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September 27, 1999

CIO Forum
Challenges Of Change

Training and support are keys to a successful changeover from mainframe to client-server computing

By Joe Durocher

he shift from a mainframe computing environment to one that's focused on networked PCs and the Web may sound simple, but it represents one of the most difficult challenges an IT manager will ever face in terms of impact on the user community. Such a massive shift affects virtually every facet of the business: sales, finance, human resources, database management, and links to external partners.

Since the summer of 1996, Hilton Hotels has been undergoing such a shift, beginning with the decision to replace our central reservation system with a three-tier, client-server system. We launched a $30 million reservation system, called Hilstar, in April, creating a network of nearly 500 hotels worldwide. It feeds real-time information directly into Hilton Reservations Worldwide, industry global distribution systems, individual Hilton hotels, and Hilton's Web site (www.hilton.com).

Adding complexity to the project was the fact that Hilton was adding new systems-which would be linked to Hilstar-for customer databases; national sales; catering; revenue management; and back-office systems such as general ledger, accounts payable, accounts receivable, payroll, and human resources. While the challenge of replacing so many systems is substantial, the quick pace of the changes raises difficulties even for the most streamlined companies.

The challenge can be visualized as a three-dimensional matrix in which the business units are listed on a horizontal axis, the systems are listed on a vertical axis, and time is listed on the third axis. Each intersection must be carefully managed so there are no conflicts or collisions.

Basic project-management rules must be followed closely, including financial controls, careful changeover controls, and extensive user involvement. Heightened project awareness across all business units is critical.

One obvious potential problem is the inability of end users to assimilate the changes. Individuals often are required to undergo several conversions. And not only does the system change, but the business process itself changes. This can be destabilizing for those not accustomed to rapid change.

Training is critical to user acceptance. It must be provided in a user-friendly format and in a timely fashion. Computer-based training often is required because it can be used as needed and can be reviewed after the conversion for reinforcement.

When a company makes a major systems change, senior business executives must be involved, educated, and supportive so that they can embrace the project and tout its progress. This includes not only executives from the head office, but business-unit exec- utives as well.

Team members are more motivated when upper management offers full support of a major systems change. Executive management must be involved continually as schedules ebb and flow so that there are no surprises with respect to systems delivery.

Finally, there's a need to celebrate successes. Celebrating the completion of the central reservation system served as a release as well as an acknowledgment that the team members had done an outstanding job and their efforts were appreciated.

You could ask, "Why not take more time to complete the restructuring and ease the impact on the organization?" The answer is that change is occurring at a frantic pace in today's business world, and there are solid business reasons for making these kinds of changes. Speed in project implementation is a requirement if a company wants to survive and maintain a competitive advantage.

With the changes come rewards, which materialize in the form of improved customer service, a more efficient work force, and potential cost savings. Companies that want to survive and thrive must embrace this increasing rate of change-and be prepared to deal with the inherent challenges.

Joe Durocher is CIO at Hilton Hotels Corp.

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