Learning Objectives: - Learn methodologies to prepare and mobilize resources for a cloud transformation - Review change management frameworks to help gain buy-in for your cloud initiatives - Discuss lessons learned by other enterprises during various stages of cloud adoption

1. Joe Chung, AWS Enterprise Strategist
Amanda Rankin, Lead Consultant - Migrations
How to Manage Organizational Change
and Cultural Impact
During a CloudTransformation
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

2. Agenda
Cloud Transformation
 Why is it different?
 Impact to culture
Organizational Change Management (OCM)
 What is it?
Cloud Change Management Framework
 How do you apply OCM to the cloud?

3. Cloud adoption can help
increase agility and
productivity, while
reducing costs
CloudTransformation
The impact of
cloud adoption will
be felt across the
entire organization
The journey
to the cloud will have
an impact on your
organization’s culture

4. What Is Culture?
 Culture is the “software of the mind.” It is the core logic that
organizes people’s behavior
 The culture reflects the lessons learned that are important
enough to pass on to the next generation
 Values, beliefs, and practices that have been developed and
reinforced over time
Culture Is “theWayWe DoThingsAround Here.”

5. CulturalTrendsWe Are Seeing
Moving from
 Failure is not an option
 Command-and-control
 Silos “throw it over the wall”
 Build/deploy in place
 Long due diligence
 Standardization
 Talent outsourcing
Moving toward
Learning (start small, experiment, and iterate)
Decentralized ownership (guardrails via cloud CoE)
DevOps and cross-functional teams
Automate: Infra-as-code, redeploy every time
Adopt early and often
Reference architecture, no religion, few standards
Talent insourcing/niche partnering

6. How Culture Impacts the Cloud Journey
 New cultural framework: What is important in how
we operate in a cloud environment
 New rules of engagement: Cloud governance
 Personal branding: Reinforcing and recognizing new
operating behaviors and ways of working
 Leadership: Leaders lead the way
LeversThat Influence Culture:
Cultural issues are at the
root of many failed
business transformations,
yet most organizations do
not assign explicit
responsibility for culture.” –
Gartner, 2016
“

7. Amazon’s Culture: Leadership Principles
1. Customer obsession
2. Ownership
3. Invent and simplify
4. Be right, a Lot
5. Hire and develop the best
6. Insist on the highest standards
7. Think big
8. Bias for action
9. Frugality
10. Learn and be curious
11. Earn trust
12. Dive deep
13. Have backbone; disagree and commit
14. Deliver results

8. Identify desired attitudes
and behaviors for
successful
cloud adoption
Communicate
attitudes and
behaviors
Align explicit and
implicit reward
systems
Align hiring,
training, and
incentive practices
How to InfluenceCultural Change?

9. CloudTransformation Challenges
When it comes to cloud adoption, the
biggest challenge isn’t technology — it’s
the people and processes that must
change and adapt.”
People and Processes
“ 13 Biggest Challenges
When MovingYour
BusinessToTheCloud
- June 2017 article

10. Common Failure Points
70% of unsupported change
efforts fail to achieve their
intended outcomes.” 1
“
1Based on the books and articles by John P. Kotter, 2012 Harvard Business School Publishing

11. Common Failure Points
2Based on Prosci Best Practices in Change Management – 2016 Edition
 Lack of active, visible sponsorship
 Insufficient change management resourcing
 Lack of buy-in from project teams
 Manager and supervisor resistance
 Employee resistance
Top Obstacles to Change Success2:

12. A Case for Organizational
Change Management
Applying tools and processes to the
people side of change, to transition from
a current state to a future state to
successfully achieve a particular
outcome.” 1
“
1Change Management; The People Side of Change, Hiatt & Creasey, 2012

13. Change Management: KeyTenets
Key Tenets to Recognize
When Considering
Change Management:
1. Change management is an enabling
framework for the people side of change
2. Organizational change requires
individual/personal change
3. The scope and type of change inform
the change management plan
Expect Reluctance and
Resistance to Change from
Across the Organization:
1. Employee resistance to
change is the Rule!
2. The RIGHT solutions is NOT in and of Itself
enough to motivate employees
3. Message conveyed ≠ message received
Change occurs for a REASON – The #1 purpose is to get to a better place

14. Focused mainly on
changing toolsets
Recognizing DifferentTypes of Change
Focused on changing
toolsets + skillsets
Focused on changing
toolsets + skillsets
+ mindsets
Improvement Transitional Transformational

15.  Change communication
 Change management
 Project management
 Training
 Change leadership
Solution Drivers
 Change communication
 Change management
 Project management
 Training
 Change leadership
 Process design
 Change communication
 Change leadership
 Leadership alignment and
sponsor plan
 Overall change management
strategy and plan
 Training and orientation
 Organization design
 HR strategy and support
Improvement Transitional Transformational
Adopted from: Linda Ackerman Anderson & Dean Anderson

16. Apply a Structured Change Management Approach to
AccelerateYour CloudTransformation
1. MobilizeTeam
2. Align Leaders
This change is critical and
will succeed!
We are all leaders of this
change!
3. Envision the Future
4. Engage the Organization
This is the vision, where
we are going!
This is how we get there
together!
5. Enable Capacity
6. Make It Stick
This is how we make
it happen!
Are we where we want
to be?

17. Apply a Structured Change Management Approach to
AccelerateYour CloudTransformation
1. MobilizeTeam
2. Align Leaders
This change is critical and will succeed!
We are all leaders of this change!
 Confirm sponsorship
 Secure resources, expertise
 Form strong coalition of leaders
 Build momentum
 Form team to lead change – executive sponsors, stakeholders, line
leaders, PMO, change management, communication, training, etc.
 Establish program charter, roles, milestones
 Build guiding coalition, mobilize leadership
 Shape program governance structure
 Assess and align change leadership roles
Key Steps and
Considerations
 Build a coalition – Cloud Center of
Excellence (CCoE)
 What does a CCoE do?
 Why is a CCoE important in the
journey to cloud adoption?
Source: Based on the work from our OCM consulting partner

18. Best Practice: Change LeadershipThrough a CCoE
Cloud Services or Cloud Center of Excellence
Business Application Services
OperationsInfrastructure Security
Cloud Engineering
Enterprise
Architecture
Governance
Training and
Engagement
Cloud Business office
Organizational
Change Management
Finance

19. Apply a Structured Change Management Approach to
AccelerateYour CloudTransformation
3. Envision the Future
4. Engage the Organization
This is the vision, where we are going!
This is how we get there together!
 Articulate vision and roadmap for transition to cloud
 Mobilize organization, build commitment, create change urgency
 Establish communication channels to gain and maintain buy-in, support,
and participation throughoutentire transition
 Leaders communicate future cloud vision
(via comprehensive messaging plan)
 Impacted business leaders reinforce new operating model (process/tech/org)
 Identify/assess impacted stakeholders
 Enlist and mobilize a Change Champion Network
 Drive ongoing communication, feedback – two-way conversations
 Address “how does this impact me?”
 Celebrate progress and control issues
Key Steps and
Considerations
 Paint a compelling vision
of the future
 Communicate the vision (often)
Source: Based on the work from our OCM consulting partner

20. Apply a Structured Change Management Approach to
AccelerateYour CloudTransformation
5. Enable Capacity
6. Make It Stick
This is how we make it happen!
Are we where we want to be?
 Ensure successful transition to cloud
 Align IT org structure, roles, processes with AWS platform
 Ensure all IT staff/key stakeholders can operate in new environment
 Ensure Cloud benefits and objectives are achieved
 Identify change impacts to IT roles, policy, org structure, process, etc.
 Modify IT roles, org structure, job descriptions and processes
(if needed) to support AWS
 Align IT staff to new operating model
 Develop and implement targeted training
 Setup measurement structures
 Measure and evaluate outcomes
 Course correct where needed
Key Steps and
Considerations
Source: Based on the work from our OCM consulting partner
Institutionalize new approaches
 Lasting change requires alignment
with shared
company culture and values
 Consider all aspects of your
operating model

21. Best Practice: DefineYour Desired
Operating Models
 Realize your operating model(s) will change and be intentional about where
your organization wants to land.
 Most companies will have multiple operating models.
Operating Model Evolution:
OpsDesign
Cloud
Engineering
Dev Team /
COTS
Infra
Apps
OpsDesign
DevOps
Cloud
Engineering
Infra
Apps
MSP
MSP

22. Best Practice: Evolution of Roles
Early inYour Journey, Define How IT Roles and DutiesWill Evolve
Duties Cloud Infrastructure Role Application Role
Design/validate/expand solution-independent
architectures and requirements
Cloud Enterprise Architect Cloud Enterprise Architect
Design/validate/expand solution-dependent architectures
and requirements
Cloud Infrastructure Architect Cloud Application Architect
Build the infrastructure/application Cloud Operations Engineer Application Developer
Specify security requirements Cloud Security Architect Cloud Security Architect
Manage, monitor, and enforce security Security Operations Security Operations
Build and manage fast and scalable workflows DevOps Engineer DevOps Engineer
Design and build automation solutions DevOps Engineer DevOps Engineer
Perform cost coding and cost optimization Financial Manager Financial Manager
Manage operational teams Program Manager Program Manager

23. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
ThankYou!

24. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
A P P E N D I X

25. Signs andWhatYou May Hear