Change Impact Assessment.doc

Change Impact Assessment Items Assessed Business model (service, cost, product) Reflects the essentials of the go-to-market Highlights how the business differentiates itself on the market Each business model has a totally different mix of business processes Radically change the go-tomarket Create new process flows New ways of working Major new business relevant process flows have to be defined Integrate activities (eliminate/automate) Across departments, organisational units or geographies Wide integration of activities and processes across departments/geographies Process ownership Who does what All processes are carried out by different persons Relocate activities (central/decentral) Activities executed in other organisational units/departments than today Workflow drastically impacted by relocation of activities in other organisational units Headcount Is the number of employees impacted by the change. Impact in terms of new ways of working, new roles, new skills, new location, or other Headcount impacted >20% Roles & Responsibilities Impact in terms of accountability, decision taking and involvement Several key roles created Existing roles reallocated to other functional areas Function Descriptions Impact in terms of job profile compared to other jobs Core tasks are totally different Competency Requirements Impact in terms of skills (functional, technical, business, core competencies) Totally different competencies required (e.g. from administrative to analytical skills) Location Other building, other site, other region, other country Radical change in physical location (e.g. abroad/other part of the country) Business Strategy Change in strategic direction in terms of product innovation, service innovation, operational excellence or customer intimacy Radical change in positioning on the market (e.g. from product innovator to operational excellence/from operational excellence to customer service) Operating Model Describes how an organisation operates across both business and technology domains. The operating model describes what is important for the organisation in line with the business objectives. E.g. change in business critical processes (purchasing, IT, R&D, …) requiring a new organisational setup Radical change in strategic processes (leading to new functions, performance indicators, activities) Managing Team Leadership team and department heads High change in Management Team (new functions part of the management team & some functions removed from the management team Job Performance Monitoring Judgment of performance (e.g. financial results, balanced scorecards, key performance indicators, service levels) Radical change in top 10 performance indicators (balanced scorecard) Salaries & Remuneration Focus of employees in line with business objectives New ways to reward performance with a major impact on individual objectives Service, cost, product orientation Mindset, embedded in every activity (service oriented, cost conscious, innovative, quality oriented) Major change in end-to-end 'mindset': become service oriented - become cost conscious - innovate Cross-Departemental Service Levels Collaboration frameworks between departments (especially needed for transversal processes) Formal agreement (and management) on service levels between departments (e.g. shared services, competence centers) Cross-Departemental Communication Regular contacts across departments for problem solving. Intensive cross department communication to streamline end-to-end processes on a daily basis Cross-Departemental Process Improvement Joint plans for continuous improvement across different departments Intensive cross department collaboration to optimize end-to-end processes at group level (anticipating local suboptimisations with a negative impact at group level)

Multi-Cultural Cooperation Cultural differences require specific focus on ways of collaboration Systematic alignment and coordination needed across different cultures New functionalities for end-users New tasks supported by the system may require new skills and a new process/governance High amount of new functionalities impacting drastically the daily tasks and requiring specific skills Level of integration across depts Applications eliminate double inputs, but require strong discipline in data processing from all departments in the process Wide range of integration across departments forcing cross department communication, disciplined processing and alignment on continuous improvement/problem solving Discipline master/shared data maintenance Master data are business critical date used across different departments (e.g. products, vendors, customers, org units, etc.) A wide range of master data is used all over the business, requiring an extremely disciplined management of data quality. Integration with external parties Continuous exchange of business relevant information across the different parties in the value chain. A very collaborative operation with external parties, requiring intense consultation and alignment Potential for boosting business New technology may allow to differentiate the business on the market (e.g. cross-selling, key account management, fast time-to-market) Technology perceived as enabler to strengthen the position on the market.

Example Change Readiness Assessment The assessment is designed to evaluate the organization’s ability to manage change. Key stakeholders are asked their level agreement with the following statements. The assessement is not intended to produce a mathmatical average, but rather is meant to identify areas of weakness that should be addressed before effective transformation can occur.

Leadership Alignment      

Is there sufficient level of sponsorship for the change Is there sufficient level of support by key senior leaders impacted by the change Has a sense of urgency been publically communicated by the senior management Are senior management willing to change key business processes in support of the change Are senior management willing to stop in-flight projects to support key initiatives when it makes sense What is the level of senior management agreement on the objectives and scope of the project

Leadership Capacity   

Is there a guiding coalition of senior and influential stakeholders Have key individuals been identified to manage the change and to lead specific work streams Are identified key leaders sufficiently committed to the project and back-filled resources identified as necessary

Resource Management     

Is the scope of change clear and well documented Does the organization have proven capabilities to execute a change of similar size and complexity Have specific individuals been identified to fill project roles The level of individual staff commitment devoted to the change Have they or will key roles in the organization be backfilled to handle activities previously handled by individuals assigned to the change  Are employees performance management goals aligned with the proposed initiative Communication

Communication  

Has the business purpose and rationale for the initiative been clearly communicated to all relevant stakeholders Has a comprehensive communication plan been completed that defines both the messages about the change as well as the communication channels that will be used to deliver the message

Training   

Has management stated their commitment to training as part of the initiative Has a budget been approved for a training program Have key leaders for the training initiative been identified

Culture   

Does the organization has a culture of continuous improvement Does the organization support calculated risk-taking among its employees Has the organization has successfully completed projects of a similar size and complexity