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OCM Overview

An overview of the value and definition of organization change management

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OCM Overview

  1. 1. Organization Change Management (OCM) Driving Business Value and Leveraging Change as an Asset
  2. 2. Agenda <ul><li>What is Organization Change Management (OCM)? </li></ul><ul><li>Value of OCM/Training for Project Success </li></ul><ul><li>IT OCM Methodology </li></ul>
  3. 3. <ul><li>What is Organization Change Management (OCM)? </li></ul>
  4. 4. What is Organization Change Management? <ul><li>A systematic process that mitigates risks and leverages change as a resource for project success </li></ul><ul><li>It is an actionable , process-driven effort with work streams of activities and tasks </li></ul><ul><li>Includes training as a primary work stream as well as a tool set </li></ul><ul><li>It has templates, forms, checklists and quality measurements that drive the OCM process </li></ul>
  5. 5. Levels and Types of Change Management Project Change Management Organization Change Management Change Control Board <ul><li>Addresses changes in cost, budget and schedule at project level </li></ul><ul><li>A change large enough to impact a baseline (approved) Project Management Plan (scope of deliverables), Schedule or RAM </li></ul><ul><li>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 </li></ul><ul><li>Manages leadership engagement, end user adoption and project team effectiveness challenges </li></ul><ul><li>Develops project team member, super user and end user capabilities </li></ul><ul><li>Ensures business readiness using effective communications and training. </li></ul><ul><li>Manages the impact of technology changes to the landscape and architecture. </li></ul><ul><li>Analyzes change request and its impact </li></ul><ul><li>Identifies degree of impact and provides consulting support on recommended options. </li></ul>Project People Technology
  6. 6. <ul><li>The Value of OCM/Training </li></ul>
  7. 7. Change, Training, and Risk Management Imperatives 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% 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
  8. 8. OCM Benefits for Large Projects 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? 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 <ul><li>Project manager, program manager, steering committee </li></ul><ul><li>47% manufacturing, 53% services </li></ul><ul><li>Mostly SAP R/3 implementations (FI/CO, MM, PP, SD, HR) </li></ul><ul><li>65% supported their projects with OCM proactively </li></ul>
  9. 9. <ul><li>OCM Methodology </li></ul>
  10. 10. OCM/Training Methodology Develop Deploy Design Idea Stakeholder Management and Engagement Planning Comm Planning 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 Organization Change Management (OCM) and Training Scan Develop Implement Design Plan Analyze OCM/Training Team Building and Performance Business and Site Readiness Review Project/Business Team Training Development and Delivery Deployment Site Readiness Preparation OCM Work Streams
  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 CHANGE MANAGEMENT END USER TRAINING
  12. 12. OCM Fast Track Option Organization Change Management Process Stakeholder Management 1 Business Team Development 2 Communications Planning 3 Process Impact Analysis 4 Business Readiness 5 End User Training 6 Idea Define Design Develop Deploy Project Life Cycle Stage Gate Methodology OCM Work Streams
  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. OCM/Training Scan Sample Report Dashboard OCM/Training Engagement Process 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) PM Meeting OCM/Training Scan Executive Report
  15. 15. Summary <ul><li>Organization Change Management (OCM) is an important project leadership accountability and critical to project success. </li></ul><ul><li>OCM has key deliverables and requires adequate resources to accomplish them. </li></ul><ul><li>The level of OCM effort depends on the scope, deadlines, criticality and complexity of the project. </li></ul>

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An overview of the value and definition of organization change management


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