Get pragmatic insights on all dimensions of organizational change during SAP implementations. Readers learn tried and tested, effective and efficient project management methods from experts in the field. Taking a corporate organization based approach you'll uncover best practices for tackling problems inherent in SAP-related change, and for avoiding them altogether.

The authors' own experiences with SAP-specific organizational change management issues are woven throughout the pages of the comprehensive reference. Sample plans and timelines add even more value. Once you've honed your understanding of SAP organizational change management you can then leverage the in-depth strategies and expert techniques provided.

Whether you are an executive decision maker, a project sponsor or a team member, this book helps you tackle change management head-on and avoid costly errors, while helping you make effective project management decisions.

Highlights

• Project Approach
• Basics of Organizational Management
• Integration of Change Management and Project Management
• Designing Change
• Future State Assessment
• Gap Analysis
• Implementation and Deployment

About the Author(s)

Luc Galoppin, the author of several white papers and articles, has practiced his change management skills in SAP projects for over 5 years. He has done so with differing scopes and user communities in a variety of industries. This broad experience allows him to structure and continuously improve the organizational change methodology necessary for an SAP implementation. Luc spends much of his time doing in-house training for companies. He also lectures at business schools about change management.

Siegfried Caems is a certified SAP consultant. Apart from his consulting experience he has worked as team lead, local project management and as an international and global project manager in large multinationals on the functional/business side. Change management was an important feature in all these roles.

Table of Contents

Contents
Foreword ... 19
Preface ... 21

Part I: Understanding SAP Organizational Change Management

1 Introduction: What is so Different About SAP Implementations? ... 29
... 1.1 The Day I Got 10 Years Older ... 29
... 1.2 Integration of Processes ... 31
...... 1.2.1 Process Fragmentation ... 32
...... 1.2.2 Consequences of a Functional Organization ... 33
...... 1.2.3 What Happens Once SAP is Implemented? ... 34
...... 1.2.4 What Implementing SAP Comes Down to: Managing the Soft Stuff ... 35
...... 1.2.5 Examples of Companies Serious About Processes ... 36
... 1.3 Running Integrated Projects ... 38
...... 1.3.1 Integration of Implementation Sub-Teams ... 39
...... 1.3.2 Integration of Project and Organization ... 39
...... 1.3.3 Don't Count on HR to do the Dirty Work ... 42
...... 1.3.4 Don't Count on IS to do the Dirty Work ... 44
... 1.4 Searching for Balance ... 46
...... 1.4.1 Integrating Old and New ... 46
...... 1.4.2 Drawing a Line ... 47
...... 1.4.3 Balancing the Change and the Transition ... 47
...... 1.4.4 A Contradiction in Terms ... 48
... 1.5 Conclusion ... 49

2 The Rollercoaster of Emotions ... 51
... 2.1 Emotions Make a Difference ... 51
... 2.2 The Change Cycle ... 52
...... 2.2.1 Two Sides to Every Change ... 52
...... 2.2.2 The Cycle of Life and the Denial of Death ... 53
...... 2.2.3 What is Going On? The Phases of Change ... 55
...... 2.2.4 Why You Are Not the First to Make These Mistakes ... 56
...... 2.2.5 Unfreezing—Changing—Refreezing ... 57
...... 2.2.6 Sponsors—Agents—Targets ... 58
...... 2.2.7 Operating Styles for Each Phase ... 59
... 2.3 Resistance ... 60
...... 2.3.1 Different Kinds of Interruptions ... 60
...... 2.3.2 Resistance is Necessary ... 62
...... 2.3.3 Four Basic Emotions ... 62
...... 2.3.4 Reading Emotions ... 63
...... 2.3.5 Emotions are Data ... 64
...... 2.3.6 Suspect Yourself First ... 65
... 2.4 Two Types of Change ... 66
... 2.5 Conclusion: The Only Way Out ... 67

3 Making Sense ... 69
... 3.1 The Three Basic Ingredients of Organizational Change ... 69
... 3.2 The Why is Important ... 70
... 3.3 What About Culture? ... 72
...... 3.3.1 Culture and SAP ... 72
...... 3.3.2 The Creation of a Culture ... 73
...... 3.3.3 Diversity of National Cultures ... 78
...... 3.3.4 A Culture of Change ... 79
...... 3.3.5 The Co-Creation of a Safe Place ... 80
... 3.4 Learning ... 80
...... 3.4.1 The Four Phases of Learning ... 80
...... 3.4.2 Learning and Resistance ... 81
...... 3.4.3 The Coaching Dilemma ... 82
...... 3.4.4 Different Cycles Run at the Same Time ... 82
... 3.5 Conclusion ... 83

4 Program and Project Management as Enablers of Change ... 85
... 4.1 Vehicles of Change ... 85
... 4.2 Delivery of Benefits ... 87
...... 4.2.1 Benefits Quantify Change Efforts ... 87
...... 4.2.2 Reframe Features into Benefits ... 88
...... 4.2.3 A Program of Integrated Projects ... 89
... 4.3 The SAP Implementation Program ... 90
...... 4.3.1 Program Lifecycle ... 90
...... 4.3.2 Projects: the Building Blocks of the Program ... 94
...... 4.3.3 Service Level Agreements: the Moments of Truth of a Program ... 96
...... 4.3.4 Usability and the Second Wave ... 97
... 4.4 Principles for Success ... 99
...... 4.4.1 Commit to a Set of Common Rules ... 100
...... 4.4.2 Autonomy and Accountability ... 100
...... 4.4.3 Requisite Variety ... 101
...... 4.4.4 Emotional Intelligence ... 102
...... 4.4.5 Automated Project Office ... 102
...... 4.4.6 Teamwork ... 102
...... 4.4.7 Proper Risk-Handling ... 103
... 4.5 Pitfalls to Avoid ... 104
...... 4.5.1 Project Cocooning ... 104
...... 4.5.2 One Size Fits All ... 105
...... 4.5.3 Postponing Responsibility to the Second Wave ... 105
...... 4.5.4 Outsourcing the Driver's Seat ... 106
...... 4.5.5 Ignorance of Organizational Maturity ... 106
...... 4.5.6 The Illusion of Full Control ... 106
... 4.6 Conclusion ... 107

5 SAP Technology as a Co-Pilot ... 109
... 5.1 SAP Solution Manager Manages Knowledge ... 109
...... 5.1.1 From Information to Best Practice ... 109
...... 5.1.2 Solution Manager Components ... 110
...... 5.1.3 Anchor Solution Manager into Practice ... 113
... 5.2 SAP Technology Supports Integration ... 115
... 5.3 Conclusion: Integration on Two Levels ... 117

6 Monitor Parameters of Change: A Radar View ... 119
... 6.1 Implementation Marketing ... 119
...... 6.1.1 Population Analysis ... 119
...... 6.1.2 Lessons from Customer Relationship Management ... 121
...... 6.1.3 Pushing and Pulling ... 122
... 6.2 Building a Soft-Stuff Radar ... 123
...... 6.2.1 Learning Relationship Radar ... 123
...... 6.2.2 Change-Agent Radar ... 124
...... 6.2.3 Change-Target Radar ... 125
... 6.3 Build a Hard-Stuff Radar ... 126
...... 6.3.1 Validation Radar ... 126
...... 6.3.2 Supply and Demand Radar ... 127
...... 6.3.3 Budget Radar ... 127
... 6.4 Going Forward From Here: How to Use Chapters 7 – 14 ... 128
... 6.5 A User-Centric Implementation ... 129
... 6.6 Conclusion ... 130

Part II: Unfreezing

7 Program Initiation ... 133
... 7.1 Phase-Specific Characteristics and Needs ... 133
...... 7.1.1 Soft-Stuff Radar ... 133
...... 7.1.2 Hard-Stuff Radar ... 134
... 7.2 What Happens at the Level of the Program ... 134
...... 7.2.1 Diagnostic Interventions ... 135
...... 7.2.2 Supplier Management ... 135
...... 7.2.3 Other Ongoing Initiatives ... 136
... 7.3 The Organization Stream in this Phase ... 136
...... 7.3.1 Assigning a Program Manager ... 136
...... 7.3.2 Developing the Business Case ... 136
...... 7.3.3 Feasibility Study Justifies the Business Case ... 139
...... 7.3.4 The Commando Team ... 142
... 7.4 The Communication Stream in this Phase ... 143
...... 7.4.1 Knowledgeable Facts About Executives ... 143
...... 7.4.2 Stakeholder Mapping ... 144
...... 7.4.3 Stakeholder Analysis ... 145
...... 7.4.4 Anticipate Sponsor Readiness ... 146
... 7.5 The Learning Stream in this Phase ... 148
...... 7.5.1 Analyze the Learning Needs ... 148
...... 7.5.2 Leadership Requirements ... 149
...... 7.5.3 Vision and Strategy Formulation ... 150
... 7.6 The Performance Management Stream in this Phase ... 151
...... 7.6.1 Identify Performance Ingredients ... 152
...... 7.6.2 The Performance Management Cycle ... 153
...... 7.6.3 Identifying Performance Levels ... 153
... 7.7 Moments of Truth of This Phase ... 155
...... 7.7.1 Identify the Program Manager from the Very Beginning ... 155
...... 7.7.2 Confirmation of the Business Case ... 156
...... 7.7.3 Bringing the Feasibility Team Together ... 156
...... 7.7.4 Outcome of the Feasibility Study ... 156
...... 7.7.5 Deliverables of this Phase ... 156
... 7.8 Conclusion ... 157

8 Program Setup ... 159
... 8.1 Phase Specific Characteristics and Needs ... 159
...... 8.1.1 Soft-Stuff Radar ... 159
...... 8.1.2 Hard-Stuff Radar ... 160
... 8.2 What Happens at the Level of the Program ... 161
...... 8.2.1 Setup Program Organizational Structure ... 162
...... 8.2.2 Program's Project Portfolio and Critical Path to Timely Delivery ... 164
...... 8.2.3 Setup Program Administrative Office ... 165
...... 8.2.4 Organizational Change is in the Details of Delivery ... 165
... 8.3 The Organization Stream in this Phase ... 166
...... 8.3.1 Implementation Team Setup ... 166