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Organizational Change Management Strategies
Rebecca Potts
OCM EngagementPrincipal
Organizational Landscape
• What are the organizational changes you are facing currently?– Expansion? Restructuring? M&A? – Regulatory Compliance/SOX– Technology roll out– Others?
• How do you manage change today? Challenges and opportunities?
• Do you integrate change management and training?• What are the organizational challenges
and changes you are expecting?
Challenges all CompaniesUnderstand…
Measuring performanceChanging Business Models
Extracting value through process improvement Lowering costs through standardizing processes
Further reducing cost and complexity of Total Cost of OwnershipAccurate / accessible data to make better business decisionsLeveraging best practices to avoid mistakes of the past
Companies around the globe set goals and create strategic initiatives to address and mitigate risk. The fact is,
three out of four corporate initiatives fail to fulfill their objectives*
*Source: PwC Mori Survey, % of 500 companies
Organizations want to improve their business and maximize their success by…
Source: Deloitte Consulting and 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
Reporting
Issu
es/O
bsta
cles
Unt
il N
ow
Top Issues Organizations Face During [Initiatives]
Change & Risk Mgmt Imperatives
Directly related to Orgn Change Mgmt & Training
Value Realization: Change Management Impacts
Leadership & Change Management Influence Success
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
Our activities focus on enabling individuals and the organization to adopt change
Adapted from.Lewin, ‘Organizational Change’
The Adoption Curve
Scale of change
Scale of Change
Communications
People Transition Planning
Perf Mgmt/Incentives & Rewards Alignment
Skills & Competencies Alignment
Leadership and Sponsorship Alignment
Assessment/Monitoring/Measurement
Job/Organization Alignment
Minor changes
Smallchange to
role
Large change to
Role
Complexnew job
processes
Email or Briefing DocumentsQuick Reference Cards
Computer Based Training
Virtual Classroom/VideoConferencing
Instructor Led Training
New role
Project Team Training
Levers for Change
Organizational change management has the capacity toleverage positive change
All of the following levers are active in an organization at all times, influencing each lever provides momentum to shift culture
Leadership and SponsorshipDevelop a culture of change leadership that aims at building commitment through accountability, role clarity and executive development.
Skills and CompetenciesIncorporate competency assessment and tracking into professional development for all employees. Learning, training, and succession planning are all incorporated.
Organizational Design and StructureAlign business and process metrics with process roles and management structures.
CommunicationsEnable change through frequent and factual information flow, clear roles and responsibilities, benefits, and rewards.
Governance and ComplianceClearly assigns roles and responsibilities and creates a culture of compliance based on consequences for a small, defined set of standards.
Performance Management SystemEstablish and then measure individual performance ensuring alignment with enterprise strategies, goals and objectives.
Incentives and RewardsProvide bonuses, promotions and compensation that is in concert with good performance and client successes.
Hiring and Selection Placement (such as retrain or hire; grow organically or acquire) that ensures individuals’ possess the right Skills and Competencies at the right time resulting in program success.
Upgrades: Change Management Impacts
Scenario: Technical Upgrade
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
Smallchange to
role
Large change to
Role
Complexnew job
processes
Email or Briefing DocumentsQuick Reference Cards
Computer Based Training
Virtual Classroom/VideoConferencing
Instructor Led Training
New role
Project Team Training
Example: Technical upgrade from 4.7 to SAP ERP – no new functionality included
Scenario: Technical Upgrade
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
Smallchange to
role
Large change to
Role
Complexnew job
processes
Email or Briefing DocumentsQuick Reference Cards
Computer Based Training
Virtual Classroom/VideoConferencing
Instructor Led Training
New role
Project Team Training
Example: Technical upgrade from 4.0b to SAP ERP – new user interface and requires some process redefinition
Scenario: SAP Module Implementation
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
Smallchange to
role
Large change to
Role
Complexnew job
processes
Email or Briefing DocumentsQuick Reference Cards
Computer Based Training
Virtual Classroom/VideoConferencing
Instructor Led Training
New role
Project Team Training
Example: Syndications implementation
Stakeholder Engagement Influences Success
Without businessowner involvement
With businessowner involvement
37%, 18 Companies
63%, 30 Companies
% of projects that met financial expectations
Common Services: Change Management Impacts
User Engagement & UpskillingInfluences Success
% of companies with Key/Power User programs in place % of companies aligned by
business process
Change Management Summary
• Best Practice evaluations are a tool to gauge and assess your organization’s level of process maturity compared to other organizations
• Value Realization: Leadership and change management are critical enablers for attaining value of projects
• CoE: COE models that are formed with greater business participation (IT and business alignment) address continuous improvement activities asidentified in the business case; Key/Power user programs drive to better system acceptance
• Upgrades: 82% of participants view lack of education around functional deltas between releases was cited as a key challenge in an upgrade
• Shared Services: Top performers follow invest more in implementation plan, change management and securing executive commitment, acknowledging key risks of a Shared Services implementation
Risk Management
Strategic Organizational Alignment
Project-Level Organizational Change
Leadership and Sponsorship Skills and CompetenciesOrganizational Design & Structure Governance and Compliance
Performance Management Incentives and RewardsHiring and Selection Communication
Communications Leadership & Stakeholder Alignment Business Readiness Organization/Work Design Training & Support
Corporate Strategies Lead Change
BusinessDrivers
ImprovementFocus
PeopleProcess
TechnologyOCM Mitigates Risk and Advances Success
Recognize Prioritize Mobilize Monitor &Improve
Q&AKerry Brown
National Practice LeadOrganizational Change Management
O 404-541-0625M 404-519-0738
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