Change Management Strategy

Introduction

This document is the North Carolina HR/Payroll Project Phase I Change Management Strategy

¾

The Change Management Strategy is intended to define an overall change management

approach that project sponsors, management, and team members should follow, including:

– A blueprint for change management activities required for the North Carolina HR/Payroll Project

– A guide to project leadership, the implementation team, the change management team, and the

broader “change network” of regional and agency project contacts

– Guidance on specific change management activities

¾

The Change Management Strategy is a living document that should be:

– Updated and expanded as the project progresses

– Followed by development of more detailed change management plans, approaches, work plans,

2

Contents

¾

The Importance of Change Management

– Scope of Change in North Carolina

– The Importance of Change Management on the HR/Payroll Project

– What is Change Management?

– Change Management Lessons Learned

¾

Change Management Strategy

– Vision, Objectives, and Success Measures

– Focus Areas of Change Management

– Change Management Roadmap

– Change Management Team

¾

Change Management Focus Areas

– Leadership Alignment

– Organizational Transition

– Communications

– Capability Transfer

– Project Team Effectiveness

– End User Training

¾

Next Steps for NC

– Phase I Change Management Activities

– Potential Phase II Change management Activities

– Change Management Roadmap

– Next Steps

The Scope of Change in North Carolina

The impact of the HR/Payroll Project on North Carolina government (its agencies,

managers, employees, business processes, etc.) will be significant, and the

challenges it presents should not be underestimated.

HR/ Payroll Transformation Project ¾ 8 payroll runs will be affected ¾ Over 10,000 new hires will

follow a new application and on-boarding process

¾ ~5,000 HR, Payroll, and support staff jobs will change in some form

¾ More than 65,000

employees will be affected via Employee Self Service

¾ Over 30 State agencies will be affected via:

ƒ Potential restructure of HR organization ƒ Shared applicant pool,

etc. ¾ All mid-level and

high-level managers will be affected via Manager Self Service

Major Impact

Significant Impact

¾ A new state-wide HR/Payroll system for every state agency ¾ 8 payroll business

processes (e.g. pay change, time entry) will change

4

Importance of Change Management on the HR/Payroll Project

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

The HR/Payroll Project will transform both the business processes and the technology by

which North Carolina agencies manage the human resources and payroll functions of their

organizations.

The project will affect virtually every state agency worker in some form or fashion.

¾

Business process redesign will result in state personnel experiencing changes to their

daily tasks and procedures, such as:

– Create a single employee record where data is entered into one system, one time

– Develop new procedures to transfer employees seamlessly between agencies

– Provide employees with the ability to change selected information via Employee Self Service

(ESS)

– Expand manager duties to include Manager Self Service (MSS)

– Transition Employee Benefits data ownership to Human Resources

– Standardization and streamlining of payroll processes, transactions procedures, and payroll

governance

¾

Organizational changes are also expected to result from the HR/Payroll project:

– Changed Roles and Responsibilities

• In many cases, some staff may be asked to take on entirely new roles • New positions will also likely be created and need to be filled

• In some cases, the project may require relatively significant organizational structure changes

¾

Process, Technology, and Data Ownership Changes

• Transitioning from a decentralized HR/Payroll environment to a more centralized and standardized structure will require changes to process and data ownership

• Some data standards will be defined at the state (rather than individual agency) level • Some agency specific processes and systems may be forced to go away or change

What is Change Management?

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

Change Management is a set of principles and activities designed to prepare people for and

support them through a significant organizational or technological change, such as the

HR/Payroll Project. Change Management is…

¾

Intended to maximize achievement of desired business objectives while minimizing loss in

productivity

¾

Structured to align with and support the broader technology and business process

transformation

¾

Designed to support and promote the “people” aspects of the project

Metaphorically, Change Management is…

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The grease that makes the project (and the resulting new business processes) run more

smoothly, and

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Change Management Helps Projects Succeed

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

Over half of major initiatives fail to meet anticipated results due to inadequate attention to

people-related issues.

The change management focus of this HR/Payroll Change Management Strategy aligns with

and addresses the typical barriers to success.

Project Team Lacked Skills

Top 10 Barriers to Success

36% 41% 43% 44% 44% 46% 54% 65% 72% 82% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

IT Perspective not Integrated No Horizontal Process View

No Change Management Program

Scope Expansion / Uncertainty Poor Project Management

Unrealistic Expectations Inadequate Sponsorship Resistance to Change

Percent of Organizations Responding in Each Category (multiple responses were allowed) Source: Deloitte & Touche’s annual CIO survey Key: People-related Issues

Case for Change not Compelling

Capability Transfer & Project Team Effectiveness

Project Team Effectiveness Leadership Alignment & Communications Leadership Alignment Organizational Transition &

End User Training

Leadership Alignment & Communications

Specific Change Management Challenges Identified

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

Throughout Phase I, a number of change management challenges have been

identified for the HR/Payroll project as an important step in developing this Change

Management Strategy.

This strategy identifies HR/Payroll change management challenges from the

following sources:

¾

Joint Application Design Sessions (JADS)

–

Change management and organizational issues and barriers identified by state staff

during the process JADS sessions

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Interviews and Focus groups

–

Interviews and focus groups of past IT project team leaders to identify cultural and

organizational change issues

¾

Lessons Learned Documentation

8

Specific Change Management Challenges Identified

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

A number of potential change challenges were identified during Phase I, including the

following:

Change Challenges Identified

Change Management Activity to Address Challenges

Transition from decentralization to standardization

ƒ Leadership alignment of HR Directors and agency leadership ƒ Impact Assessments to identify job/role changes

Moving to single system ƒ Leadership alignment at the agency level

ƒ End-User system training

Potential change of payroll period/cycles ƒ Communications to all stakeholders

ƒ Leadership alignment of Payroll managers Fear of external visibility to critical data ƒ Communications on controls process

ƒ Leadership alignment on data ownership Business process reengineering may be

significant and difficult

ƒ Detailed impact assessments to identify change ƒ Communicate changes to impacted staff

ƒ Train affected staff on new business processes Organizational divide between HR and

Payroll

ƒ Leadership Alignment Plan Employee fears about new processes

and job security

ƒ Communicate project vision and guiding principles ƒ Communicate project impacts to stakeholders

The Change Curve – change is difficult, but it can be managed

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

Bail Out?

“This is not something I want to be a part of.”

Uncertainty

“What does this mean for me?”

Resistance

“I can’t work with all of this uncertainty

and turmoil.”

Adaptation

“This is hard, but we can do it.”

Organizational Performance

Baseline

Commitment

“This was the right thing to do.”

Withdrawal

“I’ll do what is necessary to survive.”

Time

Key to Success: Reduce the duration of the trough, and accelerate the

Change Management

Strategy

Change Management Strategy

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

The Change Management Strategy for the HR/Payroll project should be focused on

four primary pillars:

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The Why: the strategy should be driven by a defined vision, principles, and goals

¾

The What: activities should address all of the focus areas of a successful Change

Management program

¾

The When and How: change management roadmap and activities should be planned

and integrated into the overall project workplan

¾

The Who: activities should be led by a structured, dedicated team and a broader

change network

WHY WHAT WHEN & WHO

HOW

HR/Payroll Project Change Management Strategy

12

Change Management Vision and Objectives

The change management effort should define its own vision and goals, and they should align

with the overall HR/Payroll Project vision and goals.

Below are proposed Change Management vision and goals:

To support the state by driving initiative adoption across the

HR and payroll community

To engage and gain support from state,

agency, and local leaders, through

one-on-one communications, workshops and action

plans

To address agency specific complexities and needs across the

state-wide initiatives

To proactively address the training, communication and

change issues that have undermined state projects and initiatives in the past To fully prepare North Carolina state

agencies and employees for the transition to the new HR/Payroll business processes and technology

CHANGE MANAGEMENT GOALS

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

CHANGE MANAGEMENT VISION

A strategic business partnership supporting the human

resource and payroll needs of State government, enabled by utilizing leading business practices and current technology

NORTH CAROLINA HR/PAYROLL PROJECT VISION

Vision and Goals To identify and address barriers to change, as well as identify and leverage enablers to change

Vision and Goals

Change Management Guiding Principles

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

The following principles should guide change management and related activities and

decisions throughout the project:

¾ The HR/Payroll project will seek to engage agency leaders and staff to earn their support for the project

¾ The project will be actively promoted throughout state agencies by project leadership, project team

members, subject matter experts, and project committees

¾ State employees will be provided with the information and skills necessary to transition to roles

changed due to business process reengineering and technology replacement

¾ There will be an open line of communication to and from the project team with multiple feedback

channels in place to invite comments, concerns, and ideas

¾ Communications will be clear, concise, and delivered through the proper medium at the proper time

¾ Key project-related messages will be consistent across the entire team

¾ The project team will promote knowledge and capability transfer among consultants, software vendors,

and state staff

¾ Project team members will have the skills required to complete their project tasks

¾ The project work environment will promote collaboration between project teams

¾ The training team will provide end user training to the right people, at the right time, with the right information

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Vision and Goals

Change Management Success Measures

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

At project completion, the success of the change management effort should be evaluated

against a set of key success measures, including the following:

¾ Employees clearly understand their roles and

responsibilities and how the change specifically affects them

¾ Retain top performers and limit increase in unplanned employee turnover as a result of the system and process implementation

¾ Clear project governance and decision-making structures have been followed

¾ Organizational roadblocks have been removed

¾ The full impact of the change has been well-understood and well-planned-for

¾ Management agrees to changes required to sustain the new environment

¾ A more efficient organization structure exists

Success Measures

¾ Employees embrace the new system and business processes

¾ Employees know where to get additional project information and system support

¾ Risks have been proactively identified and addressed ¾ Employees know how to use the system

¾ Employees understand and follow the new business processes

¾ Employees are prepared to do their new job on day one

¾ The state maintains internal capabilities to sustain the change

Focus Areas of Change Management

The central component of the HR/Payroll Change Management strategy are the specific focus areas

around which the project’s change management activities should be organized.

¾

A summary of the project’s change management focus areas is presented below, with additional

details presented in the Change Management Focus Areas section of this document

8Align State and agency leaders to the project vision and enable them to champion the effort

8Fully inform employees and

stakeholders of coming changes and provide ample opportunity for

feedback and input

8Design new employee roles, jobs, and organization structures to support the new processes and technology

8Provide support to project management and improve team efficiency, performance, and morale

8Enable state personnel to sustain and support the project with minimal external assistance

8Enable employees to perform their jobs at go-live

HR/Payroll Project Change Management Focus Areas

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

Leadership Alignment Organizational Transition Communications Capability Transfer End User Training Project Team Effectiveness Project Management Focus Areas

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Roadmap

Roadmap of Change Management Activities

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

A successful change management strategy must focus on both planning and execution of change

management activities, each of which requires an exponential increase in effort as the project progresses.

Pl an n in g Time Execution Current Phase Pre-Implementation Phase Implementation Phase Change Management Strategy Limited Change Management Activity Increased Activity • Interview leadership • Disseminate additional project communications

• Assess project impact • Assess change readiness • Etc… Intensified Activity • Conduct leadership briefings

• Assess workforce impact • Conduct workforce

transition

• Continuously assess

change readiness

• Build and deploy change

network

• Launch communication

campaign

• Develop and deliver

training

• Develop and execute on

capability transfer plans

• Etc…. Training Plan Capability Transfer Plan Implementation

Communication Plan Workforce Transition _Plan Project Team Training

and On-boarding Plan

Leadership Action Plans Change Management Activity and Execution Change Management Strategy and Plan Development

Change Management Plan •Updated Communication Plan •Impact and Readiness Assessment •Training and Capability Transfer Strategy •Project Governance Plan

Possible Deliverables

Sample Change Management Activities Key

Roadmap

Roadmap of Communications Activities

As the project transitions from the pre-implementation planning stage through implementation and into

post implementation support, the number of stakeholder and level of detail of communication

messages increases.

The Importance of Change Change Management Strategy Change Management Components Next Steps for North Carolina

• OSP Leadership • OSC Leadership • ITS Leadership • Legislature Key messages • Business Requirements • Business Case • OSP Leadership • OSC Leadership • ITS Leadership • Legislature • OSP Leadership • OSC Leadership • ITS Leadership • Legislature • Agency Leaders

• Subject Matter Experts • Change Champions • Communication Liaisons • Power Users Key messages • Business Requirements • Business Case • Staffing Requirements • Projected Timeline Key messages • Business Process Redesign

• Project Status Updates • Implementation Timeline • High Level Impacts • Change Impacts • Detailed End-User

Impacts

• Workforce Transition • System Training and

Logistics

• Support Contacts and Details • Agency Leaders • Subject Matter Experts • Change Champions • Trainers • Agency Managers • HR End-Users • Payroll End-Users • Media Stakeholders • Same as Implementation Key messages • Detailed Support Communications • System Updates • Project Success Messages • Next Phase Details Post -Implementation Phase

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Change Team

How Change Management Fits into the Project

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

The HR/Payroll Project efforts will most likely be divided into project threads (and

associated teams) that focus on a specific group of activities

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The Change Management effort is a critical project thread that focuses on reducing the

risks associated with change and increasing the efficiency of the project

Likely Project Threads

Business Process Design

Change Management (and training) Project Management

Information Technology

Process & Systems Integrity (security)

¾

Change Management must work with all

of the project thread teams

– Works with Project Management to help

create an effective team through internal communications, team building, and governance

– Works with Business Process Design

Teams to identify impacts, process changes, and role changes

– Works with Information Technology teams

to identify technical changes that affect the organization and prepare a technical training infrastructure

– Works with Process & System Integrity Teams to validate end users and perform job-role mapping

Change Team

Change Management Team – Pre-Implementation Phase

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

The HR/Payroll Project should soon create a formal “Change Management Team” that should

grow incrementally as the project prepares for implementation.

The Pre-Implementation Change Management Team should be comprised of both state and

vendor resources, according to the following model:

Change Management Leads (1 NC, 1 Vendor) Communications Lead (1 NC or Vendor) Change Champions (Agency Leaders) Subject Matter Experts (Process & Agency

Specific Staff) Change Management Network Change Management Network

Change Management Project Team

Organizational Transition Leads

(1 NC, 1 Vendor)

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Change Team

Change Management Team – Implementation Phase

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

The Implementation Change Management Team should be comprised of both state and vendor

resources, according to the following model (which should be revisited after an actual

implementation timeline has been established):

Note: The resource model is dependant on the implementation timeline and deployment strategy

Change Management Leads (1 NC, 1 Vendor) Communications Lead (1 NC, 1 Vendor) Change Champions (Agency Leaders) Subject Matter Experts (Process & Agency

Specific Staff) Change Management Network Change Management Network

Change Management Project Team

Organizational Transition Leads

(1 NC, 1 Vendor)

HR/Payroll Project Change Management Team – Implementation

Training Leads (1 NC, 1 Vendor) Power Users (TBD) Communications Liaisons (Agency & Regional

Staff) Team Member (1NC) Developers (TBD) Trainers (TBD) Administrator (1 NC) Team Member (1NC) Team Member (1 Vendor) Team Member (1Vendor)

Change Team

Change Management Team Staffing Recommendations

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

The HR/Payroll Project should maintain a full time, dedicated Change Management team

¾ Specific requirements for the training team should be defined during the creation of the training strategy during pre-implementation

Role Key Responsibilities Pre-Implementation _Phase Implementation _Phase

Change Management Team Lead

¾Direct overall team activities

¾Provide team with change management expertise ¾Manage Project Team Effectiveness, Capability

Transfer, & Leadership Alignment activities

1 NC

1 Vendor 1 Vendor1 NC

Organizational Transition Lead

¾Manage Organizational Transition activities

¾Drive change readiness, impact, and culture assessments ¾Lead workforce transition activities

1 NC

1 Vendor 1 Vendor1 NC

Training Administrator

¾Support scheduling, logistics planning, and tracking of

training delivery

¾Coordinate printing and distribution of materials

1 NC

Organizational Transition Team Member

¾Support Organizational Transition activities

¾Prepare change assessments, plans, and deliverables ¾Stakeholder management planning

1 NC 1 Vendor

Communications

Lead ¾Manage project communications¾Direct communications activities and QA deliverables 1 NC or Vendor

1 NC 1 Vendor

Communications Team Member

¾Develop project communications and PMO presentations ¾Maintain and track library of change deliverables

¾Perform stakeholder analysis and plans ¾Manage and develop project website

1 NC 1 Vendor

Trainers ¾Deliver training to state personnel TBD

Training Lead ¾Manage End User Training development and delivery

¾Develop training strategy and plans

1 NC 1 Vendor

Training Developers ¾Work with process teams and SME’s to develop training materials and exercises

¾Create, load, and test training data

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Change Team

The Broader “Change Network”

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps for North Carolina

In addition to the project’s change management team, the project should develop a broad

“Change Network” of individuals to support the change management effort, including:

¾ Change Champions

– Leaders from each agency that help drive change and champion the project

¾ Communication Liaisons

– Representatives from each agency to assist the change management team with assessments and communications at an agency level

– Regional communications liaisons may be required to assist in reaching stakeholders in key locations outside of Raleigh

¾ Power Users

– Agency and regional staff that will serve as the first level of post go-live support

– May also participate in training delivery to state staff – May assist process teams in User Acceptance Testing

¾ Subject Matter Experts (SMEs)

– Provide support for identifying changes and reviewing solutions

– Provide input to training materials

– Work with process teams to develop system requirements and redesign processes

Communications Liaisons Power Users Subject Matter Experts Change Champions Change Management Project Team

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Change Management Focus Areas

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

This section presents details around each of the six focus areas of change management

activities for the HR/Payroll Project, including:

¾ Focus area definition

¾ Specific importance of each focus area to the HR/Payroll Project

¾ Key activities associated with each focus area

Key issues facing the HR/Payroll Project were gathered from:

¾ Lessons Learned documentation from previous NC IT projects

¾ Identification of barriers during the process JADS

¾ Focus group of past state IT project leaders

¾ Key leadership interviews

Detailed lessons learned observations are

presented in the Appendix.

Leadership Alignment Organizational Transition Communications Capability Transfer End User Training Project Team Effectiveness Project Management

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

Definition:

¾ A set of activities aimed at assessing and increasing the knowledge and support of the project among

key state and agency leaders

¾ Provides leaders with communication messages and other tools that support their role as “champions”

of the project

Specific Importance to the HR/Payroll Project:

¾ Shared project sponsorship (between OSC, OSP, and ITS) will require increased focus on alignment

¾ Large project scope and footprint (over 30 state agencies) increases need for leadership alignment

¾ Leadership alignment will help to mitigate the risk of project failure

Key Deliverables:

¾ Pre-Implementation Phase

– Leadership Alignment Interviews – High Level Leadership Action Plans

¾ Implementation Phase

– Leadership Briefing Sessions

– Updated Leadership Action Plans (regional and local agency leaders)

– Leadership Communication Toolkit (e.g. Project Summary, Talking Points, Project Brochure) – Leadership Coaching Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

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Leadership Alignment - Objectives

The objectives of leadership alignment on the HR/Payroll project include:

¾ Clearly define project leadership and their roles, including project management, project sponsors,

project governance committees, etc.

¾ Identify project risks and issues early, raise them to leadership for review, and ensure that the

leadership team is aligned

¾ Ensure that project leadership clearly understands its roles, responsibilities, and overall

accountability for the successful outcome of the project

¾ Generate excitement and agreement about business process reengineering and technology

replacement among members of the leadership team

¾ Facilitate agreement on how the project meets agency and state needs

¾ Empower leaders to champion the project vision through a persuasive story that can be readily and

visibly communicated to the organization

¾ Promote dialogue among the leadership team, as deemed appropriate, to achieve alignment

¾ Obtain buy-in and support from local agency/institution leaders and ensure upward and downward

communication, positive reinforcement and enthusiasm at the local level

¾ Set expectations with agency leaders on anticipated resource requirements and support personnel

needed from their agency

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

Leadership Alignment - Issues Facing the HR/Payroll

Project

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

Issue

Description

Project and Agency Scope

The scale of the project and large number of state agencies affected by the changes will require the HR/Payroll Project to develop a strategic approach to Leadership Alignment. Gaining the support of state, regional, and local agency leadership for the project is a critical success factor.

Key activities include Leadership Interview, Leadership Toolkit, and Leadership Action Plan. Detailed

communications plan for state, regional, and local leaders that includes town meetings, face to face communications, and timely project updates.

Shared Leadership Past projects with dual leadership/sponsorship have often had issues with misalignment. This project will be lead by the SBIP Steering Committee with sponsorship by OSP and OSC.

Key Activities - Clear governance, role, responsibilities must be documented. Activities to monitor alignment and

support from key project sponsors must be put into place.

Sharing a common vision

State, agency, and project leaders need to be aligned and share a common vision for what the project can deliver to the North Carolina. The business transformation will require several changes to roles and responsibilities within the agencies. Agency, regional, and local leaders should be used to deliver some key messages to their staff and help guide the transition to new processes and new process owners.

Key Activities - Leadership Toolkit, Detailed Stakeholder Analysis and Communications Plan Transfer of

Process/Data Control

Leaders will have to be willing to relinquish control of some business processes and access to data. Senior agency leaders, HR Directors, agency CIOs, and local and regional leaders need support the change.

Key Activities - Leadership Alignment, Detailed Communication Plan and Stakeholder Analysis Agency Leadership

Involvement

Projects need to be driven by leaders from the agencies not from IT. Past projects lead by IT have been short in identifying a need for the implementation and had leaders from the business and IT misaligned.

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Leadership Alignment - Issues Facing the HR/Payroll

Project (continued)

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

Issue

Description

Inexperience in leading change

Leaders are often experienced in day-to-day operations but inexperienced in leading change and taking an organization in radically new directions. Leaders need to understand the difference between leading and managing, and that leading change demands a different role and style of leadership.

Key Activities - Clear leadership action plans supported via training/ workshops to spread knowledge, increase

skills and equip leaders with needed tools and resources; leadership coaching

Political Environment The political environment needs to be monitored in order to be proactive. Changes in the political focus due to leadership changes associated with elected officials and political appointments require the project to deploy a leadership approach that can sustain and adjust for new leaders as they come into power.

Key Activities - Periodic Leadership Check-ins, Updating Leadership Action Plans

Legislative Awareness Gaining and maintaining legislative support is key for future funding activities. The issues and benefits of the new HR/Payroll system need to be communicated to the legislature throughout the lifecycle of the project.

Key Activities – Include legislature in stakeholder analysis; communications strategy must include key legislature

messages and timing

Ability to sustain leadership alignment

Leadership alignment is not a one-off event. It is ongoing throughout the course of the engagement. New political appointments and changes in North Carolina's state needs require continued support from leadership to maintain project momentum.

Key Activities - Action plan that details how to keep leaders engaged throughout the project

Project Support from University System

Gaining project support from the state’s university leadership would increase the scope of the project and present the state with a more homogeneous HR/Payroll solution.

Leadership Alignment - Activities

Set the vision and strategy for the change effort, determine leadership readiness, responsibilities and alignment required to facilitate change.

Overall

Objectives

Build consensus and develop leadership change and communication plans to launch and sustain efforts and set the pace for change. Launch and sustain leadership visibility and endorsement in change efforts.

Implementation

Phase

Pre-Implementation

Phase

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

North Carolina HR/Payroll Leadership Alignment Activities

Major Activities

• Establish strategic objectives and set the direction for change

• Conduct leadership interviews to determine alignment, gaps, and needs

• Prepare leadership alignment action plans

• Build agreement among leaders

• Assign individual accountabilities to leaders to support the vision and change effort

• Executive leadership alignment workshops

Major Activities

• Develop leadership action plans to drive the change effort

• Determine specific roles of leaders in change process

• Deliver Leadership Workshops and one-on-one coaching

• Develop and deliver leadership communication toolkits

• Continuous engagement of key leaders in the change

• Build consensus and resolve conflicts as they arise

• Prepare leadership for their role in the implementation

• Develop Leadership Change Roadmap

• Assess overall effectiveness of the effort and implement supplemental leadership strategies as needed

30

Organizational Transition - Overview

Definition:

¾ A set of activities aimed at:

– Assessing the impact of the project on state agencies and employees

– Appropriately planning for organizational and workforce changes due to the project

– Transitioning the organization and affected employees to new roles, responsibilities, and structures

Specific Importance to this Project:

¾ Sheer number of employees and organizations affected (both HR and non-HR staff) requires

specific attention be paid to organizational impact

¾ Because it is an “HR project”, employees will expect the project team to adequately address the

project’s HR-related impact on them and their job

Key Deliverables:

¾ Pre-Implementation Phase

– High Level Change Impact Assessment – Change Readiness Assessment

¾ Implementation Phase

– Detailed Change Impact Assessment

– Organizational Restructuring Plan (if needed) – Workforce Transition Plan

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

Organizational Transition - Objectives

Organizational transition objectives focus on managing the changes that affect

state personnel due to changes in organizational structure, processes and procedures, and

job roles. Objectives include:

¾ Adequate employee readiness for process and system changes

¾ New, more efficient job roles and organization structures to support the HR/Payroll project

¾ Correctly identified changes to roles and responsibilities of employees affected by the business

process and system changes

¾ A culture that embraces the HR/Payroll changes

¾ Clarity around job role changes and reporting line changes

¾ Action plans that to ease employee transition to new roles

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

32 Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

Organizational Transition - Issues Facing this Project

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

Issue

Description

ESS/MSS Process Changes

Transition to Employee/Manager Self Service will present major process changes for state staff (HR and non-HR staff). Fear and resistance should be expected with employees and managers taking a more active part in HR functions.

Key Activities – Detailed Impact Assessment to identify changes, Communicate advantages of ESS/MSS to all

stakeholders, Train end user how to use the new system

Fear and resistance to process and system changes

Many state workers have been in their current position for an extended period of time without any previous process or system changes. Employees will face the following fears associated with the business process and system changes:

ƒ Fear because they lack the skills required to use the new technology ƒ Fear that new controls will nullify their processes “work around”

ƒ Fear that new processes and controls will highlight their lack of understanding of how to perform their job ƒ Fear of job loss

Key Activities – Detailed Impact Assessment to identify changes, Communicate advantages of new

processes/system to stakeholders, Communicate that training will be delivered to provide employees with the necessary skills to perform their jobs, Deliver role based training on new processes and technology

Inability for some staff to change

Expect the changes in system and processes to cause an increase in retirement. Some employees will choose to leave their roles rather than learn new process, procedures, and technology.

Key Activities – Communicate the training plan to employees to detail how they will be supported during the change Standardization

Difficulty

In the current culture every agency/organization feels that the requirements to run their business are different making it difficult to standardized processes. Implementation resistance is likely to appear when the new standardization

requires their common procedures, policies, and reports to change. Project should seek to understand true business needs and discern where uniqueness is really needed and where it is not –(i.e. solve the right business problem).

Key Activities – Leadership Alignment to drive change, communicate marketing messages for buy-in, Train on entire

process to highlight new efficiencies and streamlined processes, Identify a strong and respected Change Champion that will act as a spokesperson for the project at each agency, Face-to-Face interviews to identify right business problems

Organizational Transition - Activities

Major Activities

ƒ Conduct change readiness and impact assessments

ƒ Assess as-is culture

ƒ Identify implications for change, including enablers and barriers

ƒ Identify high level impacts of process and system change

Major Activities

• Develop culture change action plan

• Define and document current organizational structure • Define desired organizational structure

• Develop workforce transition plans

• Develop detailed impact assessment down to the role level

• Document roles and responsibilities for changed and new positions • Document competency list and definitions

• Implement new organizational structure

• Implement reward and recognition program for desired behaviors • Implement workforce transition

• Job Impact communication and training

Overall

Objectives

Assess change readiness and define desired culture and behaviors.

Implement work plan activities and measure success through assessments and surveys.

Conduct activities to ease employee transition to new business process and/or roles.

Implementation

Phase

Pre-Implementation

Phase

Assess the impact of coming changes on the workforce and organization. Understand the current organization, including its culture, leadership and decision making processes.

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

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Communications - Overview

Definition:

¾ A set of activities for developing and disseminating information about the project so that

employees and other stakeholders understand the project, are prepared for the changes it will bring, and are more inclined to embrace and buy in to the change

¾ Relies upon structured, two-way communication that not only pushes out information but also helps

project leadership identify and address resistance and other risks

¾ Consists primarily of increasingly broader and more detailed stakeholder analysis, communication plans,

and actual communications (newsletters, briefings, emails, websites, press releases, face to face contact, etc.)

Specific Importance to this Project:

¾ The diverse nature of stakeholders interested in and affected by the project highlights the need for

sophisticated stakeholder analysis and associated plans for communicating effectively with those stakeholders

¾ The relative dispersion of agencies and staff affected by the project will require an intensive,

well-choreographed communication effort

Key Deliverables:

¾ Pre-Implementation Phase

– Change network identification and launch – Updated Stakeholder Analysis

– Communication Plan

¾ Implementation Phase

– Updated Stakeholder Analysis and Communication Plan – Significant project communications

Alignment Organizational Transition Communications Capability Transfer Training Project Management

Communications - Objectives

The scope of the HR/Payroll Project and large number of stakeholders requires a

well-planned communications strategy. Objectives include:

¾ Stakeholders (state/agency leaders, state personnel, public, media, etc.) are adequately informed

about the project and understand the project vision

¾ Project communications have minimal disruptive impact on day-to-day operations of state leaders

and staff

¾ Stakeholders have access to and use two-way feedback channels to raise issues and concerns

¾ Language is clear, concise, consistent and easy to understand

¾ Targeted audiences receive customized communications

¾ Communications activities are strategic and support desired project outcomes

Alignment Organizational Transition Communications Capability Transfer Training Project Management

36 Alignment Organizational Transition Communications Capability Transfer Training Project Management

Communications - Issues Facing this Project

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

Issue

Description

Full Time Change Management Commitment

Communications is a full time commitment that requires dedicated resources. Most past projects have not had a dedicated change and communications team.

Key Activities – Identify qualified state staff

Proactive – Not Reactive

Project communications needs to be proactive in identifying the change resistors and addressing key stakeholder concerns. Proper communications will address these issues prior to the issues becoming critical implementation roadblocks.

Key Activities – Stakeholder analysis to identify key messages to each group, Communications Plan that provides a roadmap of key messages, with timing and audience

Use all of the communications methods available to you. Get the word out about the project and its benefits throughout the lifecycle of the project.

ƒ Website, Kiosks, Webcasts, and Emails ƒ Brochures and bulletin board materials

ƒ Roadshows and Participation in organizational/agency conferences and meetings

Key Activities – Detailed communication plan that links preferred media type and frequency to stakeholder and message

Marketing the project will be crucial to reduce change resistance and increase buy-in.

ƒTo End-Users – Communicating the advantages of the project and the “why” will help reduce resistance

ƒTo Leadership – Marketing to leadership will help gain support and buy-in to drive change down into the organization ƒTo Legislature/Media – Communicating the status, quick wins, and long term benefits to gain funding and public support

Key Activities – Stakeholder analysis and Detailed communication plan

Past projects have often been seen as “Raleigh” initiatives and lacked local/regional buy-in and support.

Key Activities – Develop local change and communication liaisons and champions to provide increased visibility and support to

the project. Assign local liaisons/champions by user group. Find champions at all levels (e.g. president, managers, users).

Communicate to set expectation

Expectation setting is key to the project success. Agencies may have specific needs/requirements that are more important to them.

Key Activities - Provide a picture of success early in the project to set expectations accordingly. Publishing change control board

decisions to entire user group to update expectations and reduce resistance.

Communications Methods

Marketing the project

Communications - Activities

Major Activities

• Assess communication objectives, identify barriers and challenges

• Conduct stakeholder assessment and analysis

• Develop theme and brand for transformation

• Determine key organizational messages

• Develop preliminary project communications (e.g., announcement)

• Identify and build communication

Major Activities

• Create detailed communication strategy/plan • Design and implement feedback mechanisms/tools

• Establish communication infrastructure and Change Network • Develop communication materials and tools

• Update and implement communication plan • Communicate progress and celebrate successes

• Assess communication effectiveness and adjust accordingly

Overall

Objectives

Develop a change communication strategy/plan that integrates objectives, target audiences, specific key messages, and appropriate delivery

tools/media.

Deliver communications to actively involve stakeholders and assess communication plan effectiveness.

Implementation

Phase

Pre-Implementation

Phase

Fully understand stakeholders and their communication needs.

Identify Change Network. Assess current communication environment to identify gaps/needs, and develop initial project

communications. Alignment Organizational Transition Communications Capability Transfer Training Project Management

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

38

Capability Transfer - Overview

Definition:

¾ A set of activities for methodically transferring critical project and system knowledge from

implementation consultants (or others involved in the project) to state project team members and system support staff

Specific Importance to this Project:

¾ The state’s relative lack of ERP system management and support knowledge, and the relative lack

of staff skill-sets required to maintain such a system, will require a robust set of capability transfer plans and activities

¾ Early identification of key capabilities and required skills may be used to secure existing state resources with ERP experience (e.g. resources from DOT)

Key Deliverables:

¾ Pre-Implementation Phase

– Project Team Training Strategy

¾ Implementation Phase

– Project Team Training Plan

– Capability Transfer Plans for each team member – Completion of capability transfer activities

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

Capability Transfer - Objectives

HR/Payroll Project Capability Transfer activities should be designed to help the

state to assume ownership of all project activities from the implementation vendor.

Objectives include:

¾ Appropriate knowledge and skills are transferred to state and agency staff at the right time

¾ The overall level of expertise of the state team is enhanced by the implementation vendors’

commitment to share technical, change management, and business process expertise, best practices, benchmark data, and project management capabilities

¾ Project team training provides state project team members with skills required to perform their project

roles

¾ OSP (and other agencies as appropriate) is prepared to support the new HR processes and needs of

state agencies

¾ OSC (and other agencies as appropriate) is prepared to support the new payroll processes and

needs of the state agencies

¾ ITS (and other agencies as appropriate) is prepared to support the HR/Payroll IT needs due to the

technology replacement Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

40 Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

Capability Transfer - Issues Facing this Project

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

Issue

Description

State Resource Skills

State staff often do not have the specialized skills required to perform project activities. Often positions are filled with the “best available” resource instead of most qualified resource. A capability transfer plan must be put in place to make sure that the resources have the required skills to support the project long term.

Key Activities – Capability transfer plan

Most state projects do not have a capability transfer plan at the project start. Capability transfer has usually been an afterthought and not started until well into the project or after implementation. The result has been added costs associated with keeping vendor

resources onsite to transfer knowledge and document processes and procedures. Key Activities – Early development of Capability transfer plan; plan delivery integrated with performance reviews

In past NC projects, documentation of project activities, assessments, processes, and procedures has not been detailed. Some projects have required post-implementation mini-projects to document project work.

Key Activities – Project QA plan that will include project documentation standards and guidelines; an easily navigated project library; Define project activities to develop detailed documentation requirements Capability Transfer is Usually an After-thought Lack of Well Defined Requirements & Quality Project Documentation

Capability Transfer - Activities

Major Activities

• Develop project team training strategy

• Identify subject matter experts for training development

Major Activities

• Conduct project team training needs assessments • Develop project team training plans

• Deliver project team training

• Develop Capability Transfer approach • Assess current capabilities and gaps

• Develop an overall Capability Transfer Plan to eliminate gaps • Track implementation of capability transfer plan

Overall

Objectives

Ensure that the appropriate knowledge and skills are transferred to state and agency associates at the right time

Implementation

Phase

Pre-Implementation

Phase

Project team training needs are identified and planned-for

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

42

Project Team Effectiveness - Overview

Definition:

¾ A set of activities aimed at maximizing the cohesiveness, productivity, and efficiency of the project team (including both state and consulting staff)

¾ Focused on activities related to project governance, issue management and resolution, team member

on-boarding and training, teambuilding, etc.

Specific Importance to this Project:

¾ This project will likely require a relatively large number of state and consulting team members to be

successful, which in turn will necessitate a robust, structured approach to building and maintaining project team effectiveness

¾ The high likelihood that project team members will come from a diverse set of state agencies, each

with diverse cultures and management styles, will increase the need for a strong project team operating model and clearly defined governance

Key Deliverables:

¾ Pre-Implementation Phase

– Project Governance Structure

– Role & Responsibility Assignment Matrix

¾ Implementation Phase

– Project Team Training Plan – Project Team On-boarding Plan – Teambuilding Activities

– Project Team Handbook

– Project Team Resource Histogram & Staffing Transition Plan

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

Project Team Effectiveness - Objectives

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

The HR/Payroll project will most likely have a large team of state and vendor resources that

will require a coordinated approach to on-boarding, team building, and internal

communications. Objectives should include:

¾ A well-functioning, high-performing, collaborative project team

¾ A structured project on-boarding process for state and consulting project staff

¾ A formal project structure with clearly identified roles and responsibilities, chain of command, and

approval procedures

¾ A project governance structure to include recommended support and oversight committees

¾ Project performance metrics for state project team member reviews

¾ A transition plan that addresses how state project team members will transition from agency roles, to

44 Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

Project Team Effectiveness - Issues Facing this Project

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

Issue

Description

Project Management Skills

Skilled project managers are hard to find and it takes a lot of resources to lure them. The state does not have a large pool of employees with the skills necessary to manage a large scale system and process implementation.

Key Activities – Identify skills required to manage the project early. If no candidate is available consider

contracting externally or providing additional training to best suited internal candidates.

Building a Quality Team The skills required for project team members are often not known when staffing a projected resulting in improper staffing. Projects are usually staffed according to who’s available instead of who’s most qualified. Building a project team is a difficult and time consuming process. Projects often accused of “raping and pillaging” the business of its resources and often have to use force to get the desired resource.

Key Activities – Leadership buy-in at the agency level; Identify the roles, responsibilities, and skills for each project

role prior to staffing; Develop the staffing model early and identify and screen resources well in advance of

implementation; Leverage existing DOT/SAP job descriptions and utilize excess capacity of DOT/SAP support staff where possible, Identify SMEs and Champions from agencies that pose increased risk

Project Org. Structure and Governance

Organizational structure and governance should be developed to support the project and provide for an efficient work model. Governance should be developed to touch all levels of the organization (e.g. state/agency,

local/facility)

Key Activities – Develop governance structure that will provide shelter and support to the project; Publish

governance model and organizational structure; Publish roles and responsibilities for project team and governance; Eliminate/avoid any excess tiers that do not add significant value. Each additional tier/group creates additional effort and increases project complexity. Balance this against increased risk of not including all of the key individuals and groups in the governance structure.

Since financial incentives are not allowed, motivate the team by giving lots of credit.

State projects are restricted from pay & financial incentives. Use creative means to motivate project staff (e.g. praise, recognition, reduce meeting time)

Key Activities – Need to identify motivation techniques that are allowed by state (e.g. special parking space for

best performer, recognition at all hands events, certificates of appreciation)

Project Team Effectiveness - Activities

Major Activities

• Identify and select team members and develop back-fill plan

• Develop project and team

structures, governance model and processes

• Define project goals and success criteria

• Prepare on-boarding / kick-off meeting

• Orient team members and key stakeholders

• Define project structure, roles and responsibilities

Major Activities

• Develop project team charter • Develop Project Charter

• Develop project team communication process • Conduct Project Kickoff meeting

• Develop project rewards and recognition program • Maintain issue resolution and status reporting

• Develop project team member review process (for state staff) • Conduct Quality Assurance review

• Develop and execute project roll off plan for employees • Determine lessons learned

• Mark key milestones and accomplishments throughout the project and

Overall

Objectives

Conduct project implementation kick-off and orient project team members.

Perform on-going project management activities, define performance measures, and develop teambuilding and team member rewards strategy.

Define project wrap-up activities.

Implementation

Phase

Pre-Implementation

Phase

Define and kick-off the project and orient project team members and key stakeholders on the objectives, scope, timeline and logistics of the project. Identify and obtain resources necessary for the implementations and set

resource time commitments and expectations with agency leaders

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management

The Importance of Change Change Management Strategy Change Management Focus Areas Next Steps

46

End User Training - Overview

Definition:

¾ A set of activities designed to prepare end users to effectively perform their new job on day one, with

as little disruption as possible to their day-to-day activities

¾ Focused on assessing the training needs of effected staff, designing customized training materials, and

delivering training based on an employee’s role in the new system and business processes

Specific Importance to this Project:

¾ The sheer number of likely users of this new system, and the relative lack of familiarity most users will have with such a system, highlights the need for detailed training plans and customized, job role specific training delivery

Key Deliverables:

¾ Pre-Implementation Phase

– End User Assessment – Number Estimates and Distribution – High Level Training Strategy

¾ Implementation Phase

– End User Skills Assessment – Detailed Training Plan

– Customized Training Materials – Training Delivery

– Training Facilities & Logistics Plan

Alignment Organizational Transition Communications Capability Transfer Training Project Team Effectiveness Project Management