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1
Organization Change
Management (OCM)
Driving Business Value and Leveraging
Change as an Asset
Fred Asher, Ph.D.
fred.ash...
2
Agenda
 What is Organization Change
Management (OCM)?
 Value of OCM/Training for Project
Success
 IT OCM Methodology
3
What is Organization ChangeWhat is Organization Change
Management (OCM)?Management (OCM)?
4
What is Organization Change
Management?
 A systematic process that mitigates risks and
leverages change as a resource f...
5
Levels and Types of Change
Management
Project Change
Management
Project Change
Management
Organization Change
Management...
6
The Value of OCM/TrainingThe Value of OCM/Training
7
Source: Deloitte Consulting and Benchmarking Partners (Based on a study of 62 companies that have gone live with an ERP ...
8
Customers view Change Management as a strategic success factor for a SAP project
“What impact did Change
Management have...
9
OCM MethodologyOCM Methodology
10
OCM/Training Methodology
Develop
Develop
Deploy
Deploy
Design
Design
Idea
Idea
Stakeholder Management and
Engagement Pl...
11
Add Stages for Level of Project Complexity
Scale of Change
Communications
People Transition Planning (Business Readines...
12
OCM Fast Track Option
Organization Change Management ProcessOrganization Change Management Process
Stakeholder
Manageme...
13
OCM Tool Kit Deliverables
Deliverables Description
1
Stakeholder Management
and Engagement Plan
Identifies most importa...
14
Stakeholder Engagement
Need greater clarity for business/HR
Leaders’ role to direct and support project
efforts and exp...
15
Summary

Organization Change Management (OCM) is anOrganization Change Management (OCM) is an
important project leader...
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SAP Organization Change Management

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SAP Organization Change Management

  1. 1. 1 Organization Change Management (OCM) Driving Business Value and Leveraging Change as an Asset Fred Asher, Ph.D. fred.asher@yahoo.com
  2. 2. 2 Agenda  What is Organization Change Management (OCM)?  Value of OCM/Training for Project Success  IT OCM Methodology
  3. 3. 3 What is Organization ChangeWhat is Organization Change Management (OCM)?Management (OCM)?
  4. 4. 4 What is Organization Change Management?  A systematic process that mitigates risks and leverages change as a resource for project success  It is an actionable, process-driven effort with work streams of activities and tasks  Includes training as a primary work stream as well as a tool set  It has templates, forms, checklists and quality measurements that drive the OCM process
  5. 5. 5 Levels and Types of Change Management Project Change Management Project Change Management Organization Change Management Organization Change Management Change Control Board Change Control Board • Addresses changes in cost, budget and schedule at project level • A change large enough to impact a baseline (approved) Project Management Plan (scope of deliverables), Schedule or RAM • Changes to the project that impacts baseline requirement or specification documents to be updated for quality but not enough to impact time and/or cost • Manages leadership engagement, end user adoption and project team effectiveness challenges • Develops project team member, super user and end user capabilities • Ensures business readiness using effective communications and training. • Manages the impact of technology changes to the landscape and architecture. • Analyzes change request and its impact • Identifies degree of impact and provides consulting support on recommended options. Project PeopleTechnology
  6. 6. 6 The Value of OCM/TrainingThe Value of OCM/Training
  7. 7. 7 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%PEOPLE 62% PROCESS 16% TECHNOLOGY 9% KNOWLEDGE ASSETS 3% Change Management Internal Staff Adequacy Project Team Training Prioritization/Resource Allocation Top Management Support Consultants Ownership (of benefits to others) Discipline Program Management Process Reengineering Stage/Transition Benefit Realization Software Functionality Application Portfolio Management Enhancements/Upgrades Data Reporting Top Issues Organizations Face During Enterprise Resource Planning Change, Training, and Risk Management Imperatives
  8. 8. 8 Customers view Change Management as a strategic success factor for a SAP project “What impact did Change Management have on the success of your last project? OCM Benefits for Large Projects 210 organizations involved “Change Management online survey, May 2004” (Cooperation of SAP Business Consulting, DSAG e.V., University of Mannheim) 79% say that Change Management had a high or very high impact on the success of their project?“ 28% 51% 17% 4% 0% Very high Very low  Project manager, program manager, steering committee  47% manufacturing, 53% services  Mostly SAP R/3 implementations (FI/CO, MM, PP, SD, HR)  65% supported their projects with OCM proactively
  9. 9. 9 OCM MethodologyOCM Methodology
  10. 10. 10 OCM/Training Methodology Develop Develop Deploy Deploy Design Design Idea Idea Stakeholder Management and Engagement Planning Comm Planning Define Define Process Impact Analysis and Action Plan Comm. Development Super User and Change Agent Strategy End User Role Mapping Communications Execution Site Mgt and Roll Out Leadership and Stakeholders Communications Business Readiness Business Process and Organization Work Design Team Effectiveness End User Training Development Training Logistics and Delivery Training and Enablement Business Team Development and Induction PM Process OrganizationChangeManagement(OCM)andTrainingScan Develop Develop Implement Implement Design Design Plan Plan Analyze Analyze OCM/Training Team Building and Performance Business and Site Readiness Review Project/Business Team Training Development and Delivery Deployment Site Readiness Preparation OCMWorkStreams
  11. 11. 11 Add Stages for Level of Project Complexity Scale of Change Communications People Transition Planning (Business Readiness) Perf Mgmt/Incentives & Rewards Alignment Skills & Competencies Alignment (Project Team/Leaders) Leadership and Sponsorship Alignment (Stakeholder Engagement) Assessment/Monitoring/Measurement (OCM Scan) Job/Organization Alignment (Business Impact and Role Mapping) Minor changes Small change to role Large change to Role Complex new job processes Briefing Documents Quick Reference Cards / Work Instruction On-line / Self Paced Training Webinar Training Instructor Led Training New role Project Team Training CHANGEMANAGEMENTENDUSERTRAINING
  12. 12. 12 OCM Fast Track Option Organization Change Management ProcessOrganization Change Management Process Stakeholder Management Stakeholder Management 11 Business Team Development Business Team Development22 Communications Planning Communications Planning 33 Process Impact Analysis Process Impact Analysis 44 Business Readiness Business Readiness 55 End User Training End User Training 66 IdeaIdea DefineDefine DesignDesign DevelopDevelop DeployDeploy Project Life Cycle Stage Gate MethodologyProject Life Cycle Stage Gate Methodology OCM Work Streams OCM Work Streams
  13. 13. 13 OCM Tool Kit Deliverables Deliverables Description 1 Stakeholder Management and Engagement Plan Identifies most important stakeholders and their needs. Includes engagement options and monitoring plan. 2 Business Team Development Plan Provides on boarding, training, development, and engagement activities for business project team members, business leaders, Business Process Owners (BPOs), Subject Matter Experts (SMEs) and Super Users. 3 Communications Plan and Schedule Identifies required project, business and functional communications requirements. Includes schedule of communications releases 4 Business Process Impact Analysis and Action Plan Detailed analysis of the business impact to include end user role mapping, functional communications requirements, and others. Provides list of recommended actions for HR, project team, business and OCM. 5 Business and Site Readiness Assessment with Recommendations and Schedule Identifies requirements to prepare the business and sites for implementing the change. Provides a report on findings with project, business, HR and OCM recommendations, action items and schedules. 6 Training Needs Assessment and Delivery Plan with Schedule Evaluation of training needs for the project team and end users. Includes training development and delivery plan with schedule.
  14. 14. 14 Stakeholder Engagement Need greater clarity for business/HR Leaders’ role to direct and support project efforts and expected changes. Business Readiness Develop more detailed plans at local level for plant leadership Business Team Development Ensure teams understand the escalation process and clarify roles and responsibilities. End User Training Redesign training curriculum and better align with the new business processes. Communication Upgrade approach as comm has been limited and inconsistent regarding project initiatives, specifically SAP Merchandising. Process Impact Management Clarify process maps, identify roles and responsibilities changes. (Organization Work Design) OCM/Training Scan Sample Report Dashboard OCM/Training Engagement Process PM MeetingPM Meeting OCM/Training Scan OCM/Training Scan Executive Report Executive Report
  15. 15. 15 Summary  Organization Change Management (OCM) is anOrganization Change Management (OCM) is an important project leadership accountability andimportant project leadership accountability and critical to project success.critical to project success.  OCM has key deliverables and requiresOCM has key deliverables and requires adequate resources to accomplish them.adequate resources to accomplish them.  The level of OCM effort depends on the scope,The level of OCM effort depends on the scope, deadlines, criticality and complexity of thedeadlines, criticality and complexity of the project.project.

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