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SESSION II The Only Certainty is Change October 19 th 2006. Risk Management and Change Management in the ERP System Implementation Project. Viktor Sterle Head of IT Department Ministry of Defence of the Republic of Slovenia. SESSION II The Only Certainty is Change. Introduction. - PowerPoint PPT Presentation
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AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Viktor SterleHead of IT DepartmentMinistry of Defence of the Republic of Slovenia
Risk Management and Change Management in the ERP System Implementation Project
SESSION II
The Only Certainty is Change
October 19th 2006
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Risk and Resistance to Change
Introduction
SAP Implementation Project
Mitigation of Resistance to Change
Conclusion
SESSION II
The Only Certainty is Change
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Introduction
Improve efficiency and effectiveness of the Improve efficiency and effectiveness of the processes using modern information processes using modern information technology technology (SAP DFPS):
Improve the integration of activities. Improve planning and reporting. Decrease processes’ cycle time. Improve data quality.
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Risk and Resistance to Change
Introduction
SAP Implementation Project
Mitigation of Resistance to Change
Conclusion
SESSION II
The Only Certainty is Change
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
SAP Implementation Project
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Some of Typical SAP Implementation Risks
• SAP project begins as an IT-project • SAP project is driven by the IT-department
• SAP project is not considered as an innovation
• SAP implementation is considered as ‘just another IT project’ • Relying only and entirely on external consultants
• Resistance of managers and employees to reorganize
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Risk and Resistance to Change
Introduction
SAP Implementation Project
Mitigation of Resistance to Change
Conclusion
SESSION II
The Only Certainty is Change
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Resistance to Change - Iceberg Theory
Look below the surface!
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Risk Analysis
RESISTANCE TO
CHANGE
Master Data
MODERATE HIGHLOW
NEGLIGIBLE MINOR MODERATE SERIOUS CRITICAL
CONSEQUENCES
LIK
EL
IHO
OD
0-10%
11- 40%
41- 60%
61- 90%
91-100%
Lack of management
support
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Emotional Reactions through SAP Project Phases
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Risk and Resistance to Change
Introduction
SAP Implementation Project
Mitigation of Resistance to Change
Conclusion
SESSION II
The Only Certainty is Change
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Areas for Change Management
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Change Management Analysis
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
How to Mitigate the Risks of Resistance to Change?
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Risk and Change Management in Project Structure
Risk ManagementChange Management
Working Group 1
Change Agent
Steering Committee
Project Management
Working Group 2
Change Agent
Working Group n
Change Agent
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Risk and Resistance to Change
Introduction
SAP Implementation Project
Mitigation of Resistance to Change
Conclusion
SESSION II
The Only Certainty is Change
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Integration of Risk and Change Management
Concurrent Enginering
Total Quality Management
Risk ManagementChange
Management
Project Management
Source: Kerzner Harold, Advanced Project Management
AFCEA Europe TechNet Europe 2006 Sofia Bolgaria
Sources
• Internal documentation of Ministry of Defence Republic of Slovenia
• Documentation of ESG GmbH
• Kerzner Harold, Advanced Project Management
