CAE Fusion Project Mary Lambert, CAE, Change Management Lead Managing Your Process and User Changes while implementing Oracle E-Business Suite' Santa Clara,

CAEFusion Project

Mary Lambert, CAE, Change Management Lead

Managing Your Process and User Changes while implementing Oracle E-Business Suite'

Santa Clara, California

January, 17th , 2008

2CAE Inc. Confidential and/or Proprietary Information

Objectives of the Executive Work Session

► Demonstrate how critical it is to the success of a project to identify and address the impacts on the organization and the people early on to ensure adoption

► Highlight challenges you may face during your implementations and share what we have learned

► Highlight the value of Change Management

► Share our experience in managing change with Oracle

Session Objectives


Session Agenda

► About CAE

► Organizational context and key project challenges

► Fusion – The business solution

► Our strategy for pro-actively managing expected challenges

► Accomplishments and lessons learned

► Contribution of Change Management to the success of the project

► Contribution of Oracle Change Management Services

► Open discussion

CAEFusion Project

About CAE


► CAE is a leading provider of simulation and modelling technologies and integrated training services for civil aviation, and defence customers worldwide

► Annual revenues of more than C$1 billion derived from worldwide exports

► CAE employs more than 5,500 people at more than 75 sites and training locations in 19 countries.

► CAE was founded in 1947 and is headquartered in Montreal, Canada.

CAE Profile Do not modify – comes

from the CAE Global comm department

CAEFusion Project

Organizational Context and Key Project Challenges


Organizational Context► CAE was In the midst of major restructuring effort

► Clearly established need for a global integrated solution that would support CAE’s growth by

Integrating different information flows Providing timely and accurate information to enhance

decision-making

► Experience from previous implementations and change initiatives was not perceived as positive

► Recent layoffs left a negative impact on the organizational climate and communication, as a whole, required improvement

► CIO and VPHR fully aware of the high risk associated with any ERP implementation

► Failure was not an option

► Heavy workload and competing priorities


Key Project Challenges

► High level of cynicism and fear due to previous implementations Some projects were delayed or abandoned Employees felt a lack of involvement on their

part Employees were afraid of not receiving enough

training or being well informed

► Employees wanted the benefits of the project, while having a customized tool

► Very aggressive timeline driven by SOX requirements

► No as is processes and lack of standardization between sites

► Fear of job loss due to recent layoffs and on-going restructuring

► Securing the resources for the project due to the competing priorities

► Change in scope partway through the project

“The hardest stuff is the soft stuff.”

- Paul Allaire Xerox

CAEFusion Project

Fusion – The Business Solution


Project Statement


Fusion Wave 1 – ICT&S Business Solution

Baan CRM(Customer Relationship

Management)

TCIS2Training Center

Information System (CAT)

WebRegTraining Center

Information System (BAT)

ERP Oracle

Finance{AR, AP, GL, Fixed Assets, Automated

Bank Reconciliation}

Business Intelligence

ProcurementIn-direct (CT&S)

InternalControls Mgr

STARS (CAT)Scheduling Tool

STARS (BAT)Scheduling Tool


ERP/Oracle

• Montreal

• Toronto

• Denver

• Dallas

• Santiago

• Brussels

• Madrid

• Amsterdam

• Dubai

31

WebReg/STARS

Apr 24

CRM

• Montreal

• Toronto

• Singapore

• Denver

• Seattle

• Dallas

• Santiago

• Brussels

• Madrid

• Amsterdam

• Dubai

26

• Dallas

15

• Dubai

17

• Montreal

18

• Toronto

• Vancouver

TCIS/STARS

16

Doha

27

• Brussels

24

• Santiago

Jun 12

• Denver

• Phoenix

• Seattle

10

• Kuala Lumpur

• Singapore

26

• Amsterdam

Jul 3

Madrid

TCIS/STARS

Fusion Wave 1 – Implementation Timeline

CAEFusion Project

Our Strategy for Pro-actively Managing Expected Challenges


A Strategy Anchored in Best Practices

► Facing challenging situations during the implementation of technology is par for the course

► Guiding principles in developing our strategy Ensuring goal clarity through

executive alignment Strong executive leadership

throughout the project is key for securing real management involvement

Involving End Users early to increase their buy-in

Structuring communication to manage expectations, reduce fears and prepare people for the transition

Well planned and well designed training to ensure utilization of the system ERP Change Management Survey, 2005

Change Management Factor Contributing to the Success of ERP Implementation

2020

87%

83%

53%

90%

70%

4040 6060 8080

Project Leadership

End Users Involvement

End UsersCommunication

Goal Clarity

Training


Planning our CM Work ► Being pro-active and planning for all

Change Management activities

► Working with Oracle, required deliverables identified Based on:

• Oracle Best Practices• Our culture and organizational context

and risks identified during phase zero

► Aligned with project milestones, the key change management deliverables included in project plan

► More detailed Change Management work developed following Executive interviews Readiness assessment

► Monitored our efficiency and made adjustments as required

Change Management Work plan

Change Management Effectiveness


Getting Executive Commitment

► Adoption of strong governance rules Executive Workshops, lead by

Oracle, conducted before project kick-off

► Steering Committee under co-leadership

► Set-up of Management Committee

► Oracle provided Best Practices and guidance in Defining roles, responsibilities

and rules for committees Developing a sponsorship

approach Providing guidance, enabling our

leaders to lead the way

► Empowering Leaders by giving them visibility and allowing them to demonstrate their commitment


Escalation ProcessCAE ERP team

member asked by Oracle to provide

decision on a business

requirement

Decision made in 3 business

days?

Yes

Complete

No

Add issue to Sim Issues (Issue

Tracking System) and escalated to

Project Mgr (PM) with cc to Executive Sponsor

Answer provided by

PM in 2 business

days?

Yes

Complete

No

Decision made by Oracle on CAE’s

behalf and notifies PM and

Executive Sponsor

Response received by CAE is 1 business

day?

Yes

No

Oracle Executes the Decision

CAEAgrees?

No

Yes

CAE provides decision

Change to decision

requested by CAE?

No

Complete

Yes

Handle request through Change Control Process

Steering Committee Process



Executives ExecutivesSteeringSteeringCommitteeCommittee

Team Leads Team MembersPMOPMO

Managers ManagersChangeChangeChampionsChampions

Empl’s Empl’sTargetTarget

Group per Group per RegionRegion

TargetTargetGroup perGroup per

RegionRegion

TargetTargetGroup perGroup per

RegionRegion

Coordination:Change Mgmt

Team

ExecExecSponsorSponsor

Weekly Two-way communication during Project Status Meeting

Executives update

Managers

Team Leads update their

Managers weekly

Team Leads update Change

Champions weekly

Change Champions communicate with their target groups

Change Management Team generates and coordinates communications for all audiences, and provides tools and coaching for Change Champions and Team Leads.

Managers communicate with employees frequently

Monthly two-way communication between PMO and Steering Committee

during Steering Committee Meeting

Oracle ERP Project Communication Strategy

Monthly update from Steering Committee to

Executives

Team Leads bi-weekly meeting with their VPs

Communicating Effectively

► Creation of an integrated communication strategy

Adopted a change agent structure to model the changes and rollout change management activities

Structured the project team communications

Aligned our communications with the project milestones and challenges


Communicate, Communicate…

4

Newsletters

Client Logo

Client Logo

Client Logo

Client Logo

Client Logo

► Utilization of multiple communication vehicles Newsletters Website Weekly face-to-face meetings

or conference calls Focused e-mail communication Communication tours

► Regular and effective two-way communication

► Assessing the effectiveness of change management and communication

► Walking the talk – Respecting our communication commitment for credibility

► Celebrating successes and leveraging them

8

Go-live celebration


Managing the unexpected

► Planning will not prevent the unexpected from occurring

► Creates an environment that is more responsive and better able to find solutions more effectively

► Some unexpected challenges we had to face

Change in scope due to aggressiveness of timeline and SOX requirements

Going from a Montreal/ Tampa implementation to a global multi-site, multi-system implementation

Change in business process owners and SMEs as a result of scope change

CAEFusion Project

Achievements and Lessons Learned


Key Project Achievements

►Project delivered on budget and on time

► In-class training of all Oracle ERP users

►Global deployment of Oracle ERP’ Finance & Purchasing module to ICT&S training centers Amsterdam, Brussels, Chili, Dallas, Denver

(Phoenix, Seattle), Dubai (Doha), Madrid, Montreal, Toronto (Vancouver)

►Multiple system integration Integration of CRM, TCIS/STARS,

WebReg/STARS with Oracle ERP


ICT&S Financial System Improvements

BEFORE

► Many different financial systems

► Many different charts of accounts

► Manual conversion of Trial Balances into Hyperion Chart of Accounts with possibilities of input errors

► Many subjective mappings

► No visibility into divisions’ books

► Often manual calculation of depreciation

► Two-plus weeks to do global close

AFTER

One common financial system – OracleOne common chart of accounts

Automated conversion with standard mapping

One common mapping

Full visibility into divisions’ books

Automatic calculation of depreciation

Less than one week to do global close


Lessons Learned and Pearls of Wisdom

► Resources “When planning for resources, make sure

you have the right people (competence & quality) at the right time (plan) doing the right thing (scope)”

► Schedule & plan Involve the project team in the development

of the plan and gain their full commitment ► Business decisions

“We need to make business decisions in a timely manner by the appropriate stakeholders. This is a must to establish business process & architecture of systems”

► Silos “Ensure you identify all silos in advance,

and establish rules, procedures and organization to bridge them”

► Scope “When scoping, take the time, do it once, do

it right!”► Testing, testing, testing

“System integration testing, user acceptance testing, end-to-end testing: Thorough and complete testing done by the right people (functional and technical teams working together) at the right time (properly planned and no waiting until the last minute) will save time, money and aggravation during and after implementation”

► Business process definition “The business processes are the foundation

by which you build on. Knowing the “as is” to define the “to be. Knowing who the process owners are is a must”

► Communication “Communication is everyone’s

responsibility. Don’t assume that people know or understand, always validate information and involve people at all levels. Communication is a two-way street!”

► Knowledge of business/customer “Understanding where everyone’s starting

from is essential in getting everyone to the same place”

Do not change wording – Official document

resulting from offsite


Leveraging What we Did Right

► Project management “Monitor project progress on a weekly

basis – reinstate daily “war room” meetings as required – Leverage use of tracking tools to gain visibility on tasks critical to timeline”

► Teamwork “Working as an integrated team with

all sites and teams (multiple systems) to resolve issues and find solutions”

► Being responsive “Be flexible and adapt to business

reality, but don’t be afraid to challenge”

► User involvement “Involve as many users as possible

before going live – Get them involved in testing”

► SOX compliance “Build in SOX compliance as you go

along to prevent re-work”

► Integrity “Saying what you do – Doing what

you say – Following-through on your commitments – Ask for help and never hide the truth”

► Change mgt, communication and support “Leverage what has been done,

validate what has worked well and not so well and build on it”

► Data integrity “Keep the focus on having good data

at all times – develop monitoring tools as required”

► End-to-end testing “Make end-to-end testing an integral

part of user acceptance testing”

Do not change wording – Official document

resulting from offsite

CAEFusion Project

Contribution of Change Management to the Success of Projects


Contribution of Change Management Contribution

► Presence at Steering and Management Committee meetings

► Working closely and coaching the project team, trainers and business people involved in projects

► Development and execution of change management and communication plans

► Reacting quickly to the unexpected and developing appropriate interventions as required

► Planning and coordination of training

Benefits

► On-going visibility of change management achievements and risks

► Greater responsiveness from Executives resulting in more effective resolution of risks

► More cohesive team, better able to identify and address change management issues

► Building change management capability within the organization

► Managers and End Users better informed and ready resulting in smoother transition

► Ability to recover quickly from the unexpected and obtain the support required, thus minimizing the negative impact on the project and the people

► Quality training including material minimizing productivity dip

► Smooth delivery of training

► End-users trained before go-live


Contribution of Change ManagementNot Just From My Perspective

► Top Executives now believe that big system implementation can be successful and are asking the Fusion team to take on additional projects

► CIO is looking how the whole IT organization can benefit from the Program and Change Management expertise residing within the Fusion project

► Other groups outside of IT are asking for the Fusion group to oversee Project and Change Management for their projects

► Fusion Change Management team is asked to share their methodology and tools with other groups within the organization


My Advice to You► Start thinking about (and working on) change management at

the very beginning of the project

► Don’t forget about the strategic aspect of change management

► Know your organization and be realistic about the challenges – ignoring them doesn’t make them go away

► Make the business accountable for the success of the project and for achieving the benefits

► Know your people and quickly involve those who will make it happen

► Get some expertise in change management and specifically in ERP or large system implementation

► Don’t underestimate the level of effort required – it’s hard work and there’s a lot of it – so put adequate staffing in place

► Integrate change management activities in the project plan

► Invest in communications – people, events, website, newsletters, posters, mementos

CAEFusion Project

Contribution of Oracle Change Management Services


Contribution of Oracle OCM

► Oracle included OCM as part of their solution

► Strong methodology and pre-formatted tools for accelerating the work

► Experience with Oracle implementations

► A team of experienced change management specialists that integrated quickly and efficiently with CAE project team

► Key organizational risks were clearly identified before the start of the project by Oracle’s OCM lead during Wave 0 (Oracle Insight program)

► Provided good insights in establishing links between challenges inherent to ERP implementation and the organizational


Contribution of Oracle OCM

► Strong leadership and high involvement from Oracle CM leader during the initial planning and kick-off of the project

Quickly organized all communications in order to properly jumpstart the project

Quickly planned the work allowing us to be proactive rather than becoming reactive

Availability of OCM Leader throughout the project

► Demonstrated great flexibility in working with the internal change management specialist hired partway through the planning phase

Played a leadership role in key activities such as readiness assessment and job impact analysis

Hands-on contribution for the execution of the change management and communication plan


Future with OCM

► Leveraging the work done during the initial phase of the project and making it part of all new initiatives

► Even if we have internal expertise, it is still relevant to involve Oracle for their specific knowledge in

Readiness Assessment Job Impact Analysis Post go-live surveys

► Leveraging the advantage of being an external specialist that is more objective

Recommendations may have a better reception Ability to obtain more honest information from managers

and end users

► Future decisions will be based on the projects and level of risks involved

CAEFusion Project

Open Discussion

Documents

CAE Fusion Project Mary Lambert, CAE, Change Management Lead Managing Your Process and User Changes while implementing Oracle E-Business Suite' Santa Clara,