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Surviving ERP. How to Manage the Organizational Change Herman A. Zwirn CIRM LaMarsh & Associates, Inc. K. Judge. participants will. Learn a working model of Change Management Determine how to use Change Management strategies and tactics in your ERP implementation. Mythology and Fact.

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how to manage the organizational change herman a zwirn cirm lamarsh associates inc

Surviving

ERP

How to Manage the Organizational Change

Herman A. Zwirn CIRM

LaMarsh & Associates, Inc.

K. Judge

participants will
participants will ...
  • Learn a working model of Change Management
  • Determine how to use Change Management strategies and tactics in your ERP implementation
the nature of change

Mythology and Fact

The Nature of Change

slide4

Organizational change:

and the beat goes on...

"We trained hard-but it seemed that

every time we were beginning to

form into teams, we would be

reorganized. I was to learn later

in life that we tend to meet any new

situation by reorganizing; and what

a wonderful method it can be for

creating the illusion of progress

while producing confusion, inefficiency and

demoralization."

PETRONIOUS

(1st Century Roman and advisor to Nero)

some myths or why we don t need change management
Some myths orWhy we don’t need change management
  • People will always adapt to change.
  • Change happens, you don’t have to manage it.
  • That’s what we pay our managers to do.
  • The project will get done with or without change management.
  • If you change the process, everything will change.
  • ERP makes change happen.
failure is possible

FAILURE

Failure is Possible

No Plan for Implementation

Fuzzy Definition of Desired State

Failure to Integrate all Changes

critical success factors
Critical Success Factors
  • User Involvement
  • Executive Management Support
  • Clear Statement of Requirements
  • Proper Planning
  • Realistic Expectations
  • Smaller Project Milestones
  • Competent Staff
  • Ownership
  • Clear Vision and Objectives
  • Hard Working Focused Staff
slide8

Change is about...

  • Organizations
  • Individuals
  • Results
slide9

Change is about...

  • Structure
  • Process
  • Culture
  • People
stages of change

K. Judge

Stages of Change

Current State

Delta State

Desired State

WHY?

HOW?

WHAT?

layers of desired state

Company’s Desired State

Department’s Desired State

Target’s Desired State

Layers of Desired State
desired state

Structure

Process

Culture

People

Desired State
dip in the delta
Dip in the Delta

Productivity

K. Judge

dip in the delta1
Dip in the Delta

Productivity

K. Judge

slide15
Why?
  • “There are many ways to achieve it, but managing change is no longer a competitive discriminator – it is just part of the ante to get into the game. Competitive advantage goes to the company that can manage change and embrace innovation, proactively, while minimizing perturbation of existing operations.”

Based on Next Generation Manufacturing Project, The Agility Forum

the methodology of change
The

Methodology

of

Change

what is it
What is it?
  • Change management is the methodology that integrates change and the ability of the organization and people to adopt it.
  • It is an organized, systematic application of the knowledge, tools and resources of change that provides organizations with a key process to achieve their business strategy.
  • It is a real tool to mitigate the risk and increase both the ownership and sustainability of change.
what you need
What you need
  • A consistent and scalable model of change that matches the change process
  • A disciplined methodology to implement the model that can be integrated into the way work is done
  • A learning system that embeds a change capability into the workforce
managed change model

External Change Drivers

Internal Change Drivers

Identify the Change

Current

Desired

Delta

Prepare to Change

Sponsor

Change Agent

Target

Culture

History

Resistance

Plan the Change

Communication

Learning

Reward

Implement the Change

Sustain the Change

Managed Change™ Model
company

Process

Structure

People

Culture

Company
  • Apply a change model to the ERP implementation
  • Introduce a change methodology
  • Use the change methodology as a part of all aspects and levels of the ERP implementation
  • Link ERP to business strategy
  • Support an ERP Process Change Center of Excellence
  • Define internal connections to build sponsorship cascade
  • Define executive sponsor roles
  • Build organizational change learning capability
  • Process Orientation
  • Create sponsor level Learning
  • Integrated Enterprise Thinking
  • Seeks change
  • Focused, disciplined and patient
departmental
Departmental

Process

Structure

  • Apply a scalable change model
  • Apply a change methodology to implement the model
  • Embed the change methodology into other ERP methodologies
  • Build Departmental Sponsor Cascade
  • Define ERP roles and responsibilities
  • Create key role charters
  • Define ERP performance measures

People

Culture

  • Develop knowledge of ERP and organizational change
  • Know enterprise role of the department
  • Develop change agent skills
  • Develop ability to use the change methodology
  • Changeresilient
  • Knowledge based
  • Value driven
  • Cross-functional Partners
  • Process-driven
  • Customer focused
individual
Individual

Structure

Process

  • Design jobs to include change management
  • Build in ERP role and measures
  • Build change agent measures into performance evaluation
  • Design work flow and methodologies to include change management tasks.
  • Change management is a work habit

People

Culture

  • Provide general change process knowledge
  • Process thinking capability
  • Apply change agent skills
  • Develop target skills
  • Create tolerance for change
  • Knowledge driven
  • Value centered
  • People centered
  • Customer centered
slide24

ERP Managed Change™Integration

Assess

  • Turnover
  • Responsibility
  • Identify
  • Next Steps:

Knowledge

  • Transfer

Data Gathering and Analysis

Identify Risk/

Identify issues / response

Establish Sponsorship

Build Team strength

Design and

Finalize

Communications

Learning (Training)

And

Rewards

  • Launch and Execute
  • System Events:
  • Communication
  • Learning
  • Rewards
  • Event designs

Build Project

Infrastructure

Define goals and

Set expectations

Results

Go Live

Governance

&

Identify

the

Change

Prepare

to

Change

Plan

the

Change

Implement

the

Change

Sustain

the

Change

Post-Audit

Develop

Deploy

Plan

Change Communications

Specific communications, learning and rewards events

Executive

Kick-off

Business Assessment

Analysis

OwnIt

Implement System/

Processes / Policies

Configuration

elements of successful change
Elements of successful change
  • Commit to making change management a key competency and part of the ERP strategy.
  • Explain why the Current State is no longer viable.
  • Clearly define the Desired State that will result from the ERP implementation.
  • Build a systematic change-management methodology to implement your change during the ERP Delta State.
  • Integrate that methodology into the heart of the ERP project and the organization.
discipline
Discipline
  • The ERP Desired State as requires the continuous, conscious process of applying a systematic change methodology to implement ERP and build a sustainable future that is owned by the greatest majority of people in the enterprise.
slide27

Ownership/Innovative Application

Inter-personal and collaborative behaviors

20%

Enterprise understanding

Information and business systems capabilities

20%

Technical / task based skills

Information System

Process automation

60%

Process technology

BENEFIT RELATIONSHIPS

Why is this Important?

it makes a difference
It makes a difference
  • It impacts 90% of project critical success factors
  • It impacts 100% of the factors reported to cause projects to fail or be cancelled
  • Benefits are obtained earlier
  • Failure risks are reduced
slide29

MC

MC

MC

MC

MC

MC

MC

MC

MC

Critical Success Factors

  • User Involvement
  • Executive Management Support
  • Clear Statement of Requirements
  • Proper Planning
  • Realistic Expectations
  • Smaller Project Milestones
  • Competent Staff
  • Ownership
  • Clear Vision and Objectives
  • Hard Working Focused Staff
your turn
Your Turn
  • Questions
  • Comments
  • Concerns
  • Ideas

Herman A. Zwirn CIRM

[email protected]

www.lamarsh.com

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