February, 2012 Change Management A 50K Foot View Image Area Jane Behrends Director of Change Management Walmart International
Change Management Moving people from where they are today to where the business needs them tomorrow. 2
Change Management Common Misperceptions 1. On time, on budget = Success 2. Change Management = Responsibility of Change Agents 3. Opening the project kick-off meeting = Effective sponsorship 4. Communication plan = Change Management 5. Positive change = Does not require Change Management 6. Resistance = Logical 7. Change Management = Has no business value 3
On Time, On Budget = Success Implementation Success Defined: On time On budget Technical objectives met Installation Business objectives realized Human objectives met Implementation Installation Implementation 4
Change Management = Responsibility of Change Agents Champions Individuals who believe in the change and attempt to obtain commitment and resources for it, but lack sponsorship to drive it. Agents Implement change. Performance is evaluated based on implementation success. Sponsorship is the single most important factor in ensuring successful implementation. Sponsors Authorize, legitimize and demonstrate ownership for the change: possess sufficient organizational power to either initiate resource commitment (Authorizing Sponsor) or reinforce the change at the local level (Reinforcing Sponsor). Targets Change behavior, processes, knowledge, perceptions, etc. 5
Opening the Project Kick-Off Meeting = Effective Sponsorship 70% of change projects that fail to deliver the expected results, name insufficient sponsorship as the main reason Sponsors control the speed of implementation 6
Communication Plan = Change Management 7 Footer goes here
Single Voice Leaders will be able to answer: This change is important because. This change will contribute to the company s performance by As a leadership team we are going to work together by.. I can help make this change a success by I understand my team will need to make certain changes, such as. This change is aligned with other key initiatives these ways Managers and associates will be able to answer: This change is important because. For me, this change means The benefits to my team and my customers will be I understand how this change works with other changes I am experiencing. I can help make this change a success by Communicate, communicate, communicate.. Deliver clear, compelling and consistent messages that matter to the audience 8
Positive Change = Does not Require Change Management 9
Resistance = Logical Resistance to major change is inevitable, regardless of whether the change is perceived as positive or negative. Resistance is a function of disruption. 10
11 Footer goes here
Change Management = No Business Value 9/10 2/10 18% ROI Technical Objectives Business & Human Objectives Installation Implementation 12
Change Management = No Business Value Electrification Project in Sub Saharan Africa Objective: Replace 100% of kerosene usage through solar panels CM Plan: 0 Post Installation Evaluation: 100% of solar panels destroyed Result: Increase over budget: 115%; 7 mos delay in benefit realization SAP Purchasing Implementation Objective: Introduce standard purchasing process and roles, SAP system Expected ROI: $5M over 3 years CM Plan: Defined scope and roles, and desired behaviors Conducted impact assessment Communicated early, often and through different media Allowed for questions and feedback Measured effectiveness throughout Changed sponsor mid-way through project Delivered just-in-time training, supported with post go-live training Implemented reinforcement plan Result: Met ROI in 11 mos Installation Implementation 13
Questions Jane Behrends Director of Change Management Walmart International 479-277-0538 14