Key Elements of Change Management: Standardize, Centralize, Simplify

October 8th, 2007

I just read an interview featuring Bob Otto, the retiring CIO and CTO of the U.S. Postal Service in CIO Insight, and it excited me because I just know he is right on the money. If you want people to accept new technology it must be standardized, centralized and simplified.

After a discussion of the pace of change in technology during Otto’s tenure, interviewer Brian Watson asks him how he gets his people to accept change:

“I have three guiding principles—principles I’ve used since I was young. First, standardize everything. If you find a process you like, standardize it. Second, centralize everything you can. If you have services in five different places and you can centralize them, you will have reliability, predictability. Third, simplify. The computer has taken over your life, so I want it to be intuitive [for people to operate and manage]. I also test my own dog food. Everything we build has to pass the “Bob” factor. I put myself in the place of the lowest common denominator, of someone who might not have a high school degree. I look at how people could be intimidated by technology, and I don’t want them to have a hard time.”

I like the part about testing his own dog food; I’ve always tried to do that as well. Those are the same guidelines we use when we develop our enterprise software. We are aiming for a centralized information repository that enables our customers to look at a global enterprise from one dashboard.

Meanwhile other organizations are learning to standardize, centralize simplify when managing change based on new technology. Last year, ESS went into a Fortune 500 company and replaced 67 separate applications that were being used to monitor environmental health and safety, crisis management, waste and emissions. Replacing all those disparate applications with our integrated GRC platform, thereby standardizing and centralizing the operation, saved the company $1.5 million in support costs, upgrade costs and other direct costs associated with deploying those applications.

In addition, the company was able to redeploy 200 people who had previously been engaged merely in supporting those applications.

It goes without saying that the company was thrilled, but as I was driving home from the office yesterday it occurred to me that we had also minimized their risk.

How? It’s simple. All those applications prevent a company from having a holistic view of its business risk. Every silo of data is viewed separately, without the strategic overall perspective the company really needs.

What’s more, every separate application actually increases the risk involved in data integrity. When all that data is imported into a tool that does give an overall view, how do C-level managers know whether the data has become corrupt on its journey through the applications to the dashboard?

So I’ve come to the conclusion that our unified platform is itself a risk manager — preventing the corruption of data by giving the enterprise a way to look at all its data through the same lens.

So standardize, centralize and simplify works.

Although I am technical, much of our software is deployed at the plant level by people who do not have time to struggle with new technology and would rather ignore change if it doesn’t simplify their lives. They are busy. Ease-of-use is a must. What good is an all-in-one dashboard if the relevant information can’t be accessed by the guy in the plant as well?

Tags: bob otto change management cio insight disparate applications grc risk

Entry Filed under: Operational Risk Management, Corporate Governance, EHS/HSE Technology