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CAEFusion Project
Mary Lambert, CAE, Change Management Lead
Managing Your Process and User Changes while implementing Oracle E-Business Suite'
Santa Clara, California
January, 17th , 2008
2CAE Inc. Confidential and/or Proprietary Information
Objectives of the Executive Work Session
► Demonstrate how critical it is to the success of a project to identify and address the impacts on the organization and the people early on to ensure adoption
► Highlight challenges you may face during your implementations and share what we have learned
► Highlight the value of Change Management
► Share our experience in managing change with Oracle
Session Objectives
3CAE Inc. Confidential and/or Proprietary Information
Session Agenda
► About CAE
► Organizational context and key project challenges
► Fusion – The business solution
► Our strategy for pro-actively managing expected challenges
► Accomplishments and lessons learned
► Contribution of Change Management to the success of the project
► Contribution of Oracle Change Management Services
► Open discussion
CAEFusion Project
About CAE
5CAE Inc. Confidential and/or Proprietary Information
► CAE is a leading provider of simulation and modelling technologies and integrated training services for civil aviation, and defence customers worldwide
► Annual revenues of more than C$1 billion derived from worldwide exports
► CAE employs more than 5,500 people at more than 75 sites and training locations in 19 countries.
► CAE was founded in 1947 and is headquartered in Montreal, Canada.
CAE Profile Do not modify – comes
from the CAE Global comm department
CAEFusion Project
Organizational Context and Key Project Challenges
7CAE Inc. Confidential and/or Proprietary Information
Organizational Context► CAE was In the midst of major restructuring effort
► Clearly established need for a global integrated solution that would support CAE’s growth by
Integrating different information flows Providing timely and accurate information to enhance
decision-making
► Experience from previous implementations and change initiatives was not perceived as positive
► Recent layoffs left a negative impact on the organizational climate and communication, as a whole, required improvement
► CIO and VPHR fully aware of the high risk associated with any ERP implementation
► Failure was not an option
► Heavy workload and competing priorities
8CAE Inc. Confidential and/or Proprietary Information
Key Project Challenges
► High level of cynicism and fear due to previous implementations Some projects were delayed or abandoned Employees felt a lack of involvement on their
part Employees were afraid of not receiving enough
training or being well informed
► Employees wanted the benefits of the project, while having a customized tool
► Very aggressive timeline driven by SOX requirements
► No as is processes and lack of standardization between sites
► Fear of job loss due to recent layoffs and on-going restructuring
► Securing the resources for the project due to the competing priorities
► Change in scope partway through the project
“The hardest stuff is the soft stuff.”
- Paul Allaire Xerox
CAEFusion Project
Fusion – The Business Solution
10CAE Inc. Confidential and/or Proprietary Information
Project Statement
11CAE Inc. Confidential and/or Proprietary Information
Fusion Wave 1 – ICT&S Business Solution
Baan CRM(Customer Relationship
Management)
TCIS2Training Center
Information System (CAT)
WebRegTraining Center
Information System (BAT)
ERP Oracle
Finance{AR, AP, GL, Fixed Assets, Automated
Bank Reconciliation}
Business Intelligence
ProcurementIn-direct (CT&S)
InternalControls Mgr
STARS (CAT)Scheduling Tool
STARS (BAT)Scheduling Tool
12CAE Inc. Confidential and/or Proprietary Information
ERP/Oracle
• Montreal
• Toronto
• Denver
• Dallas
• Santiago
• Brussels
• Madrid
• Amsterdam
• Dubai
31
WebReg/STARS
Apr 24
CRM
• Montreal
• Toronto
• Singapore
• Denver
• Seattle
• Dallas
• Santiago
• Brussels
• Madrid
• Amsterdam
• Dubai
26
• Dallas
15
• Dubai
17
• Montreal
18
• Toronto
• Vancouver
TCIS/STARS
16
Doha
27
• Brussels
24
• Santiago
Jun 12
• Denver
• Phoenix
• Seattle
10
• Kuala Lumpur
• Singapore
26
• Amsterdam
Jul 3
Madrid
TCIS/STARS
Fusion Wave 1 – Implementation Timeline
CAEFusion Project
Our Strategy for Pro-actively Managing Expected Challenges
14CAE Inc. Confidential and/or Proprietary Information
A Strategy Anchored in Best Practices
► Facing challenging situations during the implementation of technology is par for the course
► Guiding principles in developing our strategy Ensuring goal clarity through
executive alignment Strong executive leadership
throughout the project is key for securing real management involvement
Involving End Users early to increase their buy-in
Structuring communication to manage expectations, reduce fears and prepare people for the transition
Well planned and well designed training to ensure utilization of the system ERP Change Management Survey, 2005
Change Management Factor Contributing to the Success of ERP Implementation
2020
87%
83%
53%
90%
70%
4040 6060 8080
Project Leadership
End Users Involvement
End UsersCommunication
Goal Clarity
Training
15CAE Inc. Confidential and/or Proprietary Information
Planning our CM Work ► Being pro-active and planning for all
Change Management activities
► Working with Oracle, required deliverables identified Based on:
• Oracle Best Practices• Our culture and organizational context
and risks identified during phase zero
► Aligned with project milestones, the key change management deliverables included in project plan
► More detailed Change Management work developed following Executive interviews Readiness assessment
► Monitored our efficiency and made adjustments as required
Change Management Work plan
Change Management Effectiveness
16CAE Inc. Confidential and/or Proprietary Information
Getting Executive Commitment
► Adoption of strong governance rules Executive Workshops, lead by
Oracle, conducted before project kick-off
► Steering Committee under co-leadership
► Set-up of Management Committee
► Oracle provided Best Practices and guidance in Defining roles, responsibilities
and rules for committees Developing a sponsorship
approach Providing guidance, enabling our
leaders to lead the way
► Empowering Leaders by giving them visibility and allowing them to demonstrate their commitment
49CAE Inc. Confidential and/or Proprietary Information
Escalation ProcessCAE ERP team
member asked by Oracle to provide
decision on a business
requirement
Decision made in 3 business
days?
Yes
Complete
No
Add issue to Sim Issues (Issue
Tracking System) and escalated to
Project Mgr (PM) with cc to Executive Sponsor
Answer provided by
PM in 2 business
days?
Yes
Complete
No
Decision made by Oracle on CAE’s
behalf and notifies PM and
Executive Sponsor
Response received by CAE is 1 business
day?
Yes
No
Oracle Executes the Decision
CAEAgrees?
No
Yes
CAE provides decision
Change to decision
requested by CAE?
No
Complete
Yes
Handle request through Change Control Process
Steering Committee Process
17CAE Inc. Confidential and/or Proprietary Information
43CAE Inc. Confidential and/or Proprietary Information
Executives ExecutivesSteeringSteeringCommitteeCommittee
Team Leads Team MembersPMOPMO
Managers ManagersChangeChangeChampionsChampions
Empl’s Empl’sTargetTarget
Group per Group per RegionRegion
TargetTargetGroup perGroup per
RegionRegion
TargetTargetGroup perGroup per
RegionRegion
Coordination:Change Mgmt
Team
ExecExecSponsorSponsor
Weekly Two-way communication during Project Status Meeting
Executives update
Managers
Team Leads update their
Managers weekly
Team Leads update Change
Champions weekly
Change Champions communicate with their target groups
Change Management Team generates and coordinates communications for all audiences, and provides tools and coaching for Change Champions and Team Leads.
Managers communicate with employees frequently
Monthly two-way communication between PMO and Steering Committee
during Steering Committee Meeting
Oracle ERP Project Communication Strategy
Monthly update from Steering Committee to
Executives
Team Leads bi-weekly meeting with their VPs
Communicating Effectively
► Creation of an integrated communication strategy
Adopted a change agent structure to model the changes and rollout change management activities
Structured the project team communications
Aligned our communications with the project milestones and challenges
18CAE Inc. Confidential and/or Proprietary Information
Communicate, Communicate…
4
Newsletters
Client Logo
Client Logo
Client Logo
Client Logo
Client Logo
► Utilization of multiple communication vehicles Newsletters Website Weekly face-to-face meetings
or conference calls Focused e-mail communication Communication tours
► Regular and effective two-way communication
► Assessing the effectiveness of change management and communication
► Walking the talk – Respecting our communication commitment for credibility
► Celebrating successes and leveraging them
8
Go-live celebration
19CAE Inc. Confidential and/or Proprietary Information
Managing the unexpected
► Planning will not prevent the unexpected from occurring
► Creates an environment that is more responsive and better able to find solutions more effectively
► Some unexpected challenges we had to face
Change in scope due to aggressiveness of timeline and SOX requirements
Going from a Montreal/ Tampa implementation to a global multi-site, multi-system implementation
Change in business process owners and SMEs as a result of scope change
CAEFusion Project
Achievements and Lessons Learned
21CAE Inc. Confidential and/or Proprietary Information
Key Project Achievements
►Project delivered on budget and on time
► In-class training of all Oracle ERP users
►Global deployment of Oracle ERP’ Finance & Purchasing module to ICT&S training centers Amsterdam, Brussels, Chili, Dallas, Denver
(Phoenix, Seattle), Dubai (Doha), Madrid, Montreal, Toronto (Vancouver)
►Multiple system integration Integration of CRM, TCIS/STARS,
WebReg/STARS with Oracle ERP
22CAE Inc. Confidential and/or Proprietary Information
ICT&S Financial System Improvements
BEFORE
► Many different financial systems
► Many different charts of accounts
► Manual conversion of Trial Balances into Hyperion Chart of Accounts with possibilities of input errors
► Many subjective mappings
► No visibility into divisions’ books
► Often manual calculation of depreciation
► Two-plus weeks to do global close
AFTER
One common financial system – OracleOne common chart of accounts
Automated conversion with standard mapping
One common mapping
Full visibility into divisions’ books
Automatic calculation of depreciation
Less than one week to do global close
23CAE Inc. Confidential and/or Proprietary Information
Lessons Learned and Pearls of Wisdom
► Resources “When planning for resources, make sure
you have the right people (competence & quality) at the right time (plan) doing the right thing (scope)”
► Schedule & plan Involve the project team in the development
of the plan and gain their full commitment ► Business decisions
“We need to make business decisions in a timely manner by the appropriate stakeholders. This is a must to establish business process & architecture of systems”
► Silos “Ensure you identify all silos in advance,
and establish rules, procedures and organization to bridge them”
► Scope “When scoping, take the time, do it once, do
it right!”► Testing, testing, testing
“System integration testing, user acceptance testing, end-to-end testing: Thorough and complete testing done by the right people (functional and technical teams working together) at the right time (properly planned and no waiting until the last minute) will save time, money and aggravation during and after implementation”
► Business process definition “The business processes are the foundation
by which you build on. Knowing the “as is” to define the “to be. Knowing who the process owners are is a must”
► Communication “Communication is everyone’s
responsibility. Don’t assume that people know or understand, always validate information and involve people at all levels. Communication is a two-way street!”
► Knowledge of business/customer “Understanding where everyone’s starting
from is essential in getting everyone to the same place”
Do not change wording – Official document
resulting from offsite
24CAE Inc. Confidential and/or Proprietary Information
Leveraging What we Did Right
► Project management “Monitor project progress on a weekly
basis – reinstate daily “war room” meetings as required – Leverage use of tracking tools to gain visibility on tasks critical to timeline”
► Teamwork “Working as an integrated team with
all sites and teams (multiple systems) to resolve issues and find solutions”
► Being responsive “Be flexible and adapt to business
reality, but don’t be afraid to challenge”
► User involvement “Involve as many users as possible
before going live – Get them involved in testing”
► SOX compliance “Build in SOX compliance as you go
along to prevent re-work”
► Integrity “Saying what you do – Doing what
you say – Following-through on your commitments – Ask for help and never hide the truth”
► Change mgt, communication and support “Leverage what has been done,
validate what has worked well and not so well and build on it”
► Data integrity “Keep the focus on having good data
at all times – develop monitoring tools as required”
► End-to-end testing “Make end-to-end testing an integral
part of user acceptance testing”
Do not change wording – Official document
resulting from offsite
CAEFusion Project
Contribution of Change Management to the Success of Projects
26CAE Inc. Confidential and/or Proprietary Information
Contribution of Change Management Contribution
► Presence at Steering and Management Committee meetings
► Working closely and coaching the project team, trainers and business people involved in projects
► Development and execution of change management and communication plans
► Reacting quickly to the unexpected and developing appropriate interventions as required
► Planning and coordination of training
Benefits
► On-going visibility of change management achievements and risks
► Greater responsiveness from Executives resulting in more effective resolution of risks
► More cohesive team, better able to identify and address change management issues
► Building change management capability within the organization
► Managers and End Users better informed and ready resulting in smoother transition
► Ability to recover quickly from the unexpected and obtain the support required, thus minimizing the negative impact on the project and the people
► Quality training including material minimizing productivity dip
► Smooth delivery of training
► End-users trained before go-live
27CAE Inc. Confidential and/or Proprietary Information
Contribution of Change ManagementNot Just From My Perspective
► Top Executives now believe that big system implementation can be successful and are asking the Fusion team to take on additional projects
► CIO is looking how the whole IT organization can benefit from the Program and Change Management expertise residing within the Fusion project
► Other groups outside of IT are asking for the Fusion group to oversee Project and Change Management for their projects
► Fusion Change Management team is asked to share their methodology and tools with other groups within the organization
28CAE Inc. Confidential and/or Proprietary Information
My Advice to You► Start thinking about (and working on) change management at
the very beginning of the project
► Don’t forget about the strategic aspect of change management
► Know your organization and be realistic about the challenges – ignoring them doesn’t make them go away
► Make the business accountable for the success of the project and for achieving the benefits
► Know your people and quickly involve those who will make it happen
► Get some expertise in change management and specifically in ERP or large system implementation
► Don’t underestimate the level of effort required – it’s hard work and there’s a lot of it – so put adequate staffing in place
► Integrate change management activities in the project plan
► Invest in communications – people, events, website, newsletters, posters, mementos
CAEFusion Project
Contribution of Oracle Change Management Services
30CAE Inc. Confidential and/or Proprietary Information
Contribution of Oracle OCM
► Oracle included OCM as part of their solution
► Strong methodology and pre-formatted tools for accelerating the work
► Experience with Oracle implementations
► A team of experienced change management specialists that integrated quickly and efficiently with CAE project team
► Key organizational risks were clearly identified before the start of the project by Oracle’s OCM lead during Wave 0 (Oracle Insight program)
► Provided good insights in establishing links between challenges inherent to ERP implementation and the organizational
31CAE Inc. Confidential and/or Proprietary Information
Contribution of Oracle OCM
► Strong leadership and high involvement from Oracle CM leader during the initial planning and kick-off of the project
Quickly organized all communications in order to properly jumpstart the project
Quickly planned the work allowing us to be proactive rather than becoming reactive
Availability of OCM Leader throughout the project
► Demonstrated great flexibility in working with the internal change management specialist hired partway through the planning phase
Played a leadership role in key activities such as readiness assessment and job impact analysis
Hands-on contribution for the execution of the change management and communication plan
32CAE Inc. Confidential and/or Proprietary Information
Future with OCM
► Leveraging the work done during the initial phase of the project and making it part of all new initiatives
► Even if we have internal expertise, it is still relevant to involve Oracle for their specific knowledge in
Readiness Assessment Job Impact Analysis Post go-live surveys
► Leveraging the advantage of being an external specialist that is more objective
Recommendations may have a better reception Ability to obtain more honest information from managers
and end users
► Future decisions will be based on the projects and level of risks involved
CAEFusion Project
Open Discussion