Change Management @ EY Managing people and journeys

Change Management @ EY Managing people and journeys

The role of Change Management The main role of Change Management is to lead and support a change process and to define a structured approach to transitioning individuals, teams and organizations from a current (stable) state to a desired future (stable) state. It is an organizational process which aims to help employees to understand and accept changes in their current business environment.

Who we are Our ambition Looking at client issues from different angles is crucial in order to understand change processes in depth and to manage change effectively. With the large array of disciplinary backgrounds that we bring to our clients tables from certified Change Managers to cultural and diversity experts we are well-equipped to provide high quality services to our customers, and ensure that transformation processes become a success story. Planning & Leading Change Communicating Change Our experience With our proven and flexible Change Management methodology and our broad expertise in comparable projects we are able to support our clients in solving the challenges in strategic, organizational, cultural and IT Change projects. Our Change Management experts are experienced in Finance, HR, Supply Chain, Customer or IT transformation projects within different industries. Enabling Change

What we do EY Change Management Framework Sustain Learning Change Approach and Vision Identify Organizational Impact and Alignment Sustained and Embedded Change Stakeholder Engagement and Change Leadership Deliver Change Network and Change Readiness Communications Diagnose Design

Why you need Change Management Do you know who your project stakeholders are? Do you know the impact of the changes on the organization? How do you kick-off your project? How will you cascade the information in the project organization? Are all your project activities integrated in an overall communications framework? How will you enable the organization to adapt to new ways of working? Global megatrends are driving business complexity and competitiveness across all sectors. Some sectors are globalizing faster than others, but all are feeling the effects of change. Mark Weinberger, Global Chairman & CEO

When you need Change Management Current state Desired future state Macro environmental pressures What needs to change? Strategy Structure Technology Culture How does it change? Realign Restructure Rebrand Reengineer Macro environmental pressures P&OC offers an approach for all change areas: Source: Change Management & Consulting Market, Kennedy Information, LLC, 2012 Strategic Change Key initiatives related to strategic change are business strategy implementation, new products or services, new market entry, process efficiencies or leadership changes. The challenges of these kinds of projects are often a poor match between strategic plan and core competencies of the organization, lack of accountability, lack of leadership support or unrealistic goals. Structural Change Structural change can take many forms like mergers, acquisitions, IPO, LBO, spin-off, strategic alliances, joint ventures, horizontal/ vertical integration, shared services, downsizing, rationalization, outsourcing and offshoring, but people-related challenges are common to all. Change Management is a success factor to secure employee retention, leverage synergies, support the leadership and enhance the integration. Intangible assets can create problems when social and HR issues are overlooked. Failure to integrate cultures is one of the most common reasons when deals fail to return on their potential.

Who can you contact Technology Change Large-scale IT projects are among the most difficult change ini tiatives to implement successfully. Research shows that one in six projects have an average cost overrun of 200%. Rigorous project management combined with Change Management is essential to realizing the benefits of technology transformation projects. Change Management will, for example, ensure that the project is aligned with business goals, it will make sure that the objectives are clear for all, that the whole impact of the project is taken into consideration and that critical skill gaps are identified and closed. Cultural Change A company s culture can be one of its greatest strengths or weaknesses. Key initiatives for Cultural Change include organizational restructuring, post-merger integration or a new operating model. In addition, more and more companies realize that they have to change their culture to stay competitive in the future. Change Management will help to align culture with strategy, secure support from Senior Management, identify hidden conflicts working against change (resistance, cynicism, fear), anchor a supportive leadership style and make sure that existing cultural strengths that work are not overseen. In addition, it will monitor and measure the cultural evolution. Nelson Taapken Partner, Advisory Services Phone +49 6196 996 12847 nelson.taapken@de.ey.com Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Mergenthalerallee 3 5 65760 Eschborn Sabine Rachor Senior Manager, Advisory Services Phone +49 89 14331 13074 sabine.rachor@de.ey.com Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Arnulfstrasse 59 80636 Munich

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