Shane-Kerry-Sanja---The-Art-and-Science-of-Change-in-SAP-Implementations-libre

CONFIDENTIAL

CC Thomas Hawk http://www flickr com/photos/thomashawk/6214329968/

The Art and Science of Change in

SAP Implementations: Lessons from 3 Continents ACMP November 2011

Kerry Brown

VP Enablement

SAP North America

Sanja Kopajtic

Sr Business Transformation Consultant

SAP Central and Eastern Europe

Dr Shane Hodgson

Business Transformation Principal

SAP South Africa

CONFIDENTIAL

Managing Change and User Adoption:

Lessons from North America

Kerry Brown

VP Enablement

SAP Education NA

Confidential

In-memory Speed

Mobile Reach

In-memory Speed

People Collaboration

Mobile Reach

In-memory Speed

Did you know? The number of mobile workers is

growing faster than the

overall workforce!

1 Trillion connected intelligent

devices worldwide"

5 Billion mobile phone

subscribers; 7 in 10 adults

worldwide"

Source 1: Remote Worker Communications Applications Services, Worldwide 2008

Source 2: Marcia Conner, Bricol’eau !Source 3: Jim Snabe, SAP

4.5 Billion devices connected

through SAP technology (that’s

90% of world devices)3

©! 2011 SAP AG. All rights reserved. 7 Confidential

Initial user support

Installation, realization, and innovation

More change to business process and attrition

Change to Business process Expert

Functional

Version upgrade Substandard

Year 1 Year 2 Year 3

Source: U.S. Department of Labor

Live operation

Note: Attrition rates are generally higher for submanagerial positions


The SAP Marriage

Training budgets are based upon pre-SAP cycles

Training budgets seldom include repeat or continuous training

Day 1: The End of the Beginning

1-3 Years

Planning View: The SAP Wedding

20-25 Years

Client Reality: The SAP Marriage

Investment Scope

Planning Design Configuration Migration Training/

Readiness

Planning Design Configuration Migration Training/

Readiness

Run, Enhance, Extend

Courtesy: Michael Doane & Associates


Top Issues Organizations Face During Enterprise Resource Planning (ERP)

Source: Benchmarking Partners (Based on a study of 62 companies that have gone live with an ERP system) Note: Rounded percentages; not all categories are shown as bars

Issu

es/O

bsta

cle

s U

nti

l N

ow

People 62%!!

Process 16%

Technology 9%

Knowledge assets 3%

People = driver for ROI and success


Adapted from Remy S.Leeuwin, “Organizational Change”

User adoption = key to business value


Learning in the moment

All learning is social . . .

The exchange of ideas between people equals learning . . .

which is . . . intrinsically social

"! Social learning is participating with

others to make sense of new ideas

"! Social media is technology used to

engage three or more people

"! Social learning is an opportunity

to capture the knowledge of

employees not being shared

"! SAP software empowers people

and learners to work together and

perform more efficiently to drive

performance


Documentation and

collaboration

(SAP

Productivity

Pak)

Successful change: user adoption and collaboration

Customers of SAP software leverage select tools to accelerate user adoption

and performance:

"! Introduction: user adoption and

integrated gaming (SAP ERP Simulation

by Baton Simulations)

"! Documentation: authoring and user

performance support

(SAP Productivity Pak application by

ANCILE)

"! Acceleration: tool sets to accelerate enablement (SAP Knowledge Acceleration

software and e-learning)

"! Validation: User performance monitoring

(SAP User Experience Management

application (SAP UEM) by Knoa)

"! Collaboration: SAP StreamWork

application

Gaming and user

adoption

(SAP ERP Simulation)

Streamwork


Incorporate innovation to drive user performance

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Court

esy:

Mic

hael D

oane &

Assoc

CONFIDENTIAL

The Culture of the Goose!

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Lessons from Central/Eastern Europe

Sanja Kopajti# Business Transformation


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The Science & Art of Change

Management in CEE Sanja Kopajti# Business Transformation


Confidential


Includes

methodologies,

approaches,

tools and

templates.

Provides

structure and

frame.

The Science of Change Management


SAP´s Systematic Approach to Organizational Change Management (OCM)

OCM Setup &

Governance

Change

Monitoring

Performance Management

Communication Management

Training & Enablement

Stakeholder Management

Organizational Alignment

OCM framework for SAP implementation projects

Measures Setup Controlling Analysis


It is the “way” each organization adopts changes –

“beauty is in the eyes of the beholder”.

Change becomes the feeling exulted by the poetic metaphors –

the “ meaning between the lines”.

The Art of Change Management


The Role of CM in CEE organizations

TThhee rroollee ooff aa

ppssyycchhooaannaallyysstt::

hheellppiinngg cclliieennttss

ttoo ccooppee wwiitthh

cchhaannggee..


Set up and Governance

TTeeaamm bbuuiillddiinngg::

RRiittuuaallss

TTrraaddiittiioonnss

CCoommmmoonn

ccuussttoommss

HHaabbiittss......


Stakeholders

Make people appreciate the “other” point of view!


Communication

It is not about “what we say” but “how we say it”...It is important to ensure that the

receiver not only has received the message, but has also understood it.


Change Monitoring: Make Change Stick!

CONFIDENTIAL


Lessons from Africa

Dr Shane Hodgson

Business Transformation

SAP South Africa

Confidential

One reason for continued project failure is the notion of management. We talk of “change” or

“knowledge” as though we can ‘manage’ it. We

can accompany change and promote knowledge,

but to suggest change and knowledge

management is presumptuous “

(Gunson and De Blassis, 2002)


5 Key Components of Change Programmes in Africa

1.! Use Narrative and Mythology

2.! Start with Executive Education

3.! Don’t over-complicate or speak

SAPpinese

4.! Sponsorship can’t be delegated

5.! Build Capacity as a policy not a

side-effect


Use Narrative and Mythology

Proponents of This Approach

#!Storytelling – creating shared meaning to mitigate impact of different viewpoints on an ERP project

(MacLeod and Davidson, 2007)

#!Use of Narrative – (Hedman and Borell, 2004) – different kinds of stories are needed. For example:

(1) Chartering stories are aimed at selecting and funding an enterprise system. These stories can can be

used to promote a certain system or the opposite. Stories about the benefits of ERP systems can promote

the idea. Furthermore, stories can be used to obtain the commitment of top management.

(2) Project stories are aimed at supporting the configuration and implementation of the system. The role of

mentors (super users) and stories in knowledge transfer is important - also these stories should have two

target groups.

One group is the consultants, who actually carry out the implementation. The other

group is the users, who require different

types of stories. User stories should include

and convey the meaning and role of the

system by addressing questions such as what problems we are solving, why we

selected this solution, how the system works

and what role the user plays in this.


Narrative and Mythology (2)

(3) Shakedown stories are crucial, since these are at the beginning of use and often associated with productivity dips, which can be overcome through extensive

training. The aim of these stories is to overcome problems and issues associated with learning and using a new technology.

(4) Onward and upward stories are aimed at obtaining payback by improving the

use. These stories will continue to grow and be disseminated until the enterprise system has been replaced by a different system. Stories are probably even used in

the replacement of ERP systems, e.g. all the Y2K horror stories used in the

replacement of legacy systems by ERP systems.


Narrative and Mythology (3)

#!Mythmaking – using narrative around ERP selection

and implementation to reconstitute company values;

(Alvarez, 2002)

#!Story Listening – (Sole, 2002 in Tobin, 2007) -

monitor the reception, use the feedback for design and

content of future stories

#!Learning Histories (Roth and Kleiner), as used in

software development (da Silva 2003;2004) – use the

technique to capture the campfire tales of the project

and use this to provide a foundation for constructing

stories and interventions.

#!Lekgotla – Diwaniya – Imbizo - Town Hall Meeting

Include informal leaders / use social network analysis to

determine these and to back up stakeholder mapping


Start With Executive Education

Welch and Kordysh (2007) highlight executive alignment as key for ERP

implementations; this however needs to be preceded by a targeted

programme of educating the executives in concepts such as

"! How an integrated ERP is different from traditional systems

"! Key differences between functional and process-based

organisations, and the concepts of end-to-end process and of

process ownership

"! The organisational impact of moving to an integrated system –

flattened hierarchies and busted silos; altered authorities and

delegations; real-time visibility of company performance and more

"! How to extract value from the ERP system – learning to play

"! How to encourage user adoption

"! How to retain and improve ERP and process knowledge

Workshops, site visits, focus groups, simulation games, video material, webcasts

and one-on-one sessions are all useful techniques for this.


Don’t Over-complicate and speak SAPpinese

SAP implementations are complex, and involve lots of new concepts and corresponding new language; all too often the

project team members quickly adopt or even parrot technical

terms and phrases learned from the consultants, and a

culture of “Emperor’s new clothes” develops where nobody

wants to show ignorance.

This can seriously obscure some important building blocks

of major ERP implementations, such as ensuring the scope

is clearly defined and understood; the organisational

architecture has been considered and the true impact of the

programme is being anticipated and planned for.

“You see, the modern zombie is a cube-dweller that visits your workplace to work on your SAP HR implementation.! They use

urban camouflage to blend in with their surroundings – jackets and blue ties, button downs and pinstripe pants.! They have

learned to mimic our speech patterns by parroting technical jargon, but if you listen closely, they don’t actually SAY anything”

(from http://aspireopenmic.com/2011/05/31/the-zombie-apocalypse-has-begun/ thanks to Joe Hillesheim)


Sponsorship can’t be delegated

A key problem of implementations in Africa is the absentee sponsor – very often the senior

executive charged with the role hands off to a more technically-savvy subordinate which can

effectively delay decision making and cripple the project.

“No leader should ask employees to demonstrate the courage to face a

suddenly changed, newly outlined future without having the courage to face

those same employees directly: (Dan Hill, 2009).

“Research shows that three key social enablers—strong and committed leadership, open and

honest communication, and a balanced and empowered implementation team are necessary

conditions/precursors for successful enterprise resource planning (ERP) implementation. In a

longitudinal positivist case study, we find that, while all three enablers may contribute to ERP

implementation success, only strong and committed leadership can be empirically established

as a necessary condition” (Sarker and Lee, 2003).

Consider splitting the sponsor role into venturing and sustaining (as done by Mutual of Omaha)


Build Capacity as a policy not a side-effect

This requires a deliberate transfer of knowledge, embedding skills in the organisation for

upgrades, extensions and further implementations as well as for continuous improvement.

Effective SAP knowledge transfer requires the ability to make the complex seem simple and

has the end result of allowing the target company to achieve operational independence

http://www.r3now.com/a-cautionary-tale-about-sap-knowledge-transfer instead of a state of

perpetual vendor dependence.

In Africa, SAP experience can multiply one’s market value so dramatically that a very common

occurrence at the end of implementations is an exodus of all SAP knowledge and talent as the

newly-minted SAP project team leave the building. None of them want to go back to their day

jobs and, more importantly, salaries.

Consider the use of Centres of Excellence, Centres of Competence and Communities of

Practice to give your talent a life after Go-Live, to institutionalise new knowledge and to be

custodians of process improvement.

Also the OCM Team is responsible for the development and well-being of the SAP Project

team, including building their capacity, resilience and flexibility. Make sure that this is done.

CONFIDENTIAL

Thank You!

Confidential

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