Successfully Leading Change During an SAP Upgrade

Session 2707

Session Outline

• Objectives

• Project Profiles and Contrasts

• Successful Outcomes– Business Case– Alignment– Risk Management– Project Management– Integrated Performance– Change and Communications– Learning Environment– Knowledge Sharing

• Success Factors

Presenters

• Mary Sloan, Baylor College of Medicine– Role: Director, SAP Services– Project Focus: Change management, communication, and

training

• Michael Peterman, Lyondell Chemical Company– Role: Manager, IT Change Support– Project Focus: Ensuring employees are informed, involved,

and prepared to participate in project lifecycle

• Mark Norton, RWD Technologies– Role: Project Director– Project Focus: Change management, end user learning,

training, and performance improvement solutions

Objectives

• Name major activities and processes to be addressed in leading an organization and business units in a “global” upgrade.

• List key success and risk factors in planning an upgrade to SAP 4.6 or Enterprise.

• Explain importance of blending change leadership and learning.

• Describe how the benefits of lessons learned are realized.

Profile: Baylor College of Medicine

– Original implementation: 1999– Upgrade implementation: February 2003

• Over 1,200 users• SAP Modules

– FI, HR, MM, PM, SD

• Type of Implementation– ASAP methodology– Single event rollout (SAP functionality)– Phased SAP GUI rollout with O/S migration

• Support Environment (Central End Users)• Training Environment

– New course materials with blended training/CM approach– Standard training database (minimal footprint), simulations

• Tools– Microsoft products, Visio, RWD Info Pak, SAP Tutor, HRCS Clone and

Test

Profile: Lyondell Chemical

– Original implementation• United States (1995), Europe/Asia (2001)

– Upgrade implementation: January 2005 (planned)• Over 6,500 global users• 8 countries, 20 plants, 20 3rd-party vendors accessing systems• SAP Modules

– AA, BW, CATS, CRM, FICO, HR, HSE, IMD, MI, MM, OF, PM, PS, QM• Type of Implementation

– Custom methodology– Phased by region

• Support Environment (Super Users)• Training Environment

– Instructor-led training with CM integrated only for business leaders– Complete training database (large footprint)

• Tools– Motive AnswerWeb, Mercury WinRunner/TestDirector, Microsoft

products, Visio

Upgrade Contrasts

• Baylor College of Medicine– 4.6c Upgrade– Upgrade complete– Attributes

• Domestic, geographically centralized audience

• Upgrade to 4.6c• No business process

change (technical upgrade)

• O/S migration & upgrade

– Drivers• Functionality• Maintenance

• Lyondell Chemical– Enterprise Upgrade– Upgrade planned– Attributes

• Global audience

• Upgrade to SAP Enterprise (4.7)

• Anticipated business process changes

– Drivers• Functionality• Maintenance

Successful Outcomes

ProjectSuccess

IntegratedPerformance

Business Case

AlignmentKnow ledge

Sharing

ProjectManagement

Change andCommunications

RiskManagement

LearningEnvironment

Business Case

• Organizational direction

• Needs assessment

• Drivers– Maintenance / Support– Functionality / Enhancements– Web-enablement

• Development– Administrators or business owners provide training

estimates– Development efforts/contributions

Business Case

Alignment

• Refine business case and vision

• Business leader ownership

• Cross-functional end user representation

• User base (challenges with each key group)

• Communication meetings – Training and Change Management– Integration leaders

Alignment

Risk Management

• Governance structure

• Cost containment

• Timeline - potential delays managed proactively

• Clear direction to team members

• Defined project roles and responsibilities– Change leadership involvement– Training development and delivery

RiskManagement

Project Management

• Defined project methodology– Structured Project Office with CM representation– Thorough planning – Extensive testing with end user acceptance– Sign-off on materials by end users– Communication across the team

• Scope definition and control

• Logistics– Online registration– Change management database– Evaluations

ProjectManagement

Integrated Performance

• Alignment– Leadership– Organization

• Project Team Structure

• Communications and Branding

• Human Performance– Change Leadership– Learning, Training, Performance Support

• Site Readiness

IntegratedPerformance

Change and Communications

• Cultural challenges– Openly address concerns of the organization– Communicate frequently on areas of concern– Explain impact of changes to departments/Business units

• Communications– Targeted, audience-specific– Timeline sensitive frequency

• Ownership– Business (process team/group) owns decision-making– Support of project team/leadership– Subtle CM approach – provide support / buy-in early on– Middle management informed/involved in decision-making– Managing perception – past and current implementation

Change andCommunications

Learning Environment - BCM

• Learning materials– Focused on deltas from 4.0 to 4.6– Based on frequency and complexity of transactions– Users expected to having working knowledge of 4.0 system

• Training expectations – Minimal changes to system – Phased GUI rollout– Auditorium based with one hands-on classroom course– New on-line help tools (RWD Info Pak and SAP Tutor)

• Delivery– BCM Instructors (CEURs)– Navigation training required– Six weeks prior to go-live– Six auditorium courses, one classroom course

LearningEnvironment

Learning Environment - Lyondell

• Developing an upgrade learning strategy for global environment

• Working to establish a model that will help business units more effectively plan change management requirements

• Reviewing technology requirements to meet user needs– Learning management systems– Development and delivery tools– Collaborative learning opportunities

• Investigating user testing and certification

LearningEnvironment

Knowledge Sharing

• Create environment based on team incentives for team knowledge

• Ensure continuous knowledge transfer from consultants to employees

• Create environment for repeatable and improved performance

• Information and deliverables must be documented and maintained by the employees

Know ledgeSharing

Success Factors - BCM

• BCM led project with strategic use of consultants

• Priority IT project • Minimized support tasks • Maintained focus on technical upgrade• BCM instructor led training• CM/Training organizationally focused• Knowledge transfer throughout the project• End user involvement and acceptance• Post go-live support model

Success Factors - Lyondell

• Change management steers project plan• Sound business case• Develop a clear vision of the future• Align around business case and vision• Develop a strategy for leading change• Adequate project staffing and defined roles• Assemble the proper skills, knowledge, and abilities• Monitor and manage motivation within the project team• Timely, audience-focused communications• Do not let “Change Management” start out or become a

separate deliverable

Contact Information

• Mary Sloan – Baylor College of Medicine– Telephone: 713.798.1055– Email: msloan@bcm.tmc.edu

• Michael Peterman – Lyondell Chemical– Telephone: 713.309.4746– Email: michael.peterman@lyondell.com

• Mark Norton – RWD Technologies– Telephone: 713.284.1822– Email: mnorton@rwd.com

Thank you for attending!

Thank you for attending!

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