human resources leadership meeting february 11, 2005 building the human resources and payroll...
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Human Resources Leadership Meeting
February 11, 2005
Building the Human Resources and Payroll Environment for the Next Generation of North Carolina State Government
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Welcome and Introductions
Human Resource Leadership HR Directors JADS Process Owners OSP HR Leaders
Project Team Linda Hudson Shannon MacFarlane Lowell Magee Bradd Craver Dorie Kehoe Edward Brodsky
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Agenda
Welcome, Introductions and Agenda
SBIP Program Background
HR/Payroll Project Overview
Vision Overview
Process Session Reviews NC Print Process Flows Process Requirements Process Summaries
Change Management/Communications
Questions
Action Items Review
Adjourn
4
Program History
•Session Law 2001-491 directed the Office of the State Controller (OSC) to determine the feasibility of developing and implementing a new business infrastructure for the State. The systems included in the State Business Infrastructure Study (SBIS) supported the following business functions: financial management, cash management, payroll, human resources, budget management, procurement, treasury, retirement, and revenue accounting.
•The study concluded that continued use of the current business systems may adversely impact the fiscal integrity of state government, as well as the efficiency and effectiveness of its operations. Therefore, the State decided upon a replacement strategy that carefully weighs the risks of potential system failures with the current State budget condition and State funding priorities. The strategy involves an extended implementation approach with the first focus on replacing the Human Resources and Payroll Systems. Ratified Senate Bill 991 appropriates funds to implement this strategy.
•Both summary and detail report information can be accessed on the SBIP Website which is located on the Office of State Controller web site: http://www.ncosc.net/SBIP/SBIP_Index.html
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Statewide Business Infrastructure Program (SBIP)
Legend: Current ProjectPast Projects Upcoming Projects
Past Projects Current Project Upcoming Projects Future Projects
Financial & HR Business Infrastructure Study Phase 1
Inventoried present systems and provided assessment of technical and functional capabilities
Financial & HR Business Infrastructure Study Phase 2
Provided a blueprint for viable implementation options and a recommended course of action
HR/Payroll Planning Project
•Identify process re-engineering and structure
• Develop integration strategy and risk analysis
• Develop business requirements
HR/Payroll Bid Preparation Project
• Develop bidding document for implementation
• Select Vendor for HR/Payroll Implementation
HR/Payroll Implementation Project
• Implementation
Statewide Business Infrastructure Project – Budget & Financials
Statewide Business Infrastructure Project – Tax & Revenue
SBIP Data Warehousing Planning Project
• Develop needs assessment
• Confirm Scope
• Develop implementation timeline and approach
• Develop business requirements
SBIP Data Warehousing Implementation Project
• Implementation
Future Projects
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HR/Payroll Project Overview
Planning Planning Implementation Begins
Implementation Begins
RFP Development
RFP Development
•Identify HR and Payroll business and functional requirements
•Develop business process flows
•Execute a formal bidding process.
•Confirm HR/ Payroll strategy for implementation
•Perform the implementation objectives for a new, fully automated HR/ Payroll system for the State of North Carolina
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High Level Project Timeline
HR – Group I
• Personnel Administration
• Recruitment• Applicant Tracking• Disciplinary Action and
Complaint Management• Incident and Accident
Tracking• Exit Interviews• Competency Based HR
Management• Performance
Management• Training Administration
HR – Group II
• Compensation Management
• Job and Salary Surveys
• Position Evaluation Analysis
• Benefit Administration
• Workforce Analytics• Organizational
Management• Employee Self
Service• Leave Tracking
Payroll
• Payroll Administration
• Payroll Processing• Labor Cost
Distribution• Time Collection &
Management• Budget Support
Technical
• High level technical requirements
• Security• Infrastructure• Integration
Plan ExecuteVision Close
• – Project Status Report– Final Deliverables– Offsite Working/Holiday
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
25 1 8 15 22 29 6 13 20 27 3 10 17 24 31 7 14 21 28 7 14 21 28 4 11 18 25
• • • • • • • • • • • • • • • • • • • • • • •
Group I
Group II
Payroll
Change Management
Technical
Date
Project Management
Month Dec
Project Week
Human Resources
Nov Jan Feb March Apr
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What are the current risks and why should we act now?
Risk of payroll system failure resulting in delayed payments to over 80,000 state employees
Retiring HR/payroll system support staff– Inability to maintain current systems due to retirement of system support staff– Limited resources with the knowledge required to maintain existing technology
Future labor market competition and an aging state workforce– Current recruitment and retention capabilities need to be improved to address
forecasted labor and skills shortages associated with retiring baby-boomers– Next generation of employees will demand online visibility to HR and payroll
details
State of North Carolina Employee Statistics
Implementation of new system will be a multi-year effort
– The risks associated with the current systems will increase each year until the outdated systems are replaced
North Carolina is lagging behind state and private sector systems and process trends
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HR/Payroll Project Vision and Goal
HR/Payroll Vision
A strategic business partnership supporting the human resource and payroll needs of State government, enabled by utilizing leading business practices and current technology
HR/Payroll Project Goal
Through a statewide collaborative effort, the goal of the HR/Payroll Project is to develop an enterprise-wide Human Resources/Payroll system utilizing leading industry practices to provide a foundation for effective management, increased efficiency, and the information needed to make timely and appropriate decisions
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HR/Payroll Project Guiding Principles
Create a seamless HR/Payroll experience for employees Provide an environment for employees to make informed decisions
about their careers and employment benefits Streamline business processes to drive efficiency Increase productivity and make the State of North Carolina more
competitive Develop a single repository, with a common set of data elements,
to successfully support the State’s reporting and management activities
Move transactions closer to the point of origin (Employee Self Service/Manager Self Service)
Provide a flexible system able to respond to changing HR/Payroll needs
Eliminate redundant systems and duplicative processing Provide real time access to transaction activity
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HR/Payroll Today
Transactional Focus Separate and Isolated from
Mission Fragmented data prohibits
meaningful reporting Manual, paper-intensive processes Processes and procedures vary by
agency Employees require assistance to
change personal data Inconsistent standards and forms
across agencies Duplicate entry of HR data into
multiple systems Fragmented data across agencies
makes statewide reporting difficult
Why Transform NC’s HR/Payroll?
HR/Payroll Tomorrow
Strategic Focus Key Part of Organizational Mission Consistent information enables
accurate enterprise reporting Automated, technology-enabled
processes Employees can manage selected
personal data Standardization of forms and
similar processes across agencies Single HR/Payroll system to reduce
data re-entry Consolidated HR/payroll database
across all agencies for better reporting
Business Process Reengineering
Technology Implementation
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HR Leadership Pain Points
What are the HR system and process issues that your agency is facing?
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JADSession
JADSession
IndustryBest PracticesProcess Designs
State of NCProcess Designs
• Review Process/Subprocesses• Identify Activities• Identify Opportunities
• HR/Payroll Business Requirements
• Future Processes• Business
Impact/Benefits• Potential Barriers• Performance
Measurements
• Project Vision• Scope• Industry Best Practices
JAD Session Objectives
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What is IndustryPrint™?
IndustryPrint™ is a tool used to represent a logical and sequential collection of best business practices in a graphic format. The three main symbols used in the graphic displays are:
Process: A group of activities in performed by an organization. Manage Human Resources is one of these processes
Subprocess: A subprocess is a segment of a core process that focuses on a single business area. For example: Train Workforce
Business Activity: A business activity is a breakdown of a subprocess that produces a measurable result. For example: Deliver Training
Manage Human Resources (HR)
ManageCompensation
(HR-070)
Maintain Classifications(HR-070-060)
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Why Do We Use IndustryPrint™ ?
Activities are arranged in activity flow diagrams
Components of the activityflow diagram include: • Activities• Decision points• Subprocess connectors
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HR-070 Manage Compensation and Classification
Document Employee Data
Change
Adjust Employee Payroll
Conduct Job and Salary Analysis
Plan and Budget Salary Changes
Approve Salary Plan and Budgets
Document Employment Salary Data
Changes
Notify Employees of
Salary Changes
Approve Employee Pay
Actions
Maintain Classifications
Prepare for and Administer
Annual Increases
HR-050Manage Recruiting, Hiring and Integration
Approve Employee Promotion/
Transfer/Status Change
Maintain Pay Policy, Plan and
Structure
HR-010Define Human Resource Strategy
HR-040Career and Succession Planning
HR-050Manage Recruiting, Hiring and Integration
HR-020Plan and Manage HR Programs and Plans
HR-080Maintain Benefits and Enrollment
HR-080Maintain Benefits and Enrollment
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HR Process Reviews
HR Process JADS Process Owners
Group 1
Career and Succession Planning Pam Frazier (Information Technology Services)
Manage Recruiting, Hiring, & Integration Helen Dickens (Department of Transportation)
Develop and Train Workforce Ann Cobb (Office of State Personnel)
Monitor Employee Health & Safety Mike Chapman (Office of State Personnel)
Manage Labor and Employee Relations Drake Maynard(Office of State Personnel)
Manage Employee Separation Betty Smith (Dept of Health and Human Services)
Group 2
Plan and Manage HR Programs and Plans Gary Fisher (Office of State Personnel)
Design and Maintain Organizational Structure Joe Stroup (Dept of Environment and Natural Resources)
Manage Compensation and Classification Duane Hinkle (Office of State Personnel)
Maintain Benefits Enrollment Pani Tademeti (Office of State Personnel)
Administer Benefits Pani Tademeti (Office of State Personnel)
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Career and Succession PlanningHR-040
Determine Key Skills and Attributes
Associated with Each Position
Assess Employee Skills and Attributes
Establish Career Plan
Determine Employee Training Needs
Assess Employee Development
Develop a Succession Plan
Determine Employee Development Needs
Develop Competency Model
HR-030Design and Maintain Organizational Structure
HR-020Plan and Manage HR Programs and Plans
HR-060Develop and Train Workforce
HR-070Manage Compensation and Classification
HR-050Manage Recruiting, Hiring and Integration
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JAD Session HighlightsCareer and Succession Planning
Process Overview Career planning is centered on developing
an employee's competencies, and helping to prepare an employee for the next steps in his/her career.
Succession Planning involves looking at future vacancies in the organization and identifying steps the organization can take to prepare. It can include looking to fill a specific future vacancy or identifying activities to mitigate a general loss of multiple key skill leadership positions.
Improvement Opportunities Conduct organized career and succession planning across the state A standardized and exhaustive list of skills that span across all
agencies A consolidated procedure and process throughout the State for
career and succession planning as it currently seems to be fragmented and informal
A statewide competency modeling effort rather than independent agency efforts
Potential Barriers Moving to competency based hierarchy will be difficult Allowing employees to enter their own skills may cause employees to
‘over-inflate’ skills when they are directly related to compensation level
High potential employees cannot be flagged and high performers cannot be groomed for a position due to legal limitations
Benefits Ability to identify individuals within the State who may be well suited to fill upcoming leadership gaps Allows employee to enter skills that are not related to a specific job, which will empower both employees and managers in
locating needed proficiencies Gives employees ownership of their careers and gives managers tools they did not have previously Positions the State as a competitive employer, particularly with the coming labor shortage Allows HR to function as it is truly intended Improves decisions on how to most effectively use a limited training budget Enables accountability on the use of training dollars
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Develop and Train WorkforceHR-060
Develop Individual Employee Training
Plan
Perform Employee Skill Assessment
Offer CoursesReceive Employee Enrollment Request
and Approvals
Enroll Employee in Training Course
Course Available and Minimum
Enrollment Achieved?
Manage Cancellations and Changes
Generate Course Confirmation Information
Deliver Course Materials
Deliver TrainingComplete Course/
Instructor Evaluation
No
Yes
Plan CoursesDevelop Training
Materials
Perform Follow-up Activities
Maintain Employee Training Record
P-010Develop Procurement Strategy
IT-070Support and Train Users
HR-040Career and Succession Planning
IT-070Support and Train Users
HR-020Plan and Manage HR Programs and Plans
HR-050Manage Recruiting, Hiring and Integration
D-010Develop Licensing, Permitting, and Accreditation Policies, Procedures, and Strategies
Develop Organizational Training Plan
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JAD Session HighlightsDevelop and Train Workforce
Process Overview The objective of this process is to
design and deliver training, education, and development programs to effectively improve skill levels to meet current or future business plans.
This includes: – assessing current skills inventory to
determine training and development requirements
– creating development plans to achieve or maintain desired skills and corresponding competency levels
Improvement Opportunities Employees directly view their training history and enroll in new
courses via ESS All internal training tracked in one consolidated system Mandatory courses can be standardized Pooling of trainers to teach standardized courses
Potential Barriers Access to a computer or high speed networks Supervisor’s fear of employees having too much independence Elected officials and political appointees may fear the loss of control
due to ESS/MSS
Benefits Improved decision making Comprehensive training record Real-time data Employees have direct access to manage their own
careers Training is linked with new competency-driven pieces
Good networking tool among agencies Better informed supervisors Opportunities for group purchase of training materials Training records automatically updated upon completion of
training
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Monitor Employee health and SafetyHR-120
Establish and Distribute Health and
Safety Guidelines
Receive Incident Calls/Complaints
Investigate Incident
Document Incident
Obtain Medical Care and Record Diagnosis
Is Employee Filing Claim?
Manage Employee Claim
File Claim with Provider
Identify Causes and Corrective Actions
Yes
No
Conduct Safety Inspections
Monitor Employee Health Restrictions and Rehabilitation
PlansHR-010Define Human Resource Strategy
HR-020Plan and Manage HR Programs and Plans
HR-020Plan and Manage HR Programs and Plans
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JAD Session HighlightsMonitor Employee Safety and Health
Process Overview Implement plans and practices that
ensure the organization consistently meets government reporting requirements related to health and safety
Track work related incidents and their outcomes
Develop incentives that promote a safe work environment
Improvement Opportunities Completing and approving forms via workflow Application of SIC and more discrete codes at the job level for
improved reporting Tracking the types of incidents across jobs as well as within an
agency
Potential Barriers All employees do not have access to computers Agreement on common data elements may be difficult Industrial commission makes frequent changes in requirements Need to determine who is going to pay for this going forward Security of system if all data is in one place DOT does not use the same Third Party Administrator that other
agencies use
Benefits Reduced clerical burden Focus on solving problems, rather than gathering
information Better able to measure the improvements with better
information Increased efficiency Cost savings through reduction in Worker’s
Compensation overpayments
More open communications between employees and
supervisors Cost savings from electronic transactions Save physical space with reduction in paper Managers more involved with safety through ESS Ability to flag salary continuation that the supervisor can turn
on and off
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Manage Labor and Employee RelationsHR-130
Receive Training on Labor Law
Manage Union to Non-Union Employee Communications
Manage Communication with
Employees
Negotiate Collective Bargaining Agreement
Monitor Adherence to Agreement
Requirement
Conduct Employee Surveys
Perform Performance Appraisals
Manage Relationship with Unions
Monitor/Resolve Grievances
HR-010Define Human Resource Strategy
HR-020Plan and Manage HR Programs and Plans
HR-020Plan and Manage HR Programs and Plans
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JAD Session HighlightsManage Employee Relations
Process Overview This process includes managing
communications with employees as well as monitoring and resolving grievances, disciplinary actions, and discrimination complaints.
It also includes activities around performance appraisals
Improvement Opportunities Consolidated data in one system Automatic notifications for follow up activities Make grievance policies more proactive Consolidated data should make it easier to identify trends
Potential Barriers Access to computers and other infrastructure issues Agencies currently have different processes People are resistant to change and will need extensive training Terminology differences Fear that data will be used to hold up progress, rather than for its
intended purpose Managers may not be ready for the accountability Employees may not trust their managers
Benefits The ability to spend more time on people activities and less time on administrative activities Better data should make it easier to identify trends Better business intelligence will be available Data is more readily available for decision making The ability to accomplish things at the lowest level Connect previously disjointed systems
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Manage Employee SeparationHR-140
Receive Separation Notice
Determine Type of Separation
Voluntary Separation?
Provide Counseling for Separated Employee
Collect Organization Property
Perform Exit InterviewDistribute Separation Benefit Information
Calculate Unused Leave and Final Pay
Separation Activities
Complete?
Perform Final Pay
Yes
No
No
Yes
HR-020Plan and Manage HR Programs and Plans
HR-110Pension Administration
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JAD Session HighlightsManage Employee Separation
Process Overview The objective of this process is to manage
voluntary and involuntary employee terminations, including performing exiting activities and recording separation data.
Activities may include collection of employer property, packaging of severance or other separation packages, and discontinuance of benefits
Improvement Opportunities Sending out an acknowledgement of separation with frequently asked
questions and benefits contact information When an employee is moving between agencies, handle the process
as a transfer rather than a separation Have a checklist for hiring and separation Workflow notifications to appropriate parties (security, fixed assets,
etc.) when an employee is separated
Potential Barriers Access to computers and computer literacy Different technology infrastructure at agencies Challenge to reach a consolidated decision on some issues Employees currently see the agency as the employer, rather than the
State of North Carolina as the employer
Benefits Ability to transfer between agencies and to take
employment “history” with employee Ability to report turnover on a state level with real time
information, leading to better workforce planning Ability for employees who have a leave of absence or are
rehired to keep historical information Better tracking of property should increase recovery from
separating employees
A system-generated separation letter should reduce
the number of follow-up questions and grievances and provide a better information trail
More transparent and less onerous for employees Automatic workflow notifications when someone
leaves so no step is forgotten Separating employees are left with a positive
experience
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Manage Recruiting, Hiring, and IntegrationHR-050
Analyze and Create Job/Position
Source Candidates Internally
Source Candidates Externally
Qualify and Select Candidates
Perform Psychological Profile/Drug Testing
Extend Offer and Manage Offer Process
Is Offer Accepted?
Document Offer Process and Lessons
Learned
Selection Process Appealed?
Address Inquiries and Complaints
Track Employee Data and Tax Withholding
Preferences
Perform Employee Orientation
Assign Property
No
Yes
No
Yes
Verify Employment
H-010Enroll Members and Set-up Accounts
Receive Candidate Decision (Acceptance/
Rejection)
HR-040Career and Succession Planning
M-020Identify Maintenance Structure
HR-020Plan and Manage HR Programs and Plans
HR-060Develop and Train Workforce
HR-070Manage Compensation and Classification
HR-080Maintain Benefits and Enrollment
HR-110Pension Administration
HR-010Define Human Resource Strategy
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JAD Session HighlightsManage Recruiting, Hiring and Integration
Process Overview Develop and implement processes,
systems and controls to ensure appropriate selection, hiring and placement of staff
Manage current and future position openings through effective processes in identifying best-qualified candidates
Manage the assimilation of new employees into the organization
Improvement Opportunities Create a single site to submit applications to any State agency Allow online application Provide automated screening of applicants Streamline workflow enabled position approval
Potential Barriers New terminology (jobs vs. positions vs. classifications) Access to computers Subject Matter Experts felt it would “be difficult to make changes in
the bureaucratic environment” Changes in laws, policies, and processes may affect the re-design of
system Hesitation to leave current system to new consolidated system
Benefits Less confusion for applicant More meaningful and useful reports Data entry process would be easier More data consistency More flexibility in making changes and corrections Self-service resulting in less paper work Improve image as an effective state government
More responsive and greater interoperability among
agencies State seen as more attractive and competitive employer Meeting expectations of younger generation Increased sharing of information between agencies Ability to attach documents to records (resume)
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Organizational Themes
SME feedback– Enthusiastic about the possibilities of a new solution– Supportive of common processes and standardization– Sessions have provided a good networking forum– Appreciative of the opportunity to provide input
Business Benefits– Reduced clerical burden– Increased efficiencies– Better decision making with better consolidated data– Reduction of various side systems
Potential Barriers to Success– Computer availability and technical infrastructure– Fear that data will be misinterpreted – data security– Acceptance of employee/manager self-service– Common change barriers– Training (system and process) and PC skills
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What is Change Management?
Change Management, as it pertains to projects like this, is primarily about: Building and sustaining a leadership coalition to guide successful project
completion Reducing long-term costs of the project Fully understanding and softening the impact of changes to affected
employees Ensuring that behavioral changes brought about by the project are “made
to stick” Bringing about higher organizational performance as a result of the project Reducing risks related to:
– Disruptions in productivity and customer service– Missing project time and budget targets– Misalignment of expectations
Metaphorically, Change Management is… The grease that makes the project (and the resulting new business
processes) run more smoothly, and The glue that gives the project a sustainable, valuable impact
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The Change Curve – change is difficult, but it can be managed
Bail Out?“This is not something I
want to be a part of.”
Key to Success: Reduce the duration of the trough, and accelerate the upslope via a well-planned and executed change management program.
Time
Uncertainty“What does this mean for me?”
Resistance“I can’t work with all of this uncertainty
and turmoil.”
Adaptation“This is hard, but we
can do it.”
Organizational Performance
Baseline
Commitment“This was the right thing to do.”
Withdrawal“I’ll do what is
necessary to survive.”
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Keys to success in Change Management programs
The keys to building and implementing a successful change management program include, among others: Develop and adhere to a set of guiding principles to drive your change
strategy Build and foster an extensive change network of leaders and employees
with clear roles in championing the case for change Understand your stakeholders, their interests, their needs, and their
motivations…and communicate with and involve them accordingly Communicate, communicate, communicate – develop a well-thought-out
communication plan and execute on it Develop and sell a compelling business case that works at multiple levels –
management, employees, and other stakeholders Empower all project team members with a full understanding of change
management and how they, as members of the “change team”, must promote the change strategy
Surface dissatisfaction and dissension and address it early
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Communicate for Buy-in
Empower Action
Create Short-term Wins
6644 55
Don’t Let Up
Make it Stick
77 88
Build the Guiding Team
Get the Right Vision
22 3311
5 Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press
Engaging and enablingEngaging and enablingthe whole organizationthe whole organization
Creating aCreating aclimate for changeclimate for change
ImplementingImplementingand sustainingand sustaining
changechange
Change Management Framework: The 8 Steps of Change
Increase Urgency
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HR Leadership Action Items
March 15, 2005 – Next HR Leaders Meeting Review JADs HR Group 1 Summary
– Submit comments to Gary Wiggins by 2/25/2005 at ([email protected])