Change Management

This blog will define SAP and highlight the technical and change management considerations from the perspective of a CARA consultant on a CARA engagement.

Who is SAP?

SAP SE is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. The company is especially known for its Enterprise Resource Planning (ERP) software. SAP is an acronym for Systems, Applications, and Products.

Companies use SAP to integrate different business processes across various functions, such as purchasing goods and services, fulfilling customer orders and collecting payments, importing and exporting goods, manufacturing and distributing products, financial reporting, and maintaining Master Data, which is core to their operations.

SAP’s Journey to S/4HANA

SAP introduced R/1 enterprise software in 1972 and released R/2 for the mainframe in 1979. The next generation was R/3 for the client/server that was released in 1992. SAP introduced mySAP for the world wide web in 2000. It was an e-business software integration tool that delivers content to the user based on his or her role in an enterprise. SAP introduced HANA in 2011. It is optimized for SAP’s in-memory database known as SAP HANA. SAP has continued to enhance this suite of products with real-time analysis and computing, workflow approvals, self-service tasks, and cloud offerings.

“A comprehensive change management strategy ensures people engage and support the change and implement the behavior to sustain the change.”

 

SAP S/4HANA

S/4 HANA is the successor of SAP R/3 and is SAP’s ERP system for large enterprises. S/4 HANA is a solution specifically designed to run on HANA and helps companies move away from traditional ERP systems towards providing users real-time decision support.

SAP HANA is comprised of three key components:
1. In-memory computing engine
2. Database technology
3. Single database platform

To learn more about these three key components, refer to the following diagram.

Source: M. Schroer

What Must Companies Consider When Migrating to S/4HANA?

From a Technical Perspective…
Companies must consider their migration and implementation strategy as described below.

• Brownfield or Greenfield Implementation
  • A Brownfield implementation means the company is migrating to SAP S/4HANA without re-implementation and without disruption to existing business processes. However, it does allow for re-evaluation of any existing process flows and any customizations that were made to the system.
  • A Greenfield implementation or Vanilla implementation is the traditional way of implementing an SAP system. The team, which consists of both consultants and key users, starts from best practices and designs the final ERP solution taking into account the team’s joint experience.
• On-premise or Managed Cloud Migration
  • An on-premise migration means all of the SAP hardware is located within the companies’ own data center (as opposed to in the cloud).
  • A cloud migration means the company moves its SAP applications, data, and technology to a managed cloud service.

From a Change Management Perspective…
Companies must consider the people, process, and technology impacts their employees and partners to ensure they are ready, willing, and able to adopt the move to S/4HANA. Outlined below is the change management strategy CARA designed for a recent SAP client.

Sponsorship | Stakeholder Assessment | Communications | Training & Documentation | Hyper-care Support

Sponsorship
CARA designed activities and tools to support the program’s vision and objectives. Leaders were aligned on the Change Management strategy and benefits and the change agent roles and responsibilities. A program overview video was developed featuring key leaders describing the key aspects of the program – Who, What, Where, When, and Why. In addition, visioning and elevator speech talking points were developed for leaders.

Stakeholder Assessment
When SAP users complete actions in their SAP system, their keystrokes are governed by two components:

1. Transaction codes (Tcodes) – a short cut key that provides direct access to the desired transaction from anywhere within the SAP system.
2. Security roles – governs what data and processes each user can access inside the SAP system.

When migrating to S/4HANA, each client will experience changes to their transaction codes (Tcodes), security roles, the look and feel of SAP screens, and changes to business processes.

CARA conducted a job/role impact/risk assessment to identify the impacted stakeholders, assess benefits based on their job/role, and identify potential risks.

Communications
CARA designed a robust communication strategy to support 12,000 global SAP users. The goal was to provide the right message, at the right time, to the right audience using the right vehicle. In addition to the sponsorship artifacts mentioned above, the following communication artifacts were developed:

• Communication plan
• Stakeholder support site
• Three-level stakeholder impact summary
• Monthly newsletter and change agent events
• IT sponsored system demos to illustrate system changes

Training and Documentation
The typical SAP user is supported by many standard operating procedure documents (SOPs) and training artifacts that govern how they use the SAP system.

Some SAP clients do not completely employ global processes. This results in a larger number of SOPs and training media items to update when they migrate to S4/HANA because they have to update the global processes and local documents that are location or country-specific.

The CARA Stakeholder Assessment identified how changes to the client’s transaction codes (Tcodes), security roles, business processes, and the look and feel of SAP screens impacted the client’s SOPs and training media.

CARA developed a robust media tracker to track the development/updates to over 1500 SOP and training artifacts. The tracker highlighted dependencies between development teams and provided for easy resource analysis and allocation. It also included a dashboard to report development/update progress to leadership.

CARA partnered with the client’s training team to develop a global training deployment plan that included self-service training and recorded webinars.

Hyper-care Support
CARA partnered with the client’s program team to develop a hyper-care support strategy that included:

• Dashboard and metrics for leadership
• Launch Communication plan
• Daily huddles for the program team
• Q&A conference calls to support change agents post Launch
• Q&A mailbox/triage strategy to support users/partners post-launch
• Supplemental training for users/partners

Successful SAP S/4HANA implementations require the client’s organization to move from the current to the future state. However, clients don’t change, people change. The CARA change management consultant assessed the stakeholders and developed a communication, training, and support strategy to ensure their successful adoption of S/4HANA. By applying the right combination of change management activities and tools, the CARA change management consultant ensured the client’s people engaged and supported the change and then implemented the required skills and behavior to sustain the change.

“The definition of insanity is doing the same thing over and over again and expecting different results.”

– Albert Einstein

Why, then, do so many organizations take the same approach to change over and over again and not achieve the desired outcomes? Scholars, consultants, researchers and well-intended leaders have all struggled to crack the mystery of successful and sustained OCM (organizational change management). Why is it still so hard?

The problem is not insanity…..it’s that people are complex creatures and, as a result, change is messy. We don’t always behave in a linear fashion based on a well-set plan (if you have teenagers, you can relate). Until we embrace the connection of neuroscience with change, every initiative is at risk of being another statistic.

Neuroscience is the study of the brain and its impact on our behavior. It is not a new concept in the world of OCM, but we need to elevate it beyond a new way of thinking to a standard way of driving OCM. We know that the brain has pathways that respond to change (good or bad), and that our brains are prediction machines to keep us out of harm’s way. We know that it takes more time and energy to try something new and that our brains typically prefer to default to saving energy by doing what is automatic (habit). And we also know that, as a result, the brain often interprets change as a threat. This results in a fight-or-flight mindset, even if a change is positive! But did you know:

• Many conventional change approaches in fact trigger the threat response
• Science shows that our brains often make decisions for us before we have time to consciously process ourselves
• Our brains have FIVE TIMES more neural networks to look for danger than they have for rewards
• Our brains subconsciously look for threats five times per second based on primal survival instincts
• Our brains subconsciously decide whom to trust without consulting us
• With neurons firing at breakneck speed, the brain spurs us to react fast, sometimes too fast

Our brains are constantly on high alert when a change comes our way and can release chemicals that create negative behaviors such as resistance (outward or internal), barriers to learning, anxiety, low engagement and poor decision-making skills. When we can trigger the reward part of the brain, however, we bring about engagement, creativity and hope…..all leading to high performing employees, hence a high performing organization.

Your brain on change:

Source: P. Plohg

A Word About Methodology

Change methodologies are important, with some more impactful than others. I teach methods to graduate students as well as advocate and apply them with my clients. It’s all good stuff. The danger is that reliance of a methodology doesn’t always ensure success. In other words, you may find yourself fighting gravity. Although we can create the best-laid plans and check the boxes when we drive actions around certain steps, it’s no wonder that more often than not we can face prolonged resistance and lack of sustained change.

I remember a client workshop that I participated in to launch a massive transformation across the entire organization. It was a huge investment with a crystal-clear business case along with plenty of benefits to the employees including simplified work processes. During the workshop “capturing the hearts and minds of our people” was mentioned no less than 20 times in the course of two days. We talked about a plan and methodologies, and how to achieve this goal through a rigorous workplan complete with communication, change agents, and training. We agreed that if we hadn’t captured the hearts and minds of the organization through standard approaches by a specific date, we would be behind schedule. Yet these conversations struck me as disingenuous; kind of like telling someone they have two hours to decide if they want to be friends because the workplan says so.

Knowing when and how to change is not the same as being truly motivated to change. The old change paradigm is that we need a burning platform (threat) to convince people to change. But, in fact, most change initiatives are not that severe. The majority of change initiatives are intended to broaden and build an organization’s capabilities and people; sounds pretty rewarding! Opportunity is often a driver for change……and yet as OCM professionals we often try to find the threat within an opportunity to build commitment…. which can become a vicious cycle.

In the case above, my team and I took a step back and examined our change plan through the lens of triggering the reward side of the brain and shifting our familiar ways of thinking. Doing so can be uncomfortable and feel less certain. There was a time when following the change curve guaranteed success….or did it?.

It’s not about throwing standard approaches out the window, but it is about thinking from a more holistic viewpoint focused on what really makes people tick. The table below gives a sample of what this can look like:

Source: P. Plohg

Let’s break down the example of let people make their own connections. By now you’ve likely seen Simon Sinek’s “Golden Circle” Ted Talk one or 100 times (if not, check it out!). The premise is that we need to drive change starting with the why because people buy into why you do something versus what you do. This lends itself to letting people make their own connections and trigger those brain sensors that say “this feels right” and “I get it!”

The example of we need both rational and emotional reasons for change speaks perfectly to the rider and elephant theories in Switch, my favorite change management book of all time (like you, I’ve read many). The brain is not of one mind, so to speak. We all have a rational (rider) and emotional (elephant) side. Both have enormous strengths and crippling possibilities; if they aren’t recognized and moving in harmony, change will not happen.

A good OCM professional pays it forward by creating change leaders in their wake. I want to leave my clients and students understanding that when we let go of outdated principles and ‘tell’ mindsets by understanding how the brain responds to change, the opportunities for meaningful and lasting impact have no end. I can’t promise that it still won’t get messy, but isn’t that what makes the journey so incredibly rewarding?

To learn more about the neuroscience of change, I recommend:

• Neuroscience for Organizational Change: an Evidence-Based Practical Guide for Managing Change
• The Brain Advantage: Becoming a More Effective Leader
• Switch

A global coronavirus crisis has taught us that we are living in a volatile, uncertain, complex, and ambiguous (VUCA) world. This virus has exposed vulnerabilities beyond our control, threatening our long-term health and economic stability. Critical to defeating this pandemic is ensuring global business continuity and a healthy global workforce. As a result, hundreds of millions of workers were asked in March 2020 to work from home, leading to immeasurable virtual workforce challenges.

While remote work is not a new concept for many, several issues have plagued the virtual worker throughout the years. For example, have you ever wondered why virtual workforce efforts at your organization are not successful or fail to stick? Or why your direct reports struggle to adapt to a remote work environment? Or perhaps you’ve wondered why people managers and leaders are challenged with engaging employees in a virtual work environment?

In this article, we’ll answer those questions and explore:

• why long-term virtual workforce efforts fail
• how to prepare, equip, support, and enable leaders in the virtual workforce of the future
• where workforce leaders and staff position themselves on the virtual workforce change curve

This information is designed to guide leaders, people managers and employees toward fully embracing a virtual workforce as ‘the way they work’.

But First, Why Do Virtual Workforces Fail?

• No Burning Platform
• No Sustainable Vision
• No Leadership Training (in a virtual workforce)
• No Virtual Role Modeling
• No Culture Integration

No Burning Platform

Up until now, there was not a compelling business reason for organizations to move to a virtual workforce environment. Yes, there were always cost efficiencies to be realized but those gains were often eclipsed by workforce inefficiencies. Before the COVID-19 pandemic, remote work was considered a perk, a convenience and / or a differentiator for many organizations globally. However, as of mid-March, the game has changed. A virtual workforce is not only critical, but essential to business continuity, increased productivity, and workforce health.

No Sustainable Vision

Lewis Carroll famously said: “If you don’t know where you are going, any road will get you there”. Unfortunately, many organizations knowingly (or unknowingly) subscribe to this philosophy when introducing virtual work environments. One of the greatest misnomers about a virtual workforce is that the same business rules, processes and norms apply for this model as they would for the more traditional model. Without a vision and a new, reimagined operating model and culture, virtual workforces will struggle to achieve long-term success.

No Leadership Training (for virtual workforce)

Preparing leaders and employees for success in virtual environments is one of the most overlooked gaps in virtual workforce deployments. Leaders and managers with a remote team are significantly underserved and lack the skills to effectively manage their subordinates in a virtual world. The lack of time invested in training has led to failed virtual workforce cultures and short-lived virtual workforce success. Leaders and managers who are challenged to lead in a virtual workforce quickly determine: ‘while it is one thing to know how to lead, it is another to learn how to lead in a virtual environment’.

No Virtual Role Modeling

Given the lack of training, it is not surprising that one of the leading reasons virtual workforces are often unsustainable is the lack of leaders who model the necessary skills, competencies and behaviors required in a virtual workforce. Without sufficient skills to model critical behaviors in a virtual work environment, their efforts are often perceived as ‘do as I say, not as I do’. What is needed are leaders who are willing to champion a virtual workforce and model critical behaviors. Without them, employee buy-in and long-term sustainability is at risk.

No Culture Integration

What differentiates one organization from another is their unique culture, including but not limited to, how they interact and support each other. Organizations invest heavily in establishing a culture that is unique to their specific core values. However, when leaders decide to move to a virtual workforce, they often fail to integrate the culture that once thrived within a traditional office / workforce setting. As a result, employees are left feeling isolated or disconnected and the culture they once supported is now obsolete. A culture integration plan is paramount to long-term success as organizations transition to a virtual workforce.

Flattening the Curve

When more than 200 million remote-enabled professionals were recently thrust into a new future of work, they were given a mandate to work from home full-time in the interest of public health and safety. This was the largest disruption to a global workforce in recent memory. For a substantial number of workers, however, remote work was nothing new. For the majority of others, however, working from home on a full-time basis was a complete paradigm shift in business operations and a radical departure from business as usual.

The seemingly insurmountable challenge that organizations faced was how to create a virtual workforce strategy (practically) overnight. This strategy should include a change management and communication plan that ensures leaders, people managers and employees fully embrace a virtual workforce as ‘the way they work’. The strategy should also include communication and training on how to use the collaboration tools required to be successful and productive in the new environment.

For illustration purposes, let’s look at a traditional human change curve. This is the journey that most employees experience as they encounter change. The change curve itself is agnostic as it applies to all human behavior, irrespective of the change experience. You’ll notice in the graphic below that humans will experience a dip in morale and/or productivity as they transition from the denial stage to the exploration stage of the curve. This is common with all change and is often referred to as the ‘valley of despair’ within major change transformation initiatives. How do you bridge this ‘valley of despair’?

Source: Kubler-Ross

Bridging the Valley of Despair

The millions of office workers who transitioned from a traditional workforce to a virtual workforce earlier this month experienced, and continue to experience, a dip in the change curve. Carefully managing a change to a virtual workforce is paramount to business stability and continuity. Further, how we help leaders, people managers and employees’ transition along the change curve is critical to their ability to embrace a virtual workforce as the ‘new normal’, at least temporarily if not in the foreseeable future.

How to Lead an Organization Through a Virtual Workforce Transition

Here are ten actions for leading organizations through a virtual workforce transition:

• Establish virtual role models to serve as transition champions
• Determine KPIs and define ‘what success looks like’ with a transition to a virtual workforce
• Develop a communication plan with targeted messaging
• Develop a change plan to manage leader / employee transition to a virtual way they work
• Conduct a stakeholder assessment to capture hearts, minds and fears of leaders / employees
• Execute a change impact analysis to determine old vs. new way to work
• Conduct a training needs analysis to identify skill gaps between traditional work and virtual work
• Conduct a readiness assessment to gauge leader/employee preparation
• Develop a training plan to ensure adequate skill building throughout the transition
• Continually survey virtual leaders, people managers and employees to measure success

Tips for Virtual Role Models

Like many of you, The CARA Group has always had the capability and full functionality to work remotely. Since we needed to transition, however, to a full-time virtual workforce as directed by the state of Illinois stay at home work order, our biggest win in the transition was through the establishment of virtual workforce change champions or ‘Virtual Role Models’. Without our Virtual Role Models, collectively, The CARA Group would not be up and to the right on the change curve. Below are some best practices and key behaviors required of a Virtual Role Model who will have ultimate influence over whether your organization fully embraces a Virtual Workforce as ‘the way they work’.

• Be vulnerable and share where you are on your own virtual workforce change curve
• Empathize with peers and subordinates
• Acknowledge new norms in a virtual workforce
• Share success (and failure) stories
• Remember the golden rule and apply it in a virtual workforce setting
• Celebrate, reinforce and reward desired virtual workforce behaviors
• Continue to skill-build to evolve virtual workforce capabilities
• Establish a virtual watercooler for employees to interact personally
• Recognize that the speed to transition and productivity in a virtual workforce will vary by individual

Click here to read CARA’s President and CEO’s perspective on Finding Our Strength to Lead in a VUCA world.

Please connect with us if you could use help with leading your organization through a virtual workforce transition or simply want to talk about your current situation as you ponder next steps. We’re here to help!

Where are You on the Virtual Workforce Change Curve?

Comment below to:

• Share where you (or your leaders) are at on the virtual workforce change curve
• Share your experiences in leading organizations toward embracing a virtual workforce as ‘the way they work’

In January, 2015, PM Network Magazine interviewed me for an article titled ‘If I Had Known Then.’ The premise of the interview was for project managers who had led large business transformation initiatives to share at least one lesson learned from their career.

During the interview, I introduced my 80/20 project leadership philosophy. I shared that when leading transformational change; 80% of the project is art and the remaining percentage is science.

“Leading business transformation initiatives is partly science; but mostly art.”

Andrew Barnitz, PM Network Magazine (January, 2015)

The art refers to the components of change management for an initiative intended to bridge project solutions with expected business outcomes. The science refers to the utilization of critical project management components such as monitoring the project, controlling budgets and managing scope.

“Project management ensures the project is designed, developed and delivered successfully. Change management ensures that the project is embraced, adopted and used by the targets or recipients of the change.”

Equal necessity, unequal support

While the integration of project and change management disciplines are imperative for project success, they are often viewed as separate and unequal components of a successful business initiative. The problem is that project management often gets the lion share of stakeholder attention while change management is often neglected and ignored. As noted above, this can cause problems because change management is the 80% that contributes the most to an initiative’s success.

The following statistics show the impact of placing too much focus on project management while neglecting change management.

70% of change efforts fail due to over-emphasis on project process rather than the people aspects.	#1 reason why projects fail is a result of poor sponsorship.
58% of the participants who integrated change management and project management in their project met or exceeded their project objectives.	#2 reason why project initiatives fail is due to no change management methodology existing within a project.

As you can see, it is critical that change management have as significant a role as project management for business initiatives to be successful. In the remainder of this article, I’ll discuss how to ensure change management is given the attention it deserves through successful integration with project management.

Integration begins with role clarity

To begin understanding how to successfully integrate project and change management, let’s first understand and distinguish the roles of both the project manager and the change manager and where their roads converge and at times, collide.

• According to the Project Management Institute (PMI), a project manager is accountable for the success or failure of a project. They are responsible for the planning, executing and closing of the project. Further, the project manager is also responsible for managing teams, ensuring progress and motivating project team members. They are responsible for ensuring that project goals are in alignment with key stakeholders.
• According to Prosci, a change manager will play a key role in ensuring projects (change initiatives) meet objectives on time and on budget by increasing employee adoption and usage. This person will focus on the people side of change, including changes to business processes, systems and technology, job roles and organization structures.

As indicated above, these roles are united with one common purpose: to ensure project goals are met and business results achieved. However, how each role goes about executing their work is meaningfully different. For example, project managers are often solution-focused where change managers are often outcome-focused. Consequently, there is a lack of understanding between the role of project manager and change manager in many organizations. This misunderstanding leads to conflicts between business functions and OD/Change COEs as to where to invest resources such as budget dollars and people.

Other barriers to integration

Besides confusion around role clarity, there are many other barriers to project and change management integration that you should be aware of.

1. Even in 2019, the discipline of change management is in its infancy stage by comparison to project management. Thus, change management professionals like myself are in the early phases of converting non-believers.
2. Since the role of the project manager has expanded significantly, most do not have the capacity or capability to learn change management.
3. Change management is not easily measured since the results are often intangible. Thus, executives who control budgets struggle to justify the expense and fail to get behind change management efforts.
4. While project management has been engrained deeply within the fabric of corporate America and beyond, change management is still struggling for a seat at the c-suite table.

The benefits of integration

To deal with these barriers, it helps to influence leadership on not only the benefits of change management, but the enormous impact an integrated approach has on business transformation. In a nutshell, an integrated approach ensures project benefits are fully achieved and realized by utilizing the strengths of both, project management and change management disciplines.

Project management ensures the project is designed, developed and delivered successfully. Change management ensures that the project is embraced, adopted and used by the targets or recipients of the change. Thus, an integrated approach is designed to deliver the desired outcomes to the business.

Other benefits of project and change management integration include:

1. Enhanced employee and leader engagement
2. Increased sustainability of the change enterprisewide
3. Realization of your people ROI for the project
4. Avoidance of change saturation across an enterprise
5. Measurement of an organization’s change tolerance

5 steps to integration!

So now that you know which barriers to integration you need to overcome AND have a firm understanding of why integration is so critical to project success – below are five steps to integrate project and change management within your organization:

1. It starts with education.
   • Informing leaders, stakeholders, project managers and project team members on the benefits of change management is critical to project success.
2. Set expectations around how change work gets done.
   • Acknowledge that the discipline of change management is based on facts and insights gathered through data gathering tools and processes such as (but not limited to): stakeholder analysis, impact assessment and change readiness assessments.
3. Use consumer-friendly terms when describing the change process and work efforts.
   • The process for change management may be viewed as inefficient to the untrained eye. When conducting stakeholder analyses or change readiness sessions – explain the why behind each approach.
   • Further, use basic language to explain each process (i.e. stakeholder analysis is a conversation with key decision makers to determine if they are supportive of the project or not and perhaps, why they are or are not supportive).
4. Ensure project and change management synergy by presenting a unified front to project leadership, stakeholders and team members.
5. Collaborate with the project manager and key stakeholders to embed a change methodology and subsequent deliverables within a master project plan and status report.

Effective integration leads to better results

There is an interdependent connection between project and change management disciplines, much like the symbiotic relationship between project managers and change managers. Thus, true project success requires that both roles and disciplines not only co-exist, but to serve as a complement of skills and methods. And perhaps Leonardo Da’ Vinci said it best:

“To develop a complete mind: Study the science of art; Study the art of science. Learn how to see. Realize that everything connects to everything else.”

After all, we as project managers and change professionals, are tasked with wearing many hats like Leonardo once did; a painter, sculptor, architect, engineer, poet and story-teller. Even more remarkable today, Leonardo’s words can be applied to contemporary project delivery over five centuries later.

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