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How to Manage Organizational Change and Cultural Impact During a Cloud Transformation - AWS Online Tech Talks

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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

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How to Manage Organizational Change and Cultural Impact During a Cloud Transformation - AWS Online Tech Talks

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 23. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. ThankYou!
  24. 24. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. A P P E N D I X
  25. 25. Signs andWhatYou May Hear

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