Managing Change While Maintaining Continuity

Richard P. WestExecutive Vice Chancellor/CFO

EDUCAUSEChicago, IL

May 25, 2006

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Managing Change While Maintaining Continuity

could just as easily be about

Managing Continuity While Maintaining Change

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Why Change? “If universities were held up to accepted business

standards, most would be considered grossly mismanaged”

Higher education is a service industry ripe for change– High cost increases and fewer dollars

– Low productivity

– Increased competition Also, change just happens – it is a constant!

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Change and Continuity Constant tension between change forces and continuity

forces Balance between stability and innovation Average client or employee wants stability

– while managers strive to achieve consistency and predictability

High demand “power users” want more flexibility, functionality and engagement

– managers need to continuously improve the organization’s services, knowledge and skills

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The Challenge The need to recognize that change is constant in

an organization’s service environment Organization is constantly changing due to

employee turnover, employee skills development, experiences and knowledge gained

Some level of continuity is essential for both the organization and individuals

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Change and Continuity – Part II

Both clients and employees are constantly changing– Never ending turnover requires retraining all the time, but

also gives the opportunity of new ideas with new employees

– Employees gain experience each day and develop skills if they are properly motivated

– Professional development investments in people

– Potential of employee’s better understanding and acculturation with the organization’s mission and goals

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The Learning Curve Organizations have learning curves Individuals, collectively, are the organization Individual learning, cumulatively, is organizational

learning As the mix of people and their experiences and

skills are changing, the learning curve in an organization is constantly in flux

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Elements for Organizational Learning New skills, attitudes, values and behaviors

acquired over time What is learned becomes the property of some

collective unit What is learned remains within the organization

even if individuals leave

DeBella and Nevis, 1998

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Getting Comfortable with Change Grounded in learning for the individual

– What does any change mean for the employee

– What does any change mean for the employee’s work processes

– What does any change mean for the individual’s work unit

Predictability and continuity always important for employees

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Recognizing Differences Fast or slower Role in the organization Generational styles

– Traditionalist = evolution, not revolution

– Boomers = how they can make an impact

– Gen X = autonomy and honest feedback

– Millennials = coaching and collaboration Time spent “up front” on learning will reduce on-going

individual and organizational dysfunction later

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Organizational Strategies

to Manage Change, Yet

Maintain Continuity

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Change Response Strategies

Quality Improvement (QI) philosophy

DevelopAction Plans,

Productivity Proposals

Process Review

Implement Proposals

Reporting and

Measurement

IdentifyImprovement

Targets

Rewards &Recognition

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Improving Service through Changing Technology Total Cost of Ownership in ERP

TT == CC == OO

“TCO is an attempt to quantify the life-cycle financial impact of deploying information

technology in an institution.”

T = (T = (CC11 + C + C22 + C + C3 3 + C+ C44 +C +C55…C…CNN) = O) = O

Gartner Group“TCO A Critical Tool for Managing IT”Bill Redman, et al

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TCO in ERP: Life-Cycle Costs

Time

Operate and Maintain Replace

Co

sts

Acquire and Implement

Total Life-Cycle Costs

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Applying TCO: Life-Cycle & Generations

Personnel & Support………..annual Software…………………….1 – 3 years Hardware……………………2 – 5 years Wiring………………………5 – 15 years Physical Plant………………30+ years

CAUSE/EFFECT “Departmental Budgeting for Information Technology”John L. Oberlin

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Applying TCO:Best Practices/Benchmarking

“Best practices for total cost of ownership (TCO) are based on proper deployment of technology, and

integrated with process and management practices.”

Gartner Group“TCO Best Practices Amplify IT Cost Reductions" Michael O’Connell

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Services & Technology:The ERP Infrastructure

ERP strategy has to be an improvement of services strategy

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Organization-wide Strategy to Communicate with Employees & to Encourage Change The Balanced Scorecard

– Employee climate surveys and acting on results

– Customer satisfaction surveys and acting on results

– Benchmarking

– Seeking out best practice opportunities Most consistent response from climate surveys is need

for communication and opportunity for improvement in skills

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Employee Communication Communication strategy

– Constant

– Integrated into the whole organization

– Highly visible

– Recognizes generational differences

– Provides opportunities for discussion and learning

– Articulates the vision

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Leadership Responsibilities Listen, reflect, learn and adapt Be a role model Provide for professional development Use teams Make sure everyone practices what the

organization preaches

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The End Game

It’s all about investing in peopleand they are constantly changing.

So you do, too!

www.calstate.edu