managing a major organizational change
DESCRIPTION
Presentation at Academy of Management / MCD Conference in Amsterdam, The Netherlands.TRANSCRIPT
Managing a major organizational change: Lessons learned about coping with homogeneous internal teams and
globally diverse external partners.
Dr. Joseph B. Baugh, PMPBaugh Group LTDCapella University
Academy of ManagementManagement Consulting Division - 2011
5th International ConferenceVU University, Amsterdam, the Netherlands
Dr. Joseph B. Baugh, PMP
• Program Manager/Project Manager• Consultant• Technical Trainer
– Project Management [PMP]– Information Security [CISSP, CISM]
• Faculty Member– Three learning institutions– Undergrad to doctoral courses– Multiple learning milieus
• Brick-and-mortar• Online• Hybrid
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 2
Agenda
• Planning for the project• Key project constraints• Developing the study• Lessons learned
– The survey– The interviews
• Conclusion– What did it all mean?
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam 3© 2011 Joseph B. Baugh
Project Rationale
• Literally hundreds of applications– Legacy systems across multiple platforms– Spreadsheets– Databases
• None were interconnected• Very inefficient• No one “trusted” the numbers• No real-time budget data• The time had come to changeManaging a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 4
Project Planning
• Examine business processes• Identify key internal resources [SMEs]• Develop Requests for Proposal [RFPs]
– ERP system software evaluations– Implementation partners
• Board Funding Approval• Project Implementation• Post-project activities
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 5
Key Project Constraints
• Time was the key constraint
• Aggressive timeline was driven by:– Fall Overhaul Schedule– Delay in Board Approval
• Resource Availability– Internal resources– External consultants
• Scope was not defined as well as originally thought
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 6
SCOPE COST
TIME
The Triple Constraints
Project Issues
• Schedule Driven Issues– Conflicting demands
• Resource contention– Structural Issues– Planning & Training
• Understanding Business Requirements• Geographical and Cultural Barriers• Diverse perceptions of results
– Led to the study described in the paper
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 7
Project Team Structure
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 8
Senior Management
Team
Boards of Directors
Project Steering Committee
Internal Project Manager
Functional Managers
ContractorsSubject Matter
ExpertsProject Support
Personnel
External Project Manager
Implementation Partner
ERP Vendor
Team Leads
Direct Report
Indirect Report
Other Communications
Bi-directional Comm.
Understanding Business Requirements
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 9
Direct ReportPeer-to-Peer
Report
Business Reporting Relationships
External EntitiesRegulatory Agencies
Utility Groups
GENCO TRANSCO SERVCO
Boards of DirectorsMember Cooperatives
Lessons Learned: The Survey
• Qualitative survey of project stakeholders• QDAS analysis yielded eight primary
themes– Pre-project preparation– Resource availability– Setting expectations– Organizing the project– Communications– Testing– Training– Post-project issues
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 10
Pre-Project Preparations
• Fully understand internal business processes before trying to explain them to contractors
• Review & redefine business processes early on to flesh out RFP
• Bring in consultants, if necessary, to develop a more complete RFP specification
• Don’t assume that anything is included in scope unless it is explicitly identified in the RFP
• Identify & send client team members to ERP training prior to project start
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 11
Resource Availability
• Identify internal team members early• Functional managers must support
resource commitment to the project• Backfill for critical internal resources• Interview individual consultants to
ensure appropriate experience levels• Check references & experience• Don’t let vendor “bait-&-switch”
consultantsManaging a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 12
Setting Expectations
• Set a reasonable timeline, 8 months is very aggressive for a complex project
• Don’t let salesmen dictate timelines• Manage senior management & user
expectations from the start• Don’t start project immediately after funding
approval, take time to interview & approve consultants
• Have key business unit owners & employees sign off on their contributions, such as user acceptance testing
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 13
Organizing the Project
• Authorize one Project Manager to run the project – Better responsibility & accountability
• Break up large modules into two or more teams• Don’t let consultants control the project plan,
create one that works for the organization• Follow a sound software development
methodology• Co-locate the project team• Ensure that project team members are
dedicated to the project
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 14
Communications
• Go beyond status reports– Develop & implement a full communications
plan• Ensure that the team leads and their
Contractors are talking• Share information across teams via periodic
meetings• Resolve conflicts & personnel issues early• Share information with all employees
– Regular internal communications– Company intranet site
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 15
Testing
• Test, test, test, then test some more• Convert legacy data first
– Enhances unit testing as new module configurations are finalized
• Test valid data with appropriate roles & authorizations
• Complete and approve integration testing BEFORE Go-Live
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 16
Training
• Establish a dedicated training team• Identify training needs early on• Input valid data & configurations into
training environment as soon as possible
• Train employees on the new system as soon as possible– Raise satisfaction levels– Raise user comfort levels– Manage user expectationsManaging a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 17
Post-Project Issues
• Include post-project support as part of implementation RFP
• Identify post-project training needs as part of the project plan
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 18
Lessons Learned: The Interviews
• Purposeful sampling of key project personnel
• The interview protocol– Looking behind
• What worked well?• What didn’t work well?
– Looking ahead • What to try on a future project?
• QDAS analysis identified the top five tactics in each category
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 19
What Worked Well?
• Daily standup status reports by team leads
• Central location for project team• Using collaborative software• Conference and video calls• Timely examination of scope
– Plan revision
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 20
What Didn’t Work Well?
• Ill-defined business requirements• Attendance at project team meetings• Organizational structure of project
staff• Reporting on deliverables• ERP specific training for project team
members
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 21
What to Try on Future Project?
• Gain earlier full support from senior management
• Make IT personnel part of the project team– Provide IT with user support training early
• Require key stakeholders to attend major project team meetings
• Manage the action items better in team meetings
• Provide better training for all stakeholders including the users
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam © 2011 Joseph B. Baugh 22
Conclusion
• The project team overcame many concerns to meet an aggressive timeline and complete the project for the Fall Overhaul
• Diverse perceptions of project success led to the study to find lessons learned related to planning, preparation, communications, and implementation
• Lessons learned came from two primary sets of sources: Surveys & Interviews
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam 23© 2011 Joseph B. Baugh
Conclusion
• Management consultants can apply the lessons learned to assist their clients with: – Defining initial problems– Seeking effective solutions– Supporting development of RFPs– Influencing Senior Management & Boards of
Directors– Educating clients on roles & responsibilities
in successful organizational change initiatives
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam 24© 2011 Joseph B. Baugh
Questions
Managing a Change Initiative: MCD 2011 5th International Conference - Amsterdam 25© 2011 Joseph B. Baugh
drjoe(at)baughgroup.com