Organizational Change Management

(OCM)
Speaker’s Name, SAP
Month 00, 2017

PUBLIC
Table of Contents

1. Overall Summary Organizational Change Management

2. Value Proposition Organizational Change Management

3. SAP’s Approach to Organizational Change Management

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Organizational Change Management Overview
Why OCM? Benefits
 Organizational Change Management is one of the main
1. Fewer and lower resistances
success factors in SAP projects.
 Implementing SAP software at an organization usually
causes various organizational, technological and social
2. Higher readiness for change
changes.
 Organizational Change Management focuses on the
effects these changes have on managers and
3. Lessnecessity of adaptations/ workarounds regarding
employees. This concerns, in particular, new demands the standard processes
on the way of thinking or behaving, but also deals with .

any new competencies and skills required.

4. Reducing the follow- up costs due to a sustainable
successful change process

Approach Expenses
More than half
of the projects 50%
46%

dedicate five or 40%

more percent 32%

30%
of the overall
project budget 20% 17%

to change 10%
management 3% 2%

(without 0%
<5% 5-9% 10-14% 15-19% ≥20%
training). Percentage of total project budget

Source: DSAG OCM Survey 2006

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Table of Contents

1. Overall Summary Organizational Change Management

2. Value Proposition Organizational Change Management

3. SAP’s Approach to Organizational Change Management

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Change, Training, and Risk Management Imperatives
Top Issues Organizations Face During Enterprise Resource Planning
Change Management 16%
Internal Staff Adequacy 8%
Project Team 7%

Training 7%
Issues/Obstacles Until Now
Prioritization/Resource Allocation 6% PEOPLE 62% 
Top Management Support 6%
Consultants 5%
Ownership (of benefits to others) 4%
Discipline 2%
Program Management 8%

Process Reengineering 4%
PROCESS 16%
Stage/Transition 2%
Benefit Realization 1%
Software Functionality 4%
Application Portfolio Management 3% TECHNOLOGY 9%
Enhancements/Upgrades 2%
Data 2%
KNOWLEDGE ASSETS 3%
Reporting 1%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

 Directly related to Orgn Change Mgmt & Training

Source: 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

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Topics for the Element “People”

Business
Processes

IT People
People
Communication Motivation Empowerment Qualification
„to know“ „to want“ „to be allowed“ „to be able to“
 Structure of internal  Fewer and lower  Project Organization  Skill Management
project resistances  Escalation (Training needs)
communication  Higher readiness of  Talent Management
Management
 Communication to change  LoB Management  Assessments
End User  „Networking“
 Organizational  Training
 Communication to  Incentives Design Management
stakeholder groups

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Reduction of the “Valley of Tears”

Without Organizational Change Management With Organizational Change Management

Project Performance

Project Performance
Kickoff Go Kickoff Go
Live Live

„Valley of tears“

Time Time

Communication Motivation Empowerment Qualification

Make sure that Make sure that Make sure that Make sure that
Working the people are the people accept the people are the people have
areas informed and have the project and are allowed to work the qualification to
the opportunity to willing to assist it within the project. work within the
formulate their in an active way . project and with
wishes. the software.

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OCM Leads to Success
90% of the respondents, who have
established OCM in their projects
60%
90% estimate the impact of OCM on project
56% success as “very high” or “high”.

50%
66%
44% Even two third of the respondents, who
haven’t established OCM in their
40% projects estimate the impact of OCM on
34% project success as “very high” or
“high”.
30%
22%
20% 16%
10%
10% 8% 8%
2%
0%
0%
very high quite high neutral quite low very low

Projects with Change Management Project without Change Management

Source: European survey 2006 in cooperation with European SAP User Group and the University of Mannheim

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Why Engage SAP for OCM?

Six good reasons for = a guarantee for your

SAP... project success!
1. We have know-how in the SAP solutions  Effective Organizational Change Management
and work hand in hand with our SAP solution support aligned with the software
consultants. implementation process

2. We work along a proven Organizational Change

Management methodology. Our Toolset is a  Efficient project work and lower transformation
necessary part of the SAP implementation costs with SAP as solution provider
methodology and roadmap.

3. We have built a global Organizational Change  Professional Organizational Change

Management network (EMEA, America, Asia /Pacific). Management staffing and proven teamwork in
Our Consultants are native speakers. global SAP projects
 Broad experience in different sectors and
4. We have best practice consulting skills in different industries
sectors and industries,

5. … and in our new dimension products (CRM, SCM,  In-depth software knowledge of our consultants
NetWeaver, ...).

6. Our Organizational Change Management services  Enhanced OCM teams effectiveness based on
have a close link to our other consulting services close links to other consulting services of SAP
like Value Identification, IT-Strategy or BPR. in implementation projects

* OCM = Organizational Change Management

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In a Nutshell: The Benefits

1. Fewer and lower resistances

Every SAP project brings changes for the employees involved, which frequently leads to
different kinds of resistances. SAP delivers a long experience in SAP software
implementation accompanied by Organizational Change Management (OCM).

2. Higher readiness for change

The SAP OCM- Team can deliver the understanding of the necessity and benefits of the
software change in a structured way. As a result the overall acceptance of the change
process will higher followed by an easier integration process.

3. Less necessity of adaptations/ workarounds regarding the standard

processes
A high overall acceptance enables an easier change process, people are more open to
the new system, less adaptations have to be made, less money spent.

4. Reducing the follow- up costs due to a sustainable successful change

process
SAP OCM activities ensure a focused approach on stakeholders and their needs.
Furthermore, a continuing monitoring ensures a sustainable change, solving problems
as fast as possible.

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Table of Contents

1. Overall Summary Organizational Change Management

2. Value Proposition Organizational Change Management

3. SAP’s Approach to Organizational Change Management

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SAP’s Systematic Approach to Organizational Change Management

Stakeholder Management

Communication Management

OCM Setup & Change

Organizational Alignment
Governance Monitoring

Training & Enablement

Performance Management

OCM framework for SAP implementation projects

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SAP’s Systematic Integration of OCM – Interventions in the
ONE Service Implementation Phases
Prepare

Setup & Initial Assessment OCM Charter OCM Strategy OCM Roadmap / Plan
Governance
OCM Team Select OCM Team Train

Stakeholder Stakeholder Identification Stakeholder Analysis

Management Change Impact Analysis – High Level

Communication Needs Analysis Communication Strategy Project Kickoff

Communication
Communication Channel Analysis Communication Plan

Training & See Training Topics – 1.3

Enablement

Organizational
Alignment

Define Project Related Objectives Review & Align Goals and Incentives
Performance
Management Project Team Into/Ext Knowledge
Project Team Building & Recognition
Transfer

Project OCM Risk Assessment

Monitoring
Baseline Current State

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SAP’s Systematic Integration of OCM – Interventions in the
ONE Service Implementation Phases
Explore

Setup & OCM Roadmap / Plan

Governance OCM Roadmap / Plan Updates
OCM Team Train

Stakeholder Stakeholder Analysis

Management Change Impact Analysis – High Level Build/Manage Change Agent Network

Communication Strategy Communication Plan

Communication
Value Argumentation / Key Messages Update Communication Plan

Training & See Training Topics – 2.3

Enablement

Organizational
Alignment

Integrate Goals & Incentive Systems

Performance
Management Project Team Into/Ext Knowledge
Project Team Building & Recognition
Transfer

Project Status Stakeholder Management Project Team Checks

Monitoring
Change Readiness Assessment Communication Effectiveness

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SAP’s Systematic Integration of OCM – Interventions in the
ONE Service Implementation Phases
Realize

Setup & OCM Roadmap / Plan Updates

Governance

Stakeholder
Manage Change Agent Network
Management

Communication Communication Activities / Update Communication Plan

Training & See Training Topics – 3.3

Enablement

Organizational Change Impact Analysis - Detailed

Business Validation / Readiness /
Alignment Role Mapping Transition Planning

Project Team Building & Recognition

Performance
Management
Project Team Into/Ext Knowledge Transfer

Project Status Stakeholder Management Project Team Checks

Monitoring
Sounding Boards Communication Effectiveness

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SAP’s Systematic Integration of OCM – Interventions in the
ONE Service Implementation Phases
Deploy

Setup & OCM Roadmap / Plan Updates

Governance

Stakeholder Manage Change Agent Network

Management

Update Communication Plan

Communication
OCM Roadshow

Training & See Training Topics – 4.3

Enablement

Organizational Business Readiness Checks

Alignment

Project Team Building & Recognition

Performance
Management
Project Team Into/Ext Knowledge Transfer

Project Status Stakeholder Management Project Team Checks

Monitoring
Communication Effectiveness

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SAP’s Systematic Integration of OCM – Interventions in the
ONE Service Implementation Phases
Go Live Support

Setup & OCM Roadmap / Plan Updates

Governance

Stakeholder Manage Change Agent Network

Management

Communication Update Communication Plan

Training & See Training Topics – 5.3

Enablement

Organizational Business Readiness Plan Execution

Alignment

Project Team Building & Recognition

Performance
Management
Project Team Into/Ext Knowledge Transfer

Project Status Stakeholder Management Lessons Learned

Monitoring
Communication Effectiveness End User Acceptance Survey/Analysis

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Organizational Change Management
Set-up & Governance Overview

Define the OCM charter (i.e. scope, activities, roles, responsibilities and processes that are aligned with the overall
Description
project charter). The objective is that the OCM team delivers value to meet the agreed expectations.

Oppor-
SAP Activate tunity Prepare Explore Realize Deploy Run
Mgmt*
Busi- Initial
ness assessment
case
activity
OCM charter
OCM Set-up & Governance
Work stream:

OCM strategy

Update Update
OCM plan
OCM plan OCM plan

Select & build

OCM team

Train OCM
team

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Stakeholder Management Overview

Identify and analyze all stakeholder groups, develop a plan at an individual and group level to
Description
achieve acceptance along the timeline of the project to drive adoption and minimize resistance.

Oppor-
SAP Activate tunity Prepare Explore Realize Deploy Run
Mgmt*

Stakeholder
identification
Stakeholder Management

High level
Work stream:

change impact
analysis

Stakeholder Stakeholder Stakeholder

analysis check check

Build and manage change agent network

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Communication Management Overview
To enable change through all information, mass and targeted, frequent and factual, to clearly
Description explain benefits, impacts, and expectations. Communication is executed in a two way format with
feedback and consistency of messaging.
Oppor-
SAP Activate tunity Prepare Explore Realize Deploy Run
Mgmt*

Project
Communication Management kick off

Communication
needs analysis
Communication
Work stream:

channel
analysis
Communication
strategy

Communication
plan
Execution and ongoing refinement of communications

Communication Communications Communications

effectiveness effectiveness effectiveness
evaluation evaluation evaluation

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Organizational Change Management
Organizational Alignment Overview
Ensure a smooth transition process towards the new way of working. Alignment of roles and
Description responsibilities, to ensure all employees are fully aligned to the goals of the project and
organization.
Oppor-
SAP Activate tunity Prepare Explore Realize Deploy Run
Mgmt*

Agree recommended
organizational
alignment approach
Organizational Alignment

Detailed change
impact analysis
Work stream:

Role mapping
with business

Business
validation
& transition
planning

Support adaptation of
role specifications

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Organizational Change Management
Performance Management Overview
Ensure a smooth transition process towards the new way of working. Alignment of goal and
Description incentive plans to ensure all employees and project team members are fully accountable to execute
work consistent with the project objectives.
Oppor-
SAP Activate tunity Prepare Explore Realize Deploy Run Run
Mgmt*

Define project
related objectives
Review and
Performance Management

align goals &

incentives
Integrate goals
Work stream:

& incentive
system

Business related activities

Project team building and recognition

Project team internal & external knowledge transfer

Project team Project Project

Project team check team check team check
related activities

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Where does OCM fit into the Project Team?

Integrating Change at Key Points in the Project

Corporate Management
Corporate HR Executive
Stakeholder Assessment => Sponsor
Corporate
Continuous Stakeholder
Management Executive/
Steering
Local Management Committee
Local HR Communications
Location A
OCM
Organizational Impact Team
Project PMO

Local Management
Local HR
Close Coordination & Support

Location B Business
Readiness Teams
Coordination Process
Integration
Project
Local Management Team
Local HR Manger Project
Team

Location C Project Team

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