Change Management and the Application of Business Transition Management: What Every Manager Should Know About Planning

1. Change Management and the Application of Business Transition Management: What Every Manager Should Know About Planning, Leading, and Sustaining Change NASCIO Presentation November 6, 2007 Tim Rahschulte & Wayne Herrli The business transition methodology, templates, tools and process guide are a result of close collaboration between Business Transition Managers, SSI Project Managers, BPM staff, and participants from other state agencies such as Employment, Secretary of State Office and DAS. In addition, key business leaders and project staff were interviewed for input to determine the design of this product. Overall more that 45 people contributed to the development of what you are about to see. The methodology is applicable to all types of projects (IT/Non), it is scaleable and provides for the first comprehensive standardization for business transition within an Integrated Project Framework. The PMO Technical Complexity Tool has been adapted to emphasize more of the business attributes and the initial feed back has been positive from the business side because it now speaks to their needs and concerns.The business transition methodology, templates, tools and process guide are a result of close collaboration between Business Transition Managers, SSI Project Managers, BPM staff, and participants from other state agencies such as Employment, Secretary of State Office and DAS. In addition, key business leaders and project staff were interviewed for input to determine the design of this product. Overall more that 45 people contributed to the development of what you are about to see. The methodology is applicable to all types of projects (IT/Non), it is scaleable and provides for the first comprehensive standardization for business transition within an Integrated Project Framework. The PMO Technical Complexity Tool has been adapted to emphasize more of the business attributes and the initial feed back has been positive from the business side because it now speaks to their needs and concerns.

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3. 3 Statement of Problem from DHS Executives �Effective change management is a  critical need for the success of our projects� �The organization really needs to  spend quality time focusing on  change management� �We need more details on change  management plans and business  transition planning�  �We need to understand the �how-to�  of change management execution.�

4. 4 Success Factors Understand the dynamics of organizations and the fundamental success factors of organizational change Employ lessons learned from prior change efforts Utilize a standard, tested Business Transition Methodology Establish a shared understanding of business transition with leadership and management through training and targeted communication Practice and support formal, planned business transition efforts We have determined thus far that success is found in Understand the dynamics of organizations and organizational change; Understanding fundamental success factors of change within organizations; and understand business transition leadership and management We have determined thus far that success is found in Understand the dynamics of organizations and organizational change; Understanding fundamental success factors of change within organizations; and understand business transition leadership and management

5. 5 Success Factors The primary key to successful organizational change is ???????????? PEOPLE

6. 6 Often when engaged on projects (all projects are change endeavors) we focus on specific aspects: �Oh, this is a technology project.�Often when engaged on projects (all projects are change endeavors) we focus on specific aspects: �Oh, this is a technology project.�

7. 7 Perhaps we link the project to certain aspects of the business such as � individuals.Perhaps we link the project to certain aspects of the business such as � individuals.

8. 8 �and perhaps processes.�and perhaps processes.

9. 9 �and maybe relationships.�and maybe relationships.

10. 10 �sometimes we say there is a cultural aspect involved. �sometimes we say there is a cultural aspect involved.

11. 11 �typically, the change occurs due to external pressures and or internal performance. �typically, the change occurs due to external pressures and or internal performance.

12. 12 This awareness highlights the need for diagnosis.This awareness highlights the need for diagnosis.

13. 13 But there is more to consider.But there is more to consider.

14. 14 We can consolidate these terms to �organizational arrangements� and �people�We can consolidate these terms to �organizational arrangements� and �people�

15. 15 This is a model version of our findings. The primary key to successful organizational change is ???????????? Ask/Facilitate the question, �Why is this important to understand?� Can lead to understand of change work: environmental scanning, continuous assessments, the power of people� What this does not do is explain how to plan, lead, and sustain change. �People are the driving force in successfully accomplishing change� (Suran, 2003, p. 31). �Individual change is at the heart of everything that is achieved in organizations� (Cameron & Green, 2004, p. 7). Central to change is never strategy, structure, or system, but rather its people (Duetschman 2005). People are the agents of transformation This is a model version of our findings. The primary key to successful organizational change is ???????????? Ask/Facilitate the question, �Why is this important to understand?� Can lead to understand of change work: environmental scanning, continuous assessments, the power of people� What this does not do is explain how to plan, lead, and sustain change. �People are the driving force in successfully accomplishing change� (Suran, 2003, p. 31). �Individual change is at the heart of everything that is achieved in organizations� (Cameron & Green, 2004, p. 7). Central to change is never strategy, structure, or system, but rather its people (Duetschman 2005). People are the agents of transformation

16. 16 Integrated Business Transition Framework(brief version) In your packet there is a process guide that shows in more detail the steps one would go through from the recognition for change through the project phases and turn over to maintenance & operations for the business. Again this is scaleable to the complexity of a project Example at a high level: Pre-initiate, lean would have been applied and the current state mapped and a future state would have been explored and business case built Initiate, Charter and scope developed Plan, develop project plan and business transition plan Execute, apply plan, complete the integrated project plan and readiness assessment Throughout all of these previous activities the project team is applying monitoring and control Closing involves transition support plan and lessons learned as an example Operations and maintenance involve the continuation of Lean for process improvement and performance measurementIn your packet there is a process guide that shows in more detail the steps one would go through from the recognition for change through the project phases and turn over to maintenance & operations for the business. Again this is scaleable to the complexity of a project Example at a high level: Pre-initiate, lean would have been applied and the current state mapped and a future state would have been explored and business case built Initiate, Charter and scope developed Plan, develop project plan and business transition plan Execute, apply plan, complete the integrated project plan and readiness assessment Throughout all of these previous activities the project team is applying monitoring and control Closing involves transition support plan and lessons learned as an example Operations and maintenance involve the continuation of Lean for process improvement and performance measurement

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19. 19 Business Transition Methodology Business Transition integrates: Project Management Business Change Management Business Process Engineering and Lean Six Sigma Documented in a Process Guide Practiced by Business Transition Managers and Project Managers

20. 20 Business Transition Methodology: Practical Value and Utility Tools and Templates Over 40 Templates, including: Integrated Business Transition Plan Impact Assessment Transition Complexity & Risk Study Go-Live Readiness Assessment Transition Support Plan Tools, including: Surveys Checklists

21. 21 Business Transition Methodology: Practical Value and Utility Training You might say, �don�t we use that PMBOK thing?� Yes, but PMBOK makes scant reference to organizational change You might say, �don�t we use that PMBOK thing?� Yes, but PMBOK makes scant reference to organizational change

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24. 24 Business Transition Methodology: Practical Value and Utility Coaching Experienced Business Transition Coaches Familiar with DHS organizational dynamics Expertise in developing plans Experienced implementer Provides peer review Shares lessons learned Performs as expert advisor

25. 25 Expected Values & Benefits Employs a disciplined and standardized approach Utilizes a lifecycle framework Incorporates lessons learned from prior projects Actively engages project and affected business staff in the change Provides experienced business transition coaching, facilitation and training Applies �Lean� before a Business IT solution project begins and then builds it into the Operations and Maintenance handoff of the project The organization experiences the benefits of Business Transition Management The first three bulleted items are self explanatory. To provide experienced BT coaching, facilitation and training, it will require selecting individuals that are adept at thinking both in the business terms and IT. They must be seen as neutral and can bring divergent viewpoints to agreement and understanding. A project management skill foundation is critical. DHS has started to apply Lean efforts to the organization to eliminate waste in our processes and identify what the future state will be for our Value Streams. This will help to drive what IT solutions will be applied to meet the needs of our business divisions. The first three bulleted items are self explanatory. To provide experienced BT coaching, facilitation and training, it will require selecting individuals that are adept at thinking both in the business terms and IT. They must be seen as neutral and can bring divergent viewpoints to agreement and understanding. A project management skill foundation is critical. DHS has started to apply Lean efforts to the organization to eliminate waste in our processes and identify what the future state will be for our Value Streams. This will help to drive what IT solutions will be applied to meet the needs of our business divisions.

26. 26 Practical Considerations Apply lessons learned in real-time Keep the framework flexible To build a successful business transition process and team will take 12-18 months Harvest the knowledge of your experienced project managers The business will view non-related daily work as in the future The Business Transition Manager is from the business and may not be trained in project management Communications is Key Lesson Learned should be applied quickly to allow for course changes and keeping the business focused on tasks at hand This is an iterative process and requires adjustment as the project progresses. The framework will need adjustment for COTS, GOTS, Agile and in house design and development of applications. We are piloting on several large and medium complexity projects to insure that the approach, successes and consulting is practical and the business relationships are built on shared understanding. Project managers have a wealth of real life experiences that need to be utilized for working around and through implementations. Many PM�s have been taught that once the product is delivered the project is over. We are working with the PM�s of many years experience and the newly minted ones to accept that there is a deeper responsibility to the success of the project that requires that the business is fully prepared to accept and use the new product. It is the nature of most business people to concentrate on delivering the product or service that they are responsible for on a daily basis. A project with an implementation time horizon of eighteen months to 4 years will be considered as in the future by the business, which require constant communications with the customer and engagement to insure resourching tasks and timelines stay met. It is imperative that if the BT manager comes from the business that they become trained and skilled in the basics of project management phases, understand work breakdown structures, dependencies, proper resourcing, communications and scheduling. Constant project communications with and between the sponsor, steering committee, stakeholders, project and business staff is paramount. This is a daily activity and requires highly skilled practioners. If you lose credibility, the project may never recover. Lesson Learned should be applied quickly to allow for course changes and keeping the business focused on tasks at hand This is an iterative process and requires adjustment as the project progresses. The framework will need adjustment for COTS, GOTS, Agile and in house design and development of applications. We are piloting on several large and medium complexity projects to insure that the approach, successes and consulting is practical and the business relationships are built on shared understanding. Project managers have a wealth of real life experiences that need to be utilized for working around and through implementations. Many PM�s have been taught that once the product is delivered the project is over. We are working with the PM�s of many years experience and the newly minted ones to accept that there is a deeper responsibility to the success of the project that requires that the business is fully prepared to accept and use the new product. It is the nature of most business people to concentrate on delivering the product or service that they are responsible for on a daily basis. A project with an implementation time horizon of eighteen months to 4 years will be considered as in the future by the business, which require constant communications with the customer and engagement to insure resourching tasks and timelines stay met. It is imperative that if the BT manager comes from the business that they become trained and skilled in the basics of project management phases, understand work breakdown structures, dependencies, proper resourcing, communications and scheduling. Constant project communications with and between the sponsor, steering committee, stakeholders, project and business staff is paramount. This is a daily activity and requires highly skilled practioners. If you lose credibility, the project may never recover.

27. 27 Future Enhancements Address language barrier IT, business BA�s and SME�s Business Architecture, Enterprise Architecture - TOGAF Train future Business Transition Managers in an existing project before assuming a project Lessons Learned It is imperative that we develop staff that understand the multiple languages and can skillfully facilitate through the business transition activities. This is an obvious difficulty that seems to occur over and over that get put into lessons learned, but rarely is addressed. The Business Transition process will be included in the TOGAF methodology that we are beginning to apply. We are moving towards building business architects into our Enterprise architecture structure. We all know that change in an organization can be very challenging. Being a BT manager requires multiple skills, that one is not born with. It is imperative that the person selected to lead change efforts should have the opportunity to participate with an experienced manager in a project to hone and develop skills that will be required when they assume the responsibility. We presently have a PM career path rotation program in place that I would like to use as a starting model for developing a future business transition management program. The earlier reference to a conference based learning experienced needs to become a reality in 2008 to insure that all key project and business transition managers are fully sharing best practices and recommended improvements. It is imperative that we develop staff that understand the multiple languages and can skillfully facilitate through the business transition activities. This is an obvious difficulty that seems to occur over and over that get put into lessons learned, but rarely is addressed. The Business Transition process will be included in the TOGAF methodology that we are beginning to apply. We are moving towards building business architects into our Enterprise architecture structure. We all know that change in an organization can be very challenging. Being a BT manager requires multiple skills, that one is not born with. It is imperative that the person selected to lead change efforts should have the opportunity to participate with an experienced manager in a project to hone and develop skills that will be required when they assume the responsibility. We presently have a PM career path rotation program in place that I would like to use as a starting model for developing a future business transition management program. The earlier reference to a conference based learning experienced needs to become a reality in 2008 to insure that all key project and business transition managers are fully sharing best practices and recommended improvements.

28. 28 Documents and methodology that you have received BT courses outline Integrated Project Framework process Presentation The first comprehensive business transition methodology Thank you for your time, are there any questions?Thank you for your time, are there any questions?

29. 29 Contact Information Tim Rahschulte 503-554-2827 trahschulte@georgefox.edu