effectiveness with three dimensions of project success: Staying on schedule Staying on budget Meeting project objectives
Percent of respondents that were on or ahead of schedule 100% 90% 80% 70% 71% 60% 60% 50% 40% 30% 32% 20% 10% 0% 16% Poor (n=134) Fair (n=318) Good (n=394) Excellent (n=72) Overall effectiveness of change management program Prosci 2012 Best Practices in Change Management
Percent of respondents that were on or under budget 100% 90% 80% 70% 74% 82% 60% 61% 50% 51% 40% 30% 20% 10% 0% Poor (n=116) Fair (n=299) Good (n=386) Excellent (n=71) Overall effectiveness of change management program Prosci 2012 Best Practices in Change Management
Percent of respondents that met or exceeded project objectives 100% 90% 95% 80% 80% 70% 60% 50% 51% 40% 30% 20% 10% 0% 16% Poor (n=111) Fair (n=259) Good (n=313) Excellent (n=65) Overall effectiveness of change management program Prosci 2012 Best Practices in Change Management
100% 90% 80% 70% CM-Schedule CM-Budget CM-Objectives 80% 74% 95% 82% 71% 60% 61% 60% 50% 40% 30% 20% 10% 51% 16% 51% 32% 0% Poor (n=111) Fair (n=259) Good (n=313) Excellent (n=65) Overall effectiveness of change management program Prosci 2012 Best Practices in Change Management
CORRELATION 2: PROJECT SUCCESS AND CHANGE MANAGEMENT Projects with excellent change management effectiveness were six times more likely to achieve objectives that teams with poor change management. 95% to 16% Excellent change management correlates directly with staying on schedule and staying on budget
CORRELATIONS: HOW WAS CHANGE MANAGEMENT EVALUATED? Study respondents were provided 12 factors constituting change management Were asked to evaluate overall change management on a scale: Excellent Good Fair Poor
CORRELATIONS: HOW WAS CHANGE MANAGEMENT EVALUATED? Factor Strongly Disagree Disagree Agree Strongly Agree 1. We applied a structured change management process. 5% 16% 50% 29% 2. We had sufficient resources on the team to implement change management. 3. Our change management activities were customized and scaled to fit the change and the organization being changed. 4. Our change management team had the necessary training and expertise in change management. 5. We integrated our change management activities into the project plan. 6. Our business leaders fulfilled their roles as effective change sponsors throughout the entire project. 10% 36% 42% 11% 5% 16% 52% 27% 9% 29% 45% 17% 4% 17% 53% 26% 12% 40% 37% 11%
CORRELATIONS: HOW WAS CHANGE MANAGEMENT EVALUATED? Factor Strongly Disagree Disagree Agree Strongly Agree 7. We implemented an effective communications plan. 5% 22% 52% 21% 8. Managers and supervisors engaged in the change and effectively coached their employees through the change process. 9. We provided the necessary training to employees on new processes, systems and job roles. 10. Our senior leaders, mid-level managers and supervisors managed resistance to change effectively. 11. We measured compliance with the change and our overall performance in meeting project objectives. 12. We effectively reinforced the change with employees through performance measurement and recognition. 10% 43% 42% 5% 4% 17% 60% 19% 11% 44% 42% 4% 8% 31% 54% 7% 10% 42% 43% 5%
Conducting Effective Change Management for Your Oracle E-Business Suite Implementation CHANGE MANAGEMENT METHODOLOGY
WHAT DOES A CM METHODOLOGY GIVE YOU FOR EBS? Analytical tools and indexing Scored assessments of: Project readiness Leadership, Project Management, Change Management Project change characteristics Group identification and impact Sponsor evaluation Communication skills, coalition building, participation in past change projects
WHAT DOES A CM METHODOLOGY GIVE YOU FOR EBS? Profile a large user base Implementation: HR, SSHR, Benefits, Time Entry, Payroll, Learning Management Metrics from and for: Different depts. and appointing auths. Level of computer literacy Access to computer and OPUS system Change competency
Sponsor initials Number of employees Degree of impact - chart Sponsor index Org. Readiness Average org assessment WHAT DOES A CM METHODOLOGY GIVE YOU FOR EBS? Summary impact assessment Return to main menu Impacted groups plot - size of bubble represents group size Project name: Primary sponsor initials: ACME Primary sponsor level evaluation: 3.7 Primary sponsor competency score: 68 Overall change assessment score 42 Average organizational assessment 33 Triangle Assessment - Leadership 24 Triangle Assessment - PM 27 Triangle Assessment - CM 14 Acme Co. Change Management 60 55 50 Medium risk High risk 45 40 35 30 25 20 Medium risk 15 Low risk 10 10 15 20 25 30 35 40 45 50 55 60 Overall change assessment Degree of impact 120% 100% 80% 60% 95 80 50 40 120 Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 40% 30 85 Group 7 0 0 Group impacted Challenges and risks for this group 20% Group 1 Oprah 50 6.35 32 Impact of Group 2 Jay 40 4.00 38 0 Group 3 David 85 NA 46 0 0% 0 10 20 30 40 50 60 70 Organizational readiness (higher = more risk) 0 Group 4 Conan 120 NA 36 0 Sponsor Support Sponsor Competency Group 5 Johnny 30 NA 33 0 Group 6 Ellen 80 NA 39 0 Group 7 Steve 95 NA 18 0 0 0 Oprah 3 2.5 2 1.5 1 0.5 0 Jay David 0 0 Oprah 100 80 60 40 20 0 Jay David 0 Conan 0 Conan Steve Ellen Johnny Steve Ellen Johnny
WHAT DOES A CM METHODOLOGY GIVE YOU FOR EBS? Scalable Phase 1a & 1b 3000+ employees Phase 2a & 2b Few hundred Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Phase 1a (January 2010 November 2010) Human Resources Advanced Benefits General Ledger (COA) Phase 1b (March 2010 February 2011) Payroll Time and Labor Self Service HR Learning Management Phase 2a (June 2010 August 2011) Financials Projects Assets Procurement Phase 2b (November 2010 August 2011) Hyperion Budgeting Advanced Procurement Performance Scorecard OBIEE Reporting
WHAT DOES A CM METHODOLOGY GIVE YOU FOR EBS? Breaks down your implementation into manageable pieces: Small, focused events Consistent, digestible communications Analysis can quickly get to resistance and problems among small groups or individuals Greatly assists with informing training
CHANGE MANAGEMENT METHODOLOGIES Prosci with ADKAR AAA Ackerman Anderson & Anderson Accenture Bridges
80% 70% 60% 50% 40% 30% 20% 10% 0% 2003 2005 2007 2009 2011 Use of a particular methodology 2003-2011 Prosci 2012 Best Practices in Change Management
60% 50% 40% 30% 20% Did not use a methodology Used a methodology 10% 0% Poor Fair Good Excellent Impact of use of particular methodology on overall change management effectiveness Prosci 2012 Best Practices in Change Management
Conducting Effective Change Management for Your Oracle E-Business Suite Implementation SUCCESSFUL CHANGE MANAGEMENT FOR EBS CLIENT
PROJECT BACKGROUND: PINELLAS CO. OPUS Project (Oracle Project Unified Solutions) January 2010 January 2012 Oracle E-Business Suite (FIN, HR, AB, PAY, SSHR, LM, OTL, PA, PROC) Hyperion Budgeting, OBIEE Earlier implementation of limited Oracle modules (PAY, PROC, GL)
PROJECT BACKGROUND: PINELLAS CO. Critical issues: Fragmented systems, limited integration Heavily customized applications Lacking government-specific functionality Inadequate reporting Excessive manual procedures Information security
PROJECT BACKGROUND: PINELLAS CO. Good Committed executive team Broad support among the staff Overall willingness to move forward Worrisome 3000+ users 500+ retirees Periods of staff reduction Down economy Role consolidation; less asked to do more
SEVEN CONTRIBUTORS TO CHANGE MANAGEMENT SUCCESS 1. Active and visible executive sponsorship 2. Engagement and support from management
1. ACTIVE AND VISIBLE EXECUTIVE SPONSORSHIP 2. ENGAGEMENT AND SUPPORT FROM MANAGEMENT Project sponsors Attended and performed change impact presentations Attended road shows (OTL kiosks) Videos and periodic letters from execs. Clerk of the Circuit Court County Administrator
SEVEN CONTRIBUTORS TO CHANGE MANAGEMENT SUCCESS 1. Active and visible executive sponsorship 2. Engagement and support from management 3. Frequent and open communication about the project and changes 4. Employee engagement and participation
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION Change Agents Team of 200 between leads and alternates from 65 departments 2 days of change management training and business case background Bi-monthly Change Agent newsletter More in-depth on functionality and business processes than end user newsletter
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION Change Agents Change impact presentations Performed for each phase Critical; each EBS module was represented as standalone and as part of an end-to-end business process Facilitated by Change Managers, performed by SMEs and Department Managers Difficult but achievable without a functioning instance; screen shots in sequence; tangible need
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION End users Received change impact presentations from Change Agents Achieves visible support and communication from managers Only feasible manner of end-to-end communications in context of E-Business Suite functionality and integrated processes Monthly newsletter Project timeline, critical processes, FAQs, tips, available resources, review of recent activities
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION End users Readiness surveys during each phase Anonymous; evaluates individual transition Provided assessment of Change Agent performance Quick reference cards Quick navigation guides Phase go-live checklist and reference Project intranet site
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION Well what about?
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION Remember when having a website was optional? Social media strategy for change management: If you don t have one, get one. (And if you do get one )
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION Social media presence must be: Open Have a true dialog with your people Personal People like interacting with people Honest Admit when you re wrong and fix it Authentic Tone and voice must feel real Coherent Must align with other messages going out from the project Internal Create same dialog with project team
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION What about negativity and resistance?: Good. In fact, great. They re going to say them anyway If you don t hear it you can t address it If negativity and resistance is out there, you can manage it openly and honestly Positive improvements may come faster
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION Social media benefits to your project: Low (maybe no) cost investment to your project budget Low maintenance and support Active buy-in Measurable Active dialog is positive over time Immediate feedback Consistent messaging
3. FREQUENT AND OPEN COMMUNICATION 4. EMPLOYEE ENGAGEMENT, PARTICIPATION Didn t oversell the project OPUS Project is only the opportunity to change E-Business Suite is only the tools that allow the staff to be more productive and free from current system constraints The project is yours. You are the driver.
SEVEN CONTRIBUTORS TO CHANGE MANAGEMENT SUCCESS 1. Active and visible executive sponsorship 2. Engagement and support from management 3. Frequent and open communication about the project and changes 4. Employee engagement and participation 5. Dedicated change management resources
DEDICATED CHANGE MANAGEMENT RESOURCES Focus, keeps track of activities Single point of contact; clear accountability Knowledge, skills and experience No distractions from plans, priorities and managing resistance
DEDICATED CHANGE MANAGEMENT RESOURCES Client side: Knows people, politics, history Consultant side: Objectivity, no pre-conceptions Help break down change into manageable tasks and phases 60% 50% 40% 30% 20% 10% 0% Did not use a dedicated resource Did use a dedicated resource Relationship between dedicated resources and overall effectiveness Prosci 2012 Best Practices in Change Management
SEVEN CONTRIBUTORS TO CHANGE MANAGEMENT SUCCESS 1. Active and visible executive sponsorship 2. Engagement and support from management 3. Frequent and open communication about the project and changes 4. Employee engagement and participation 5. Dedicated change management resources 6. Structured change management approach
SEVEN CONTRIBUTORS TO CHANGE MANAGEMENT SUCCESS 1. Active and visible executive sponsorship 2. Engagement and support from management 3. Frequent and open communication about the project and changes 4. Employee engagement and participation 5. Dedicated change management resources 6. Structured change management approach 7. Start early and engage with project management
START EARLY, ENGAGE WITH PROJECT MANAGEMENT Change management is a multiplier for project management Sum is greater than the components Early start greatly assists org. analysis: Define change management strategy Develop sponsorship model Prepare change management team
START EARLY, ENGAGE WITH PROJECT MANAGEMENT Early start allows time for: Risk analysis Sponsor, Change Agent and end user assessments Stakeholder identification Identify change management strategy and plan as key deliverables
START EARLY, ENGAGE WITH PROJECT MANAGEMENT What to do differently on the next project?* 1. Align sponsors for the project throughout the organization 2. Start change management earlier *Prosci 2012 Best Practices in Change Management
START EARLY, ENGAGE WITH PROJECT MANAGEMENT Initiation Planning Design Implementation When did you start CM activities this time? When would you start CM activities next time? Closure 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% When did change management activities begin? When will they begin next time? Prosci 2012 Best Practices in Change Management
Conducting Effective Change Management for Your Oracle E-Business Suite Implementation ONE LAST COMMENT ON RESISTANCE & SUMMARY
OVERCOMING RESISTANCE Lack of awareness about the project + Impact on current job role + Organizations past performance w/change+ Lack of visible support and commitment from managers+ Fear of job loss+ = Lack of clarity
SUMMARY Formal, structured, dedicated change management for EBS is critical Methodology provides tools and templates to measure and analyze your project from start to finish Successful CM is multi-facet, multi-media, and starts early Find ways to get Riders and Elephants to work together
Thank you. Robert E. Henry Director of Marketing & Communications Change Management Practice Director AST Corporation rhenry@astcorporation.com www.astcorporation.com