Pam WatersChange Management Team LeaderDTI – State of Delaware

ERP Change Management

Getting from Here to There

Delaware’s ERP Background

• State of Delaware• 67 Organizations

• 35 State Agencies

• 19 School Districts

• 13 Charter Schools

• 38,000 Employees

• 12 Unions Represented• 37 Different Locals

ERP Systems In Progress ERP Systems In Progress ImplementedImplemented

PeopleSoft HCM V 8.8PeopleSoft HCM V 8.8

(HR/Benefits/Payroll)(HR/Benefits/Payroll)

XX

eBenefitseBenefits XX

eRecruiteRecruit XX

Time & Labor V 8.8Time & Labor V 8.8 XX

PeopleSoft Financials V?PeopleSoft Financials V? XX

State of DelawareERP Systems

• 1990’s — Various False Starts• July 1999

• PeopleSoft Human Resource Version 6.02 implemented • Benefits Administration & Payroll —

Unsuccessful• Rolled back to Mainframe Legacy System

1990’s

August 1999 – February 2000

• Project managed by consultants

• Low team morale

• Multiple project plans to ‘fit’ budget

• Production support for Human Resources

• Chain of command – multiple reporting structure

March – December 2000

• Became a ‘state – managed’ project

• Acquired additional state resources

• Rearranged project team• Added full time Change Management team

• Single reporting structure

December 2000 – July 2001

• Change Management Team formed• Strategy developed• Prepared (readied) State Organizations• End-User training (1300)

• Successful HR (V6.02 to 7.51) Upgrade & Benefits/Payroll implementation

• 42% Leadership

• 27% Organizational & Cultural Issues

• 23% People Issues

• 4% Technology Issues

• 4% Other

• Organizational issues left unchecked often lead to project failure

Why ERP Implementations Fail

Source: Organization Dynamics, Jim Markowsky

ERP Lessons Learned

• High – level commitment

• Acquire “Best of the Best” state resources

• Avoid modifications – re-engineer 1st

• Visionary Change Management

• Production support project plan

State Agency Transformation

• Senate Bill 215 established new agency• The Department of Technology &

Information

• Office of Major Projects • Chief Program Officer

• Project Management Team

• Change Management Team

What is Change Management?

• Definition• The organized, systematic application of

knowledge, tools, and resources of change that provide organizations with a key process to achieve their business strategy

• Goal• Provide the structure & guidance necessary

to effectively prepare organizations for the successful acceptance of cultural change

Change Management Objectives

• Provide awareness

• Ensure understanding

• Facilitate acceptance

• Care, listen, and respond

• Manage people’s expectations

• Ensure readiness

• Champion the project

Risk and Flight Model

Turnover of valued employeesTangible customer impactActive resistance

Comfort / security

Worry / uncertainty

Risk / flight

Productivity lossEmployee dissatisfactionPassive resistance

Normal work environment

time

degree

1st communication or1st rumor

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© ProsciSource: Change Management Learning Center

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ce Turnover of valued employees

Tangible customer impactActive resistance

Comfort / security

Worry / uncertainty

Risk / flight

Productivity lossEmployee dissatisfactionPassive resistance

Normal work environment

1st communication or1st rumor

Poor change management

Excellent change management

Time

© Prosci

The Goal of Change Management

Source: Change Management Learning Center

Greatest Success Factors

• Active and visible sponsorship

• Use of Change Management process & tools

• Effective communications

• Employee involvement

• Effective project leadership and planning

Source: Prosci Benchmarking Report

Greatest Obstacles

• Resistance from employees and managers

• Inadequate senior management sponsorship

• Cultural barriers

• Lack of change management expertise

Source: Prosci Benchmarking Report

Successful Change

SuccessfulChangePost Implementation

Implementation

Concept & Design

Business Need

DesireAwareness Knowledge Ability Reinforcement

BU

Y -

IN

INVOLVEMENTFrom ©Prosc Change Management Learning Center

Change Management Standards• Prepare with the project team

• Assess change/culture• Develop/educate team

• Manage the strategy• Develop and manage the plan• Track/report readiness• Develop training strategy

• Reinforce/Support• Celebrate success• Analyze feedback and prepare to manage resistance

Change Management Tools

• Scope of Change Assessment• Organizational Readiness Assessment• Stakeholder Analysis• Sponsor Roadmap• DTI Readiness Methodology

• Communication Standards• Reporting/tracking standards• Control Book

• Measures of Success/Lessons Learned

DTI Readiness Methodology

All Project Teams

INPUT

Functional Impacts

Successful System Implementation

End Users

Readiness Checklist

Master Readiness Tracking Spreadsheet

Functional Impacts Documentation

Tracking Station

Implementation Success Factors

SourceUnderstanding PeopleSoft 8Lynn Anderson, Cap Gemini Ernst & Young

Continuous Improvement

• Change Competency• Linked to project management processes

• Start at the beginning

• Required for all ERP projects

• Systematic Change Management processes• Defined methodology

• Consistent tools

• Greater Capacity for Change

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