1. 1
Organization Change
Management (OCM)
Driving Business Value and Leveraging
Change as an Asset
Fred Asher, Ph.D.
fred.asher@yahoo.com

2. 2
Agenda
 What is Organization Change
Management (OCM)?
 Value of OCM/Training for Project
Success
 IT OCM Methodology

3. 3
What is Organization ChangeWhat is Organization Change
Management (OCM)?Management (OCM)?

4. 4
What is Organization Change
Management?
 A systematic process that mitigates risks and
leverages change as a resource for project success
 It is an actionable, process-driven effort with work
streams of activities and tasks
 Includes training as a primary work stream as well as a
tool set
 It has templates, forms, checklists and quality
measurements that drive the OCM process

5. 5
Levels and Types of Change
Management
Project Change
Management
Project Change
Management
Organization Change
Management
Organization Change
Management
Change Control
Board
Change Control
Board
• Addresses changes in cost,
budget and schedule at
project level
• A change large enough to
impact a baseline (approved)
Project Management Plan
(scope of deliverables),
Schedule or RAM
• Changes to the project that
impacts baseline requirement
or specification documents to
be updated for quality but not
enough to impact time and/or
cost
• Manages leadership
engagement, end user
adoption and project team
effectiveness challenges
• Develops project team
member, super user and end
user capabilities
• Ensures business readiness
using effective
communications and training.
• Manages the impact of
technology changes to the
landscape and architecture.
• Analyzes change request and
its impact
• Identifies degree of impact
and provides consulting
support on recommended
options.
Project PeopleTechnology

6. 6
The Value of OCM/TrainingThe Value of OCM/Training

7. 7
Source: Deloitte Consulting and 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
2%
2%
3%
4%
1%
2%
4%
8%
2%
4%
5%
6%
6%
7%
7%
8%
16%
1%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
PEOPLE 62%PEOPLE 62%
PROCESS 16%
TECHNOLOGY 9%
KNOWLEDGE ASSETS 3%
Change Management
Internal Staff Adequacy
Project Team
Training
Prioritization/Resource Allocation
Top Management Support
Consultants
Ownership (of benefits to others)
Discipline
Program Management
Process Reengineering
Stage/Transition
Benefit Realization
Software Functionality
Application Portfolio Management
Enhancements/Upgrades
Data
Reporting
Top Issues Organizations Face During Enterprise Resource Planning
Change, Training, and Risk Management
Imperatives

8. 8
Customers view Change Management as a strategic success factor for a SAP project
“What impact did Change
Management have on the
success of your last project?
OCM Benefits for Large Projects
210 organizations involved
“Change Management online survey, May 2004”
(Cooperation of SAP Business Consulting, DSAG e.V., University of Mannheim)
79% say that Change Management had a high or very high impact on the
success of their project?“
28%
51%
17%
4%
0%
Very high Very low
 Project manager, program
manager, steering committee
 47% manufacturing, 53% services
 Mostly SAP R/3 implementations
(FI/CO, MM, PP, SD, HR)
 65% supported their projects with
OCM proactively

9. 9
OCM MethodologyOCM Methodology

10. 10
OCM/Training Methodology
Develop
Develop
Deploy
Deploy
Design
Design
Idea
Idea
Stakeholder Management and
Engagement Planning
Comm
Planning
Define
Define
Process
Impact Analysis
and Action Plan
Comm.
Development
Super User and
Change Agent
Strategy
End User
Role
Mapping
Communications
Execution
Site Mgt and
Roll Out
Leadership and
Stakeholders
Communications
Business
Readiness
Business Process
and Organization
Work Design
Team
Effectiveness
End User
Training
Development
Training
Logistics
and Delivery
Training and
Enablement
Business Team Development
and Induction
PM Process
OrganizationChangeManagement(OCM)andTrainingScan
Develop
Develop
Implement
Implement
Design
Design
Plan
Plan
Analyze
Analyze
OCM/Training
Team Building and Performance
Business and Site Readiness
Review
Project/Business Team
Training Development and
Delivery
Deployment
Site
Readiness
Preparation
OCMWorkStreams

11. 11
Add Stages for Level of Project Complexity
Scale of Change
Communications
People Transition Planning (Business Readiness)
Perf Mgmt/Incentives & Rewards Alignment
Skills & Competencies Alignment (Project Team/Leaders)
Leadership and Sponsorship Alignment (Stakeholder Engagement)
Assessment/Monitoring/Measurement (OCM Scan)
Job/Organization Alignment (Business Impact and Role Mapping)
Minor
changes
Small
change to
role
Large
change to
Role
Complex
new job
processes
Briefing Documents
Quick Reference Cards / Work Instruction
On-line / Self Paced Training
Webinar Training
Instructor Led Training
New
role
Project Team Training
CHANGEMANAGEMENTENDUSERTRAINING

12. 12
OCM Fast Track Option
Organization Change Management ProcessOrganization Change Management Process
Stakeholder
Management
Stakeholder
Management
11
Business
Team
Development
Business
Team
Development22
Communications
Planning
Communications
Planning
33
Process Impact
Analysis
Process Impact
Analysis
44
Business
Readiness
Business
Readiness
55
End User
Training
End User
Training
66
IdeaIdea DefineDefine DesignDesign DevelopDevelop DeployDeploy
Project Life Cycle Stage Gate MethodologyProject Life Cycle Stage Gate Methodology
OCM Work Streams
OCM Work Streams

13. 13
OCM Tool Kit Deliverables
Deliverables Description
1
Stakeholder Management
and Engagement Plan
Identifies most important stakeholders and their needs. Includes
engagement options and monitoring plan.
2
Business Team
Development Plan
Provides on boarding, training, development, and engagement
activities for business project team members, business leaders,
Business Process Owners (BPOs), Subject Matter Experts (SMEs) and
Super Users.
3
Communications Plan and
Schedule
Identifies required project, business and functional communications
requirements. Includes schedule of communications releases
4
Business Process Impact
Analysis and Action Plan
Detailed analysis of the business impact to include end user role
mapping, functional communications requirements, and others.
Provides list of recommended actions for HR, project team, business
and OCM.
5
Business and Site
Readiness Assessment with
Recommendations and
Schedule
Identifies requirements to prepare the business and sites for
implementing the change. Provides a report on findings with project,
business, HR and OCM recommendations, action items and
schedules.
6
Training Needs Assessment
and Delivery Plan with
Schedule
Evaluation of training needs for the project team and end users.
Includes training development and delivery plan with schedule.

14. 14
Stakeholder Engagement
Need greater clarity for business/HR
Leaders’ role to direct and support project
efforts and expected changes.
Business Readiness
Develop more detailed plans at local
level for plant leadership
Business Team Development
Ensure teams understand the escalation
process and clarify roles and
responsibilities.
End User Training
Redesign training curriculum and better align
with the new business processes.
Communication
Upgrade approach as comm has been
limited and inconsistent regarding project
initiatives, specifically SAP Merchandising.
Process Impact Management
Clarify process maps, identify roles and
responsibilities changes.
(Organization Work Design)
OCM/Training Scan Sample Report
Dashboard
OCM/Training Engagement Process
PM MeetingPM Meeting OCM/Training
Scan
OCM/Training
Scan
Executive
Report
Executive
Report

15. 15
Summary

Organization Change Management (OCM) is anOrganization Change Management (OCM) is an
important project leadership accountability andimportant project leadership accountability and
critical to project success.critical to project success.

OCM has key deliverables and requiresOCM has key deliverables and requires
adequate resources to accomplish them.adequate resources to accomplish them.

The level of OCM effort depends on the scope,The level of OCM effort depends on the scope,
deadlines, criticality and complexity of thedeadlines, criticality and complexity of the
project.project.