using organizational change management in …...organizational development, program management and...

Using Organizational Change Management in Business Network Transformation: Collaboration for All!

TRAINING SKILLS

Kerry BrownOrganizational Change ManagementSAP Global Director

Learning Points

© SAP 2008 /

What is the Organizational Change Management Communities are there?

What forums and information are available to the OCM Community – what value will it provide for you?

How you can access and participate in the OCM Community

Organizational Change Management enables business transformation, transition management, user adoption & performance

OCM ASUG Special Interest Group (SIG) www.asug.com

BPX OCM Community – What/where is it? https://www.sdn.sap.com/irj/sdn/bpx-ocm

https://www.sdn.sap.com/irj/sdn/bpx-ocm

Source: Benchmarking Partners (Based on a study of 62 companies that have gone live with an ERP system), Note: Rounded percentages; not all categories are shown as bars

2%

2%

3%

4%

1%

2%

4%

8%

2%

4%

5%

6%

6%

7%

7%

8%

16%

1%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

PEOPLE 62%

PROCESS 16%

TECHNOLOGY 9%

KNOWLEDGE ASSETS 3%

Change ManagementInternal Staff Adequacy

Project TeamTraining

Prioritization/Resource AllocationTop Management Support

ConsultantsOwnership (of benefits to others)

DisciplineProgram Management

Process ReengineeringStage/Transition

Benefit RealizationSoftware Functionality

Application Portfolio ManagementEnhancements/Upgrades

Data

ReportingIssu

es/O

bsta

cles

Unt

il N

ow

Top Issues Organizations Face During Enterprise Resource Planning

OCM – What is it? Why should you care?

Directly related to Orgn Change Mgmt & Training © SAP 2008 /

What customers say is Important for Success

Value Realization: Organizational Change Management ImpactsASUG Best Practices Survey – May 2006

© SAP 2008 /

© SAP 2008 /

What customers say about Change Management…

Strong executive sponsorship

Strong project leadership

Strong business process ownership

Alignment and agreement with the business case across organization

Organization’s willingness to adopt change

Effective training

% of respondents selection of influential value factors

Leadership & Change Management Influence SuccessASUG Best Practices Survey – May 2006

OCM Benchmarking and Best Practices https://www.benchmarking.sap.com/cgi- bin/qwebcorporate.dll?idx=945JDN&SHSP1Q2A=asugDOTcom

Leaders versus Laggards – OCM ROI 2007 Global OCM Benchmarking & Best Practices Survey

2% 0.7% 0.7%

16%12.4% 10%

Time Delay Budget Overshoot Under Scope

Leaders

Laggards

Project Results: Leaders vs. Laggards

83%

63%

User Acceptance Score

Leaders are the top 25% participants whose project had the best on-time, on-budget and on- scope delivery, and whose project had the highest user acceptanceLaggards are the remaining 75% of participants with greater gaps in on-time, on-budget and on-scope delivery, and with lower user acceptance scope

© SAP 2008 /

Coverage of Best Practices 2007 Global OCM Benchmarking & Best Practices Survey

1

2

3

4

5

Leadership &Sponsorship

Skills &Competencies

OrganizationalAlignment

Communications Governance &Compliance

Incentives &Rewards

1

2

3

4

5

Laggards Coverage

Leaders Coverage

Laggards Importance

Leaders Importance

Leaders focus more on Communications, Governance and Compliance and Skills and Competencies

© SAP 2008 /

Presenter

Presentation Notes

In the Procurement survey itself, we have structured the questionnaire along the same 6 dimensions of analysis which include: Staffing Levels and Cost Structure of your SRM & Procurement function, Supplier & Spend Management, Organization Model, Information Technology Deployed, and Best Practices Adoption The first 5 dimensions are very objective and driven by numbers and facts. The last dimension, best practices is more subjective and uses a self-evaluation ranking process. In the best practices section you identify the importance and coverage of best practices for your organization. The nice thing about the Best Practices section is that it allows you to diagnose the “why’s” for the drivers for the more numeric KPIs. For example best practices adoption may explain why you are Q1 in certain areas and below average in others. Within that dimensions framework, we are tracking over 70 KPIs Starting with the first 2 dimensions, Staffing Levels and Cost of your SRM/Procurement organization, we track both process independent and process specific KPIs. A process independent KPI is a KPI we track for each of the 13 sub-processes we saw in the pyramid. They include SRM cost as a % of spend and FTEs per billion in spend. A process specific KPIs pertains specifically to just one of the processes in the pyramid. I have just a few examples here: So in the Requisitioning section, we capture cycle time: from requisition to PO Processed. In the Order processing section we capture Cost per order processed. We also capture error rates and other metrics such as the % of orders transmitted electronically. One of the most important dimensions for procurement is supplier and spend management. In this area we examine the levels and drivers of purchased cost reduction and supplier rationalization through KPIs such as …… We also look at organizational drivers such as the level of centralization of your Procurement function and the degree of outsourcing in each of the sub-processes and we also track that by spend type (direct, indirect and services) For the IT deployment section we track what applications you are using for each sub-process, to what degree they are implemented, integrated and customized. And finally the level of usability and adoption We’ve already touched briefly on the Best Practices section, where we have identified over 90 best practices across each of the sub-processes and give you the opportunity to self-evaluate on importance and coverage. The best practices are both from an effectiveness and efficiency point of view.

Our activities focus on enabling individuals and the organization to adopt change

Adapted from Remy S.Leeuwin, ‘Organizational Change’

The Adoption Curve

© SAP 2008 /

Presenter

Presentation Notes

Upgrade can be defined many ways: Full Transformation project: Complete overhaul of the SAP system from 3.1 to 6.0 New Module (APO) Upgrade from 4.7 – new user interface and requires some process redefinition Upgrade from 4.7 – Technical upgrade from 4.7 to mySAP ERP – no new functionality included Many companies make the mistake of not paying attention to change management simply because it is an upgrade, not a full implementation. Upgrade = change, so OCM is needed. End users will still move through stages on adoption curve. May be faster or slower depending on type of upgrade, so the question is not if OCM or not, but how much do we need

© SAP 2008 /

Scale of Change- What is required for the organization

Scale of Change

Communications

People Transition Planning

Perf Mgmt/Incentives and Rewards Alignment

Skills & Competencies Alignment

Leadership and Sponsorship Alignment

Assessment/Monitoring/Measurement

Job/Organization Alignment

Minor changes

Small change to role

Large change to Role

Complex new job processes

Email or Briefing DocumentsQuick Reference Cards

Computer Based Training

Virtual Classroom/VideoConferencing

Instructor Led Training

New role

Project Team Training

© SAP 2008 /

Stakeholder ManagementDevelop a culture of change leadership that aims to buildcommitment through accountability, role clarity, andexecutive development .

Skills and CompetenciesIncorporate competency assessment and skill development for all employees. This lever incorporates learning, training, and succession planning into all OCM initiatives.

Organizational AlignmentAlign business and process metrics with process roles and management structures.

CommunicationsEnable change through frequent and factual information flow and clearly explained impacts, roles andresponsibilities, benefits, and rewards.

Governance and ComplianceClearly assign roles and responsibilities, including decision-making responsibility and create a culture ofcompliance based on measurement and consequences.

Performance Management SystemEstablish and measure individual and group performance, ensuring alignment with enterprise strategies, goals, and objectives.

Incentives and RewardsProvide clarity of desired performance through compensation, bonuses, and promotions that are consistent with good performance and client successes.

Hiring and Selection Provide personnel strategies (such as retrain or hire; grow organically or acquire) that ensure individuals possess the right skills and competencies at the right time resulting in program success.

SAP Levers for Change

Organizational change management has the capacity to leverage positive changeAll of the following levers are active in an organization at all times, influencing each lever provides momentum to shift culture

Presenter

Presentation Notes

Focus on all are active. This is the SAP philosophy and approach to Change Management. Our solutions put structure around common sense.

© SAP 2008 /

SAP OCM Customers – who can I learn from?

Service When to apply Selected References

Executive EducationHelps executives gain a strategic understanding of SAP solution, including their role in implementation. Recommended at the beginning of the project but could be offered at any time. ½-1 day (customizable)

OCM WorkshopTraining for OCM team / change agents and/or project teams (customer and / or SAP). Recommended at the beginning of the project but could be offered at any time. 2 days, Public or Onsite (customizable)

Several public offerings course: WNAOCM

OCM ToolkitWhen customer is aiming to complete OCM internally or with coaching support to develop a sustainable OCM capability within CoE, PMO, etc.

OCM Assessment

Assess the OCM approach, strategy & change readiness and recommend actions to enable successful execution of current initiatives. Conducted at the beginning and/or during an implementation project (e.g. review, Safeguarding) 3-6 weeks

OCM Coaching (Onsite Consulting)

Coaching of change management team/ team lead and/ or project managers (customer and/ or SAP) during project, e.g. SAP ERP full scope, strong process standardization, global roll-outs and upgrade or projects focused on one SAP solution, e.g. mySAP CRM, SCM

OCM Remote Coach (Offsite Consulting)

Supplemental or extended SAP support for projects when customer assigns primarily internal resources for OCM following OCM Assessment, OCM Toolkit Coaching on Onsite Coaching

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© SAP 2008 /

What else is there…

Access to a virtual, global community of individuals interested in Organizational Change Management, including Change Managers, individuals on Enterprise Resource Planning (ERP) projects needing additional information on change management, OCM consultants, and anyone who is concerned about the “PEOPLE” side of projects. Links to other resources: Best Practices, Tools…Articles, Whitepapers…Guidance, Q&A…

© SAP 2008 /

Learning Points

© SAP 2008 / Page 18

OCM Communities provide a platform for sharing intellectual capital, thoughtful dialog, best practices, and experiences

OCM forums, blogs, discussion threads, whitepapers, articles are available on the BPX & ASUG SIG Communities

Everyone concerned with the PEOPLE side of projects (OCM) can collaborate with a virtual community of colleagues

Organizational Change Management enables business transformation, transition management, user adoption & performance

© SAP 2008 / © SAP 2008 / Page 19

Thank you!

Q&A

Kerry BrownGlobal Practice DirectorOrganizational Change Management

O 404-541-0625M 404-519-0738

[email protected]

mailto:[email protected]

© SAP 2008 /

Bio – Kerry Brown

Kerry Brown is the Global Practice Director of Organizational Change Management for SAP America. She specializes in providing value in end-to-end delivery of business strategy and organizational transformation.

Kerry has been with SAP for 4 years, prior to joining SAP, Kerry worked for Coca Cola Enterprises as the Global Director for Change Leadership. She has successfully developed and led teams for large, complex global initiatives and reengineering/system implementations enabling them to realize the fulfillment of organizational competency bringing the greatest value to their organizations. She specializes in strategic management, organizational development, program management and business process improvement.

Her exposure to occupational cultures is diverse - working both domestically in the United States and Canada as well as international business experience including Great Britain, France, Belgium, Holland and Australia.

Kerry has worked extensively with senior level executives and industry leaders across a variety of industries. In her role Kerry is responsible for change management thought leadership and methodology as well as working with customers to scope and craft the appropriate solution for their organization. SAP is the world leader in integrated ERP software and services to enable each organization to be a “best run business”.