Hosted by:
Eric Kimberling
President, Panorama Consulting Group
Five Key OCM Challenges with ERP
Implementations
Cliff Simms
Director, Organizational Change Management
Copyright © 2010 Panorama Consulting Group
Agenda
●
Brief Introduction to Panorama Consulting
●
Purpose of this Webinar
●
ERP Implementation CSFs
●
Five Common OCM Challenges
●
OCM Tools to Mitigate the Challenges
●
Questions and Answers
Introductions
●
Eric Kimberling, President
●
Founder of Panorama Consulting
●
Former PricewaterhouseCoopers senior consultant
●
15+ years of ERP selection, implementation, and
organizational change management expertise
●
Cliff Simms, Director of ERP Organizational Change
●
30+ years in business process and systems consulting
●
Deep expertise in manufacturing and distribution business
●
Familiarity with high-growth businesses
●
Former Partner and Regional Director at Andersen
Consulting
Copyright © 2010 Panorama Consulting Group
About Panorama Consulting
●
Niche consulting firm with critical mass in the ERP
market
●
Experience with 150+ ERP packages
●
We Provide Three Primary Offerings:
•
ERP Software Evaluation and Selection
•
ERP Implementation Project Management
•
ERP Organizational Change Management and Benefits
Realization
●
Depth in targeted industries, including manufacturing,
distribution, supply chain, and high-growth companies
●
ERP Vendor Independent and Neutral
Some of Our Clients
What They Say About Us:
Copyright © 2010 Panorama Consulting Group
Broad and Deep ERP Expertise
Some of the 150+ different ERP software packages we have evaluated and
implemented for our clients
Agenda
●
Brief Introduction to Panorama Consulting
●
Purpose of this Webinar
●
ERP Implementation CSFs
●
Five Common OCM Challenges
●
OCM Tools to Mitigate the Challenges
Copyright © 2010 Panorama Consulting Group
Purpose of This Webinar
●
To compare the benchmarks from ERP projects that
succeed vs. from those that fail
●
To discuss ERP Implementation CSFs (Critical Success
Factors), especially in OCM
●
To discuss five common OCM challenges
●
To recommend OCM tools and approaches to deal with
these challenges
OCM Definition
●
Organizational Change Management supports and
compliments the project management team as they focus on
the technical implementation of the ERP solution
●
The OCM team assesses, plans and directs actions designed
to ensure a successful human interface during and after the
ERP project
●
The human interface includes system users and non-users
●
It includes both internal and external constituents
●
It includes training, communications, evaluation, development,
Copyright © 2010 Panorama Consulting Group
Guiding Philosophy
●
Software does not deliver benefits or performance
improvements – people do
●
OCM is therefore not optional on an ERP project, it is an
integral Critical Success Factor (CSF)
●
The orientation of OCM is toward people
●
The foundation principles for effective OCM are
Agenda
●
Brief Introduction to Panorama Consulting
●
Purpose of this Webinar
●
ERP Implementation CSFs
●
Five Common OCM Challenges
●
OCM Tools to Mitigate the Challenges
Copyright © 2010 Panorama Consulting Group
12
Top Reasons for ERP Failures
●
Lack of purpose for implementing ERP
●
Not going into the project with “eyes wide open”
●
Lack of executive and management buy-in
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Not leveraging the “A-Team” from the business
●
Not choosing software that is aligned with the business and
key requirements
●
Misalignment between software configuration and business
processes/workflows
●
Lack of effective OCM and training
●
Weak internal and external project management
●
Underdeveloped business case to manage business benefits
Despite Benefits, ERP Can Be Challenging
Source: Panorama s 2010 ERP Report
Copyright © 2010 Panorama Consulting Group
14
Why the Need For ERP OCM
●
ERP typically affects an entire organization, no matter how
large or small the company
●
As a result of ERP, end users are often overwhelmed with
changes to their jobs, including:
●
A new system to perform their day-to-day jobs
●
New processes and way of doing business
●
More exposure to and interaction with new business processes and
data
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People cannot embrace what they don’t understand. OCM
addresses this through communication.
●
Need to balance between the need for OCM and:
●
Appropriate timing for messages (e.g. layoffs)
Why the Need For ERP OCM
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Employees about to migrate to ERP need to be
presented with information and knowledge to ease the
transition
●
More than just training them how to use ERP
●
In addition to system training, employees also need to
understand:
●
Why the organization is switching to ERP
●
How and when ERP will affect their jobs
●
How ERP will improve their jobs (what’s in it for me?)
Copyright © 2010 Panorama Consulting Group
Truth
•
Full Disclosure
•
Open Dissent
Accountability
•
R&R Clarity
•
Consequences
Leadership
•
In Fact and
Appearance
Engagement
•
Participation
•
Priority
Alignment
•
Goal Alignment
•
Action Coordination
Agenda
●
Brief Introduction to Panorama Consulting
●
Purpose of this Webinar
●
ERP Implementation CSFs
●
Five Common OCM Challenges
●
OCM Tools to Mitigate the Challenges
Copyright © 2010 Panorama Consulting Group
Five Common OCM Challenges
1.
The Conspiracy of Silence
2.
We Go-live When?!?!
3.
Time to Process
4.
Bottlenecks
5.
Walking the Talk
Five Common OCM Challenges
The Conspiracy of Silence
Challenges
●
No open dissent
●
Hostile withholding of information
●
Passive aggression or covert resistance
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Procrastination and/or continuous crisis as cultural norms
Mitigation Strategies
●
Look for the origin
●
Create a safe place to share
●
Identify the sources and try to turn them
●
Confront resistance and deal with it
Copyright © 2010 Panorama Consulting Group
Five Common OCM Challenges
We Go-live When?!?!
Challenges
●
Limited time to accomplish essential OCM tasks
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Not enough time to do it right (plenty of time to do it over)
●
Flexing scope rather than go-live date
Mitigation Strategies
●
Resolve competing priorities
●
Do critical path planning
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Prepare and follow testing scripts
●
Have a “Plan B”
Five Common OCM Challenges
Time to Process
Challenges
●
Late, incomplete, inadequate communication with the organization
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No time to process
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No time to respond
●
Loss of confidence and engagement
Mitigation Strategies
●
Communicate early and often
●
Promote inbound communication; 1-on-1s, stand up/town hall meetings
●
Respond to feedback
Copyright © 2010 Panorama Consulting Group
Five Common OCM Challenges
Bottlenecks
Challenges
●
Single group of multipurpose resources
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Pinch points in the process
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Consolidating power and control, losing quality and efficiency
Mitigation Strategies
●
Separate technical and OCM core teams
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Segregate and articulate responsibilities
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Position OCM in an integral, helping role
Five Common OCM Challenges
Walking the Talk
Challenges
●
Communicating priorities and following through
●
Sheltering core team resources
●
Resolving competing priorities
Mitigation Strategies
●
Look for an excuse to reinforce the message
●
Make the hard choices
●
Remember that a picture is worth a thousand words, so is a
Copyright © 2010 Panorama Consulting Group
Agenda
●
Brief Introduction to Panorama Consulting
●
Purpose of this Webinar
●
ERP Implementation CSFs
●
Five Common OCM Challenges
●
OCM Tools to Mitigate the Challenges
●
Questions and Answers
OCM Tools
●
The Conspiracy of Silence
●
Organizational Readiness Assessments
●
Online Surveys
●
Focus Groups
●
1-on-1s
●
We Go-live When?!?!
●
Change Impact Assessment (CIA)
●
Training Needs Analysis (TNA)
Copyright © 2010 Panorama Consulting Group
OCM Tools
●
Time to Process
●
Communication Plan
●
OCM Charter
●
Bottlenecks
●
RACI Chart
(Responsible, Accountable, Consulted, Informed)
●
OCM Charter
●
Walking the Talk
●
Milestones & Metrics Charts
26
Diagnostic Tools
Organizational Readiness
Assessments
Change Impact Assessment
Process Change Matrix
Proficiency Testing
Development Tools
OCM Charter
Communication Plan
Training Needs Analysis
RACI Chart
(Responsible, Accountable, Consult, Inform)
Copyright © 2010 Panorama Consulting Group
OCM Work Streams
●
Marketing & Communications
●
Change Impact / Organization Design
●
Training
●
Risk Assessment / Organizational Readiness
●
Benefits Realization
Copyright © 2010 Panorama Consulting Group
Work Stream Deliverables
Marketing &
Communication
!
Change Impact /
Org. Design
!
Training
!
Risk
Assessment /
Org. Readiness
!
Knowledge
Transfer
!
Benefits
Realization
!
•
OCM Charter
•
OCM Kick-off
•
Communication Plan
•
Project Branding & Promotion
•
Training Needs Analysis
•
Training Strategy
•
Training Plan and Content
•
Training Conduct
•
Org. Readiness Surveys
•
Focus Groups
•
Go-live Prep
•
Testing
•
Change Impact Assessment
•
Roles & Responsibilities
•
Function Alignment
•
Organizational Design
•
Business Case Review
•
Benefits Ownership Transfer
•
KPIs
•
Metrics
•
OCM Core Team
•
Change Agents
•
Comm. Coordinators
Summary of Lessons Learned
●
OCM can be the difference between success and failure
on an ERP project
●
OCM can deliver on-going benefits to organizations, both
for ERP and creating culture change
●
It is important to keep your eyes (and ears) wide open
during the process
●
Independent and external expertise can support the
technical implementation and help avoid some of the
common OCM pitfalls
Copyright © 2010 Panorama Consulting Group
