Change Management Plan Update

15 July 2002

Prepared for:

HQ Defense Logistics Agency

Attn: Jim Kimberly

8725 John J. Kingman Road

Fort Belvoir, VA 22060

Contract Number: GS-35F-4692G

Delivery Order: SP0103-00-F-A032

Document ID: PS2-25-Change Management Plan Update

Prepared by:

Accenture, LLP

11951 Freedom Drive

Reston, VA 20190

Distribution Statement C: Distribution authorized to US Government

agencies and their contractors; Software Documentation; 30 July 1994. Other requests

for this document shall be referred to HQ DLA.

PSI2-25-Change Management Plan Update.doc / i - -– / July 15, 2002
/ / Change Management Plan Update

TABLE OF CONTENTS

Section Page

1.1 Objectives 2

1.2 Scope 2

1.3 Implementation Approach 2

1.4 Guiding Principles 2

2.0 Overview of effective change management 2

2.1 What is Change Management? 2

2.2 Change Management Objectives 3

2.3 Change Management Framework 3

2.4 Benefits of Change Management 4

2.5 Barriers to Successful Change Management 4

2.6 Change Management Activities on the BSM Program 5

3.0 Change Readiness 5

3.1 Objectives 5

3.2 Scope 6

3.3 Implementation Approach 6

4.0 Communication 6

4.1 Objectives 6

4.2 Scope 7

4.3 Implementation Approach 7

5.0 sponsorship 7

5.1 Objectives 7

5.2 Scope 8

5.3 Implementation Approach 8

6.0 Summary 9

Appendix A APPENDIX A – Acronyms and abbreviations 10

1.1  Objectives

The objectives of the Change Management Plan are to:

2.0 Define Change Management

3.0 List the Objectives of Change Management

4.0 Describe the Benefits of Change Management

5.0 Describe the Barriers of Change Management

5.1  Scope

This plan gives an overview of Change Management and describes the BSM Change Management activities in terms of their objectives, scope and implementation approach.

5.2  Implementation Approach

The Change Management effort entailed creating Communication, Sponsorship, and Change Readiness Plans. These plans were designed during Business Process Reengineering (BPR) for implementation during Release 1.

5.3  Guiding Principles

The guiding principles of Change Management include:

·  Integrating the BSM Change Management with DLA and Accenture personnel

·  Ensuring that the BSM Change Management is working in concert with the other IPTs

·  Getting periodic buy-in/approval from BSM leadership before moving forward

·  Enabling the BSM Sponsors

·  Communicating the BSM program within DLA

·  Ensuring that DLA is ready to embrace the changes brought on by BSM

6.0 Overview of effective change management

6.1  What is Change Management?

Managing change involves defining the scope of the initiative, capturing the opportunities and selecting the right strategies. Change can involve everything from massive transformations to incremental improvements; it can affect a whole global enterprise or a small unit.

Change is like a journey, using a set of guiding principles to lead us to the future vision. We cannot always see the destination, or the complete route we must take. At each stage of the journey we need to build intermediate “camps,” which in themselves are coherent, self sustaining entities. Each camp must be planned in detail before setting out so that the right supplies, components and people can be taken along. The path from one camp to the next then needs to be plotted in detail to ensure all the elements (people, supplies, infrastructure) arrives at the right place at the right time. If change is not managed during the journey, the organization can face increased absenteeism, a fall in morale as well as productivity.

Change Management is about navigating the journey. Managing change requires creating a "demand" for the future and providing a "supply" for it, by defining and building that future. Both are essential. Change cannot be achieved unless the individuals in an organization see a compelling need for it. Neither can it be achieved unless concrete actions are taken to build a new future.

6.2  Change Management Objectives

The objectives of Change Management are to plan and manage the process to make best use of the techniques at DLA’s disposal, to minimize disruption and release the business benefits of the change as quickly as possible.

6.3  Change Management Framework

The framework illustrated below provides an approach to facilitating change. This framework, called the Change Model, evolved from the study of change initiatives taking place at a number of organizations and the realization that successful change always includes initiatives focused within each of four components. Each quadrant of this model represents a crucial factor that DLA has addressed during the change process. The four quadrants of the model are navigation, leadership, enablement, and ownership. Planning and executing change initiatives within only one of the four quadrants is not sufficient if successful change is desired. Addressing and balancing the focus of each of the elements within the change model increases the likelihood that DLA can successfully manage and implement the change associated with BSM. As a result, the key components of the framework serve as the foundation for the Change Management Plan.

Figure 2.3 BSM Change Model

Quadrant One: Navigation - Managing BSM initiatives and their impact on DLA requires careful planning, coordinating, and monitoring. Tasks within the Navigation Quadrant involve coordinating BSM initiatives within the overall scope of DLA’s business initiatives. Through effective plan management, DLA will ensure that change is implemented within the overall scope of the business objectives.

Quadrant Two: Leadership - Involvement from management is necessary to ensure a successful implementation of BSM throughout the organization. Plan sponsors and decision-makers play a key role in the success of the plan by providing active leadership and support for the change. Initiatives within the Leadership Quadrant provide employees with sponsorship guidance for participating and responding to the change.

Quadrant Three: Enablement - Tasks within the Enablement Quadrant involve the use of tools and techniques that enable the workforce to adequately prepare and absorb the change. For example, the use of a comprehensive training approach and two-way communications can greatly assist in the transition of employees to the new system. Enabling tools enhance the user’s learning process, build confidence levels, and create enthusiasm within the organization. Tools and techniques further enable the transition by providing support after the implementation.

Quadrant Four: Ownership - For BSM to be a success, it is critical that DLA employees feel personally invested in a successful transition to the new system. Initiatives within the Ownership Quadrant include ways to personalize the change for end-users to assist in this transition. Providing employees with opportunities to see how they will be individually impacted by the change encourages them to buy-in and take ownership of the change.

6.4  Benefits of Change Management

If change is managed effectively a dynamic environment is created where efficiency and job satisfaction is increased. In addition, employees are committed to the process and eventually change is accepted as “the norm.”

6.5  Barriers to Successful Change Management

In the early stages of the BSM program it is difficult to fully understand and therefore describe the full implications of implementing the new processes, jobs and systems into the DLA environment. It is, however, important to understand the key issues and barriers to change so as to provide a realistic framework for managing the change.

The following key barriers and change implications have been identified previously in organizations implementing change efforts.

Key Barriers:

·  Uncertainty and lack of awareness – Created by insufficient communication between management and employees on an ongoing basis.

·  Lack of articulating change drivers - employees do not perceive there is a need for the organization to change.

·  Uncertainty - no clearly articulated vision of the changes to be implemented or how changes will impact employees.

·  No expectation management - employees must understand that the change will not be successfully implemented without the commitment of time and a downturn in comfort and productivity in the transition period (also known as the “Valley of Despair”).

·  Uncertainty as to continued resource commitment – demonstration and understanding as to whether BSM has the ability to actually deliver the changes planned.

·  Implementation problems – lack of management understanding of the effort and complexity required to implement the changes in process, technology, and workforce.

In addition to the barriers identified above, there are also implications for the organization as a result of the changes being implemented. These implications must also be addressed by an effective change management plan.

Change Implications:

·  The changes to be introduced over the next few years will require a shift in culture in order for success to be fully achieved. The DLA culture has several layers of issues, ranging from those that are unique to DLA to those that are unique to each of three different supply centers: DSCC, DSCP, and DSCR. These issues must be addressed in order to maximize the benefits of BSM.

·  Many of the existing jobs within the Order Fulfillment, Planning, Procurement and Financial Management areas will change in the roles and activities they currently perform. New jobs may appear and new team structures will help to define the new organization structure for DLA as a result of BSM.

·  Employees will require skills to use the tools and systems available as a result of the BSM program.

To assist in the successful introduction of the desired organizational changes, the fundamental issues identified here must be addressed during the BSM program. This will be done by using an integrated Change Management approach.

6.6  Change Management Activities on the BSM Program

The Change Management activities on the BSM program will include Change Readiness, Communication, Sponsorship. Summaries of each of these activities are detailed in the ensuing sections. The complete plans for implementation are included in the appendices.

7.0 Change Readiness

7.1  Objectives

The primary goal for the DLA BSM Change Readiness effort is to ensure that key organizational components are “ready” to do business in a new way. The purpose of Change Readiness is to make certain no one is left behind and that key operational capabilities are in place.

The objectives of the Change Readiness effort for the DLA BSM Plan are to:

8.0 Develop a common set of change initiative priorities

9.0 Define business metrics for "readiness" across key audience groups

10.0  Ensure that the sponsors (versus the project/program) owns the process of being ready to "Go-Live" with the software solution, other software tools and redesigned business processes

11.0  Help set realistic expectations of the people process to "get ready" and of the post-conversion stabilization period

12.0  Identify the roles, responsibilities and actions required of change leaders (i.e., BSM program staff, sponsors and change agents know what and where) who will drive business readiness

13.0  Help the BSM program staff know what and where to focus their efforts

14.0  Identify the program’s successes, resistance and potential barriers

15.0  Lower implementation risk by anticipating issues throughout the BSM lifecycle

·  Focus on implementation of the business case and realization of benefits

15.1  Scope

The scope of Change Readiness extends to the entire DLA organization, its customers, suppliers and Key External Stakeholders. Change Readiness efforts will continue for the duration of the BSM program.

From the BSM-wide Change Readiness perspective, the intended audiences for the assessments include the Modernization Executive Board and the executive leadership group. For specific centers’ perspective, the intended audiences include the local Sponsors and BSM Chiefs as well as survey participants and general workforce as appropriate (i.e., Field Activities, DLA Headquarters, the Defense Distribution Center (DDC) and affected DLA organizations).

15.2  Implementation Approach

Change readiness activities include providing the tools to help Sponsors, Change Agents and the BSM program team assess the organization at various points during transition and implementation. Two primary tools that will be implemented are the Change Readiness FeedbacksScorecards and the Change Commitment Curve.

The Change Readiness FeedbacksScorecard haves been used to translate BSM’s strategic objectives into a coherent set of commitment measures. Measurements will be completed at periodic milestones to help determine to what extent of readiness for the change is being achieved. The Change Commitment Curve is a second measurement tool. The curve consists of five stages of where people fall within the change process. Individuals will be assessed to determine their progress along the Change Commitment Curve and to determine what assistance is required to help them reach the final stage – Commitment. Data collected from the Commitment Curve will be incorporated into the periodic Change Readiness ScorecardsFeedbacks.

These assessments then will be used to identify appropriate action items to assist in achieving the desired state of “readiness” for the organization.

For detailed information about the Change Readiness Approach, see PSI2-25 Change Readiness Assessment Plan.

16.0  Communication

16.1  Objectives

The primary goal for the DLA BSM Communications effort is to create effective communications in a clear and concise manner as consistent with program phases. Communications also helps to stimulate sponsorship and ownership. Buy-in of executives, key sponsors, the BSM IPTs and site representatives, or designated change agents on the IPTs, is critical for the communication effort to achieve its objectives.

The objectives of the communication effort for the DLA BSM Plan are the following:

·  Help individuals prepare for, understand and accept changes in their work environment

·  Inform and involve all affected groups whose commitment will be needed

·  Provide accurate information to keep stakeholders focused, reduce rumors and performance dips

·  Build realistic expectations regarding BSM impacts and benefits

·  Provide timely information, using a multi-media approach, tailored for various audience groups

·  Sustain interest and energy of team members and business representatives who are involved with the DLA BSM Program.

·  Encourage sponsorship ownership.

16.2  Scope

The Communication Strategy represents our comprehensive approach for disseminating information about the DLA BSM program. The plan prepares DLA for change resulting from the implementation of BSM and ensures that the process, organizational and software changes are implemented with maximum workforce acceptance and impacts positively on DLA. The Communication Strategy & Approach outlines the general objectives and strategy for conducting communications and then details specific communication activities and events.