{"id":24901,"date":"2018-03-07T11:07:22","date_gmt":"2018-03-07T19:07:22","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=24901"},"modified":"2021-11-19T13:20:11","modified_gmt":"2021-11-19T21:20:11","slug":"change-management-and-location-intelligence","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/change-management-and-location-intelligence","title":{"rendered":"Change Management Smooths Path to Millions in Savings"},"author":501,"featured_media":24721,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","castos_file_data":"","podmotor_file_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[1041,801,1011],"tags":[1121],"department":[476792],"wherenext-category":[],"industry":[],"class_list":["post-24901","wherenext","type-wherenext","status-publish","format-standard","has-post-thumbnail","hentry","category-collaboration","category-operational-intelligence","category-utilities","tag-change-management","department-cxo-priorities"],"acf":{"short_description":"A water utility serving 90,000 customers embraces change by placing location intelligence at the center of its operations.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"Bill Thompson was anguishing over an ever-deepening problem that threatened the ability of one of Tennessee\u2019s largest water providers to effectively serve its customers.\r\n\r\nAs general manager of the White House Utility District (WHUD) just north of Nashville, Thompson had always prided himself on being a practical executive\u2014one who didn\u2019t blindly follow the latest trends or conventional wisdom. He saw himself as a leader open to change and one who wanted employees to be empowered to make decisions without relying on layers of supervisors.\r\n\r\nBut he wasn\u2019t just open to change; Thompson had always tried to <em>anticipate<\/em> change. In 1992, when geographic information systems (GIS) were a rarity in the water industry, Thompson recognized the potential of the technology and began the implementation of GIS. He hoped the location-based system\u2014in conjunction with the customer information system (CIS) that governed WHUD\u2019s day-to-day operations and billing\u2014would give his workforce the information and confidence they needed to make decisions.\r\n\r\nThat\u2019s when Thompson realized that the issue was not simply managing the growth\u2014it was <em>how<\/em> WHUD was managing the growth. Technology had become a hindrance. The tools intended to empower employees were instead creating roadblocks, holding them back. So he did what he had done so many times before. He began exploring innovative ways to solve the problem by thinking outside industry norms.\r\n\r\nThompson researched new CIS platforms and held discovery sessions with vendors, seeking a solution that would help the utility district manage the growth it was facing. Thompson quickly found that none sufficed. The type of solution he had envisioned was not available.\r\n\r\n\"I kind of got ill about the whole thing,\u201d Thompson says. Still, he kept turning the problem over in his mind.\r\n\r\nThen, suddenly, the fog cleared.\r\n\r\n<strong>Iconoclastic Insights Spur Company-Wide Change<\/strong>\r\n\r\nThompson had two insights that would change the dynamics of the organization.\r\n\r\nFirst, he realized that despite his hopes for sharing data across departmental lines, WHUD had developed silos of information. The text-based CIS billing software was on one side and the map-based GIS\u2014containing information about the location and status of pipes, pumps, personnel, and other assets\u2014was on the other side. Information exchange between the two systems rarely happened. Employees tried to work around the issue, but their instinct to solve problems was stymied by a lack of connectivity and communication.\r\n\r\n\u201cThe systems have to be working for the people, not the people working for the systems,\u201d Thompson says. \u201cYou don\u2019t want to hear, \u2018We can\u2019t do this because the system won\u2019t allow it.\u2019\u201d"},{"acf_fc_layout":"quote","image":25081,"text":"Organizational change management . . . requires leadership dedication, involvement of employees at all levels, and constant communication. Transformational change is strategy-driven and stems from the top of the organization.","author_name":"Harry Hertz, Baldrige Program at NIST","author_profession_organization":""},{"acf_fc_layout":"content","content":"The problem was affecting everything, starting with the utility district\u2019s ability to effectively manage growth, and extending to how it served customers. Thompson knew that the WHUD representative answering a customer\u2019s phone call was the face of the organization. \u201cThe person you get on the phone\u2014that\u2019s the only person you know. That\u2019s the person who should be able to solve any service question or issue. In most instances, however, the customer service department is so detached from other parts of the organization they can\u2019t make decisions.\u201d As a result, employees felt limited in their ability to help customers and make decisions.\r\n\r\n\u201cOur GIS and our CIS were basically incompatible,\u201d Thompson says. \u201cThat meant you had to extract data out of one, analyze it, then use it to make a decision over in another. And by the time we did that, we lost a lot of time and frustrated too many customers and employees.\u201d\r\n\r\nHis second insight emerged when he looked at the system from the customer service point of view.\r\n\r\n\u201cAll of our employees need real-time information about the operating conditions occurring in the system, as well as the physical location of our field crews,\u201d Thompson says. \u201cAnd then it hit me: we\u2019re really going about this backwards. Everything we do is location based and asset based, so it only made sense that GIS should lead the way. It should be the driving force.\u201d\r\n\r\n<strong>Going against the Grain Yields Huge Gains in Efficiency and Savings<\/strong>\r\n\r\nFor most utilities, the customer information system is the dominant database\u2014whether user-friendly or not. But customer service reps need to know more than the current billing status to solve most problems. They should see a map of the customer\u2019s location with details of its maintenance and repair history, as well as the location of field service reps in the area and when they will finish current appointments."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<h2>What to Include in the Change Management Plan<\/h2>\r\nExecutives should consider these components of a change management plan:\r\n<ul>\r\n \t<li>Communication Plan\u2014Announce the plan and update employees on the changes.<\/li>\r\n \t<li>Sponsor Road Map\u2014The manner and points in which guides or mentors can help instruct, counsel, and reinforce changes.<\/li>\r\n \t<li>Training Plan\u2014Purposeful actions to build skills and capabilities. Training prepares employees to execute effectively on the upcoming change requirements.<\/li>\r\n \t<li>Coaching Plan\u2014The classes, group discussions, practice, review, and reinforcement used to ensure that new skills are acquired.<\/li>\r\n \t<li>Resistance Management Plan\u2014Dealing with those who are skeptical, rigid, or unwilling to learn new ways of working. Listening to concerns, offering help, dealing with any personal concerns that arise.<\/li>\r\n<\/ul>","snippet":""},{"acf_fc_layout":"content","content":"Field technicians and other personnel, who had been <a href=\"http:\/\/www.matchpointinc.us\/app\/uploads\/2017\/11\/WHUDplant.casestudy.pdf\">waiting hours<\/a> for information before attacking potential problems, would be able to gather relevant data on equipment status and maintenance history in minutes. New leak detection software would integrate with the GIS maps, helping the utility discover small leaks and quickly fix them before they grew into large problems.\r\n\r\nIt took about three years to create and implement the user-friendly, GIS-centric system. Business executives who have overseen an enterprise software implementation understand the demands of such a transformation: sound planning, patience, and a dedication to change management.\r\n\r\nFor Thompson, WHUD, and the communities they serve, the effort paid off handsomely. With the new technology in place, WHUD no longer needed to consider an urgent overhaul of the physical assets or the issuance of debt in reaction to the growing population. That bond has been postponed for at least 11 years. Interest payments on it would have <a href=\"http:\/\/www.matchpointinc.us\/case-studies\/example-set-white-house-utility-district\/\">topped $6 million<\/a> during the same period. Perhaps more important, through the integration of these systems, WHUD gained data continuity across the organization, which enabled Thompson and team to perform more-proactive strategic planning.\r\n\r\n<strong>Preparing the Workforce for Change<\/strong>\r\n\r\nAs WHUD planned for the overhaul of technology and business processes, Thompson knew there would be many concerns among WHUD\u2019s 100 employees. Would they have a job? What if they didn\u2019t have the right skills? What if they couldn\u2019t learn quickly enough?"},{"acf_fc_layout":"quote","image":24641,"text":"Long term, if a business isn\u2019t agile, and that includes the water business, if it\u2019s not flexible and can\u2019t adapt quickly, then you become antiquated, and you\u2019re effectively dead.","author_name":"Bill Thompson, WHUD","author_profession_organization":""},{"acf_fc_layout":"content","content":"It was a moment when rumors could lead to low morale and further inefficiency, and that could be disastrous for a utility providing vital services. Thompson, however, had complete faith in WHUD\u2019s team and was guided by the same goal he had always held dear. \u201cI wanted to give everybody . . . \u00a0as much information as they needed to do their job and be their own decision-maker.\u201d\r\n\r\nAs he prepared a change management strategy and training program, he showed an intuitive feel for the major points that professionals recommend: prepare for change; manage change; reinforce it. And be honest with employees.\r\n\r\nAs the implementation of the GIS-based system approached, he offered his team reassurance. \u201cWe\u2019re going to change the way we operate,\u201d Thompson told employees. \u201cIf you need education, if you need to get your skills shored up\u2014whatever you need\u2014we\u2019re going to help you get there. But we need you to understand we are going to do this, and we\u2019re going to turn this around in a different direction.\u201d\r\n\r\nEmployees knew the system had become inefficient. Still, they worried about the changes.\r\n\r\nTammy Moses, who is a field operations assistant (roughly equivalent to a customer service rep) with 13 years at WHUD, wondered if a new system meant new barriers. Would it be timely, user-friendly, and help her satisfy customers? \u201cIs it going to take me longer to do my job in an account?\u201d\r\n\r\nLevi Wyatt, a field technician supervisor (similar to a supervisor of work crews in the field) with five years at WHUD, was concerned about the new software. \u201cHow much time was it going to add to our workflow?\u201d he wondered. \u201cThe field tech position can be hectic, with little time to waste.\u201d\r\n\r\nIn keeping with change management strategies, Thompson repeated the message: We must change; I must change. But we will help you.\r\n\r\n(Learn more about the <a href=\"https:\/\/www.esri.com\/en-us\/landing-page\/change-management?adumkts=training&amp;aduc=pr&amp;adum=blogs&amp;aduSF=Where_Next&amp;utm_Source=pr&amp;aduca=T18DemandGen_Change_Management&amp;adulb=multiple&amp;adusn=multiple&amp;aduat=article&amp;adupt=lead_gen&amp;sf_id=70139000000nXqb\">impact of change management<\/a> on organizations.)\r\n\r\n<strong>Shifting the Workplace Culture<\/strong>\r\n\r\nThompson had gone through other implementations; he saw what resistance and confusion did to the atmosphere. To fend it off, he and the executive team prepared extensively and over-communicated. For two years, in nearly every monthly meeting, he talked about it. \u201cBy the time we were ready to implement, employees were tired of hearing me talk; they were excited to get under way with it.\u201d"},{"acf_fc_layout":"quote","image":24891,"text":"In the water business, even though a lot of times there\u2019s only one provider, the fact of the matter is that we should still strive to provide the same exceptional service that any other industry provides.","author_name":"Bill Thompson, WHUD","author_profession_organization":""},{"acf_fc_layout":"content","content":"As the technology overhaul got under way and the effort to change the workplace culture began to become more formalized, Thompson followed a key tenet of successful change: include stakeholders from all areas of the business in planning new workflows. He formed a committee that included representation from every department in the organization, regardless of how much or how little the transition would impact their work processes.\r\n\r\nSome of those employees became coaches and informal counselors, who assured their fellow employees that the training was to strengthen skills and not to spot weaknesses for which they would be punished.\r\n\r\nAs they figured out the best way to build the new system, Thompson sought feedback from those who would rely on it daily. \u201cIf it doesn\u2019t feel right or isn\u2019t working,\u201d he said, \u201ctell us and let\u2019s figure out what\u2019s wrong with it, because it needs to be what\u2019s best for you, not what I think, or the consultants think, is best.\u201d\r\n\r\nField supervisor Levi Wyatt was impressed by the GIS trainers. \u201cThe team was patient and made sure to really understand what information we needed or wanted to see. They even did a ride-along in the field to make sure everything was operating smooth.\u201d\r\n\r\nWyatt also liked the gradual way the message of change became part of their daily lives. His own message to workers facing similar changes in their organization: \u201cThe learning curve and the extra time and effort put into this will greatly benefit all of us, and our customers, in the long run.\u201d\r\n\r\n<strong>Change Management and ROI<\/strong>\r\n\r\n<a href=\"http:\/\/gsuite.google.com\/setup\/assets\/downloads\/value-change-management.pdf\">Studies have shown<\/a> that the more successfully a company manages change, the faster the return on investment in new technology or software. ROI of 135 percent is not uncommon with a good change management program.\r\n\r\nThe most important elements of success are <a href=\"https:\/\/www.prosci.com\/change-management\/thought-leadership-library\/importance-and-role-of-executive-sponsor\">engaged executives and senior leaders<\/a> who remain visible, vocal, and accessible throughout the process, according to studies by Prosci, a change management consulting firm. And Thompson was nothing if not engaged\u2014but he also displayed empathy that his employees valued.\r\n\r\n\u201cIf we were ever feeling overwhelmed, Bill always told us to hit the pause button and step away from it for a little bit if need be,\u201d said operations manager Rocky Reecer.\r\n\r\nThompson put it even more bluntly. \u201cI told all of our people, \u2018Look, you\u2019re going to get frustrated, you may get mad. You know what? I probably am too, but you can come in my office and get it off your chest and it\u2019s not going to bother me. You\u2019re not going to get fired. We\u2019re going to push, but we\u2019re not going to push in a way that you can\u2019t reach your potential.\u2019\u201d"},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<h2>The Stages of Change for Employees<\/h2>\r\n<ul>\r\n \t<li>Awareness\u2014Thompson and his team kept the entire organization aware of the scope of the coming changes.<\/li>\r\n \t<li>Desire\u2014Managers at WHUD reiterated that learning new skills would make the workflow more efficient and the employees more valuable.<\/li>\r\n \t<li>Knowledge\u2014Change managers repeated the message that everyone would be able to learn at their own pace in groups or with coaches.<\/li>\r\n \t<li>Ability\u2014Employees understood that in building new competencies, they were demonstrating the ability to work in a new system.<\/li>\r\n \t<li>Reinforcement\u2014Employees received praise and experienced greater empowerment in their work.<\/li>\r\n<\/ul>","snippet":""},{"acf_fc_layout":"content","content":"And, of course, even motivated employees will learn at different paces and in different ways. If one individual was having difficulty, WHUD managers would hold a group training session and use it as a way to quietly give that person individual attention. Even though it could mean more expense on the front end, Thompson thought it was the right thing and the practical thing to do. With success would come more efficiency, a more closely bonded team, and a grateful workforce.\r\n\r\n\u201cThey were good enough for us to hire,\u201d Thompson says. \u201cThey ought to be good enough to invest in.\u201d\r\n\r\nIn bottom-line terms, Prosci research shows that potentially disruptive projects paired with a people-focused change management plan are up to six times more likely to achieve their goals.\r\n\r\n<strong>Working in the New System<\/strong>\r\n\r\nPlacing GIS and location intelligence at the center of every employee\u2019s workflow has produced dramatic changes at WHUD.\r\n\r\nReecer, who has worked for the utility district for 15 years, was very happy to see the new GIS produce more accurate maps.\r\n\r\n\u201cIt has been nice to go out into the field with your iPad and be able to stand directly over something and it be right at your feet. An improved GIS has taken out a lot of the searching and potholing, and we have become more efficient.\u201d\r\n\r\nThat efficiency has allowed managers to allocate more time to leak detection, an effort that has saved the utility hundreds of thousands of dollars per year."},{"acf_fc_layout":"quote","image":25091,"text":"From a change management standpoint, I have always been the type of person that if it\u2019s new or it\u2019s better, we\u2019re going to do it. We\u2019re going to figure out how to do something the best way possible for the business and our customers.","author_name":"Bill Thompson, WHUD","author_profession_organization":""},{"acf_fc_layout":"content","content":"And the GIS-dominant system has tapped the power of location intelligence in new ways at WHUD, according to Thompson. \u201cWe have all our vehicles tracked in real time via GIS, so the customer service reps [CSR] can see who\u2019s the nearest if they need to dispatch somebody.\u201d\r\n\r\nWhen a customer calls WHUD now, the CSR taking the call sees the customer\u2019s data on one screen and a GIS-based map of the customer\u2019s location on a second screen. In other words, the silos of information are gone\u2014replaced by real-time location intelligence.\r\n\r\n\u201cEverything I need to see about the customer\u2019s meter and box locations, layout of property, our water and sewer lines is now at my fingertips,\u201d says CSR Tammy Moses.\r\n\r\n<strong>Lessons Learned\u2014Change Never Ends<\/strong>\r\n\r\nIt took more than three years to implement the new systems and work processes, as well as finish the retraining of WHUD\u2019s 100 employees.\r\n\r\nAs difficult as it was to face change and as happy as Thompson was to close this chapter, he knows the effort should not be set aside.\r\n\r\n\u201cIt\u2019s important to go through every single process,\u201d Thompson says. \u201cAnd when you finish doing that, you need to go back and revisit it about every two years because things will change, people change, and you need those processes documented so you know what\u2019s going on.\u201d\r\n\r\nAnd when there are new changes to manage, he advises: \u201cBe completely honest and not hide anything. Let them know what the goal is right from the very beginning. Because if a business isn\u2019t agile\u2014and that includes the water business\u2014if it\u2019s not flexible and can\u2019t adapt quickly, then you become antiquated, and you\u2019re effectively dead.\u201d\r\n\r\n&nbsp;\r\n\r\n<em>For more on the human factors involved in change management, <a href=\"https:\/\/www.esri.com\/about\/newsroom\/podcast\/change-management-for-digital-transformation-the-human-factor\/\">listen to this podcast<\/a>.<\/em>"},{"acf_fc_layout":"form","form_type":"bar","form_position":"Right","form_title":"THE ESRI BRIEF","form_desc":"connecting senior executives and business leaders with thought-provoking articles on location intelligence and critical technology trends.","form_button_label":"Sign up now","form_content":"https:\/\/go.pardot.com\/l\/82202\/2017-10-12\/jw1bmb","form_tag":"low-commitment-form\/sign-up-form"}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - 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