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0Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Driving Value in HR Shared Services –
It’s All About Change Management
Maribeth Sivak, TPI, Inc.
Renee Tehi, TPI, Inc.
March 3, 2011
Copyright © 2011, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means, including
information storage and retrieval devices or systems, without prior written permission from Technology Partners International, Inc.
1Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
No part of this document may be reproduced in any form or by any electronic or
mechanical means, including information storage and retrieval devices or systems,
without prior written permission from Technology Partners International, Inc.
2Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Today’s Agenda
Why Manage Change?
� Maximizing probability of success
� Working together
� Change management fundamentals
Northrop Grumman’s Change Management Approach
� Program management discipline
� Change management framework
� Communication, education, training
� Executive Sponsorship and Organizational Readiness critical
� Vision and consistent messaging threaded throughout strategies
Lessons Learned
� What went well
� Other valuable lessons
Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Why Manage Change?
4Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Source: DTCG Survey
10 Top Barriers % of Companies
36%
41%
43%
44%
44%
46%
56%
65%
72%
82%
IT Perspective Not Integrated
No Horizontal Process View
No Change Management Program
Scope Expansion/Uncertainty
Project Team Lacks Skills
Case for Change not Compelling
Poor Project Management
Unrealistic Expectations
Inadequate Sponsorship
Resistance to Change
Many projects fail to deliver!
Here are the top 10 barriers that inhibit project success.
Avoiding Project FailureAvoiding Project Failure
5Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
SatisfactionI am satisfied with where I am today.
DenialThis initiative is not
relevant to me or not necessary.
ResistanceI disagree with this initiative and I am
not supporting this.
ExplorationCould this work
for me?
CommitmentThis is a positive change that will
benefit me and my colleagues
HopeI can see positive benefits from this initiative & it could
work for me.
The Change CurveThe Change Curve
6Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Working Together to Ensure SuccessWorking Together to Ensure Success
• Provide governance team design and role descriptions
• Develop Service Level Agreement recommendations
• Conduct provider management workshops
• Review contract relative to industry leading practice
• Assess provider service delivery and relationship; develop remediation plan as needed
• Provide ongoing governance services, serving as interface to provider, analyzing results
Clients have varying needs depending on their strategy and resources.
We leverage the client’s capabilities, supplement with leading practices, tools and expertise.
• Assess current delivery model and capabilities relative to leading practice
• Develop improvement opportunities and transition plan
• Harmonize HR policies
• Harmonize and re-engineer processes
• Develop and deliver training
• Develop detailed process and policy documentation
• Develop and deliver training
• Establish project management strategy, plan and tools
• Provide project management oversight and advice
• Lead project management, monitor and report results, identify risks, develop mitigation plans
• Develop communications strategy and materials
• Conduct Organizational Readiness / Stakeholder Analysis
• Develop retained organization structure recommendation, job descriptions
• Establish project management strategy, plan and tools
• Develop communications strategy and materials
• Conduct Organizational Readiness / Stakeholder Analysis
7Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
� Change Management is critical to the success of any delivery strategy
• Internal shared services
• External providers
� Change Management must be owned by the client, throughout the organization
• Enterprise leadership
• Project sponsors and team
• Business unit leadership
� Change Management tasks must be integrated into overall program management
• Rigorously planned, tracked and reported on
• Executed from project initiation to go-live and beyond
� Lessons learned must be gathered and acted upon immediately
Change Management FundamentalsChange Management Fundamentals
Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Northrop Grumman’s Change Management Approach
9Copyright © 2011, Technology Partners International, Inc. All Rights Reserved. 9
HRSC is the
foundation for
transforming
HR in Northrop
Grumman
HR Operating Model
Foundation
(One HR / HRSC)
People Strategy
Transforming HR
Common (Harmonized) Services 2007-2008
� Services = policies, processes and procedures
� Harmonized: Common policies, processes and procedures across sectors to the extent possible given business variation
Common HR System Platform 2008-2011
� Consolidate all sectors onto one Common HR (CHR) System
� Build on the One Source Enterprise Resource Planning (ERP) platform
HR Service Center 2008-2013
� Create a shared service organization to provide more consistent, efficient, and cost effective service delivery
Components 2007-2013
Provide the foundation for transforming HR through high
quality HR shared services that are easily accessible,
responsive, timely, accurate, consistent and cost effective
• Enable sector HR Business Partners to focus on human capital strategic priorities, business needs and business relationships
• Facilitate seamless HR operations across the company
• Facilitate harmonization of HR services including policies, procedures, processes, forms, and systems
• Improve the HR experience for employees
• Enhance HR decision making and customer service focus
• Maximize efficiency and cost effectiveness of HR
Charter
Foundation for Success
Used by permission from Northrop Grumman Corporation.
10Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
One HR PMO Program Hierarchy
The program is managed at multiple levels with:
- Varying
business rules
- Reporting
guidelines
- Structured
communication
process
-Comprehensive
tool set
PRA
Executive Level reviews of various programs, including One HR. The
One HR Program Office presents to the PRA executive committee program status report, including all aspects of the program.
PMO
An organizational structure that centralizes the management of One HR related projects and defines how status updates and reportingguidelines are structured, performed, and monitored. The One HR
Program Office ensures coordination and alignment across all projects. The PMO will also monitor activities, dependencies, risks,
issues and communicate progress to Stakeholders.
PP05
Tactical management of activities are identified, performed and
managed at the project PP05 level. Each project team manages the day-to-day operations and provides status updates as
required by the PMO.
2009 One HR
Special Projects
Change
Management
Sector
TransitionsHRSCHarmonization
TALXCHR
Releases
HRSC Tools
ReleasesEdAssist
Document
Automation
Leave of
Absence
PRA
One HR
Program
One HR
Program
Office
Individual Projects
or Tracks (aka PP05)
PMR
Disciplined Program Management
Used by permission from Northrop Grumman Corporation.
11Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Managing Change: Two Approaches…NGC Used Coalition
Change Management by DIRECTIVE
• “An order that must be obeyed”
• REACT TO implementation challenges
• Address whatever issues arise
Change Management by COALITION
• “A group of people acting together”
• PREPARE FOR implementation challenges
• Collect “advance intel” on what to expect
Used by permission from Northrop Grumman Corporation.
12Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
One HR/HRSC Change Management Framework
Project Implementation Plans
OneHR
Vision,
Strategy
and
Objectives
Strategy Outcome
Transformed
Organization
&
Manager
and
Employee
Enablement
Change Management Framework (and Workstreams)
Services Harmonization
HR Service Center
Technology Platform (One HR/CHR)
Prepare Implement Reinforce
Executive Sponsorship
Organizational Readiness
Communications
Workforce Planning (org design, role impact, stakeholder analysis, job mapping)
Training (behavioral and technical training development and delivery)
Wo
rkst
rea
ms
Business Drivers, Executive Buy-In & Sponsorship, Enterprise & Sector Lead
Used by permission from Northrop Grumman Corporation.
13Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Change Management Framework
StrategyChange Management Framework (and Workstreams)
Executive Sponsorship
Organizational Readiness
Communications
Workforce Planning (org design, role impact, stakeholder analysis, job mapping)
Training (behavioral and technical training development and delivery)
Prepare Implement Reinforce
Wo
rkst
rea
ms
Executive Sponsorship
•HRPC briefings
•CFO meeting briefings
• CIO briefings
• Transition sector updates
Workforce Planning
•Design/redefine org structure
•Assess headcount impact
• Develop and execute plan
Organizational Readiness
• ORA focus groups identified
• ORA process executed
•Consolidate and analyze ORA
input; integrate into
communications /education
• Revisit during stabilization
Communications
• ID audiences, content to
be shared and timeline
• Briefings to HR community
first, management
second, then employees
• Establish website and update
vehicles (newsletters, etc)
• Leverage PMO materials
Training
• HR community: What &
How, HRBP, Leading Change
• Management: What & How,
Leading Change, MDA/EDA
• Employees: EDA, What
& How (education vs training)
• Services Changes
Used by permission from Northrop Grumman Corporation.
14Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
HRSC Change Management
EDUCATIONEDUCATION
• Use communication material
for brown bags, employee
sessions, staff briefings
• Continually calibrate what
else is needed and provide
additional tools and resources
• PMO supports sector
requirements – driven
primarily within sector
COMMUNICATIONSCOMMUNICATIONS
• About the HRSC Status/progress to CHRO, CPC,
Sector Exec Teams
• HRSC-Specific Newsletter, Web
Site, FAQs, Fact Sheet, Brochure,
Posters, Welcome Packet
• Sector-Specific Transitioning
messages for managers and
employees from Sector
VP/Sector HRVP
• Project and Sector-Specific EdAssist, PTO, LOA, Expatriates
TRAININGTRAINING
• What & How of HRSC for
sector HR, managers, and
employees
• Changing Role of HRBP
for sector HR
• CSR Training
• Business Simulation
• New online MDA / EDA
Training & Resource Guide
Used by permission from Northrop Grumman Corporation.
15Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Peers & Key Peers & Key
StakeholdersStakeholders
• Monthly PRAs with
transitioning sector
HRVPs
• Monthly meetings
with HR&A VP peers
• Promotes positive
progress
• Assess concerns or
changes in support
• Builds relationship
and trust
• Engage sector
champions
HRSC Visits to HRSC Visits to
SectorsSectors
•Understand sector
cultural and
transactional
nuances/challenges
•Help sector leadership
understand corporate
vision of One HR and
role of HRSC
•Field concerns, answer
questions
Sector Leaders Sector Leaders
Visit HRSCVisit HRSC
• Share customer
perspective and
expectations
• Provide a picture of
employee culture and
environment
• Generate excitement
around the future
state of the
organization
Account Managers Account Managers
• Embedded in Sectors
• Serving as a bridge
between HRSC and
sector customers
Situational Awareness
Numerous methods used to stay in touch with customers, Numerous methods used to stay in touch with customers, to understand their challenges, their concerns, to understand their challenges, their concerns,
and their cultureand their culture
Used by permission from Northrop Grumman Corporation.
16Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Communication, Education, Training Plan
Used by permission from Northrop Grumman Corporation.
17Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Posters, Brochures
Welcome Packets for each employee as their sector transitions
to HRSC
Welcome Letter
Badge Tag
5x8 Delivery Card
Refrigerator Magnet
HRSC Materials
Used by permission from Northrop Grumman Corporation.
18Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
HRSC Communications
Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
Lessons Learned
20Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
� Major project components were achieved on time (HRSC tools, processes, technology, testing, training, etc.)
� All teams were committed to the same objectives (i.e., same goal in mind) and collaborated as appropriate
� Phased implementation let us start small and grow
� Cross-disciplinary support was consistent throughout the project
� Communications with similar look and feel provide cohesive image to current and future customers
� Harmonizing your services prior to go-live is key
Lessons Learned Lessons Learned –– What Went WellWhat Went Well
Used by permission from Northrop Grumman Corporation.
� Face-to-face support and planning increased productivity and strengthened our relationships with customers
� Strong executive commitment resulted in buy-in at all levels
� Account Managers are our eyes and ears within the sectors
� Program Management approach enabled us to ‘talk the talk and walk the walk’ with stakeholders
� Dedicated PMO Core team became heart of the transformation and implementation
� Mutual site visits between HRSC-Irving and sector leadership before sector joined the HRSC
21Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
� Don’t be afraid to ask for help. It’s not viewed as a sign of weakness, but
a sign of strength; assurance that you are
looking for every opportunity to make the
program succeed.
� Don’t let your most talented people become stretched to the point of failing. Instead, place the right team around them.
We should never create situations that
allow people to fail; a personal failure is
a program failure, and neither is acceptable.
Musketeers win.
� Don’t underestimate the importance of sharing your progress as a shared service. Without positive updates, people will fill in
the blanks with their own perceptions, and
you’ll end up fighting a battle to overcome
perceptions, not real issues.
Other Valuable LessonsOther Valuable Lessons
Used by permission from Northrop Grumman Corporation.
� Ensure cross-functional project members are included in every aspect of operations
� Track decisions and action items to avoid revisiting of issues and reopening decisions for discussion
�Continually work to move from reactionary to proactive project management
� Ensure PMO and project teams have easy access to tools and documents in a central shared center archive
�Provide clear delineation of duties, roles, and responsibilities
22Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.
www.tpi.net
Copyright © 2011, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means, including
information storage and retrieval devices or systems, without prior written permission from Technology Partners International, Inc.