Managing Change in The Perfect Storm Innovations in Change Management

John MonczewskiDirector

Enterprise Planning & ReportingGeneral Dynamics - Information

Technology

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“A company's most sustainable competitive advantage is ... the ability to learn and act on that learning.”

Jack WelchFormer CEO, GE

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Agenda

Introduction to General Dynamics Project overview A Model for navigating enterprise change management Wrap-up / questions and answers

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General Dynamics

General Dynamics is a market leader in business aviation; land and expeditionary combat vehicles and systems, armaments, and munitions; shipbuilding and marine systems; and mission-critical information systems and technologies.

General Dynamics has four main business segments. — Aerospace - designs, develops, manufacturers and services a comprehensive offering of advanced business-

jet aircraft. — Combat Systems - is a global leader in producing, supporting and sustaining land and expeditionary combat

systems for the U.S. military and its allies. — Marine Systems - designs, builds and supports submarines and a variety of surface ships for the U.S. Navy

and commercial customers. — The Information Systems and Technology - offers a breadth and depth of technology and service

capabilities that support a wide range of government and commercial needs, including systems integration expertise; hardware and software products; and engineering, management and support services.

Key Statistics:— $27B annual revenue— 83,000 Employees— More than 50 years of strategic and innovative work in defense, intelligence, space, and homeland security

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Agenda

Introduction to General Dynamics Project overview A Model for navigating enterprise change management Wrap-up / questions and answers

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Project Scope

PEOPLE

TECHNOLOGY

BUSINESS / PROCESS

Complex Business Problem Budgeting and planning Financial statement modeling Reporting and dashboarding Internal charge reporting Process streamlining/change

Fully Integrated Oracle Offering Oracle System 9 PeopleSoft Macromedia Share Point On-line Training

Diverse User Base

Over 1000 users for Phase 1 alone

Mix of Finance and Operations users

Support considerations [New Technologies (IT implications)]

Hyperion Workspace

Hyperion Planning

Smart ViewFinancial Reporting

Web Analysis

Plan

ning

Rep

ortin

g

Pres

enta

tion

/ Use

r In

terf

ace

Hyperion Essbase

Dat

abas

e

Direct IndirectInternal

Charging

Oracle Peoplesoft Cost-point

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The Perfect Storm – Concurrent Organizational Challenges

Change Management including Training and Rollout Effectiveness

was seen by General Dynamics as a critical component to overcome these

challenges.

Focus on these areas started Day One…

PEOPLE

PROCESS

TECHNOLOGY

- Competing business demands- Significant organizational change- Scale of solution rollout

- Overlap with annual budget process timing

- Realignment of corporate hierarchies (financial and project)

- Significant source system integration efforts

Chances are that you -have been in….

are in…

or may end up in…

Chances are that you -have been in….

are in…

or may end up in…

- The Perfect Storm -

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At the start of the project, the team recognized a Change Management plan would be critical to success and adoption of the application

Levels of Support for Change

Typical Reactions to Change…

1. People amidst change immediately ask: “What am I going to lose?” rather than “What

am I going to gain?” How is it going to affect me? How can I implement it? Help!

2. People think they go through change alone.3. People cannot handle more than 3-5

changes at a time.4. People want NEW resources when asked to

change.5. Each person is at a different level of

readiness when asked to change.6. Follow up is necessary; people always

change back to the status quo

Commitment Threshold

Introduction

Cognizance

Comprehension

Confirmation

Initiation

Validation Incorporation Acceptance

Go-live

Communication

Training

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Agenda

Introduction to General Dynamics and Palladium Group, Inc. Project overview A Model for navigating enterprise change management Wrap-up / questions and answers

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Successful Delivery Life Cycle

Evaluate Prepare

Plan

Execute

Gather Momentum...

Measure Results

Provide Ongoing Feedback Mechanism

Plan Your Resource Needs

Benchmark Best Practices

Think Long Term

Drive Organizational Commitment

Reduce, Reuse, Recycle

Build Confidence & Expertise

Increment Delivery

Deliver Repeatable and Scaleable Solution

Create Communication Vehicle

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Successful Delivery Life Cycle

Evaluate Prepare

Plan

Execute

Gather Momentum...

Measure Results

Provide Ongoing Feedback Mechanism

Plan Your Resource Needs

Benchmark Best Practices

Think Long Term

Drive Organizational Commitment

Reduce, Reuse, Recycle

Build Confidence & Expertise

Increment Delivery

Deliver Repeatable and Scaleable Solution

Create Communication Vehicle

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Benchmark Best Practices

Leverage experience— Your own project experience— Those on your team—ask—you may be surprised what you learn

Do your research— Gartner Group, etc.— Consultants’ Knowledge Base

Where we landed— Train-the-trainer — Module-based content— Incremental delivery— Creation of the Subject Matter Expert (SME)

• Short-term targets (support testing and training)• Long-term expectations – support rollout and future enhancements

Evaluate Prepare

Plan

Execute

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Benchmark Best Practices – Incremental Delivery

Design, Build & Test

Training & Rollout

Build

100

Sys Test

300

UAT / Integr. Test

Perf Test

Data Validation Testing

400 Module 500 – Seminar Series

210 220

M300 Beta

510

300

520 530 540520 520

Design

Key: 100

200

300

400

500

Application Basics

Testing Training

Prog Fin and Indirect Budgets & Rates

Training Delivery

Seminars

100 (self study w/office hrs)

Evaluate Prepare

Plan

Execute

Each module is a combination of:• Inter-active online self study• classroom learning

• in person - and/or - • via collaboration software like WebEx

Each module is a combination of:• Inter-active online self study• classroom learning

• in person - and/or - • via collaboration software like WebEx

Preparation

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Plan Your Resource Needs

Focus on all aspects of resource needs: People

— User base – train-the-trainer— Project team

• Business – Assisting with the creation of materials and communications• Development team – Their participation in training creation and delivery can be significant in value but does not

need to be overly time-consuming

— System support staff• IT• Help desk

Technology needs— Separate environments where possible for repeatability and reuse of materials

Evaluate Prepare

Plan

Execute

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End Users – Reporting Only (1000)

Plan Your Resource Needs – Look Ahead to All Aspects of Your Needs Throughout the Project and After Go-Live

Subject Matter Experts (50)

Functional/Core Team(10-15 members)

End Users – Planners (150)

Evaluate Prepare

Plan

Execute

Technical Team(Hyperion & Oracle Specialists)

Help Desk InfrastructureBI Competency

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Think Long Term

Integration with internal training group— Near-term benefit of leveraging existing corporate resources

Link to Long Term Incentive/Growth Plans— Long-term benefit of incorporation into personal goals and incentives (linking to performance appraisals,

career growth, and incentives) Branding – project name, logo, etc.

— Look to long-term vision of Business Intelligence — This phase of solution was primarily financial planning and reporting but goal is to look to overall solution

at General Dynamics

Team site / portal— Key for communication and document version control

Evaluate Prepare

Plan

Execute

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Successful Delivery Life Cycle

Evaluate Prepare

Plan

Execute

Gather Momentum...

Measure Results

Provide Ongoing Feedback Mechanism

Plan Your Resource Needs

Benchmark Best Practices

Think Long Term

Drive Organizational Commitment

Reduce, Reuse, Recycle

Build Confidence & Expertise

Increment Delivery

Deliver Repeatable and Scaleable Solution

Create Communication Vehicle

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“What I hear, I forget. What I see, I remember. What I do, I understand.”

Kung Fu Tzu (Confucius)

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Drive Organizational Commitment

You are a change agent – an e-mail at the end of a project/project phase to announce,”…Go-Live was a success!” is not enough

Executive buy-in and support— Should not just exist as a head-nod in high-level meetings— Meet-the-people approach is tangible and effective (participation in conference calls, on-site meetings, during user

acceptance testing) Calls and e-mails to acknowledge risks, celebrate successes, generate enthusiasm – leverage your

communication plan!— Project team— Executive leadership— End users— Your champions – subject matter experts— IT / technology group (This is often overlooked and can cause problems later in your project!)

Evaluate Prepare

Plan

Execute

Continue to think about the “What’s in it for me?” question everyone is asking themselves before they read any of your e-mails/correspondence…

Continue to think about the “What’s in it for me?” question everyone is asking themselves before they read any of your e-mails/correspondence…

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Reduce, Reuse, Recycle – Leverage Project Deliverables and Resources

Track “Training Tips” in your issues list and/or bug tracking database. Can be as simple as a column in a spreadsheet

Use templates for artifacts like test scripts that will be usable for subsequent system test, user acceptance testing, and eventually exercises in your training

Look for opportunities early in the project (requirements and design) to create diagrams that will make complex concepts easier todescribe and understand

Evaluate Prepare

Plan

Execute

AIS

Division 1

LOB 1

BA 1

BA 2

BA 3

Division 2

Division 3

LOB 2

LOB 3

~9

1

4

~150

R-Dept 2

R-Dept 1

R-Dept 3

HQ

~20

1:Many

AIS

Division 1

LOB 1

BA 1

BA 2

BA 3

Division 2

Division 3

LOB 2

LOB 3

~9

1

4

~150

R-Dept 2

R-Dept 1

R-Dept 3

HQ

~20

1:Many

.

Agreement 1

Project 1

Top Task 1

Top Task 2

Top Task 3

Top Task 4

Agreement 2

Agreement 3

Project 2

Project 3

~5000

.

Agreement 1

Project 1

Top Task 1

Top Task 2

Top Task 3

Top Task 4

Agreement 2

Agreement 3

Project 2

Project 3

~5000

- Project Structure - - Financial Reporting Structure -

~12,000

~3,400

1:1

1:Many

1:Many

1:Many

1:Many

AIS

Division 1

LOB 1

BA 1

BA 2

BA 3

Division 2

Division 3

LOB 2

LOB 3

~9

1

4

~150

R-Dept 2

R-Dept 1

R-Dept 3

HQ

~20

1:Many

AIS

Division 1

LOB 1

BA 1

BA 2

BA 3

Division 2

Division 3

LOB 2

LOB 3

~9

1

4

~150

R-Dept 2

R-Dept 1

R-Dept 3

HQ

~20

1:Many

.

Agreement 1

Project 1

Top Task 1

Top Task 2

Top Task 3

Top Task 4

Agreement 2

Agreement 3

Project 2

Project 3

~5000

.

Agreement 1

Project 1

Top Task 1

Top Task 2

Top Task 3

Top Task 4

Agreement 2

Agreement 3

Project 2

Project 3

~5000

- Project Structure - - Financial Reporting Structure -

~12,000

~3,400

1:1

1:Many

1:Many

1:Many

1:Many

Training materials should not be an end-of-project standalone exercise:

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Create Communication Vehicle

Communication plan and targeted checkpoints

— Executive— End users— Subject matter experts— Project team and other stakeholders

Target and use “one source” for users to get/receive information— Homepage/portal— Support e-mail box

• Disseminate information via email from one source• One inbox• Testing, training, post-go live usage• Shared access to support

Key: Ensure discipline in keeping up with these tools

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Successful Delivery Life Cycle

Evaluate Prepare

Plan

Execute

Gather Momentum...

Measure Results

Provide Ongoing Feedback Mechanism

Plan Your Resource Needs

Benchmark Best Practices

Think Long Term

Drive Organizational Commitment

Reduce, Reuse, Recycle

Build Confidence & Expertise

Increment Delivery

Deliver Repeatable and Scaleable Solution

Create Communication Vehicle

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Incremental Delivery

Macro level— Staged delivery of materials — Module approach— Self study pre-learning

Micro level – on-site training

Evaluate Prepare

Plan

Execute

A - Global Data

B - Employee Labor

C - Dept Expense

D. Waterfall & Rates

Web Forms 101

Reports 101

Smart View 101 T

ech

nic

al

Tra

inin

gP

rog

ram

F

inan

ce

Ind

irec

t

Team Site

A. EAC / MPM Validation

B. Non-EAC Top Task

C. Non-EAC Top Task New Opportunities

D. Additional Testing

FridayMonday Tuesday Wednesday Thursday

Business Performance Management (BPM)

Business Performance Management (BPM)

Indirect Budgets & Rates Planning Program Finance Planning

Indirect Budgets & Rates Reporting Program Finance Reporting

Module I00:

Introduction & Hyperion Technical

Training

Module 200:

Testing Preparation

Module 400:

Training Delivery

Module 300:

Component-Specific (Program Fin and Indirect Bud &

Rates)

310 - Kickoff320 –Shared Components330 - Program Finance 340 - Indirect Budgets & Rates 350 – System Maintenance360 – Support Model370 - Module Recap

Module 500:

BPM Seminars

510 - Starting Your Plan

520 - Office Hours

530 – Finalizing Your Plan

540 – Addit’l Reports; Who Charged Reporting

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Build Confidence and Expertise

Allow for Learning – Develop the strengths and capabilities of the Subject Matter Experts (SMEs) beginning with testing, leading into training delivery, and maturing into fully enabled SMEs

Participation in Project

• System Knowledge

• Capability

• Confidence

• NetworkTestersTrainers

SMEs

Evaluate Prepare

Plan

Execute

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Build Confidence and Expertise (continued)

Personal touch – On-site (everyone in the same location) training and testing (one to two work weeks)

— Foster the SME network— Real-time issue resolution— Putting faces to names— Ensure focus on the project, not just “day jobs”— Logistics preparation for this exercise is key (logins, security access, etc.)

Acknowledge challenges— Often timing is such that the system is just going live when training is expected. Having to go out and

train on a system in which they are just learning and see bugs— Demonstrated executive support here is critical— Capture concerns and actively monitor them with your group

Evaluate Prepare

Plan

Execute

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Build Confidence and Expertise Through Repeatability – Pre-Recording Basics Yields Many Benefits

Use of collaboration software

Benefits— Repeatability— Confidence — Consistency— Tracking metrics— Easily updated— Functionality – stop/rewind— Take from home, on one’s own— Accessible and distributed via URL, no cumbersome

attachments

Recommendations— Have a script and written agenda— Balance general usage with calling out quick tips and

tricks— Sample agenda in a supporting PowerPoint

• INTRODUCTION• QUICK TIPS• DEMONSTRATION• RECAP

Evaluate Prepare

Plan

Execute

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Supporting Materials

Top Task Planning

Introduction 00:15Quick Tips 04:30Demonstration 11:05

PRGM 1: Avg Hourly Rates and Probability % 13:30PRGM 2: Available Hours 18:05PRGM 3: Applied Rate Table 19:03PRGM 4: Inter and Intra Company Purchases and Orders 19:55PRGM 5: ICS/ISS/ISR Top Task Input Forms 26:55PRGM 6: T&M Input Form 33:43PRGM 7: Top Task Loss, Warranty, and Project Reserve Input Form 37:50PRGM 9: Program Investment Input Form 41:05Workspace 45:08

Webform Validation ReportsDIR101 46:05DIR102 49:40

Financial Reports 52:18Division Reports 52:50AIS Financial Statements 53:10

Training Session Recap 54:10

Duration 55:42

Specific Timing of “Chapters” Provide a Structured Flow

Evaluate Prepare

Plan

Execute

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A Simple Flow and Drawing Out Key Points/Takeaways

1. Specific agenda / training goals

2. Use of the Hyperion Suite

3. Quick tips

4. Further use of the Hyperion Suite

5. Recap key points

Evaluate Prepare

Plan

Execute

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Successful Delivery Life Cycle

Evaluate Prepare

Plan

Execute

Gather Momentum...

Measure Results

Provide Ongoing Feedback Mechanism

Plan Your Resource Needs

Benchmark Best Practices

Think Long Term

Drive Organizational Commitment

Reduce, Reuse, Recycle

Build Confidence & Expertise

Increment Delivery

Deliver Repeatable and Scaleable Solution

Create Communication Vehicle

30

Measure Results

Start early — Software installations— Training completion— Login verification (pre-testing and pre-training

exercises)— Hardware compliance (e.g. laptops for training)

Ensure simplicity

Follow-up on feedback

Evaluate Prepare

Plan

Execute

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Provide Ongoing Feedback Mechanism

Use office hours— Requires discipline and time— Ensure technical resource on-hand early in the process— Capture lessons learned and encourage dialog

Identify and Leverage those that take to the solution quickly!— Application experts— Standardization and template creation— Future leaders in upcoming phases

Evaluate Prepare

Plan

Execute

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Gather Momentum

Keep Subject Matter Expert group part of the ongoing process

— Delta training— Focus groups— Mentoring— New release testing

Where possible, identify and prototype new concepts to generate further enthusiasm for your next phase…

Evaluate Prepare

Plan

Execute

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Agenda

Introduction to General Dynamics Project overview A Model for navigating enterprise change management Wrap-up / questions and answers

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Questions?

Evaluate Prepare

Plan

Execute

Evaluate Prepare

Plan

Execute

Evaluate Prepare

Plan

Execute

Evaluate Prepare

Plan

Execute

Evaluate Prepare

Plan

Execute

Managing Change in The Perfect Storm Innovation in Change Management

John MonczewskiDirector

Enterprise Planning & ReportingGeneral Dynamics - Information

Technology