1. Presenter: Jonathan R. Carr,
Solutions Architect
Date: June 2014
How Internal Politics Drive the Success or
Failure of Your Product Development System
An Insider’s View of Organizational Change
During the Adoption of PTC Windchill

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Agenda
• Product development challenges: technology, complexity, and process
• Roadblocks to employee buy-in
• Two case studies
• Three keys to employee adoption of product lifecycle management (PLM)

3. You are surrounded by politics
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“All politics is local” – former U.S. Speaker of the House Tip O’Neill
“There’s not a business anywhere that is without problems….business is
complicated and imperfect.” – Bob Parsons

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Product development challenges…
• Added product complexity (variety, technology, and functionality)
• Dynamic markets: need to expand product offerings while maintaining quality
• Relentless cost pressures
• Extended supply chain – more companies and global reach:
 Coordinate with international, cross-functional teams
 Comply with corporate standards and multiple regulatory bodies
Today
Distributed
 100s of products
 1000s of parts
 Dynamic technology
 Time to market = Months
 Time within market = Months
 Heavy cost pressures
 Many government regulations
Before
Local
 1 product
 50 parts
 Stable technology
 Time to market = Years
 Time within market = Years
 Moderate cost pressures
Note: Adapted from PTC content

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… in a complex environment
Key challenges:
• Departmental silos with different data systems
• Lack of awareness of other departments’ processes
Note: Adapted from PTC content

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New technology helps to integrate teams and business processes
Note: Adapted from PTC content
Benefits of PTC‘s Product Development System (PDS): create, collaborate, control,
configure, and communicate

7. Employees are one of three elements
of business operations.
It is critical to establish a process and
communications program to reinforce
change.
• 55% of project managers believe that
effective communications to all
stakeholders is the most critical
program success factor.
– The Project Management Institute
• 70% of attempted organizational
changes fail, with employees playing a
key role in project outcomes.
– McKinsey & Company
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Think beyond technology: employee buy-in can make or break a
new program

8. • Resist giving up control or ownership
• Balk at new levels of transparency and accountability
• Worry that underlying IT issues become highlighted and cause
bigger challenges
• Allow differences among departments to impede success
• Have an “us” vs. “them” mentality between corporate and
regional sites
• Fear that they will become expendable
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Common roadblocks to employee adoption of new programs

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Case Study 1
Green energy company addresses rapid growth, global expansion
Business Challenge:
• Need to support high growth across multiple locations
Solution:
• Implement PTC Windchill to manage engineering design and documentation
Politics:
• Engineering not involved in the process
• Remote sites not supporting the program
Initial Roadblock:
• Employee resistance caused:
 Schedule delays
 Quality issues
 Costly late-stage design changes
Engineering

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Case Study 1, Continued
Green energy company addresses rapid growth, global expansion
Reset for Success:
• Added engineering to project steering
committee
• Improved communication globally,
gained program advocates
Results:
• System supports company growth
• Company is meeting aggressive new
product introduction goals
• Product quality is improved

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Case Study 2
Lab devices manufacturer improves service with
real-time insight into part changes
Business Challenge:
• Outdated parts information impacts
customer satisfaction, slows service
Solution:
• Make product engineering updates available
to global services team automatically via
PTC Windchill
• Provide CAD product information in 3D
Politics:
• Mid-project disruption by one department
threatens to put the project on hold

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Case Study 2, Continued
Lab devices manufacturer improves service with
real-time insight into part changes
Reset for Success:
• Met with frustrated department head
immediately to diffuse the situation
• Expanded project steering committee
• Increased communications with all
stakeholders (from updates to gathering
feedback)
Results:
• Increased service team efficiency
• Reduced repair times
• Cut component replacement cost

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Three keys to employee adoption of PLM
1. Communicate, communicate, communicate
 Don’t underestimate the time and repetition required to educate and assure employees
 Underscore benefits (financial savings in specific areas, etc.)
 Make your objectives clear – from all-staff emails to departmental meetings
 Create a communications framework – from sending pre-meeting agendas to creating
a feedback loop to address employee questions
2. See the employees’ perspective
 Acknowledge short-term “pain” while employees learn new processes
 Underline the companywide gains – especially if benefits won’t be evenly distributed
across departments
3. Get help
 Enlist a “change champion” in each group to advocate for your program
 Make sure that there are employees at all levels that you can leverage to influence
specific teams

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