Joe Chung, AWS Enterprise Strategist

Amanda Rankin, Lead Consultant - Migrations

How to Manage Organizational Change and Cultural Impact During a Cloud Transformation

© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Agenda

Cloud Transformation Why is it different?

Impact to culture

Organizational Change Management (OCM) What is it?

Cloud Change Management Framework How do you apply OCM to the cloud?

Cloud adoption can help increase agility and productivity, while

reducing costs

Cloud Transformation

The impact ofcloud adoption willbe felt across the

entire organization

The journeyto the cloud will have

an impact on your organization’s culture

What Is Culture?

Culture is the “software of the mind.” It is the core logic that

organizes people’s behavior

The culture reflects the lessons learned that are important

enough to pass on to the next generation

Values, beliefs, and practices that have been developed and

reinforced over time

Culture Is “the Way We Do Things Around Here.”

Cultural Trends We Are Seeing

Moving from

Failure is not an option

Command-and-control

Silos “throw it over the wall”

Build/deploy in place

Long due diligence

Standardization

Talent outsourcing

Moving toward

Learning (start small, experiment, and iterate)

Decentralized ownership (guardrails via cloud CoE)

DevOps and cross-functional teams

Automate: Infra-as-code, redeploy every time

Adopt early and often

Reference architecture, no religion, few standards

Talent insourcing/niche partnering

How Culture Impacts the Cloud Journey

New cultural framework: What is important in how we operate in a cloud environment

New rules of engagement: Cloud governance

Personal branding: Reinforcing and recognizing new operating behaviors and ways of working

Leadership: Leaders lead the way

Levers That Influence Culture:

Cultural issues are at the root of many failed business transformations, yet most organizations do not assign explicit responsibility for culture.” –Gartner, 2016

“

Amazon’s Culture: Leadership Principles

1. Customer obsession

2. Ownership

3. Invent and simplify

4. Be right, a Lot

5. Hire and develop the best

6. Insist on the highest standards

7. Think big

8. Bias for action

9. Frugality

10. Learn and be curious

11. Earn trust

12. Dive deep

13. Have backbone; disagree and commit

14. Deliver results

Identify desired attitudes

and behaviors for

successful

cloud adoption

Communicate

attitudes and

behaviors

Align explicit and

implicit reward

systems

Align hiring,

training, and

incentive practices

How to Influence Cultural Change?

Cloud Transformation Challenges

When it comes to cloud adoption, the

biggest challenge isn’t technology — it’s

the people and processes that must

change and adapt.”

People and Processes

“ 13 Biggest Challenges When Moving Your Business To The Cloud- June 2017 article

Common Failure Points

70% of unsupported change

efforts fail to achieve their

intended outcomes.” 1

“

1Based on the books and articles by John P. Kotter, 2012 Harvard Business School Publishing

Common Failure Points

2Based on Prosci Best Practices in Change Management – 2016 Edition

Lack of active, visible sponsorship

Insufficient change management resourcing

Lack of buy-in from project teams

Manager and supervisor resistance

Employee resistance

Top Obstacles to Change Success2:

A Case for Organizational Change Management

Applying tools and processes to the

people side of change, to transition from

a current state to a future state to

successfully achieve a particular

outcome.” 1

“

1Change Management; The People Side of Change, Hiatt & Creasey, 2012

Change Management: Key Tenets

Key Tenets to Recognize

When Considering

Change Management:

1. Change management is an enabling

framework for the people side of change

2. Organizational change requires

individual/personal change

3. The scope and type of change inform

the change management plan

Expect Reluctance and

Resistance to Change from

Across the Organization:

1. Employee resistance to

change is the Rule!

2. The RIGHT solutions is NOT in and of Itself

enough to motivate employees

3. Message conveyed ≠ message received

Change occurs for a REASON – The #1 purpose is to get to a better place

Focused mainly on changing toolsets

Recognizing Different Types of Change

Focused on changing toolsets + skillsets

Focused on changing toolsets + skillsets

+ mindsets

Improvement Transitional Transformational

Change communication Change management Project management Training Change leadership

Solution Drivers

Change communication Change management Project management Training Change leadership Process design

Change communication Change leadership Leadership alignment and

sponsor plan Overall change management

strategy and plan Training and orientation Organization design HR strategy and support

Improvement Transitional Transformational

Adopted from: Linda Ackerman Anderson & Dean Anderson

Apply a Structured Change Management Approach to Accelerate Your Cloud Transformation

1. Mobilize Team

2. Align Leaders

This change is critical and will succeed!

We are all leaders of this change!

3. Envision the Future

4. Engage the Organization

This is the vision, where we are going!

This is how we get there together!

5. Enable Capacity

6. Make It Stick

This is how we makeit happen!

Are we where we want to be?

Apply a Structured Change Management Approach to Accelerate Your Cloud Transformation

1. Mobilize Team2. Align Leaders

This change is critical and will succeed! We are all leaders of this change!

Confirm sponsorship

Secure resources, expertise

Form strong coalition of leaders

Build momentum

Form team to lead change – executive sponsors, stakeholders, line leaders, PMO, change management, communication, training, etc.

Establish program charter, roles, milestones

Build guiding coalition, mobilize leadership

Shape program governance structure

Assess and align change leadership roles

Key Steps and

Considerations

Build a coalition – Cloud Center of Excellence (CCoE)

What does a CCoE do?

Why is a CCoE important in the journey to cloud adoption?

Source: Based on the work from our OCM consulting partner

Best Practice: Change Leadership Through a CCoE

Cloud Services or Cloud Center of Excellence

Business Application Services

OperationsInfrastructure Security

Cloud Engineering

Enterprise Architecture

GovernanceTraining and Engagement

Cloud Business office

Organizational Change Management

Finance

Apply a Structured Change Management Approach to Accelerate Your Cloud Transformation

3. Envision the Future

4. Engage the Organization

This is the vision, where we are going!This is how we get there together!

Articulate vision and roadmap for transition to cloud

Mobilize organization, build commitment, create change urgency

Establish communication channels to gain and maintain buy-in, support, and participation throughout entire transition

Leaders communicate future cloud vision(via comprehensive messaging plan)

Impacted business leaders reinforce new operating model (process/tech/org)

Identify/assess impacted stakeholders

Enlist and mobilize a Change Champion Network

Drive ongoing communication, feedback – two-way conversations

Address “how does this impact me?”

Celebrate progress and control issues

Key Steps and

Considerations

Paint a compelling visionof the future

Communicate the vision (often)

Source: Based on the work from our OCM consulting partner

Apply a Structured Change Management Approach to Accelerate Your Cloud Transformation

5. Enable Capacity

6. Make It Stick

This is how we make it happen!Are we where we want to be?

Ensure successful transition to cloud

Align IT org structure, roles, processes with AWS platform

Ensure all IT staff/key stakeholders can operate in new environment

Ensure Cloud benefits and objectives are achieved

Identify change impacts to IT roles, policy, org structure, process, etc.

Modify IT roles, org structure, job descriptions and processes(if needed) to support AWS

Align IT staff to new operating model

Develop and implement targeted training

Setup measurement structures

Measure and evaluate outcomes

Course correct where needed

Key Steps and

Considerations

Source: Based on the work from our OCM consulting partner

Institutionalize new approaches

Lasting change requires alignment with sharedcompany culture and values

Consider all aspects of your operating model

Best Practice: Define Your Desired Operating Models

Realize your operating model(s) will change and be intentional about where

your organization wants to land.

Most companies will have multiple operating models.

Operating Model Evolution:

OpsDesign

Cloud Engineering

Dev Team / COTS

Infra

Apps

OpsDesign

DevOps

Cloud Engineering

Infra

Apps

MSP

MSP

Best Practice: Evolution of RolesEarly in Your Journey, Define How IT Roles and Duties Will Evolve

Duties Cloud Infrastructure Role Application Role

Design/validate/expand solution-independent architectures and requirements

Cloud Enterprise Architect Cloud Enterprise Architect

Design/validate/expand solution-dependent architectures and requirements

Cloud Infrastructure Architect Cloud Application Architect

Build the infrastructure/application Cloud Operations Engineer Application Developer

Specify security requirements Cloud Security Architect Cloud Security Architect

Manage, monitor, and enforce security Security Operations Security Operations

Build and manage fast and scalable workflows DevOps Engineer DevOps Engineer

Design and build automation solutions DevOps Engineer DevOps Engineer

Perform cost coding and cost optimization Financial Manager Financial Manager

Manage operational teams Program Manager Program Manager

© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Thank You!

© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

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