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Change management in the real world
Tiffany Mack
Management Consultant
6428 Bella Vista Drive, Victoria BC, V5Z 1T3
Tiffany Mack
Management Consultant
6428 Bella Vista Drive, Victoria BC, V5Z 1T3
Change Management focuses on the people and management issues involved in a systems development
and implementation project. It is critical to the success of an AM/FM implementation project; however,
it is often overlooked and underemphasized. Large amounts of time and money are devoted to vendor
selection, software customization and data conversion; all of which are inarguably key components of a
project. However, if users and management are not prepared for the business changes that are required to
effectively exploit the technology, implementation can fail. There will be a high degree of user
resistance, steep learning curves, and business benefits that are not realized.
This paper focuses on the Change Management methodology and approach used on the AM/FM implementation project at BC Gas Utility Ltd (BC Gas). The project has been in progress for two years and the system has been implemented to over 125 users. It has been a challenging project as several other enterprise-wide technology initiatives have been taking place concurrently with AM/FM development and implementation. The Change Management team has been very proactive in understanding the implications of AM/FM in an enterprise-wide environment to ensure that organizational impact is minimized.
Corporate and project overview To provide a context in which the AM/FM system was being developed, it is important to understand the corporate environment and project background. Figure 1 illustrates the various projects and initiatives that were taking place concurrently while AM/FM was being developed and implemented.
Corporate Overview
The corporate environment in which AM/FM was being implemented created a great deal of new complexity and risk for the project.
When the project started in late 1997, the company had just been through major organizational restructuring. This restructuring had radically changed business units, departments, job functions and had resulted in layoffs. The climate around the organization was very tense; employees were experiencing high levels of stress and the business was struggling to adapt to major change. In this environment, it was difficult to gain buy-in for AM/FM, especially since technology projects are usually associated with major workforce impact and layoffs.
Corporate & Project Overview - Figure 1
In 1998, two major technology initiatives were launched. BC Gas began to develop its’ Enterprise Resource Planning (ERP) solution using SAP. The first three SAP modules were implemented in 1999: Human Resources, Materials Management, and Finance. The company also began developing a new Customer Information System (CIS) to provide a single centralized source of customer information. The new CIS, which will be implemented beginning in 2000, will replace the two current systems which both run on legacy mainframe platforms.
In 1999, two more large-scale technology initiatives were started; development of a mobile data solution and replacement of the work management (WMS) and preventative maintenance (PM) systems. The technology solution for mobile data is MDSI, while SAP is the platform that will likely replace WMS/PM. Both projects are targeted to begin in 2000.
With several technology projects being implemented concurrently and organizational changes occurring every few months, the risk and complexity for the AM/FM project was dramatically increased. Such a dynamic, rapidly changing corporate environment made the function of change management even more critical to the project’s success.
AM/FM Project Overview
The AM/FM implementation project started in late 1997. The first phase was a five month Architecture and Project Planning phase. The objective of this phase was to create a solid framework to guide the project through to its’ duration. Four architectures were developed: Organization, Application, Data, and IT Infrastructure. Once these architectures were completed, detailed project plans and budgets were developed for each of the following project components: Data Conversion, Application Development, and Change Management.
AM/FM Data Conversion
Data Conversion was separated into two phases: Interior and Coastal. The Interior data conversion phase kicked off with the first pilot area of data converted in late 1998. Data was then converted area by area until the Interior data conversion was completed at the end of 1999. The Coastal data conversion phase started in 1999 and will be fully converted to AM/FM by the end of 2000.
AM/FM Application Development
The application development component was divided into four phases; the four phases were closely aligned with the major business processes that AM/FM will support. Rather than implement in one large “big bang” at the end of the project, the decision was made to deliver functionality as soon as possible. This early, phased implementation approach enables the business to begin realizing benefits and allows users to start climbing the learning curve. The four phases of application development are: Drafting and Mapping, Plan Maintenance, Emergency Response, and Facilities Design.
Change Management takes a business perspective of technology; tightly integrated with Data Conversion and Application Development, the Change Management component is responsible for “bridging” the technology and the business. Change Management integrates AM/FM, the business, and other corporate enterprise-wide initiatives. On the BC Gas AM/FM project, the Change Management team was responsible for business process reengineering, benefits realization, training and user documentation, communication, and human resource and labour relations issues.
The change management model
To effectively support the BC Gas AM/FM project, a Change Management model and methodology was developed. The model illustrates how the three major components of Change Management are integrated: Business Process Reengineering, Training & User Documentation, and Communication. Refer to Figure 2 for a diagram of the Change Management model used on the BC Gas AM/FM implementation project.
Change Management Model - Figure 2
Business process reengineering
Business process reengineering (BPR) is completed during the application development phase of the project. By the time the system is ready for implementation, all business processes and procedures should be clearly defined. Being that an AM/FM system is simply a tool that enables business processes, those business processes must be reengineered and well-documented to provide users with a context in which to use the system.
During BPR, “as-is” business processes are analyzed and then reengineered into “to-be” business processes which identify the most effective way of performing a task with AM/FM. Once the new business processes are designed, new procedures and transition plans are developed.
Tightly tied to BPR is benefits realization. Benefits realization calculates the cost savings attached to business process activities. Through the BPR effort, work activities are streamlined to incorporate the use of AM/FM to reduce the time to perform a task or eliminate a task completely. Time and cost savings realized during BPR are then translated into labour productivity benefits. These benefits will be realized as ongoing sustainable cost savings once AM/FM is fully implemented.
Once business processes are reengineered and benefits have been identified, the human resource and labour relations impacts become evident. Inevitably, organizational re-structuring, workforce reduction and changes to job descriptions will occur. Now that AM/FM has been in production at BC Gas for over a year, the business is beginning to conceptualize the new organizational vision that will allow the technology to be fully exploited. Implementation of the new organizational vision will result in workforce reduction. The Change Management team works very closely with the Human Resource and Labour Relations departments to ensure that workforce impacts are managed as effectively and sensitively as possible.
Lessons Learned
The second core component of change management is training and user documentation. The development of training and user documentation also occurs during the application development phase; by the time the system is implemented, all target users should be fully trained and ready to use the system.
Training and user documentation is highly dependent on BPR; new processes and procedures are required to develop effective training and user documentation. New business processes and procedures must be incorporated into training to provide users the context in which they will use AM/FM. System training that does not incorporate new processes is ineffectual; users will experience a much steeper learning curve back at the office as they struggle to put the system into context of their everyday work environment.
The training materials produced at BC Gas are paper-based, with a heavy emphasis on “hands-on” activities. This gives participants the opportunity to use the system as much as possible in a nonthreatening training environment. The use of the on-line user documentation is incorporated into training activities, so that users are given the tools and skills to be self-sufficient once they return to the workplace.
A training environment was created with data and code taken from both the testing and production environments. In the training environment, data is “mocked up” as required for each training session. This training environment is updated on a regular basis, as more data is converted and new application code is developed.
Training is delivered using a “train-the-trainer” strategy whereby trainers are selected from the user community. Peer-led training is an effective way of gaining buy-in from the rest of the users; trainers are able to effectively “sell” the system and bridge the day-to-day operations with the technology. Trainers also develop a high level of system expertise; they effectively become part of the system support structure for their peers back at the office.
From a timing perspective, training is delivered “just-in-time” for system implementation. In order to facilitate the transfer of learning, the project’s objective is to train users and have them able to use the system immediately upon their return to the office. This requires impeccable timing and is highly dependent on the Application Development and Data Conversion teams meeting their milestones for delivery of code and data.
Lessons Learned
The final element of an integrated change management strategy is communication. Communication supports all phases and all components of the project. At the beginning of the project, communication is general in nature; messages will contain high-level information such as what an AM/FM system is and when it will be implemented. As the project progresses, communication becomes much more specific as the direct impacts to each user group become evident.
A communication audience analysis is the most effective tool to identify exactly what needs to be communicated and to whom. By analyzing each audience and their specific communication goals, key messages and delivery methods can be designed for each target group. By following this approach at BC Gas, it became evident that each audience has very different communication needs. For example, Executives want to know general information such as project status, budget and benefits associated with AM/FM. At the other extreme, Planners want very detailed information about how they will use AM/FM to design their work on-line.
Lessons Learned
Change Management is an integrated approach to supporting an AM/FM implementation project. There are three main components of the change management strategy: Business Process Reengineering, Training and User Documentation, and Communication. If any one of these components is separated from the others, the risk is a disjointed end result. Managed and implemented as an integrated whole, the end result is an organization that is well prepared to fully exploit the AM/FM technology.
The mandate of the Change Management team at BC Gas was to prepare the business for implementation of AM/FM in order to realize maximize benefits. The team has been successful in achieving that goal because a disciplined approach to Change Management was followed; the Change Management model and methodology proved to be a highly effective tool for implementing an AM/FM system in a complex, high-risk environment.
This paper focuses on the Change Management methodology and approach used on the AM/FM implementation project at BC Gas Utility Ltd (BC Gas). The project has been in progress for two years and the system has been implemented to over 125 users. It has been a challenging project as several other enterprise-wide technology initiatives have been taking place concurrently with AM/FM development and implementation. The Change Management team has been very proactive in understanding the implications of AM/FM in an enterprise-wide environment to ensure that organizational impact is minimized.
Corporate and project overview To provide a context in which the AM/FM system was being developed, it is important to understand the corporate environment and project background. Figure 1 illustrates the various projects and initiatives that were taking place concurrently while AM/FM was being developed and implemented.
Corporate Overview
The corporate environment in which AM/FM was being implemented created a great deal of new complexity and risk for the project.
When the project started in late 1997, the company had just been through major organizational restructuring. This restructuring had radically changed business units, departments, job functions and had resulted in layoffs. The climate around the organization was very tense; employees were experiencing high levels of stress and the business was struggling to adapt to major change. In this environment, it was difficult to gain buy-in for AM/FM, especially since technology projects are usually associated with major workforce impact and layoffs.
Corporate & Project Overview - Figure 1
In 1998, two major technology initiatives were launched. BC Gas began to develop its’ Enterprise Resource Planning (ERP) solution using SAP. The first three SAP modules were implemented in 1999: Human Resources, Materials Management, and Finance. The company also began developing a new Customer Information System (CIS) to provide a single centralized source of customer information. The new CIS, which will be implemented beginning in 2000, will replace the two current systems which both run on legacy mainframe platforms.
In 1999, two more large-scale technology initiatives were started; development of a mobile data solution and replacement of the work management (WMS) and preventative maintenance (PM) systems. The technology solution for mobile data is MDSI, while SAP is the platform that will likely replace WMS/PM. Both projects are targeted to begin in 2000.
With several technology projects being implemented concurrently and organizational changes occurring every few months, the risk and complexity for the AM/FM project was dramatically increased. Such a dynamic, rapidly changing corporate environment made the function of change management even more critical to the project’s success.
AM/FM Project Overview
The AM/FM implementation project started in late 1997. The first phase was a five month Architecture and Project Planning phase. The objective of this phase was to create a solid framework to guide the project through to its’ duration. Four architectures were developed: Organization, Application, Data, and IT Infrastructure. Once these architectures were completed, detailed project plans and budgets were developed for each of the following project components: Data Conversion, Application Development, and Change Management.
AM/FM Data Conversion
Data Conversion was separated into two phases: Interior and Coastal. The Interior data conversion phase kicked off with the first pilot area of data converted in late 1998. Data was then converted area by area until the Interior data conversion was completed at the end of 1999. The Coastal data conversion phase started in 1999 and will be fully converted to AM/FM by the end of 2000.
AM/FM Application Development
The application development component was divided into four phases; the four phases were closely aligned with the major business processes that AM/FM will support. Rather than implement in one large “big bang” at the end of the project, the decision was made to deliver functionality as soon as possible. This early, phased implementation approach enables the business to begin realizing benefits and allows users to start climbing the learning curve. The four phases of application development are: Drafting and Mapping, Plan Maintenance, Emergency Response, and Facilities Design.
- Drafting and Mapping. In this phase, customized tools were developed to aid drafters in creating and maintaining landbase and facilities data.
- Plan Maintenance. This functionality was designed to support the operations maintenance departments in planning and maintaining facilities. The first facilities that will be maintained in AM/FM are valves, leaks, and cathodic protection systems.
- Emergency Response. This functionality, which will be developed and implemented in 2000, will provide the ability to analyze facilities information on-line in AM/FM during emergency situations.
- Facilities Design. Facilities Design functionality will provide gas system planners with the ability to design and post as-built facilities on-line in AM/FM. This phase will require the eventual development of interfaces between AM/FM and the systems that were discussed previously: WMS, CIS, Mobile Data, and SAP. It is in this phase of functionality where ERP and spatial solutions “come together” under an enterprise-wide architecture, from both a technology and business process perspective.
Change Management takes a business perspective of technology; tightly integrated with Data Conversion and Application Development, the Change Management component is responsible for “bridging” the technology and the business. Change Management integrates AM/FM, the business, and other corporate enterprise-wide initiatives. On the BC Gas AM/FM project, the Change Management team was responsible for business process reengineering, benefits realization, training and user documentation, communication, and human resource and labour relations issues.
The change management model
To effectively support the BC Gas AM/FM project, a Change Management model and methodology was developed. The model illustrates how the three major components of Change Management are integrated: Business Process Reengineering, Training & User Documentation, and Communication. Refer to Figure 2 for a diagram of the Change Management model used on the BC Gas AM/FM implementation project.
Change Management Model - Figure 2
Business process reengineering
Business process reengineering (BPR) is completed during the application development phase of the project. By the time the system is ready for implementation, all business processes and procedures should be clearly defined. Being that an AM/FM system is simply a tool that enables business processes, those business processes must be reengineered and well-documented to provide users with a context in which to use the system.
During BPR, “as-is” business processes are analyzed and then reengineered into “to-be” business processes which identify the most effective way of performing a task with AM/FM. Once the new business processes are designed, new procedures and transition plans are developed.
Tightly tied to BPR is benefits realization. Benefits realization calculates the cost savings attached to business process activities. Through the BPR effort, work activities are streamlined to incorporate the use of AM/FM to reduce the time to perform a task or eliminate a task completely. Time and cost savings realized during BPR are then translated into labour productivity benefits. These benefits will be realized as ongoing sustainable cost savings once AM/FM is fully implemented.
Once business processes are reengineered and benefits have been identified, the human resource and labour relations impacts become evident. Inevitably, organizational re-structuring, workforce reduction and changes to job descriptions will occur. Now that AM/FM has been in production at BC Gas for over a year, the business is beginning to conceptualize the new organizational vision that will allow the technology to be fully exploited. Implementation of the new organizational vision will result in workforce reduction. The Change Management team works very closely with the Human Resource and Labour Relations departments to ensure that workforce impacts are managed as effectively and sensitively as possible.
Lessons Learned
- Enterprise-wide alignment of business processes is critical. When the AM/FM project began, it
became quickly evident that other projects were reengineering the same business processes and
impacting the same user groups. To mitigate this impact, the Change Management team developed
enterprise-wide business process models and verified those process models with the various
projects. This ensured a common understanding of the cumulative impacts of each project and
helped to identify the major areas of overlapping impact. This enables all projects to work towards
designing an integrated business solution that minimizes end-user impact.
- BPR and benefits may drive application functionality. During BPR, benefits will be driven out through the identification of time savings attached to the new process. The reengineering of the new process is an iterative cycle completed during application design and development. Thus, if the new business process and benefits are closely linked to development of specific functionality, be sure to “drive” the development of that functionality. For example, if process benefits are attached to the development of thematic mapping functionality, it is the responsibility of the BPR team to ensure that thematic mapping is developed, or benefits must be derived from other areas.
The second core component of change management is training and user documentation. The development of training and user documentation also occurs during the application development phase; by the time the system is implemented, all target users should be fully trained and ready to use the system.
Training and user documentation is highly dependent on BPR; new processes and procedures are required to develop effective training and user documentation. New business processes and procedures must be incorporated into training to provide users the context in which they will use AM/FM. System training that does not incorporate new processes is ineffectual; users will experience a much steeper learning curve back at the office as they struggle to put the system into context of their everyday work environment.
The training materials produced at BC Gas are paper-based, with a heavy emphasis on “hands-on” activities. This gives participants the opportunity to use the system as much as possible in a nonthreatening training environment. The use of the on-line user documentation is incorporated into training activities, so that users are given the tools and skills to be self-sufficient once they return to the workplace.
A training environment was created with data and code taken from both the testing and production environments. In the training environment, data is “mocked up” as required for each training session. This training environment is updated on a regular basis, as more data is converted and new application code is developed.
Training is delivered using a “train-the-trainer” strategy whereby trainers are selected from the user community. Peer-led training is an effective way of gaining buy-in from the rest of the users; trainers are able to effectively “sell” the system and bridge the day-to-day operations with the technology. Trainers also develop a high level of system expertise; they effectively become part of the system support structure for their peers back at the office.
From a timing perspective, training is delivered “just-in-time” for system implementation. In order to facilitate the transfer of learning, the project’s objective is to train users and have them able to use the system immediately upon their return to the office. This requires impeccable timing and is highly dependent on the Application Development and Data Conversion teams meeting their milestones for delivery of code and data.
Lessons Learned
- Watch Application Development and Data Conversion Dates Closely. Development and delivery
of training and user documentation may be impacted if Application Development and/or Data
Conversion dates slip. On the BC Gas AM/FM project, data conversion for one of the largest
Interior areas was delayed by one month. The Change Management team recognized that this
would negatively impact the business, so it was decided to postpone training and implementation to
coincide with the new data conversion date. This was a difficult decision as over 75 users had
already been scheduled and confirmed for training.
- Build the Training Environment with the Final Data Model, Code, and Data. During the first rollout of training in late 1998, the training environment was created using code that was still being tested, a data model in the process of being finalized, and one of the first deliveries of the pilot data. Many hours were spent digitizing data and “tweaking” the training environment in order to meet training delivery milestones. Training was delivered on time and was a success; the “tweaking” of the environment was transparent to the users. However, when the final versions of code, data, and the data model were delivered, the entire training environment had to be rebuilt. The result was massive amounts of rework; the Change Management team had to update all training materials, retest activities, and recreate training data.
The final element of an integrated change management strategy is communication. Communication supports all phases and all components of the project. At the beginning of the project, communication is general in nature; messages will contain high-level information such as what an AM/FM system is and when it will be implemented. As the project progresses, communication becomes much more specific as the direct impacts to each user group become evident.
A communication audience analysis is the most effective tool to identify exactly what needs to be communicated and to whom. By analyzing each audience and their specific communication goals, key messages and delivery methods can be designed for each target group. By following this approach at BC Gas, it became evident that each audience has very different communication needs. For example, Executives want to know general information such as project status, budget and benefits associated with AM/FM. At the other extreme, Planners want very detailed information about how they will use AM/FM to design their work on-line.
Lessons Learned
- Communicating Conceptual and Technical Subject Matter is Challenging. The concepts of spatial
data and AM/FM are very difficult to communicate to the typical end user, especially in written
form. The Change Management team found that the most effective method of communicating this
type of information is through in-person presentations and demos. There is truth to the adage that
“a picture says a thousand words”; once users see AM/FM, it is much easier for them to grasp the
concept of facilities management and spatial data as they begin to identify ways in which they will
use the system.
- Communication is the Responsibility of the AM/FM Project Team. At the beginning of the project, the Change Management team encouraged the business to employ the “cascade” approach to communication whereby managers delivered information to their direct reports. This was very effective for communicating the high-level and general messages. However, as the information became more specific and sensitive, it was decided that communication should be delivered by only three core AM/FM project team members. This allowed the project to deliver a consistent message to every group; extremely important when communicating the organizational restructuring and workforce impacts associated with AM/FM
Change Management is an integrated approach to supporting an AM/FM implementation project. There are three main components of the change management strategy: Business Process Reengineering, Training and User Documentation, and Communication. If any one of these components is separated from the others, the risk is a disjointed end result. Managed and implemented as an integrated whole, the end result is an organization that is well prepared to fully exploit the AM/FM technology.
The mandate of the Change Management team at BC Gas was to prepare the business for implementation of AM/FM in order to realize maximize benefits. The team has been successful in achieving that goal because a disciplined approach to Change Management was followed; the Change Management model and methodology proved to be a highly effective tool for implementing an AM/FM system in a complex, high-risk environment.