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    SAP COMMUNITY NETWORK scn.sap.com

    © 2012 SAP AG 1

    Business Readiness Approach:Creating Business Ownership in anERP Transition

    Applies to:

    OCM - Organizational Change Management, Transformation. For more information, visit the Organizational

    Change Management homepage. 

    Summary

    This paper explains how to use a Business Readiness Model to enable your OCM Team to form an effectivepartnership between the Project Team and each department or business unit during an SAP implementation.

    Author: Steve OliverCompany:  SAP

    Created on: 13 January 2012

    Author Bio

    Steve Oliver  works for SAP. He has twelve years of experience implementing SAP as anOCM/training consultant and over 30 years consulting with organizations to improve humanperformance and organizational effectiveness. His industry experience includes healthcare,manufacturing, hospitality, transportation, utilities and public sector.

    http://www.sdn.sap.com/irj/servlet/prt/portal/prtmode/rss/prtroot/feedserver?rid=/webcontent/uuid/807d8c02-c934-2a10-44a2-82065c87a659http://www.sdn.sap.com/irj/servlet/prt/portal/prtmode/rss/prtroot/feedserver?rid=/webcontent/uuid/807d8c02-c934-2a10-44a2-82065c87a659http://www.sdn.sap.com/irj/servlet/prt/portal/prtmode/rss/prtroot/feedserver?rid=/webcontent/uuid/807d8c02-c934-2a10-44a2-82065c87a659http://www.sdn.sap.com/irj/servlet/prt/portal/prtmode/rss/prtroot/feedserver?rid=/webcontent/uuid/807d8c02-c934-2a10-44a2-82065c87a659http://www.sdn.sap.com/irj/servlet/prt/portal/prtmode/rss/prtroot/feedserver?rid=/webcontent/uuid/807d8c02-c934-2a10-44a2-82065c87a659http://www.sdn.sap.com/irj/servlet/prt/portal/prtmode/rss/prtroot/feedserver?rid=/webcontent/uuid/807d8c02-c934-2a10-44a2-82065c87a659

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    SAP COMMUNITY NETWORK scn.sap.com

    © 2012 SAP AG 2

    Table of Contents

    Business Readiness Approach ........................................................................................................................... 3 

    Introduction ..................................................................................................................................................... 3 

    Organizational Change Management (OCM) Principle .................................................................................. 3 

    Organizational Change Management Approach ............................................................................................. 3 

    Business Readiness Purpose and Objectives ................................................................................................ 3 

    Business Readiness Process ......................................................................................................................... 4 

    Business Readiness Network ......................................................................................................................... 6 

    Business Readiness Plan (BRP) .................................................................................................................... 7 

    Business Readiness Dashboard ..................................................................................................................... 8 

    Business Readiness Roadmap ....................................................................................................................... 9 

    User Readiness Process............................................................................................................................... 10 

    User Readiness Assessment Process .......................................................................................................... 10 

    Critical Risks – Business Readiness Accelerators ....................................................................................... 11 

    Key Lessons Learned ................................................................................................................................... 12 

    Related Content ................................................................................................................................................ 13 

    Copyright........................................................................................................................................................... 14 

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    © 2012 SAP AG 3

    Business Readiness Approach

    Introduction

     A primary issue an organization faces with ERP implementations is the lack of organizational unit levelengagement with the deployment of the new system and processes. The use of this Business Readiness Approach to drive the transition from within has been used successfully in a number of ERP engagements.In a typical organization there are a variety of units with vary unique cultures, business models andoperations. This approach allows each organizational unit to take responsibility for how the transition is

    managed for their unit.In addition, the management of needed unit resources by the Project Team for various project activities canbe extremely challenging. This approach facilitates communication and issue mitigation between eachorganizational unit and the Project Management Team to manage these activities with minimum disruption toon-going operations.

    Organizational Change Management (OCM) Principle

    This Business Readiness Approach is built on an important principle of good change management -successful change management comes when a person or an organization accepts the responsibility andtakes ownership for their part in making it happen.

    Effective management of any change transition is more than just training and communication. It comes frompeople developing a high level of readiness for the change, taking ownership for their responsibilities for thetransition and then learning how to make the change. It is a developmental process that takes time andplanned actions/activities based on good information and support. It isn’t just the people that need to beready. The organization they work in also has to be ready to support the people through their transition.Failed change efforts often come when organizations attempt to by-pass the readiness and ownershiptransfer activities and go directly to capacity building (training).

    Successful transitioning through a change requires people and organizations to accept ownership andresponsibility for the new state. When the project begins most of the essential knowledge lies within theProject Team. As the implementation progresses this knowledge must be passed along to the people whowill use the system to do their work. Research indicates that this knowledge is best transferred to impactedemployees by their direct managers and leaders. In addition, there is an increased need for eachorganizational unit to take responsibility to make the system work for them. As a project implementation

    progresses through the various stages, planned business readiness activities transfer this ownership fromthe Project to the business units.

    Organizational Change Management Approach

    This Business Readiness approach is one of several workstreams within a comprehensive OCM Strategyand Approach. The Business Readiness Workstream has many integration points with the other workstreams during an implementation and essentially all of the OCM activities to focus for the organizationalunits.

    Business Readiness Purpose and Objectives

    Business Readiness prepares each organizational unit for a successful Project implementation by facilitating

    general business adoption of the SAP system and processes to achieve business goals.

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    SAP COMMUNITY NETWORK scn.sap.com

    © 2012 SAP AG 4

    Objectives:

    1. Facilitate a smooth transfer of the system and business process ownership from the project team tothe business/organizational units.

    2. Enable managers to plan and execute the work required to transition to the new systems andprocesses in their unit.

    3. Address unique people and organizational readiness issues within specific units.

    4. Promote and support end-user training efforts and other Go-Live efforts.

    5. Communicate this new environment clearly so that all end users understand and accept their jobroles and work flow operations.

    6. Address deployment activities and issues within specific units.

    7. Support the selection, preparation and ongoing needs of Super Users.

    8. Represent the project within their business area and provide feedback to the Project Team

    Business Readiness Process

    The diagram below provides a basic flow of the steps that you need to take and some key activities that areinvolved in a typical Business Readiness process for an ERP implementation.

    The upper section reflects the work that an OCM Team drives and the lower section is an illustration of thework that a Business Readiness Team (BRT) does during a typical ERP implementation. As with any OCMapproach or tool it is important to consider the unique characteristics of your organization and the specificrequirements of your project and make adjustments as appropriate.

    Figure 1 – Business Readiness Process

    Develop BR Approach

    1. Meet with key stakeholders and review the BR Approach, highlighting key areas and getting input onconsiderations based on their organization’s culture and practices. 

    2. Develop an approach document draft.

    3. Review with key stakeholders getting their ownership to the approach.

    4. Finalize and socialize with the project manager, sponsor and project team.

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    Notes:

      The key on this activity is to make sure that your sponsor and project manager agree to the approach.

      This is a delicate process to put together and get agreement around. The project is reaching out to the variousunits and asking for resources to devote to Project work. Many organizations have to be sold on the payoff forthis resource commitment.

    Determine Units for BRTs

    1. Using an organizations formal organizational structure, map out a preliminary list of units that willrequire a BRT.

    2. Meet with key Project stakeholders, share draft and finalize a BRT List.

    3. Using your sponsor, conduct meeting with representative unit leadership and socialize the BR Approach, expectations and resource requirements.

    Notes:

      Keep the number of units to a manageable number. Combine smaller less impacted units within organizationsto lessen resource demands.

    Identify BRT leaders

    1. Meet with each unit leader to determine a person to serve in this role.

    2. Once this person is selected meet one-on-one with this person to discuss the role and address anyof their questions.

    3. Schedule a meeting with the BRLs to welcome them in their role and allow them to meet other BRLs.

    Notes:

      This has to be a manager level person in this role who has positional power and leadership skills to drive the

    readiness activities and changes.  Some units have a BRL to serve as the leader and someone on the team who manages the day to day

    readiness activities.

    Form BRTs

    1. Provide BRLs with recommendations on team make-up, BRT member roles and responsibilities, andmeeting content and agendas.

    2. BRLs select their teams.

    3. Conduct a series of BRT meetings to prepare members for their role.

    Notes:

      Teams will vary in size depending on the unit size, impact with the changes and “politics”. 

      Some units will only have a BRL.

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    Conduct BRL Meetings and provide support

    1. Should be a regular scheduled meeting of 1 hour that is used to address business readiness issue,provide Project communication and provide direction on business readiness activities.

    2. Besides the scheduled BRL meetings it is recommended that you also meet one-on-one with BRLson a regular schedule to provide support.

    Notes:

      You may want to group leaders into small, “like” groups and do the coaching in groups if you lack the coachingresources on your OCM Team.

      I have found that some leaders and teams need more support than others.

    Business Readiness Network

    This Business Readiness Model uses a network of stakeholders that are not core members of the ProjectTeam but are essential to the success of getting the organization ready for the new system and transferringownership the organizational units that use it. This network is a critical link between the Project and thebusiness units to assure effective communication and proper execution of necessary activities to get theunits ready.

    Roles and Responsibilities

    1. Steering Committee – overall responsibilities for the enterprise readiness

      Support BR Leaders with issue mitigation and resource allocation as needed.

      Assist with priority setting when conflicts surface between high priority initiatives and activitieswithin the various organizational units.

    2. Business Readiness (BR) Leader – overall responsibility for Unit readiness

      Each designated organizational unit or collection of “like” units will have an assigned

    management level individual who will serve as the key contact and facilitator of Project readinessactivities.

      Attend the BR Leader meetings on a bi-weekly basis.

      Own the Business Readiness plan for their unit and is responsible to manage the plan updatesand monitor the execution of plan tasks.

      Responsible for cascading targeted communications from the Project to their stakeholders.

      Provide a bi-weekly report to the Project using the provided Business Readiness Dashboard.

      The time commitment needed varies depending on size of unit and deployment timeline.

    3. Business Readiness Team (BRT) – provides support for the BR Leaders to implement readinessplans

      The team will consist of key process manager representatives related to the functions in scopeduring each Phase.

      Meets on a regular basis and assists in implementing the Business Readiness Plans for theirunit.

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    Business Readiness Plan (BRP)

     An important activity for the Business Readiness approach is the Business Readiness Plan (BRP). A BRP isprovided to the BRTs by the OCM Team. Working with the Project Team leadership key readinessrequirements are identified for all teams. The BRT then builds on the initial plan with more detail and addsactions in order to address any specific readiness need that they might have for their unit. These plans areowned and maintained by the BR Leader. On-going monitoring, reporting and issue management is done bythe OCM team through the use of a Readiness Dashboard and on-going coaching.

    The BRP addresses the following deployment and readiness areas:

      Unit Level Communication

      Organizational Readiness

      End User Readiness

      End User Training

      Technical Readiness

      Data Readiness

      Interface Readiness

      Critical Care Support

    Figure 2 - Sample Full Plan

    Business Readiness Plan  – Phase One (FILO)

    Last Updated Friday,  

    # Dept. Readiness RequirementsTargetDate

    Assigned ToDepartment Specific

    Actions

    StatusGreen

     YellowRedGrayNA 

    Status Notes(required for any Yellow or

    Red Issue)

    1 ORGANIZATIONAL READINESS BRL1- A Form Business Readiness Team 1/281-B Complete initial Business Readiness Plan 2/10

    1-CMaintain Business Readiness Plan andupdate status on designated reportingweeks.

    COB onFriday

    1-D

    Review high level change impacts withBusiness Readiness Team and departmentleadership. 3/25

    1-EDocument organizational changes andimpact that will affect operations. 4/15

    1-F

    Complete organizational impact analysisand incorporate needed actions intoBusiness Readiness Plan. 4/29

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    Business Readiness Dashboard

    The dashboard is a communication tool that provides the Project and Steering Committee with an on-goingpicture of the status of each organizational unit as determined by the Business Readiness Team. It isimportant to make the distinction that this is not a status reporting tools but a communication tools betweenthe BRTs and the Project so that needs and issues are addressed in a timely and efficient manner.

    Figure 3 - Sample Dashboard

    Department Director  

    PAC

    Member 

    Readiness

    Plan

    Manager 

    Change

    Champion

    Latest

    Plan

    Submittal

    Date

    Commun

    ications

    IT

    Readiness

    Organizati

    onal

    Readiness

     Administration 29-May

    Business Office 29-May

    CIO 6-Apr 

     Attorney 29-May

     Auditor 15-May

    City Planning &

    Community

    Investmt

    29-May

    Clerk  15-May

    Comptroller 29-May

    < client >Business Readiness Dashboard

    Submitted < date >

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    Business Readiness Roadmap

    Below is an example of Business Readiness activities mapped out for an implementation. This is provided toshow how a BRT works within the context of a typical project. Full

    Figure 4 - Roadmap

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    User Readiness Process

     A key responsibility in Business Readiness is preparing the end users. This is a process that is supported bythe OCM Team but executed through the Business Readiness Team. Below is an example of what thiscould look like. Once the Blueprint or design Stage is completed, define your specific User Readinessapproach with specific activities to meet the Project requirements.

    Figure 5 - Sample User Readiness Roadmap

    User Readiness Assessment Process

    The process of getting the SAP user ready to use the new SAP solution is one of the primary objectives ofthe Business Readiness Model and Approach. It is a development process occurring over the course of theimplementation. Monitoring the progress is critical and sometimes a challenge when being done by anumber of BRTs.

    The following identifies key activities that are generally recommended. They exist within multiple workstreams and the specifics need to be worked through based on your unique project requirements.

    1. Identify user groups - Using the Stakeholder analysis, communication audience assessment andinformation from the Blueprinting sessions identify key user groups.

    2. Determine significant impacts on each of the key user groups by reviewing Blueprint documents andrecord impacts for each group.

    3. Assess baseline levels of readiness for each group. Use Blueprint documents, stakeholder analysisand general discussion to determine readiness levels and potential issues. Document and use forcreating final readiness activities for each group.

    4. Business Readiness Teams determine specific user readiness activities for their organizational unit.The OCM team provides the BRT with a general user readiness approach as well as specificactivities with standard tools and templates that they can modify to fit their needs. The BRTdetermines their plans for user readiness and documents it in their Business Readiness Plan.

    5. BRTs conduct User Readiness Checks by using the Readiness Dashboard to report on userreadiness based on plan completion.

    SAP EndUser 

    (All people withan SAP Log On)

    Role Mapping

    SAP Roles Mapped to

    employees

    (10 to 12 weeks before

    Training) 

    Process Previews

    High Level self-guided, brief

    presentation on key SAPfunctional areas

    (6 to 8 weeks prior to

    tra in ing) 

    Change Discussions

    Brief discussions with end users that

    provide a description of SAP roles

    and key changes in their jobs. Also

    end user training schedules are

    communicated.

    (4 to 6 weeks prior to tra inng)) 

    SAP Navigation

    Self-study elearning on the

    fundamentals of SAP

    Navigation

    (2 weeks prior to training) 

    End User Training

    Role-based instructor led or on the job

    training for end users. This is a hands

    on experience with SAP transactionsand processes that includes

    demonstrations and participant

    exercises

    (4 to 6 weeks prior to Go-Live) 

    Dress Rehearsals

    “Day in the Life” of SAP within your

    specific department, conducted bywalking through critical processes and

    procedures prior to Go-Live

    (1 to 2 weeks prior to Go-Live) 

    Go Live Support

      1. On Line Help (Work Instructions)

      2. Super Users

      3. Structured Coaching Sessions

      4. Managers

      5. Project Functional Team  6. On Going Training

    Go Live

    Communicate Roles andTraining Courses to End

    Users

     Yes

    Schedule sessions topresent Process Previews/

    Change Discussions

    No

    Optional BRT Activities

    Optional BRT Activity

    Initial Course Invite to End

    User 

    (4 weeks prior to class)

    High ImpactUsers?

    ProcessEducation

    (On-Line)

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    Critical Risks  – Business Readiness Accelerators

    Risk – Multiple organizational units with unique business requirements and operational cycles.

    BR Accelerators:

      There will be one basic approach for building and maintaining the Business Readiness Teams. Theidentification of the teams is a joint responsibility of the OCM Team, Project Management and keyleaders within each organization.

      Each organizational unit will have the flexibility to establish their team make-up and operational

    strategy based on guidelines/requirements outlined by the OCM Team.

    Risk – Business units must assume ownership of the new processes.

    BR Accelerators:

      Provide process education workshops to appropriate business unit managers.

      Engage appropriate business managers early in the realization phase with validation of the businessprocesses.

      Conduct organization impact workshops to identify change impacts for Business Units.

      Build transition plans involving managers in specific activities that require their actions at the

    appropriate time.

    Risk – During the final four months of each deployment cycle organizational unit resources will be challengedby their commitment to maintain “business as usual” while participating in project required activities.  

    BR Accelerators:

      Provide organizational unit leaders with resource impact analysis for these last four months includingtraining time, super user time commitment and BRT work.

      Use Business Readiness Teams to assist with planning coverage to minimize the impact to businessactivities.

      Reduce or eliminate “non-business critical” initiatives during this period. 

    Risk – Project Team members can become disconnected from the business of their home organization byfocusing on their Project responsibilities.

    BR Accelerators:

      Team members can attend BRT meetings in their “home” organizations and facilitate knowledgeexchange with the Project.

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    Key Lessons Learned

      An OCM approach and tools cannot be successfully used during a transition without first aligningthem to fit your requirements. The approach and tools are designed to be flexible to meet yourspecific project and organization.

      Not all units within an organization will require a BRT. They can function well with a BusinessReadiness Leader only.

      The BRL is critical to this approach. The person in this position must be someone who has strong

    leadership skills and be highly respected in their organization. They need to be able to work bothwith their senior leaders and end users. Often a person is selected because of their knowledge ofthe functional subject matter and although that can be important in this role it is more important thatthey have strong managing and leading skills.

      Be careful with how the BR Plans and Dashboard are used. The real value of these tools is tofacilitate an effective and efficient communication between the units and the Project Team. If theplans and dashboard are seen as a way to “check up” on them they might not report honestly andissues and concerns may not get addressed in a timely manner.

      On-going coaching sessions with the BRLs is essential. Although the BR meetings for the leaders isvaluable to communicate key Project messages and to facilitate integration and support betweenunits it is conducive to issue mitigation and getting the feedback you need on readiness activities.

      A clear understanding of resource requirements from each unit for business readiness is critical. It is

    important that unit management understands this right up front. Prepare a resource impact analysisshowing who is needed, for how much time and when.

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    Copyright

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