The Process of Managing Change in an ERP

The Process of Managing Change in an ERP Implementation Dan Snider The Process of Managing Change in an ERP Implementation

The Process of Managing Change is about Connecting the Dots Me Why ? Connection Effect of Change ? How ? We Lead Change Transition Dan Snider The Process of Managing Change in an ERP Implementation

Underlying Assumptions o Values o Mission o Integrity o Use Best Practices o Executive Sponsorship (discuss) Dan Snider The Process of Managing Change in an ERP Implementation

The Process of Managing Change is about Connecting the Dots Me Why ? Connection Effect of Change ? How ? We Lead Change Transition Dan Snider The Process of Managing Change in an ERP Implementation

The Process of Managing Change Why? Effect? How? Lead The Organization Me o Vision & Mission Why ? o Future Success Depends on it o Establish Urgency Dan Snider The Process of Managing Change in an ERP Implementation

Vision & Mission Why? Mission Effect? How? Lead Securit provides our customers peace of mind by delivering unparalleled security for the information they value Dan Snider The Process of Managing Change in an ERP Implementation

Vision & Mission Why? Vision Effect? How? Lead We relentlessly pursue innovation and success, driven by the needs of our customers and the shared energy, ability and commitment of our people Dan Snider The Process of Managing Change in an ERP Implementation

Vision & Mission Why? Effect? How? Lead World’s leading document destruction company • • Business model focused on rapid growth and expansion • 150, 000 customers | 140 branches | 15 countries • >1000 vehicles | > 2, 600 staff • Highly integrated, including shredder, truck and console technology and manufacturing • Securit brand launch in January 2005 signaled evolving focus on broader information security marketplace Dan Snider The Process of Managing Change in an ERP Implementation

Vision & Mission Why? Effect? How? Lead Competitive Strengths Customers People Processes Dan Snider The Process of Managing Change in an ERP Implementation

Vision & Mission Why? Customers Effect? How? Lead • Currently serving over 150, 000 customers around the world – all sizes • High satisfaction levels: • 90% of 2006 survey respondents said “superior value and satisfaction” • 93% of 2006 survey respondents said “definitely recommend Shred-it” Dan Snider The Process of Managing Change in an ERP Implementation

Vision & Mission Why? Effect? How? Lead People • Dynamic, customer focused staff • Entrepreneurial culture • Top 50 Managed Private Companies in Canada Dan Snider The Process of Managing Change in an ERP Implementation

Vision & Mission Why? Processes Effect? How? Lead • Exemplary custody and security record • Strong focus on integrity in service processes • Leading technology Dan Snider The Process of Managing Change in an ERP Implementation

Future Success Depends on it The Future Why? Effect? How? Lead 1. Aggressive rearchitecting of global information systems around SAP 2. Leverage mobile communications, bar code / RFID processes for custody and tracking Dan Snider The Process of Managing Change in an ERP Implementation

Future Success Depends on it Why? Effect? How? Lead Expanded Global Market Coverage Dan Snider The Process of Managing Change in an ERP Implementation

Future Success Depends on it Why? Effect? How? Lead Why Project Genesis? (ERP Initiative) Future Vision: • New services • New markets • One global business • Regional tailoring • Agile business processes Dan Snider The Process of Managing Change in an ERP Implementation

Future Success Depends on it Why? Effect? How? Lead Scope and Value Proposition (Extract from Employee Communications Meeting) To our Customers §Accuracy and Timely Billing, Reporting & Information §Improve Service and Reliability §Improve Consistency & Accuracy §Facilitate a Market Leadership in Security §Facilitate Seamless Customer Experience To our Internals Stakeholders §Common Business Foundation §Reduce Operation Costs §Reliable and Effective Business processes §Customer Responsiveness §Productivity and Leverage Dan Snider The Process of Managing Change in an ERP Implementation

Establish Why? Effect? How? Lead Urgency Requirement (President, Founder, CEO) o One of Five most important decisions o The Change will be Challenging o The Journey will not be Smooth o Frustration o Necessary to Meet our Business Requirements o Customers o Individuals to perform their work o Necessary Structure for Future Business o Diversify into other Businesses o Window - now open – Competition / Close Dan Snider The Process of Managing Change in an ERP Implementation

The Process of Managing Change Why? Effect? How? Lead The Organization Me o The Business Effect ? o My Role o Me (fear) Dan Snider The Process of Managing Change in an ERP Implementation

The Business Genesis Project Update #16 Why? Effect? How? Lead On-going communication This Transition for Securit: o Streamline processes o Increase efficiency o Improve our ability to effectively serve our customer needs Reinforce WHY Genesis is part of our long term solution to help Securit remain competitive and solidify our position as a global leader in information security. Dan Snider The Process of Managing Change in an ERP Implementation

The Business Why? Effect? How? Lead Genesis Project Update #16: Overview of Genesis Tomorrow Today Customer Creation • Customer created in Shredcom at branch • Basic customer data exists in SAP master data base • Shared creation process between SOC and Support Centre Contracts • Manual CSA data is entered into Shredcom • Manual CSA data is entered into SAP • Disciplined and structured data entry Pricing • Any price can be put into Shredcom • GM approves exceptions • Price input into structured SAP system • GM approves price exceptions. Exception/Discount report is reviewed monthly Invoicing • CSR calculates charges and leaves invoice with customer • CSR provides copy of invoice to SOC for input into Shredcom • CSR provides minutes of service or consoles (bins, bags etc. ) to SOC to create invoice • Invoice is mailed, emailed or faxed to customer Dan Snider The Process of Managing Change in an ERP Implementation

My Role Execution Steps Why? Effect? How? Lead ”AS IS” Step Detail 1 Look up customer in system- check for next service date 2 CSS schedules service date 3 CSS enters order in system 4 CSS goes into TRS system and assigns truck for service 5 Order is routed by ARP and printed from system 6 execute order by CSR 7 CSR leave signed invoice and COD with customer 8 CSR returns copy of signed invoices and log sheet to SOC 9 SOC performs 'quick close' (confirmation of orders) 10 SOC balances Invoice History to pinks and CSR log sheet 11 run open order report (to validate that all orders are closed) 12 receive payment from customer for invoice (cheque, visa, etc) 13 Post payment in system & Balance Detail by task the change in Role Dan Snider The Process of Managing Change in an ERP Implementation

My Role Execution Steps Step “TO BE” Step Detail 1 2 create manual service order 3 enter ship to partner 4 enter (non-validated) requested date 5 enter purge service item 6 set status to 'un-routed' and save 7 Document passed to ARP and is optimized 8 review service order: route, stop ID, truck 9 deploy service order - status to 'deployed' 10 Print route driving directions and order manifest (for route) 11 Close out automatic order: create follow-on confirmation from preceding service order 12 select relevant automatic item for copying 13 enter item data - enter time in and time out 14 enter header data - enter CSR 15 Detail by task the change in Role view customer fact sheet to determine next service date pass the DMR to billing & Create Bill Dan Snider The Process of Managing Change in an ERP Implementation

Change for Me Why? Effect? “Fear” My Commitments to You How? Lead I am committed that no one will lose his/her job as a direct result of improvement to technology. We’ll have to adopt new ways to work and some things we do may no longer need to be done. However if you adapt to the change then your role at Securit will be there. I am committed to providing the training that people need to get up to speed and benefit from the advantages of the new system. I am committed to reporting on our progress. I will provide you with a report as we reach milestone, what worked, what didn’t work and the lessons we learned. The report will also include the stakeholders and what key benefits were achieved. I am committed to listening to your ideas and taking action on those that will improve processes and customer service. Greg Brophy , President and CEO Dan Snider The Process of Managing Change in an ERP Implementation

The Process of Managing Change Why? Effect? How? Lead The Organization We o Program Charter o Scope How? o Organization / Resources o Program Detailed Plan o Change & Learning Dan Snider The Process of Managing Change in an ERP Implementation

The Project Plan Program Charter Why? Effect? How? Lead o. Value is it’s creation o. Discussion within the team on how they will work together o. Solidifies commitment Dan Snider The Process of Managing Change in an ERP Implementation

The Project Plan Program Scope Why? Effect? How? Lead On Going through the Program o. Extremely Valuable o “what’s in” & “what’s out” o. Team discussion o. Creates understanding o. Living Document o. It will change - Manage changes Dan Snider The Process of Managing Change in an ERP Implementation

Organization / Resources Why? Effect? How? Lead Avoid Partial Roles Value in Clear Org. Structure Format Dan Snider The Process of Managing Change in an ERP Implementation

The Project Plan Organization / Resources Why? Effect? How? Lead Project Manager o. Policies and processes o. Scope, costs and schedules Define ALL Roles o. Staffing Clearly o. Monitor progress, o. Resolve & Escalated issues (Approx. 48 hours) o. Positioned operating units for success o. Communicate status to all Stakeholders o. Performance indicators o. Budget process & control o. Implementation approach, methodology, tools, strategy o. Documentation control o. Change control process Dan Snider The Process of Managing Change in an ERP Implementation

Program Detailed Plan Why? Effect? How? Lead At Program Outset Very Valuable Dan Snider The Process of Managing Change in an ERP Implementation

Program Detailed Plan Why? Effect? How? Lead As Program unfolds use Focused Plans Dan Snider The Process of Managing Change in an ERP Implementation

Program Detailed Plan Why? Effect? How? Lead Include High Level Plan Dan Snider The Process of Managing Change in an ERP Implementation

Change & Learning Stakeholder: Operations Awareness Buy-in Why? Effect? How? Lead Change Impact Analysis Capability Impact on Stakeholder Engagement Actions Stakeholder: Customer Awareness Buy-in Capability Impact on Stakeholder Engagement Actions Stakeholder: Internal Customer Service Representative Awareness Buy-in Capability Impact on Stakeholder Engagement Actions Stakeholder: IT, HR … Awareness Buy-in Capability Impact on Stakeholder Engagement Actions Dan Snider The Process of Managing Change in an ERP Implementation

Change & Learning Why? Effect? How? Lead Change & Learning Plan Q 1 Q 2 Q 3 Genesis Branch Planning Readiness Training Communications Support Change Readiness Audit pilot Roll-out Complete branch readiness checklist ID Manager “Leading “What’s Trainers Change” Changing” Regular updates to all employees 200 x Q 4 Superuser Role training Refresher training Launch communication status updates Feedback Survey Helpdesk, log issues, contact list Dan Snider The Process of Managing Change in an ERP Implementation

Change & Learning Why? Effect? How? Training Needs Analysis Advanced Service Rep F r e q u e n c y C o m p l e x it y R is k T o t al Branch RM Branch Lead W I D E M O E X E R C I S E S I M Call List Processing C C A Master Data BP Creation / Update Y 4 X Y 4 Y 3 3 3 9 X X Maintain Account Y 4 X Y 4 Y 3 3 3 9 X X Maintain Contact Y 4 X Y 4 Y 3 3 3 9 X X Y Y 3 2 3 8 X X Maintain Territory Manage Call List Admin Market Analyst Manage Service Rep Generate Call List Y Y Y 1 1 1 3 X X Manage Call List Y Y Y 2 1 1 4 X X 1 1 1 3 x x Data Warehouse Reporting Y Y Y Dan Snider The Process of Managing Change in an ERP Implementation TOTALS 4 7 6 7 3 3 7 7 4 4

Change & Learning Why? Training Plan Effect? How? November # Courses Length WK 1 Code Levels 100 Basic SAP Navigation Finance SD HR 1 2 hr WK 2 WK 3 100 December WK 4 WK 5 WK 6 WK 7 WK 8 200 5 4 hr CRM 200 MM 200 AP AR GL 300 CRM 300 4 hr; 1, 5 d; 2 d 20 200 Functional Overview Area Lead 300 400 Specific Task Training Refresher 300 Dan Snider The Process of Managing Change in an ERP Implementation

The Process of Managing Change Why? Effect? How? Lead Program Leadership o Communicate o Involve Lead o Build Skills o Performance Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Why? Effect? How? Lead 1. Communicate “when I’m really, really tired of talking, my message is just starting to get through” 2. Involve “the less I’m involved in something that is changing, the more suspicious I am likely to be” 3. Build Skills “all kinds of skills … process, technical, behavioral, managerial” 4. Performance “leadership is a performance …you need to be conscious of your behavior because everyone else is!” Dan Snider The Process of Managing Change in an ERP Implementation

Why? Effect? How? Lead Program Leadership A leader’s role in managing people through change “I'll go anywhere as long as it's forward. ” — David Livingstone Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Effect? How? Lead A Traditional Performance Curve Average Performance High Why? Low Time Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Effect? How? Lead High Average Performance Why? End of change event Onset of change event The Impact of a Program on Performance Low Time Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Average Performance High Low Hopeful Optimism Why? Effect? How? Lead The Impact Caused by our Human Satisfied Completion Behavior Renewed Optimism Emerging Pessimism Public Resistance Checking Out Renewed Hope Time Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Average Performance Effect? How? Lead High Low Why? Satisfied Completion Hopeful Optimism Renewed Optimism Emerging Pessimism Leaders Role is to Manage the Curve Public Resistance Checking Out Renewed Hope Time Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Why? Performance Communicate High Effect? How? Lead Build Skills Involve Low Time Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Why? Effect? How? Lead Communicate High o Over 1000 Communications o Quarterly Business Updates o Monthly Genesis Updates o Leadership Conferences o Status Updates o Agenda for Every Internal Meeting o Inclusion in “Securit News Flash” o Performance Appraisals Low Time Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Why? Effect? How? Lead Build Skills High o Project Team Training o Four Levels of Training for Business Users o Include Training on Leadership for all Managers o Ensure focus - Post Live Support Low Time Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Why? Effect? How? Lead Involve High o 2/3 of Project Team Internal Resources o Actively Solicit Questions / Responses o “what’s on your mind” o Genesis “email” o “Donuts with Dan” o Opportunities Log o Actively Manage Issues Low Time Dan Snider The Process of Managing Change in an ERP Implementation

Program Leadership Why? Effect? How? Lead Performance (it is behaviour) High “Accept Ownership” o Positive o Actions – Get involved o Address Issues o Reinforce the Why, Effect, & How o Reinforce the Realistic Cycle of Change – Point out the Vision o Find Wins – Declare Heroes Low o Daily Meetings Time Dan Snider The Process of Managing Change in an ERP Implementation

The Process of Managing Change in an ERP Implementation Questions ? Dan Snider The Process of Managing Change in an ERP Implementation