Why in the world do we need change management?

I hear this question often so I have come up with ideas to help those of us who believe in Change Management convince others of the value.

Background:
Most projects involve people changing. They have to use new technology or they have to use a new process or maybe take on a whole new role because of a reorganization. There are many scenarios and we all know that change takes us out of our comfort zone. You may even have change saturation in the organization.

Why do we need change management? That is touchy feely stuff!
For a new process or technology project, or both, the ROI is generally based on the assumption that users will adopt to the change at go live and will be proficient. What if the people aren’t ready or are resistant to change? Your return will be pushed out and will not be what you expected.

Loss of productivity is an issue whenever you upset the status quo. When people are anxious about a change or resistant to the change, productivity goes down. By working with people to understand the root cause of the resistance, you can minimize this negative impact by helping people understand the business value and personal benefit of the change.

Ultimately projects can fail when change is not handled properly. People can revert to the old way of doing things. There are many business cases out there about major losses caused by failure to pay attention to the people side of the project and properly bring the individuals of the organization through the change.

In summary, Organizational Change Management enables transition to achieve and sustain the desired business strategy and drives ROI through:
– Accelerating the Adoption Curve
– Ensuring Proficiency
– Minimizing the dip in Productivity
– Increasing project success

Let me know if you have other ideas for “selling” change management to those who don’t get it.

We are swamped in change and can’t take anymore!

They say change is constant but what if that is causing the people in your organization to be very grumpy and unhappy? What can we do about change initiatives and about change across the organization? Persuasion, motivation, and listening are good answers! Here are some ideas for helping people work through change in initiatives and across the organization.
• Create Hope
We all know things get better and things get worse, most everything in life is cyclical. Picture the glorious outcome when you successfully change. Think about the movie Pay it forward. I know that when you saw the movie, you thought that was a brilliant idea. Decide to be happy and pay it forward. Ok, before you stop reading this, I know you can’t just decide to be happy and it is as easy as that! Believe me I get that. But please read on, I am hoping to get you to smile!
I used to be a self-help book junkie. If there was a problem, the answer was in a book. So if all else fails, write to me and I will recommend a book. What really made me thing about self-help was that we know what the organization should do to turn things around but we can’t single handedly save the organization. What we have is control over is what we do and think and our own happiness for the most part. We determine how to react to change. When there is too much change (change saturation), managers and leaders need to have an open door policy to get feedback and help employees work through change. The leaders need to recognize change saturation as it leads to failed initiatives, productivity loss and the best people start leaving the company. If your company isn’t handling this correctly, you take control of how you feel about things or you hate going to work.
• Are things really that bad?
Think about it. You aren’t stranded in a boat with an imaginary friend (Cast Away).
I read a great article this morning about a college student writing home to mom and dad. She first tells them to sit down while they are reading the letter (a scary start!). She then proceeds to tell them how she was injured when she jumped out of her dorm window because the place was on fire. While she was in the hospital for 2 weeks, she met a nice guy who let her stay in his basement when she got out because she couldn’t go back to her burnt down dorm. She fell in love and is going to marry the guy because she is pregnant. By this point in the letter mom and/or dad 1. Have fainted or 2. Are having a heart attack or are 3. Beet red and banging their head on the wall. The girl goes on to say that none of this is true but she is getting one D and one F. Great tactic for putting things in perspective! The truth wasn’t as bad as the original story.
Today, I was thinking about the cliché “what doesn’t kill us makes us stronger”. I must be stronger because I am not dead and it has been one of those weeks. It is all about how you look at things.
• Why are we doing this?
That is the big question. Command and control management doesn’t work anymore in most industries. Once you start empowering people they take command of their job and ask a lot of questions. They aren’t going along with you until you answer that question. People internalize change. Moving out of our current state comfort zone takes persuasion. Sell the change. When you talk to your people about the reasons for the change and you start seeing that light come into their eyes, you have finally answered the question why should I do this?
I heard the psychiatrist/ patient light bulb joke turned around last week: How many employees does it take to change a light bulb? One but he/she has to want to change! In reality, before the change takes in an organization, almost everyone who needs to change will also need to want the change.

5 Reasons People don’t like Change

Projects are about improving or fixing things. So it should be easy to get people excited about the change that comes from the completion of a project, right? Not really. People don’t change. Status quo is easier. Here are the top reasons people are resistant to change.
1. Preparing for the change requires a lot of work. We have to learn new processes, systems, and new ways of doing things. This causes anxiety – what if I can’t do my job as well after the process changes? What if the new system is impossible to use?
2. There are uncertainties around change. We really don’t know how things are going to go after the changes are put in place. Uncertainty is scary!
3. The organization usually tells us why this is good for the business, or sometimes not. But what does it do for me? We don’t always get that message and lets face it, what’s in it for me matters. We have to take time out of our very busy schedules to get ready for the change so it helps to have strong motivation. Sometimes leaders don’t provide that motivation.
4. Many of the C levels in organizations didn’t get to the top by worrying about people’s feelings. They are not the touchy-feely type (I didn’t say everyone). They do know how to network and they can be friendly but the CFO doesn’t need to be expert in HR. So worrying about whether the people of the organization have concerns about the major changes in progress often isn’t at the top of the Executive to do list. Unfortunately, you can’t ignore that the people of the organization have to change and there are going to be some negative opinions about almost any change. This has to be taken into consideration and dealt with. Managers have to talk to their reports to understand concerns!

Sunset on the Beach

Sunset on the Beach


5. It could be that the people really understand and want the change. However, if major changes often fail in the organization, there is no trust that this project is going to succeed or even be completed. And one thing we all don’t like is feeling like we are doing a lot of work for something that might be abandoned or just won’t work.
So most Change Management theories say you must win the people of the organization over that the change is great, will be successful and will improve the lives of the members of the organization. Promoting the change as a marketing campaign (with the organization as the audience) can work wonders.

Super Sizing works for Fast Food – not business!

“Lean” organizations are so common today. Doing more with less is such a popular slogan. While the Portfolio of projects, initiatives and tasks is “super-sized”, the staff to complete all of this work is not big enough to get it all done. If resource demand is much higher than capacity, some things just aren’t going to get done, projects will fail, mistakes will be made and people are going to be very unhappy. This is a sure way to lose the best people.

Your organization will always have tons of ideas for improving business, improving processes or buying the latest technology. But you can’t do it all! However, you can stick to a very solid corporate strategy and prioritize what gets done based on the strategy.

Right-sizing the Portfolio of Projects and Initiatives:
1. Develop a clear, solid Strategy based on your organization’s core competency.
2. Communicate the strategy so that everyone knows how to translate the strategy into what gets done.
3. Develop a method to determine value of projects and initiatives (relate to strategy and other benefits to be realized).
4. Prioritize the portfolio of projects and match resource capacity and demand.

While your organization certainly is made up of superstars, they aren’t super human. There really are only 24 hours in a day and you really do have finite resources.

Are you achieving your Strategy? Lifecycle Process Management can help

The Business Need

Sound strategic planning is fundamental to achieving business objectives. Execution of the strategy is difficult and the complexities created by out of sync and competing activities, processes, functional groups and systems across the organization create many obstacles on the road to success. Constant change, corporate politics, functional silos and many other factors affect progress toward business objectives.

A sound business plan and clearly defined goals are essential, but the key to successful execution is understanding how to accomplish those goals. This paper looks at process relationships and information flow across the business from strategic planning to achievement of the strategy, from great ideas to benefits realization. To ensure the business efficiently and effectively achieves its strategy; the organization must optimize the outcomes from their processes across the entire life-cycle.

While organizations put emphasis on improvement of individual processes, improvement across processes and systems is often neglected. This big picture transformation is more difficult to tackle. Over time, standalone systems, functional stovepipes and constant change cause issues around data, communication, processes, systems and performance. While this task of analyzing and improving the full life-cycle is difficult, the results are very valuable to the organization.

The Life-cycle Answers:
• Strategic Planning – How can the organization succeed?
• Portfolio Management – What should we be doing to achieve our strategy? How do we maximize ROI?
• Project Management – How do we best achieve these things we should be doing?
• Operations – are we effectively putting the plans in place for ongoing operations?

The Business Issues

Virtually every organization has information fragmented in multiple repositories and enterprise applications. Many obstacles keep organizations from meeting their basic needs for efficient operations, strategic alignment and profitability. Common business issues include:

Process Issues:
o Inefficient
o Duplication of effort and disconnected processes
o No standardization, documentation or understanding of process
o Poor metrics and poor performance
Data Issues
o Insufficient or bad data
o Difficulty in obtaining data
o No authoritative source of data, duplicate entry
Technical Issues
o Insufficient applications and infrastructure to support best practice processes
o Disparate applications and systems

The Holistic view of the full life-cycle
Strategic Planning, Portfolio Management, Project Management, Program Management and Operations make up the life-cycle from concept to benefits realization. These processes exchange critical information. All of these processes contribute to achievement of strategy, thus are critical to business success.

Weaknesses in any of these areas will result in problems in the other areas as there is information feeds and dependencies between these functions. In addition, the processes in each of these major areas must be efficient and must provide quality information to the other areas.
Typical Process Area Issues:
• Strategic Planning – Objectives may not be clear and not understood by the organization and the Organization may not be able to interpret the strategy into what needs to be done.
• Portfolio Management – Many organizations don’t use objective criteria for investment selection which results in a Portfolio that is not optimized. The Portfolio may not be sized correctly to match resource capacity to demand.
• Project Management – There may be overlapping and redundant projects. There may be resource conflicts, priority conflicts and poor performance.
• Operations – Transition process may not be sufficient for a smooth roll-out. Rush to get to production can result in problems after roll-out.

The strategic goals are meaningless to the organization unless they are clear, understood by all and interpreted into the activities (Portfolio Management: selected projects) required to achieve the goals. This means that executives should not throw high-level strategic goals out to the organization with the directive to make it happen. Instead, they should have a clear idea of the major activities designed to meet the strategic objectives to ensure the organization is headed in the right direction. Leaders in Strategic Planning and Portfolio Management can work together to clearly connect the strategy with the required tactical activity.

Is it working? – Performance Management
Performance Management is an element in each of the processes as metrics and analysis are required to ensure each area is achieving its goals and to ensure benefits realization from the system as a whole. For decision makers, Portfolio Management will provide benefits realization metrics including financial benefits. Portfolio Management measures progress toward corporate goals based on the metrics for each goal and reports this information to Strategic Planning/Executives. For each Project, metrics will be established to ensure the project team is meeting the project goals. Project Performance is measured and analyzed to develop corrective actions and ensure risks are managed. This Performance information is reviewed in Project and Program reviews to ensure Project Management performance is optimized. Performance information is fed from the Project Management system to the Portfolio Management system (and/ or the Program Management system) to allow decision-making for the portfolio and programs. In Portfolio reviews, project performance is taken into consideration and failing projects may be stopped.

Where has this solution been applied and what were the results?

A division of a government agency required an analysis of all applications, systems, processes and data across life-cycle management. The analysis showed they had legacy systems that were no longer supported, high maintenance homemade tools (requiring frequent coding), applications that only had a handful of users, standalone applications for each process, data entered manually in more than one application and manual processes. The analysis led to corrective actions to eliminate or retire systems, automate and streamline processes and data feeds and implement a more robust infrastructure. An IT/ Process Roadmap was developed to provide the needed solution concept and plan.

A large company had merged many other companies into the organization. There were many scattered databases, duplication of effort, re-packaging of information for different levels of the organization, different databases, processes, and reports across the same functions. Excessive time was spent manually generating reports in preparation for management decision-making meetings. There were no standard project performance metrics across the enterprise. Portfolio management had been developed using a very complex process involving numerous Excel spreadsheets. A new life-cycle was designed to standardize and automate Project Management, Portfolio Management, IT Governance and Financial Management across the merged businesses. This solution brought all the data for these processes into a centralized database, providing greatly improved efficiency, improved data accuracy, cost and labor savings and elimination of non-value added work.

Building the Holistic Life-cycle Solution

How do you build the holistic life-cycle process to optimize sharing information across processes, eliminate duplication of tasks, and improve each process while optimizing across all processes? First, ensure high-level sponsorship with a clear understanding of the value of this effort from the top down. As this solution provides both strategic and tactical benefit and provides significant financial benefit, this holistic approach should be an easy “sell” to the leaders of the organization. However, the new life-cycle design may require breaking down barriers between functions and may bring major changes in governance and decision-making. Good Change Management planning can help ensure success of the new solution.

By mapping the current processes, systems and data flow, you will reveal gaps, duplications and problem areas. Analysis of this current situation will determine required improvements to establish the optimized life-cycle. Keep in mind that the goal is to improve individual processes as well as tying the processes together and developing good information flow and process coordination across the life-cycle.

This improved life-cycle will provide benefits of strategic achievement, a portfolio of investments with the highest ROI and improved efficiency across the organization. The transformation effort is not easy to achieve but well worth the effort.

Ten Factors that contribute to the Success of a Business

1. Good Strategy: Sound business strategy tied to organization’s core competency. Strategy is interpreted into what gets done in the organization and the benefits are being realized!
2. Good Employees. They are empowered to do an amazing job and always finding better ways to do things. The employees are good at solving problems. They like to come to work and you aren’t even bribing them with free stuff!
3. Outstanding Leaders. They inspire, they motivate. They know what they are doing and keep up with and handle change brilliantly.
4. Corporate Culture is healthy. People collaborate, brainstorm, share knowledge. People care about their work. Not too much politics. Performance metrics measure the right things – to ensure the organization achieves its goals. For the most part, people get along together well and they are positive, glass half full types.
5. The leaders are on top of things: The business thrives in its industry. Leaders understand their market, stay on top of the industry trends and changes. They understand how to deal with the issues of the industry.
6. The organization can handle constant change. The business has the structure in place to change strategy (and associated execution) when major change occurs in the market. The organization is flexible and adaptable. The organization is agile because it has processes, procedures and standards that are just right – not over done (too much rigidity and processes causing inefficiency) or under done (everyone just does whatever!).
7. The company is proactive, not reactive. Issues are anticipated. Risk is managed. The business is quickly solving problems and making sound, rapid decisions as required to succeed.
8. The organization has creative thinkers and innovators. They are coming up with better ideas than the competition.
9. There are no silos. The functional areas work together!
10. The organization has the information and data they need to make the best decisions at all levels of the organization.

This is my brainstorming on what contributes to corporate success. I would love to hear your ideas. And if some of them sound a bit idealistic, they probably are. I am in a positive mood so that’s where the idealism comes in.

How are your IT Systems and Applications Performing?

A thorough analysis of IT applications and systems in most organizations should reveal many opportunities for savings and improved efficiencies. Application rationalization is a process in which an organization’s IT assets are thoroughly reviewed and analyzed to develop a plan for improvements across all systems. Application Portfolio Management (APM) is a process to maintain and optimize the Portfolio of applications and systems.

The Business Drivers for Application Portfolio Management

What are the issues and concerns addressed by Application Rationalization and Application Portfolio Management? The table below shows the issues from the Business Leaders, users, IT Management and software management perspectives.

Issues Driving the Need for Application Rationalization and ongoing Application Portfolio analysis
Business Leaders:
•Inefficient Legacy Systems
•Costly Maintenance
•Business Interruption from System downtime
•Business needs not being met by the IT Initiatives
IT Customer Complaints:
•Takes too long to get information
•Data accuracy is suspect
•Technology issues are affecting the efficiency of the business Processes.
•Cannot obtain reports needed in a timely manner.
•Manual data entry and re-entry is required.
IT Management Pains:
•The IT Asset inventory is too large to be maintained by the limited IT resources.
•The Business does not see the value added from IT investments – Results in IT not having sufficient funds to complete required improvements.
•Database Centralization is needed as data is entered in more than one place manually or kept in individual spreadsheets, or paper forms.
•Systems are not Retired prior to the point where they fail.
Software Management Issues:
•Costs include unused licenses as the license tracking process is inefficient.
•Software is in use that is no longer supported by the vendor.
•Maintenance costs are out of control.
•Duplicate applications for the same purpose.
•Underutilized applications that should be eliminated.

Application rationalization looks at the business processes along with the IT systems, analyzing procedural issues as well as system issues to determine what needs to be improved or fixed.

What Application Portfolio Management does for the business
Application Portfolio Management extends the value of IT to the business by ensuring IT is meeting the business needs. Application Rationalization will provide cost savings and improved efficiency of business processes.

Application Rationalization optimizes the operation of the IT systems and applications, ensures data accuracy and ensures compliance with regulations. From the business perspective, the analysis ties IT to the business strategy and streamlines and improves processes.

Inventory
The first step in the process is to inventory all applications, systems and processes. Questions to be answered for the entire application inventory include:
• How are the applications being used and who uses them?
• What processes does each application support?
• What data is input and output to the application?
• What is being spent to maintain, support, upgrade?
• What is the business value of the application?
• What strategic objectives does the application contribute to?
• What are the technical requirements?
• What is the level of customer satisfaction with the application or system.
• What is the risk associated with the application or system.
• Is there sufficient support for the system?
• Is the system managed and supported well?
Answers to these questions provide a clearer understanding of the state of the IT assets.

Analysis
Application Portfolio Management requires thorough analysis of processes, operations, data and systems to enable good decision making regarding plans for the IT systems and applications. The analysis should look at the relationship of each asset to process, function, capability and data input and output.
Tools used for the analysis include:
• Process flow diagrams,
• Entity Relationship Diagrams for each application,
• Application budget and support costs
• Enterprise Architecture,
• functional and technical specs, user lists,
• help desk data,
• Database Analysis (requirements and data map)
• Data/ Process/ App/ System Relationships
• Associated Process information (process efficiency etc.)
Analysis of this information will identify redundant capability, costly assets (high cost to maintain), determine underutilized assets and highlight downtime issues. This analysis will be combined with the process analysis to determine required activities to optimize the portfolio.

With regard to process, the first questions to be answered: are the processes written and are they accurate? Just like applications, processes need to be easy to use and follow. Feedback from those who use the processes will determine which processes need re-engineering. A review of all processes together will determine gaps, overlaps and areas where the process flow is not optimal. This analysis will also determine opportunities for process automation.

Data accuracy and accessibility are essential to efficiency. Is data entered in more than one place? This would indicate opportunities for integration of systems. Users need to confirm that data is easy to find.

While data is gathered separately for applications and systems, processes and data, the information must be cross referenced. It is important to look at the relationships between the processes, applications and data. Which applications support which processes? What data is collected for each process? Are there labor intensive processes that can be automated? The Application Portfolio analysis will determine improvements for processes, applications, database structure and data collection. Decisions will be made to upgrade, sunset, combine and replace applications.

The analysis provided in application rationalization provides a great opportunity for IT to provide business value in cost savings and improved efficiency. Establishment of an ongoing Application Portfolio Management process ties IT to business as it clearly demonstrates the business value of the IT strategic plan.

Application Portfolio Management is an ongoing process requiring update to the inventory, information, analysis and recommendations as capabilities are added and as applications are retired. In addition, the Application Portfolio must be monitored and re-evaluated to ensure it is contributing to the business strategy.