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Leading Organizational Change

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Backline Software Implementation Project

Our company currently has no consistent process across divisions in the preparation, approval and storage of the general ledger balance sheet reconciliations as required by company policy # 123-456. A system to process balance sheet reconciliations and measure due dates needs to be implemented as soon as possible to comply with company policy

Currently all the balance sheet reconciliations are prepared manually using a template. The reconciliations are printed and backup is attached. In some groups it is passed on to a manager for approval. A lot of time the reports are lost, there is no back up as to what makes up the balances in those accounts and a signed and approved copy is usually not available. The reports were rarely submitted in the proper time frame by the proper due date. There is no consistency with the process and employees were lost on what needed to be done. Our policy states that we are to prepare these reconciliations monthly by work day 10 and retain them for three years.

Many times the auditors have asked for these reports and they were not available. Sometimes the reconciliation could be found but was not approved. Sometimes no reconciliation could be found at all. This has resulted in a “finding” from the auditors for us not following our own policies. Implementing this application and creating a consistent process for the timely preparation and storing of these reports is the goal of this application implementation.

As a solution to this problem our company has installed a new software application for preparing and retaining monthly reconciliations for all of our balance sheet accounts. This is a new software application that has been selected. I am responsible for getting all the employees trained and setup in the system. I am also responsible for assigning all the general ledger accounts to all of the employees. Starting this month a training class will be held to get all the employees in the group trained and ready to incorporate this new system into their month end process.
A pilot program will take place in the next week. Process manuals will be available for all employees to refer to. On a monthly basis IT will upload all the numerical data as well as set up the correct due dates in the system. Employees will prepare the reconciliations by updating backup (invoices, schedules, and other documents) broken out by each appropriate dollar amount for each assigned general ledger balance sheet account. The preparer will certify their submission and a notice will go to the approver. They will approve. The system will record when the reconciliation has been fully submitted and approved. A report will be generated that will show that all reconciliations have been approved and submitted by workday 10. At the auditors request any reconciliation and backup will be easily accessible and available for review.

While as a manager I tend to lean towards a Coaching style of management for this project the best leadership model to use is a Situational Leadership Model. With the program being used by many different users a graduated approach is important to ensure all employees buy into the idea of a new software. Since this is an implementation of software that goes through phases, different leadership styles are needed at each step of the setup process. The best way to get the employees interested is take the approach of Directing, Coaching, Supporting, and Delegation. The ideal is to have the system set up and running smoothly within one year.
Directing Month 1 Training:
The Backline Program for completing the reconciliations is new software to the company. Managers and users of the system will need basic instructor led training. The system is not complex but there is a lot of information. The new program offers many benefits over the current system so to ensure the users keep this in mind the training has to be easy to keep the users from getting overwhelmed. The training class will be held over three days to allow for a slower pace and allow employees to absorb how robust the program really is. Instructors will guide employees through simulation training within the program. This will also allow for the slower learners to get more help and the faster learners to move forward. Manuals as back up will also be provided.

Coaching Months 1-3 Setting up the system: As the program goes into production users will get into the system and set up their own reconciliations. The general ledger accounts will be assigned to the preparer. The preparer will input the backup into the system and follow the process to submit the reconciliation for approval. Manuals will be available as a source of direction. Users will be encouraged to work through the process on their own. Managers will assist their employees as needed. Software company instructors will be available for any complex assistance needed. An additional summary/review training class will be held if needed for those users still having problems functioning within the system.
Supporting Months 4-10 Fine tuning the Process
It is expected that this step will be mostly hands off. The program will be up and running at full speed users should be clear on how to function in the system. Two S.M.E.s (subject matter experts) will be assigned for any needed assistance and motivation to the other users. Delegating- ongoing:
As we go into the next year it is expected that all the balance sheet accounts will have been set up and the system will be running smoothly. Users should have an understanding of the system and be completely self-sufficient in the process. Users should be updated on how well they are doing by using this system and following the requested due dates.
When and if necessary the four steps can be repeated.

Exhibit 1 Initiative Deliverable Planning Tool

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